Centralized peer-to-peer transactive energy market approach in a prosumer-centric residential smart grid environment

Abstract

Transactive energy trading, control, and management have gained much importance, receiving significant interest from both industry and academia. As a result, new strategies for its development and implementation are emerging. Prosumage, which combines household loads with solar PV and battery storage systems, has been presented as an effective technique for facilitating the integration of renewable energy sources while reducing distribution grid stress. Therefore, this paper proposes a grid-connected prosumer-centric residential smart community that uses cooperative game theory to exchange, regulate, and plan surplus energy generated by distributed energy resources (DERs) with the other neighbouring prosumers with energy deficits. The energy community considered in this work comprises ten identical prosumers (residential load, solar PV, and battery storage system), an energy community manager, and an energy retailer, all of whom are linked as a group to a distribution grid. The proposed market model seeks to examine the economic benefits of such renewable sources participating in centralized transactive energy trading. A centralized approach is adopted in the transactive energy trading among the ten proactive prosumers and the power grid through an energy community manager that administers trading activities inside the energy community. An optimization model is proposed in the centralized transactive energy trading market to optimize the financial benefits of rooftop solar PV-battery systems. The proposed model will not only optimally exchange, plan, and regulate the community domestic load, but it will also minimize total energy costs, increase system operation efficiency, and reduce system operating stress and carbon emissions.