The burgeoning integration of distributed energy resources (DER) poses new challenges for the economic and safe operation of the electricity system. The current distribution-side policy is largely based on mandatory regulations and incentives, rather than the design of a competitive market mechanism to arouse DERs to freely compete in the retail market. To address this issue, we proposed a transactive retail market mechanism to attract the active participation of profit-driven DER retailers in a deregulated way. Considering the limited competitive property of the retail market, a bi-level DSO-dominated framework is constructed to simulate the virtual game between distribution system operator (DSO) and DER retailers. Specifically, the flexible interval pricing of retailers is modeled as a series of binary revenue constraints to influence the DSO's centralized economic dispatch decisions, where the time-varying distribution locational marginal price is adopted to settle energy activities at different locations over the time horizon. Due to the uncertain power flow path during the coordinated decision-making process, we proposed a general undirected second-order cone-based AC radial power flow model and provided sufficient conditions to ensure its exactness. Also, we applied a series of approximation and relaxation techniques to transform the bi-level mixed-integer quadratic framework with highly discrete induced domains into a solvable mixed-integer semidefinite programming problem. It is demonstrated in the case study that the proposed mechanism can not only improve market efficiency but also eliminate market power and the resulting market failures.
The development of distributed energy resources, such as rooftop photovoltaic (PV) panels, batteries, and electric vehicles (EVs), has decentralized our power system operation, where transactive energy markets empower local energy exchanges. Transactive energy contributes to building a low-carbon energy system by better matching the distributed renewable sources and demand. Effective market mechanisms are a key part of transactive energy market design. Despite fruitful research on related topics, some practical challenges must be addressed. This review surveys three practical issues related to…
The continuous penetration of distributed energy resources (DER) in the electric power grid is driving a new paradigm shift towards transactive energy system (TES), an active and more sustainable system characterized by distributed generation and energy exchanges among consumers and producers in the network. This transition, however, comes with challenges such as dealing with the nonlinear and non-convex power flows of the system, determining an optimal transaction price to maximize overall system welfare, and ensuring fairness for all participants. In this paper, we propose a three-stage tran…
Increasing penetrations of distributed energy resources (DERs) and responsive loads (RLs) in the electric power distribution systems calls for a mechanism for joint supply-demand coordination. Recently, several transactive/bilateral coordination mechanisms have been proposed for the distribution-level coordination of flexible resources. Implementing a transactive market coordination approach requires a secure, reliable, and computationally efficient multi-agent platform. An example of such a platform is VOLTTRON, developed by the Pacific Northwest National Laboratories (PNNL). The VOLTTRON pla…
The adoption of blockchain for Transactive Energy has gained significant momentum as it allows mutually non-trusting agents to trade energy services in a trustless energy market. Research to date has assumed that the built-in Byzantine Fault Tolerance in recording transactions in a ledger is sufficient to ensure integrity. Such work must be extended to address security gaps including random bilateral transactions that do not guarantee reliable and efficient market operation, and market participants having incentives to cheat when reporting actual production/consumption figures. Work herein int…
Although electric power networks and district heating networks are physically coupled, they are not operated in a coordinated manner. With increasing penetration of renewable energy sources, a coordinated market-based operation of the two networks can yield significant advantages, as reduced need for grid reinforcements, by optimizing the power flows in the coupled systems. Transactive control has been developed as a promising approach based on market and control mechanisms to coordinate supply and demand in energy systems, which when applied to power systems is being referred to as transactiv…
Electricity demand of electric railways is a relatively unexplored source of flexibility in demand response applications in power systems. In this paper, we propose a transactive control based optimization framework for coordinating the power grid network and the train network. This is accomplished by coordinating dispatchable distributed energy resources and demand profiles of trains using a two-step optimization. A railway based dynamic market mechanism (rDMM) is proposed for the dispatch of distributed energy resources (DER) in the power network along the electric railway using an iterative…
