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 transactive energy framework that aims to address these challenges. In the first stage, the cost without trading is calculated which will serve as the reference in the profit maximization problem in the next stage. DER dispatch, power flows and initial transaction payments/incentives of the participants will then be determined in the second stage. A benefit allocation algorithm is applied in the third control stage to determine the optimal transaction price and final payments/incentives that will ensure fairness for trading participants. The proposed framework was tested in an IEEE 33-bus system and results show that fair benefits are given for all participants during trading and the system operates within the network and economic constraints.
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 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-…
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…
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…
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…
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 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…
Several autonomous energy management and peer-to-peer trading mechanisms for future energy markets have been recently proposed based on optimization and game theory. In this paper, we study the impact of trading prices on the outcome of these market designs for energy-hub networks. We prove that, for a generic choice of trading prices, autonomous peer-to-peer trading is always network-wide beneficial but not necessarily individually beneficial for each hub. Therefore, we leverage hierarchical game theory to formalize the problem of designing locally-beneficial and network-wide fair peer-to-pee…
