Designing a two-stage transactive energy system for future distribution networks in the presence of prosumers’ P2P transactions

Abstract

Electric distribution systems are becoming bidirectional and active due to rise of distributed energy resources, electric vehicles and prosumers. In this environment, a transactive energy system is required to not only coordinate the network with respect to the technical constraints, but also model P2P transactions between end-users, taking into account their data privacy and scalability issues. Therefore, a new two-stage transactive energy system is developed to balance the distribution network considering the behavior of different participants. At stage one, the role of orchestrator is modeled to manage the distribution network and its constraints by purchasing energy from up-stream grid, defining dynamic distribution locational marginal prices (DLMPs) or tapping on its storages. At stage two, prosumers make distributed decisions to use grid-sourced/self-generated energy or participate in P2P transactions based on the received DLMPs from stage one and their preferences. This two stage mechanism is solved through an iterative process until stopping criteria are met. The results indicate reduction in total import cost and energy from grid, compared to when no P2P transaction is considered. It is also shown that the proposed model converges to the optimal solution in proper time when the number of participants is increased.