Quantum mechanics

World Wide Web

Engineering

Microeconomics

Transactive memory

Economics

Power (physics)

Computer science

Mathematical optimization

Distributed generation

Payment

Distributed computing

Business

Physics

Renewable energy

Mathematics

Electric power system

Bargaining problem

Reliability (semiconductor)

Finance

Knowledge management

Order (exchange)

Electrical engineering

IEEE Transactions on Power Systems

In this paper, we propose a novel transactive energy trading (TET) framework to deal with the economic issues in energy trading and the technical issues in distribution system operation in a holistic manner. In particular, we innovatively integrate a bilateral energy trading mechanism with the optimal power flow (OPF) technique to increase economic benefits to individual participants, and meanwhile ensure the reliability and security of the system operation. In order to resolve the inherent conflict of interests, Nash bargaining theory is used to model the TET problem, which is further decomposed into a multiperiod OPF problem and a payment bargaining problem. Moreover, we develop an efficient distributed algorithm for solving the TET problem base on alternating direction method of multipliers (ADMM). Instead of directly solving optimization subproblems like most ADMM-based distributed algorithms, we derive closed-form solutions to all subproblems to significantly improve the computational efficiency. Finally, numerical tests on the IEEE 37-bus and 123-bus distribution systems demonstrate the effectiveness of our proposed framework and the efficiency of our distributed algorithm.

Distributed transactive energy trading framework in distribution networks