Distributed peer-to-peer transactive residential energy management with cloud energy storage

Abstract

Transactive energy management stimulates residential prosumers to participate in a local market. This improves energy efficiency and reduces energy costs. An effective method to reduce consumers' electricity bills is the usage of energy storage devices. However, the high investment and maintenance costs of these devices still limit their applications in the individual distributed framework. Recently, cloud energy storage (CES) as a shared energy storage technology has been introduced to provide storage services for residential consumers at a lower cost. In order to overcome the limitations of the individual framework and create new economic prospects, the CES is used in this paper to support numerous residential consumers in the energy market. This paper proposes an optimal energy management model in a transactive energy framework based on a distributed optimization mechanism for peer-to-peer (P2P) energy trading with the usage of the alternating direction method of multipliers. In this cooperative structure, residential users and CES participate in a decentralized framework to reach a consensus that preserves their privacy. In this proposed model, different types of loads, distributed energy resources and users' costs consisting of the grid energy cost, the P2P energy cost, the battery degradation cost, the thermal discomfort cost, the interruption cost, and the daily investment cost for individual batteries and CES are considered. The effectiveness of the proposed model is verified through various simulations. Numerical results show that the presence of CES in the proposed model and its participation in P2P energy trading reduces the cost of residential users, decreases the energy demand from the network, and increases CES owner's profit. Therefore, the application of the proposed model is valuable for the residential users, CES, and the grid.