Optimisation of Prosumers' Participation in Energy Transactions

There is an ongoing paradigm shift occurring in the electricity sector. In particular, previously passive consumers are now becoming active prosumers and they can now offer important and cost-effective new forms of flexibility and demand response potential to the electricity sector and this can translate into system-wide operational and economic benefits. This work focuses on developing a model where prosumers participate in demand response programs through varying tariff schemes, and the model also quantifies the benefits of this flexibility and cost-reductions. This work includes transactive energy trading between various prosumers, the grid and the neighborhood. A stochastic tool is developed for this analysis, which also allows the quantification of the collective behavior so that the periods with the greatest demand response potential can be identified. Numerical results indicate that the optimization of energy transactions amongst the prosumers, and including the grid, leads to considerable cost reductions as well as introducing additional flexibility in the presence of demand response mechanisms.