An Interactive Transactive Energy Mechanism Integrating Grid Operators, Aggregators and Prosumers

Abstract: With the decreasing cost of solar photovoltaics (PV) and battery storage systems, more and more prosumers appear in the distribution systems. Accompanying with it is the trend of using home energy management systems (HEMS). HEMS technologies can help the households to schedule their energy prosumption with aims such as reduced electricity bills or increased self-sufficiency. However, their economic-driven operation can affect the grid security. Therefore, it is paramount to design a framework that can accommodate the interests of the key stakeholders in distribution systems, namely the grid operators, aggregators, and prosumers. In this paper, a novel transactive energy based operational framework is proposed. On the upper level, aggregators will interact with distribution grid operators through transactive approach to ensure the grid interests are satisfied. If there are grid issues, the aggregator will interact with the prosumers through a designed price adder. The simulation results indicate that the proposed framework can effectively accommodate the prosumers operation in distribution systems while keeping the key stakeholders interests.