@article{294ebd0bf7e24a8e8bddd6347dfc71e8,
title = "Transactive energy for low voltage residential networks: A review",
abstract = "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.",
keywords = "Demand response, Demand side management, Distributed energy resources, Prosumer, Transactive energy",
author = "Sohrab Nizami and Wayes Tushar and Hossain, {M. J.} and Chau Yuen and Tapan Saha and Poor, {H. Vincent}",
note = "Funding Information: The Transactive approach of energy management and control was first demonstrated in the Olympic Peninsula Project [124] , which was a part of Pacific Northwest GridWise{\texttrademark} Testbed Demonstration Projects. The project was conducted in Washington and Oregon. It was funded by the U.S. Department of Energy and several northwest power utilities of the country. The project was initiated to investigate the potential of utilising demand-side flexibility as an alternative to capacity expansion of the capacity constraint transmission system of the region, which was forecast to be inadequate for supplying the following winter peak demand. The project adopted a real-time regional marginal electricity price and used it as an effective control signal to manage transmission and distribution congestion. The residential consumers and local DG owners would react to this price signal and bid into a local electricity market with the desired power to be consumed or supplied. A central entity would clear the market and dispatch these responsive resources according to the wholesale costs of electricity, network congestion, and customer demand. The project successfully demonstrated that passive residential loads and local DGs can be converted into active dispersed grid resources in the TE framework by using the real-time regional electricity price as an effective control signal. Project outcomes verified that the transactive management of active dispersed resources can be utilised to address network congestion instead of investing in grid reinforcement. Funding Information: This work was supported in part by International Macquarie University Research Training Program scholarship , in part by the U.S. National Science Foundation under Grant ECCS-2039716 and in part by a grant from the C3.ai Digital Transformation Institute . Funding Information: Decentralised Energy Exchange (deX) [128] is an ongoing TE implementation project that started in 2017. It is led by an Australian energy tech startup, GreenSync, and funded by the Australian Renewable Energy Agency (ARENA). The objective of this project is to create an open marketplace to transact excess energy from rooftop PV and residential storage between consumers, businesses, communities, and network utilities. The project aims to allow consumers with renewable generation resources or storage systems to obtain incentives and lower their demand on the public grid during system peaks. To this end, it focuses on developing an online exchange platform for buying and selling electrical energy from consumer-end DERs. The Australian electricity market intends to potentially adopt a two-sided market architecture to harness new and disruptive technologies such as behind-the-meter DERs while empowering all energy system users, from small customers to large generators [72] . Therefore, the deX platform is expected to support an efficient orchestration of supply and demand entities while providing the services needed to keep the power system safe, secure, and reliable. Publisher Copyright: {\textcopyright} 2022 Elsevier Ltd",
year = "2022",
month = oct,
day = "1",
doi = "10.1016/j.apenergy.2022.119556",
language = "English (US)",
volume = "323",
journal = "Applied Energy",
issn = "0306-2619",
publisher = "Elsevier BV",
}