Decentralized Transactive Energy Management Framework for Distribution Systems

Increased penetration of renewable energy-based plug-able and Distributed Energy Resources (DER) brings new challenges to distribution systems. To address these changes, the power system experts promote Transactive Energy (TE) models. Transactive Energy is a concept of providing control over energy exchange by integrating electricity markets and auction mechanisms. Numbers of studies on TE have shown a positive effect of TE management systems on distribution system efficiency, security, and reliability. However, it is still difficult to suggest TE model that will consider majority of distribution network constraints. The constraints include power allocation, voltage stability, network losses, congestion constraints and others. In the past Optimal Power Flow (OPF) method was used for distribution system management. Therefore, this thesis concentrates on modelling and simulation of feasible TE framework. In addition, more attention will be given for energy scheduling utilizing Distribution Locational Marginal Price (DLMP). The DLMP is key parameter that determine true cost of energy accounting topology, power losses, congestion, and other parameters. Therefore, this work will examine DLMP based Transactive Energy framework for distribution systems with enthusiastic or smart prosumers. The framework uses MAS as the basis on which the proposed Transactive Energy (TE) model, i.e. DLMP based TE Management System (DTEMS), is implemented. DTEMS uses a novel metric known as nodal earning component, which is determined by the optimal power flow (OPF) based smart auction mechanism, to schedule the TE transactions optimally among the stakeholders by alleviating the congestion in the distribution system. Based on the individual contributions to the congestion relief, DTEMS ranks the prosumers and loads as Most Valuable Players (MVPs) and assigns the energy trading price according to the category of the player. The effectiveness of the proposed TE model is verified by simulating the proposed DTEMS for a modified 33 bus radial distribution system fed with various plug-able energy resources, prosumers, and microgrids