Transactive System: Part II: Analysis of Two Pilot Transactive Systems using Foundational Theory and Metrics

Abstract

The increased penetration of renewable energy has significantly changed the conditions and the operational timing of the electricity grid. More flexible, faster ramping resources are needed to compensate for the uncertainty and variability introduced by renewable energy. Distributed energy resources (DERs) such as distributed generators, energy storage, and controllable loads could help manage the power grid in terms of both economic efficiency and operational reliability. In order to realize the benefits of DERs, coordination and control approaches must be designed to enable seamless integration of DERs into the power grid. Transactive coordination and control is a new approach for DER integration, where individual resources are automated and engaged through market interaction. Transactive approaches use economic signals-prices or incentives-to engage DERs. These economic signals must reflect the true value of the DER contributions, so that they seamlessly and equitably compete for the opportunities that today are only available to grid-owned assets. Value signals must be communicated to the DERs in near-real time, the assets must be imbued with new forms of distributed intelligence and control to take advantage of the opportunities presented by these signals, and they must be capable of negotiating and transacting a range of market-driven energy services. The concepts of transactive energy systems are not new, but build upon evolutionary economic changes in financial and electric power markets. These concepts also recognize the different regional structures of wholesale power markets, electricity delivery markets, retail markets, and vertically integrated service provider markets. Although transactive energy systems are not revolutionary, they will be transformational in their ability to provide flexibility and operational efficiency. A main goal of this research is to establish a theoretical foundation for analysis of transactive energy systems and to facilitate new transactive energy system design with demonstrable guarantees on stability and performance. Specifically, the goals are to (1) establish a theoretical basis for evaluating the performance of different transactive systems, (2) devise tools to address canonical problems that exemplify challenges and scenarios of transactive systems, and (3) provide guidelines for design of future transactive systems. First, mathematical models for key elements of transactive systems that are consistent with existing control theory need to be developed. In cases where no mathematical treatment is possible under existing control or economic theory, the theory itself must be extended to allow new mathematical models for transactive energy systems. In addition, performance metrics are needed to quantify potential limitations of existing transactive energy systems. This document is the second of a two-part report. Part 1 reviewed several demonstrations of transactive control and compared them in terms of their payoff functions, control decisions, information privacy, and ...

Federated Architecture for Secure and Transactive Distributed Energy Resource Management Solutions (FAST-DERMS)

“…The Pacific Northwest Smart Grid Demonstration Grid project implemented and evaluated transactive energy concepts for a future smart grid (Lian, et al 2017) (Agalgaonkar and Hammerstrom 2017). In most of these prior works, the DSO "scheduled" DERs based on local data through a price signal to implement transactive energy control (Abrishambaf, et al 2019).…”

Unified Control Strategy of Heterogeneous Thermostatically Controlled Loads with Market-based Mechanism

“…The above simulations are implemented on a perfect communication system. However, since our MBC method is heavily dependent on communication systems [11], communication problems, e. g., package delay and package loss, might influence the response performance. As listed in Table III, four cases with different communication problems are studied in this section.…”

“…Since uplink communication burden is much heavier than downlink burden in our method, solutions are desired to address the adverse effect. One possible method is to replace the lost curves with those in the previous market [11], and the simulation results of Case 4 have demonstrated the effectiveness of this strategy: the tracking performance is significantly improved, and S p gets very close to that of the ideal case.…”

“…In order to address the above problems, this paper applies the market-based control (MBC) method [11], [12] to pro- pose a unified control framework for heterogeneous TCLs. The MBC method has attracted much attention in recent years as a new type of demand response coordination method [11].…”

“…In order to address the above problems, this paper applies the market-based control (MBC) method [11], [12] to pro- pose a unified control framework for heterogeneous TCLs. The MBC method has attracted much attention in recent years as a new type of demand response coordination method [11]. Specific coordination schemes have been proposed using this method for some flexible loads with single type such as electric vehicles [13] and FFAs [14].…”