Modeling of Priority-based Decentralized Hierarchical Energy Trading System: An Initiative towards C2C Trading

The concept of transactive energy management (TEM) plays an inevitable role in reducing the reliance on centralised power generation. Integration of natural renewable energy resources along with the grid helps to improve the economic benefit of users. The energy balance of a community can be enhanced with the help of a transactive energy framework. This architecture will alleviate the strain on the utility grid during peak hours. The cost of energy involved in the energy transaction depends on the bidding price of TEMS’s users, which is quoted as the market clearing price. This paper provides a hierarchical energy transaction system framework based on the priority level of individual energy traders. In this study, a four-layer hierarchical architecture has been proposed in order to enhance the user’s cost-benefit, which streamlines energy sharing among peers, the community, and the utility grid. Different pricing concepts have been used in the different layers of the proposed four-layer architecture. The residential community, which consists of 10 residential buildings, a community microgrid, renewable energy sources, and an EV charging station, has been taken into consideration for this study. The study results show that almost all the participants are economically benefited by the proposed PDHETS framework. It is also found that the proposed architecture reduces the electricity bill of every individual community by 25–50%.