The proliferation of electric vehicles (EVs) and their inherent flexibility in charging timings make them an asset to improve grid performance. In contrast to direct control by a utility or autonomous price-based charging, the transactive control framework not only provides benefits to both grid and customers but also ensures customer autonomy. In this work, we design a transactive electric vehicle (TEV) agent that incorporates the EV owner's willingness to trade-off between savings and amenity in form of a slider, where the EV owner's amenity is characterized as vehicle readiness. Further, a …
The electricity distribution system is fundamentally changing due to the widespread adoption of variable renewable energy resources (VREs), network-enabled digital physical devices, and active consumer engagement. VREs are uncertain and intermittent in nature and pose various technical challenges to power systems control and operations thus limiting their penetration. Engaging the demand-side with control structures that leverage the benefits of integral social and retail market engagement from individual electricity consumers through active community-level coordination serves as a control lev…
The rapid growth of proactive consumers with distributed power generation and storage capacity, empowered by Internet of Things (IoT) devices, is transforming modern power markets into an independent, flexible, and distributed structure. In particular, the recent trend is peer-to-peer (P2P) transactive energy systems, wherein the traditional consumers became prosumers (producer+consumer) and can maximize their energy utilization by sharing with neighbors without any conventional intermediary intervention in the transactions. However, the competitive dynamic energy pricing scheme is inevitable …
The increasing adoption of renewable energy sources increases the need for balancing power. The security concerns of the distribution system operators are increasing due to fast adoption of distributed energy resources. So far, various operational models are proposed to manage the distributed energy resources for economic benefit. However, there is lack of an efficient operational model that balances the security, market, and uncertainty management. With the focus on the aggregators operation, this paper developed an operational model for continuous operation of aggregators interactively with …
Transactive microgrids have emerged as a transformative solution for the problems faced by distribution system operators due to an increase in the use of distributed energy resources and rapid growth in renewable energy generation. Transactive microgrids are tightly coupled cyber and physical systems, which require resilient and robust financial markets where transactions can be submitted and cleared, while ensuring that erroneous or malicious transactions cannot destabilize the grid. In this paper, we introduce TRANSAX, a novel decentralized platform for transactive microgrids. TRANSAX enable…
To accommodate the advent of microgrids (MG) managing distributed energy resources (DER) in distribution systems, an interactive two-stage joint retail electricity market mechanism is proposed to provide an effective platform for these prosumers to proactively join in retail transactions. Day-ahead stochastic energy trading between the distribution system operator (DSO) and MGs is conducted in the first stage of a centralized retail market, where a chance-constrained uncertainty distribution locational marginal price (CC-UDLMP) containing the cost of uncertainty precautions is used to settle t…
In this paper, the privacy and security issues associated with the transactive energy system (TES) deployment over insecure communication links are addressed. In particular, it is ensured that (1) individual agents' bidding information is kept private throughout hierarchical market-based interactions; and (2) any extraneous data injection attack can be quickly and easily detected. An implementation framework is proposed to enable the cryptography-based enhancement of privacy and security for the deployment of any general hierarchical systems including TESs. Under the proposed framework, a unif…
Most power systems are increasingly based on distributed energy resources, leading to a strong impact on the electrical grid management. In the case of Portugal, the contribution of renewable energy sources to the electricity generation portfolio is already high and the objective is to achieve 100% by 2050. Most of the new renewable generation capacity will be ensured by distributed photovoltaic generation installed in buildings and therefore the inherent intermittence of photovoltaic output combined with a mismatch with demand profile will challenge the operation and resiliency of the electri…
Despite extensive research in the past five years and several successfully completed and on-going pilot projects, regulators are still reluctant to implement peer-to-peer trading at a large-scale in today's electricity market. The reason could partly be attributed to the perceived disadvantage of current market participants like retailers due to their exclusion from market participation - a fundamental property of decentralised peer-to-peer trading. As a consequence, recently, there has been growing pressure from energy service providers in favour of retailers' participation in peer-to-peer tr…
The increasing trend of transportation electrification presents investors the opportunity to provide charging services to Electric Vehicle (EV) owners via the energy purchased from the wholesale electricity market. This will benefit EV owners with the availability of competitive rates compared to the regulated utility time-of-use (TOU) rates. The fundamental questions addressed in this paper are 1) will EV owners benefit from the additional choice of Electric Vehicle Charging Stations (EVCSs) compared to home charging? 2) is there any profitable market opportunity for charging stations while t…
