Transactive energy management for microgrids considering techno‐economic perspectives of utility – a review

Abstract

In a power system, distributed energy resources, including renewables, are advantageous for reducing power transmission losses and environmental pollution. However, increasing penetration of distributed renewable energy sources is challenging as they may pose security issues to the grid and centralized control of quantum number of such sources is quite impossible. Microgrid based distribution system is facilitating integration of distributed renewable energy sources as they can supply the local loads and reduce burden on the grid. Moreover, distributed control mechanism of different microgrids enhances the functioning efficiency of the grid. However, intermittent and uncertain nature of renewables leads into demand-supply imbalance in a microgrid. Networked microgrids is new concept where the energy sharing between the microgrids may encourage renewable integration and reduce demand-supply imbalance. In order to manage such energy sharing among the different components in a microgrid or different microgrids in a networked structure, an appropriate energy management approach is necessitated. Transactive energy is an emerging technology for energy management in the distribution system, which uses market mechanisms for energy management. This paper discusses various types of market structures and market clearing approaches in transactive energy framework for energy management. Moreover, techno-economic perspectives of utility in transactive energy trading, such as network constraints and network usage charges, are elaborated.Finally, this review details the challenges and future scope in the transactive energy management of microgrids and networked microgrids.

Reviewing the impact of AI on renewable energy efficiency and management

“…Addressing the challenges posed by intermittent renewable sources is crucial for the integration of renewable energy into the grid. The intermittent nature of renewable energy sources, such as wind and solar power, leads to fluctuations in power output, posing challenges for grid stability and reliability (Kumar et al, 2022;Lin et al, 2019;Kies et al, 2016). These challenges include variability, uncertainty, and intermittency, which can affect the operational flexibility of power systems and the balancing of power generation (Lin et al, 2019;Kies et al, 2016).…”

A Novel Transactive Energy Market Model for Residential Energy Hubs

“…Battery charging and discharging variables are bound by a limiting constraint represented by the γ variables in (14). A boolean variable µ t,ch a,batt is used to ensure a battery does not simultaneously import and export energy and will equal 1 when the battery is charging.…”

“…Although TEM's can achieve significant financial benefits, they are subject to physical constraints of electrical infrastructure and the laws of physics [14]. A successful TEM should therefore optimise market outcomes while accounting for physical limitations and effects arising from their transactions [15].…”

Energía transactiva: una revisión de conceptos y aplicaciones en el marco de la transición energética

“…Sin embargo, no toda actividad con fines comerciales se hace entre pares en el contexto de la energía transactiva. De acuerdo con la interacción entre los participantes o pares se identifican distintos tipos de mercados: i) mercado descentralizado; ii) mercado basado en la comunidad o centralizado; iii) mercado híbrido o distribuido [19].…”