Decentralized transactive energy market framework under network constraints to deal with technical issues in a radial distribution network

Abstract

A growing number of distributed energy resources (DERs) connected to the distribution network presents operational challenges. Therefore, it is crucial to develop an effective framework to address these challenges. In this paper, a novel transactive energy market (TEM) framework is proposed in two levels based on the concept of a network usage fee (NUF) to address technical issues. We perform the peer matching process using a primal-dual algorithm at a lower level. We consider distribution system operation (DSO) operations (e.g., Volt/VAR control and network reconfiguration) and NUF to maintain network constraints and to provide an optimal network topology to facilitate energy trading. The proposed framework has been tested on an IEEE 33-bus distribution network. A key issue relating to the coordination of DERs in distribution networks is addressed in the results. In the proposed NUF, the sensitivity analysis is used to fully diagnose the portion of each TE agent in power loss, congestion, and voltage violations. A fair penalty or incentive signal can be generated to ensure that the network operates within the limits. Furthermore, the proposed framework ensures that the privacy of agents is protected. DSO operation facilitates the trading of energy and minimizes interference with their schedules.