Chapter 14 - Integration of Distributed Energy Resources Under the Transactive Energy Structure in the Future Smart Distribution Networks

Abstract

Nowadays, due to increasing of electric energy consumption and environmental problems caused by power plants with fossil fuels, the use of renewable energies in the power system is essential. Renewable energy resources, such as solar and wind, have a direct dependence on climate conditions. Because of uncertainty in weather forecasting, the production of renewable energy resources will also be faced with uncertainty. The intermittent nature of the production of renewable energy resources has created specific challenges in the operation of these resources. Therefore, with increasing penetration levels of distributed energy resources (DERs), electrical power system has been facing basic problems with balancing between supply and demand and increasing reliability in the power grid. In order to respond to these problems, the integration of DERs is proposed as an appropriate solution to supply energy for consumers in a reliable manner. However, the presenting and applying a reliable method for integration of DERs has created new challenges for the power system operators. In this regard, supporters of transactive energy (TE) propose reasonable arguments for the integration of DERs into a market environment. In this integration, the standpoint of overall energy economics, facilitating technology adoption, customer choice, encouraging innovation, and other effective parameters are considered. Hence, TE is introduced as a strong contender for integration of a wide range of DERs in the smart distribution network. Generally, TE is consisted of a set of control and economic mechanisms, which presents the new dynamic model to balance between energy supply and demand in the networks with smart structure. In addition, TE has the intelligent agents with advanced technology, which are used in dynamic balancing process in the environment with high penetration of DERs. The agents are complicated software, which plays an important role in achieving the goals of smart distribution networks and each of them responsible for the DERs and other controllable devices in the power system. In the smart distribution networks, integration of DERs can be realized through the communication between TE agents using the telecommunication signals under the pilot method. In addition, all agents exchange information with each other to determine the total amount of energy supply and demand at any time, which this information will help power system planners make the best decision for the distribution network. Consequently, TE technology is a good idea for the future distribution networks with the purpose to increase the convenience for consumers and improve the system reliability index.