A Fully Decentralized Hierarchical Transactive Energy Framework for Charging EVs With Local DERs in Power Distribution Systems

The penetration rates of both electric vehicles (EVs) and distributed energy resources (DERs) have been increasing rapidly as appealing options to address the global problems of carbon emissions and fuel supply issues. However, uncoordinated EV charging activities and DER generation result in operational challenges for power distribution systems. Therefore, this article has developed a hierarchical transactive energy (TE) framework to locally induce and coordinate EV charging demand and DER generation in electric distribution networks. Based on a modified version of the alternating direction method of multipliers (ADMMs), two fully decentralized (DEC) peer-to-peer (P2P) trading models are presented, that is, an hour-ahead market and a 5-min-ahead real-time market. Compared to existing P2P electricity markets, this research represents the first attempt to comprehensively incorporate alternating current (ac) power network constraints into P2P electricity trading. The proposed TE framework not only contributes to mitigating operational challenges of distribution systems, but also benefits both EV owners and DER investors through secured local energy transactions. The privacy of market participants is well preserved since the bid data of each participant are not exposed to others. Comprehensive simulations based on the IEEE 33-node distribution system are conducted to demonstrate the feasibility and effectiveness of the proposed method.