A Decentralised Transactive Energy Market Considering Physical System Constraints

Abstract

Local energy markets leveraging direct Peer-to-Peer (P2P) trading have been proposed as a solution, which can increase prosumer participation in lower cost and more reliable supply of energy to consumers. Many approaches have been proposed to determine the optimal dispatch of distributed resources; however, existing approaches either provide inadequate representation of the physical layer or insufficient handling of infeasibilities for a continuous pricing mechanism. Hence, a gap remains in the research to date on efficiently allowing for prosumer decision autonomy while ensuring that the physical layer of the power system is considered. This paper addresses these issues with a proposed decentralised transactive solution that retains prosumer negotiation and decision autonomy, while using market determined prices to allocate limited system resources for a feasible system state. This is achieved through a transaction fee mechanism for prosumer interactions that considers the network characteristics such as topology and line congestion, and a congestion-clearing process to ensure efficient allocation of network resources. Previously reported distribution networks are used to compare the economic performance and transaction decisions of the proposed solution with existing approaches.