A two-layer incentive-based controller for aggregating BTM storage devices based on transactive energy framework

In this paper, a two-layer controller is proposed to aggregate a fleet of behind-the-meter (BTM) energy storage devices based on the Transactive Energy (TE) concept. In the proposed model, aggregator offers an incentive to consumers to purchase power from and/or sell the excess power back to the grid. To do so, controller at the aggregator's side determines optimal incentive which has to be offered to consumers by maximizing its own profit. Then, local controller at the consumer's location optimizes battery operation by calculating purchased/sold power from/to the grid based on the local demand, PV generation, retail time-of-use (ToU) prices and demand charge, and the incentive offered by the aggregator to maximize its own profit. Different optimization problems are formulated in the two layers, and the profit of aggregator and consumers in the day-ahead energy market under perfect and imperfect prediction scenarios are compared.