Abstract
Prosumer concept and digitilization offer the exciting potential of microgrid transactive energy systems at distribution level for reducing transmission losses, decreasing electric infrastructure expenditure, improving reliability, enhancing local energy use, and minimizing customers' electricity bills. Distributed energy resources, demand response, distributed ledger technologies, and local energy markets are integral parts of transaction energy system for emergence of decentralized smart grid system. Hence, this paper discusses transactive energy concept and proposes seven functional layers architecture for designing transactive energy system. The proposed architecture is compared with practical case study of Brooklyn microgrid. Moreover, this paper reviews the existing architectures and explains the widely known distributed ledger technologies (blockchain, directed acyclic graph, hashgraph, holochain, and tempo) alongwith their advantages and challenges. The local energy market concept is presented and critically analyzed for energy trade within a transactive energy system. This paper also reviews the potential and challenges of peer-to-peer and community-based energy markets. Proposed architecture and analytical review of distributed ledger technologies and local energy markets pave the way for advanced research and industrialization of transactive energy systems.
Highlights
Conventional power system uses mainly diesel, coal, and natural gas–based generation units for producing electric energy
This paper addresses the importance of MG-transactive energy system (TES) in particular and TES in general
This paper has summarized recent discussions on architectures, distributed ledger technologies, and local energy markets for realization of a microgrid transactive energy system in particular and a decentralized power system in general
Summary
Conventional power system uses mainly diesel, coal, and natural gas–based generation units for producing electric energy. Wholesale energy market collects the bids and offers of all participants It receives the cost signals for the use of transmission and distribution system for power exchange to determine MCP. Cloud-based TES is presented in [31] to minimize energy cost of prosumers and maximize profit of DERs. A centralized energy management system was developed for optimal economic operation of grid-connected multiple home MG system [32]. Network operator, prosumers, and active consumers share energy bids and offers through a transactive trading platform based on FIGURE 6. Home/building energy management systems (HEMSs/BEMSs) receives local MCP signals, which is used to start energy transactions and adjust power consumption and time-shift of IRLDs. MGO/EM layer (L2) refers to MGO that optimizes economic and operation objectives of MG system. They may discourage implementation of MG-TESs for having negative effects on traditional power system [47]
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