Comprehensive platform for distribution transactive energy markets

Abstract

Abstract Reducing the cost of distributed energy resources (DERs) such as renewables, storage, electric vehicles and smart loads is driving their increased connection to distribution systems. Extracting maximum benefits from DERs require liberalising distribution systems by allowing: (1) a distribution transactive energy market (DTEM) operated by a local distribution operator (LDO) and (2) peer‐to‐peer (P2P), peer‐to‐LDO (P2LDO) and Transmission‐to‐LDO (T2LDO) type transactions. A DTEM will bring several benefits such as: (1) enhanced economic opportunity for DERs, making them more profitable and (2) increased social welfare benefiting both buyers and sellers. To achieve this objective, we develop a comprehensive three‐phase DTEM platform that provides maximum economic opportunities for DERs and maximises social welfare that benefits all market participants, while considering P2P, P2LDO and T2LDO transactions, for both energy and ancillary services. Interaction between bulk electricity market independent system operator (ISO) and LDO controlled DTEM is presented. The DTEM model is implemented as a practical mixed‐integer linear programming formulation that includes a network reconfiguration feature. The DTEM model is studied on three‐phase 5‐bus and 34‐bus systems, demonstrating its effectiveness to settle energy and ancillary service transactions, while obtaining distribution locational marginal prices. Results show that P2P transactions, when allowed, increase social welfare and increases profitability of DERs.

Keywords

• Optimisation techniques
• Distributed power generation
• Power system management, operation and economics
• Distribution networks