Transactive energy market in distribution systems: A case study of energy trading between transactive nodes

This paper introduces a new transactive energy (TE) scheme to determine energy trading strategies among transactive market participants in a transactive environment. In our proposed approach, distribution systems operator (DSO) generates distribution locational marginal price (DLMP) for transactive nodes (TNs). Then, TNs calculate transactive incentive signal (TIS) and transactive feedback signal (TFS), and send them back to the DSO as feedback signals. In the case that a TN has surplus energy to sell to its neighboring node, it will update TIS for its neighboring TN. If the updated TIS is less than the DLMP, which is determined by the DSO for a potential buyer, energy transaction will be performed. In this paper, only photovoltaic (PV) is considered as renewable energy resource (RES) and simulation results are carried out for a planning period of 30 years that is an expected lifetime of the PV arrays. In our proposed TE approach, all transactive market participants have their own benefits, and net benefits for DSO and all transactive market participants are analyzed. To validate the effectiveness of the proposed TE approach, a 9-bus test system is considered as the case study.