Transactive Energy Pricing in Power Distribution Systems

In the past years, demand response has been developed as a technique to tackle intermittency in the power generation of renewable generators. However, unpredictability of the responses of demand response providers to the price of electricity is a major drawback of relying on demand response programs. Transactive Energy is an emerging framework to address the above shortcoming. In this paper, a power market is developed for power distribution systems that enables power consumers to exchange transactive energy in real time operation of distribution systems. Furthermore, using law of supply and demand the real time value of transactive energy is derived.