Optimal Bidding Strategy of Transactive Agents in Local Energy Markets

Ghorani, Rahim; Fotuhi‐Firuzabad, Mahmud; Moeini‐Aghtaie, Moein

doi:10.1109/tsg.2018.2878024

Cited by 65 publications

(55 citation statements)

References 22 publications

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“…These two general approaches were discussed in Sections 2.1 and 2.2, and their implementation drawbacks were identified. On the other hand, though many recent publications have addressed power system risk with integration of renewable energy sources [22][23][24], the third introduced solution (explicit integration of power procurement risk in the settlement mechanism of TM) is not extensively studied, and further investigations are necessary for evaluating its effectiveness in TMs.…”

Section: Proposed Methodology and Contributionsmentioning

confidence: 99%

Market design for integration of renewables into transactive energy systems

Ghorani

Farzin

Fotuhi‐Firuzabad

et al. 2019

IET Renewable Power Generation

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One of the major challenges of integrating distribution level producers/consumers (prosumers) into the transactive energy market is that the prosumers are not able to precisely predict their energy exchange with the market. This is because small prosumers usually operate intermittent renewable sources and have highly uncertain consumptions. As a consequence, traditional wholesale market mechanisms cannot be implemented in the transactive environment, as they penalise the participants with uncertain energy transactions, and therefore discourage the small prosumers from participating in the market. To this end, novel market design is introduced in this study, which enables distribution system operator to incorporate both the submitted price-quantity bids and the associated risks of prosumers into the settlement process. The proposed market design maximises the social welfare while managing the undesired costs caused by the stochastic nature of participants. The settlement mechanism is formulated as a quadratic problem, which can be efficiently solved for the transactive energy markets with a large number of participants. To demonstrate the merits of the proposed approach, it is implemented on a sample transactive energy market, and the results are discussed. Nomenclature Parameters and constants α penalty factor associated with the uncertainties in wholesale energy transactions r i Min , r i Max minimum and maximum consumption limits of prosumer i S kl max maximum apparent power flow of the tie line k to l

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Section: Proposed Methodology and Contributionsmentioning

confidence: 99%

Market design for integration of renewables into transactive energy systems

Ghorani

Farzin

Fotuhi‐Firuzabad

et al. 2019

IET Renewable Power Generation

Self Cite

View full text Add to dashboard Cite

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“…Decomposition approach was used in [131] to solve a distributed optimal power flow problem for efficient energy trading among peers. Bidding strategies was proposed in [132] for both risk-averse and risk-neutral peers, while taking into account the expected profit and transaction risk factors.…”

Section: A P2p Energy Marketmentioning

confidence: 99%

Microgrid Transactive Energy: Review, Architectures, Distributed Ledger Technologies, and Market Analysis

et al. 2020

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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-topeer 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. INDEX TERMS Blockchain, decentralization, demand response, distributed ledger technologies, energy trading, local energy market, microgrid, peer-to-peer market, prosumer, renewable energy sources, smart grid, system architectures, transactive energy.

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“…[5] and [4], this interaction specifically deserves further attention in future literature and its effects on individual prosumers might not be fully mapped today. x x [62] x [99] x x [100] x [101] x [102] x x x [103] x x x [104] x x x [105] x x x x [48] x x x x [106] x x x [107] x x [108] x [109] x x [110] x x [111] x x x [112] x x [113] x x x [114] x x x [115] x x x [116] x x [117] x…”

Section: E Social Aspectsmentioning

confidence: 99%

“…In Ref. [116], the DSO performs an AC PF analysis after each market clearing and informs the D R A F T x x [70] x x [94] x x x [95] x x [96] x x x x [97] x x [98] x x x [62] x x x x [99] x x x x [100] x x x x [101] x x x [102] x x x [103] x x x [104] x x [105] x x [48] x [107] x x x x [108] x x [109] x x x [110] x x x [111] x x x [112] x x x [156] x x x x [113] x x x [114] x x x [115] x x [116] x x [117] x x [118] x x [119] x x [120] x x [121] x x [122] x x [123] x x x [124] x x x [125] x x x x [81] x x x x [126] x [127] x x x [47] x [129] x x [130] x x [131] x x x [132] x x [133] x x [118] x x [134] x x x…”

Section: ) Literature Focus: Cooperative Gamesmentioning

confidence: 99%

Developments and Challenges in Local Electricity Markets: A Comprehensive Review

et al. 2021

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In recent years, power systems have undergone changes in technology and definition of the associated stakeholders. With the increase in distributed renewable generation and small-to medium-sized consumers starting to actively participate on the supply side, a suitable incorporation of decentralized agents into the power system is required. A promising scheme to support this shift is given by local electricity markets. These provide an opportunity to extend the liberal wholesale markets for electrical power found in Europe and the United States to the communal level. Compared to these more established markets, local electricity markets, however, neither have few practical implementations nor standardized frameworks. In order to fill this research gap and classify the types of local electricity markets, the presented paper therefore starts with the challenges that these markets attempt to solve. This is then extended to an analysis of the theoretical and practical background with a focus on these derived challenges. The theoretical background is provided in the form of an introduction to state-of-the-art models and the associated literature, whereas the practical background is provided in form of a summary of ongoing and recent projects on local electricity markets. As a result, this paper presents a foundation for future research and projects attempting to approach the here presented challenges in distribution of generation, integration of demand response, decentralization of markets and legal and social issues via local electricity markets.

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Optimal Bidding Strategy of Transactive Agents in Local Energy Markets

Cited by 65 publications

References 22 publications

Market design for integration of renewables into transactive energy systems

Market design for integration of renewables into transactive energy systems

Microgrid Transactive Energy: Review, Architectures, Distributed Ledger Technologies, and Market Analysis

Developments and Challenges in Local Electricity Markets: A Comprehensive Review

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