Designing A Transactive Framework For Future Distribution Systems

This article introduces a novel transactive energy management mechanism for future distribution systems with private microgrids. A third-party agent based on a transactive energy trading mechanism is designed which provides secure information sharing between participants. The proposed third-part agent acts as an independent economic entity (IEE) and clears the local energy market between the microgrid and distribution system. IEE determines the transactions corresponding to the maximum social welfare based on participants' submitted economic values. The economic values of entities are bids for buying and offers for selling the power. Two different pricing strategies for the approved transactions are presented. Distributed optimization for the self-scheduling based on an alternating direction method of multipliers has been implemented. Distributed optimization in a rolling fashion satisfies equality of complicated voltage magnitude, and voltage angles constraints at the connection buses. Furthermore, the participation of the distribution system in the day-ahead and real-time markets besides the transactive market is studied. The proposed structure is evaluated on a test distribution system with three microgrids in terms of energy trading analysis, and operation scheduling. COMP: Please remove colon appearing after table number in all the table captions.