The flexible roles of distributed energy storages in peer-to-peer transactive energy market: A state-of-the-art review

Abstract

With the development of distributed energy resources, the peer-to-peer (P2P) transactive energy market has emerged as an effective method for consuming the excess renewable energy on the end-user side. In the current research on transactive markets, distributed energy storages (DESs) have been widely applied in energy trading for transaction flexibility and system management. These small-scale energy storages have achieved a considerable momentum that, if properly harnessed, may unleash their potential for prosumers’ utility maximization, reserves for renewable energy uncertainty, and transmission congestion relief. The present work reviews distributed energy storage in the transactive market, classifying and analyzing 120 papers according to their applications, algorithms, and adopted policies. This study first identifies DES functions in wholesale and transactive markets and then provides the mathematical models of DESs in various transactive market types in detail. This paper then focuses on the pricing mechanism for the DESs’ contributions in the P2P transactive energy market. A transactive energy market mechanism for accommodating DESs is proposed based on the Vickrey–Clarke–Groves framework to meet incentive compatibility. The energy policies related to the promotion of DESs in electricity markets are listed and compared. Furthermore, this review highlights the possible questions and future development opportunities according to the analyzed studies. With the roles and relationships among aggregators, DES owners, and power grid determined, the benefit of participating P2P transactive market can be further improved.