A Decentralised Transactive Energy Market Considering Physical System Constraints
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Date
2022-08-29
Authors
Pankhurst, Colton
Journal Title
Journal ISSN
Volume Title
Publisher
University of Waterloo
Abstract
Increasing levels of Distributed Energy Resources (DERs) are expected to play a key
role in achieving global electricity decarbonisation goals, providing both a challenge and
an opportunity for the electricity industry. Conventional approaches such as Net Energy
Metering (NEM) have been questioned regarding their effectiveness in properly rewarding
DERs, and larger efforts around the integration of DERs into wholesale markets do not
address potential value streams at the distribution system level. Local energy markets
leveraging direct Peer-to-Peer (P2P) trading have been proposed as a solution, which
can increase prosumer participation in lower cost and more reliable supply of energy to
consumers. Many approaches have been proposed to determine the optimal dispatch of
distributed resources; however, a gap remains in the research to date on how to efficiently
allow for prosumer decision autonomy while ensuring that the physical layer of the power
system is considered.
This thesis proposes a decentralised transactive solution that retains prosumer negotiation
and decision autonomy, while using network operator and market determined prices to
allocate limited system resources for a feasible, locally optimal system state. Peer-to-Utility
(P2U) transactions are added to existing P2P energy frameworks to obtain transactive
local peer decision criteria considering Peer-Centric (PC) and System-Centric (SC) objectives.
Peers are able to interact with wholesale electricity market derived prices through
P2U transactions, allowing for consideration of net export value in welfare maximising
decisions. The proposed approach includes a split transaction fee pricing mechanism for
virtual prosumer interactions that considers the networks characteristics such as topology
and operational constraints to ensure consideration of the physical layer in peer decision
making. In addition to pricing mechanisms for coupling the virtual and physical layers, a
congestion clearing process is proposed, which coordinates with the decentralised transaction
matching process and the Network Usage Charges (NUCs) to ensure efficient allocation
of network capacity.
Previously reported distribution networks are used to compare the transaction decisions,
economic performance, and system performance of the proposed solution with existing
approaches. The results demonstrate the effectiveness of the proposed method in
ensuring system feasible, locally optimal transaction sets with prioritisation of local peers.
Description
Keywords
decentralised, energy trading, local energy market, network usage charge, peer-to-peer trading, physical network, prosumers, transactive energy