Distributed transactive energy trading framework in distribution networks

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 optim...

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Published in:	IEEE transactions on power systems Vol. 33; no. 6; pp. 7215 - 7227
Main Authors:	Jiayong Li, Chaorui Zhang, Zhao Xu, Jianhui Wang, Jian Zhao, Zhang, Ying-Jun Angela
Format:	Journal Article
Language:	English
Published:	New York IEEE 01.11.2018 The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subjects:	Algorithms alternating direction method of multipliers bilateral energy trading Computing time distributed algorithm Distributed algorithms Distribution management distribution networks Electronic equipment tests Energy distribution Mathematical models Nash bargaining photovoltaic system Photovoltaic systems Power flow Power system economics Reactive power System effectiveness Systems operation Transactive energy
ISSN:	0885-8950, 1558-0679
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Abstract	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.
AbstractList	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.
Author	Chaorui Zhang Jian Zhao Zhao Xu Jiayong Li Jianhui Wang Zhang, Ying-Jun Angela
Author_xml	– sequence: 1 surname: Jiayong Li fullname: Jiayong Li email: j-y.li@connect.polyu.hk organization: Dept. of Electr. Eng., Hong Kong Polytech. Univ., Hong Kong, China – sequence: 2 surname: Chaorui Zhang fullname: Chaorui Zhang email: zc012@ie.cuhk.edu.hk organization: Dept. of Inf. Eng., Chinese Univ. of Hong Kong, Hong Kong, China – sequence: 3 surname: Zhao Xu fullname: Zhao Xu email: eezhaoxu@polyu.edu.hk organization: Dept. of Electr. Eng., Hong Kong Polytech. Univ., Hong Kong, China – sequence: 4 surname: Jianhui Wang fullname: Jianhui Wang email: jianhui@smu.edu organization: Dept. of Electr. Eng., Southern Methodist Univ., Dallas, TX, USA – sequence: 5 surname: Jian Zhao fullname: Jian Zhao email: zhaojianee@foxmail.com organization: Dept. of Electr. Power Eng., Shanghai Univ. of Electr. Power, Shanghai, China – sequence: 6 givenname: Ying-Jun Angela surname: Zhang fullname: Zhang, Ying-Jun Angela email: yjzhang@ie.cuhk.edu.hk organization: Dept. of Inf. Eng., Chinese Univ. of Hong Kong, Hong Kong, China
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Snippet	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...
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SubjectTerms	Algorithms alternating direction method of multipliers bilateral energy trading Computing time distributed algorithm Distributed algorithms Distribution management distribution networks Electronic equipment tests Energy distribution Mathematical models Nash bargaining photovoltaic system Photovoltaic systems Power flow Power system economics Reactive power System effectiveness Systems operation Transactive energy
Title	Distributed transactive energy trading framework in distribution networks
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