Transactive energy for low voltage residential networks: A review

Sohrab Nizami, Wayes Tushar, M. J. Hossain, Chau Yuen, Tapan Saha, H. Vincent Poor

Research output: Contribution to journalReview articlepeer-review

13 Scopus citations


Transactive Energy (TE) is envisaged as an advanced demand response (DR) variant to leverage the flexibility of distributed energy resources (DERs) for enhancing energy balance and network management in modern power systems. However, there have been limited implementations of TE frameworks for low voltage (LV) residential networks to capture the underutilised flexibility potential of DER-equipped residential prosumers. The main purpose of this paper is to identify the rationale behind this gap in light of recent advances in TE-based energy management for residential networks. As such, first, we identify the motivation and significance of the evolution of TE framework from traditional DR schemes by reviewing their relative efficacies in utilising demand-side flexibility of DER-rich residential networks for enhancing energy balance and local network management. Second, we provide an overview of the key components of the TE framework that are essential to facilitate active negotiation and trading of demand-side flexibility in residential networks. Third, we review the state-of-the-art TE methodologies and industry projects that have utilised demand-side flexibility of residential prosumers. Finally, several challenges relevant to TE frameworks in LV residential networks are identified followed by some concluding remarks at the end of the paper.

Original languageEnglish (US)
Article number119556
JournalApplied Energy
StatePublished - Oct 1 2022

All Science Journal Classification (ASJC) codes

  • Mechanical Engineering
  • General Energy
  • Management, Monitoring, Policy and Law
  • Building and Construction
  • Renewable Energy, Sustainability and the Environment


  • Demand response
  • Demand side management
  • Distributed energy resources
  • Prosumer
  • Transactive energy


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