The increasing penetration of intermittent renewables, storage devices, and flexible loads is introducing operational challenges in distribution grids. The proper coordination and scheduling of these resources using a distributed approach is warranted, and can only be achieved through local retail markets employing transactive energy schemes. To this end, we propose a distribution-level retail market operated by a Distribution System Operator (DSO), which schedules DERs and determines the real-time distribution-level Locational Marginal Price (d-LPM). The retail market is built using a distrib…
In this paper, a distribution system operator (DSO) framework is proposed to optimally coordinate distributed energy resources (DER) aggregators' comprehensive participation in retail energy market as well as wholesale energy and regulation markets. Various types of DER aggregators, including energy storage aggregators (ESAGs), dispatchable distributed generation aggregators (DDGAGs), electric vehicles charging stations (EVCSs), and demand response aggregators (DRAGs), are modeled in the proposed DSO framework. Distribution network constraints are considered by using a linearized power flow. T…
In recent years extensive research has been conducted on the development of different models that enable energy trading between prosumers and consumers due to expected high integration of distributed energy resources. Some of the most researched mechanisms include Peer-to-Peer energy trading, Community Self-Consumption and Transactive Energy Models. Here, we present an exhaustive review of existing research around Local Energy Market integration into distribution systems, in particular benefits and challenges that the power grid can expect from integrating these models. We also present a detai…
In this paper, a framework is proposed to coordinate the operation of the independent system operator (ISO) and distribution system operator (DSO) to leverage the wholesale market participation of distributed energy resources (DERs) aggregators while ensuring secure operation of distribution grids. The proposed coordination framework is based on parametric programming. The DSO builds the bid-in cost function based on the distribution system market considering its market player constraints and distribution system physical constraints including the power balance equations and voltage limitation …
Distributed energy resources behind the meter and automation systems enable traditional electricity consumers to become prosumers (producers/consumers) that can participate in peer-to-peer exchange of electricity and in retail electricity markets. Emerging prosumers can provide benefits to the system by exchanging energy and energy-related services. More importantly, they can do so in a more honest and more competitive way than the traditional producer/consumer systems. We extend the traditional Cournot model to show that the dual nature of prosumers can lead to more competitive behavior under…
In this paper, a distribution system operator (DSO) framework is proposed for comprehensive retail and wholesale markets participation of distributed energy resource (DER) aggregators under uncertainty based on two-stage stochastic programming. Different kinds of DER aggregators including energy storage aggregators (ESAGs), demand response aggregators (DRAGs), electric vehicle (EV) aggregating charging stations (EVCSs), dispatchable distributed generation (DDG) aggregators (DDGAGs), and renewable energy aggregators (REAGs) are modeled. Distribution network operation constraints are considered …
Prosumer consortium energy transactive models can be one of the solutions for energy costs, increasing performance and for providing reliable electricity utilizing distributed power generation, to a local group or community, like a university. This research study demonstrates the simulation of blockchain based power trading, supplemented by the solar power prediction using MLFF neural network training in two prosumer nodes. This study can be the initial step in the implementation of a power trading market model based on a decentralized blockchain system, with distributed generations in a unive…
The new technologies emerging in the energy sector pose new requirements for both the regulation and operation of the electricity grid. Revised tariff structures and the introduction of local markets are two approaches that could tackle the issues resulting from the increasing number of active end-users. However, a smooth transition from the traditional schemes is critical, thus creating the need for architecture that can be implemented in the current circumstances. This paper proposes a local market concept and a corresponding dynamic tariff system, which can be operated parallel to the curre…
An Integrated Optimization + Learning Approach to Optimal Dynamic Pricing for the Retailer with Multi-type Customers in Smart Grids
School of Engineering and Computing Sciences, Durham University（工程与计算科学学院，达勒姆大学）；School of Computer Science, The University of Manchester（计算机科学学院，曼彻斯特大学）；College of Information System and Management, National University of Defense Technology（信息系统与管理学院，国防科技大学）；School of Mathematics, University of Edinburgh（数学学院，爱丁堡大学）；School of Information and Control Engineering, China University of Mining and Technology（信息与控制工程学院，中国矿业大学）
