Proactive demand-side participation: Centralized versus transactive demand-Supply coordination

Ostadijafari, Mohammad; Bedoya, Juan Carlos; Wang, Wei; Dubey, Anamika; Liu, Chen-Ching; Yu, Nanpeng

doi:10.1016/j.epsr.2022.107789

Proactive demand-side participation: Centralized versus transactive demand-Supply coordination

Journal Article · Sat Jan 15 00:00:00 EST 2022 · Electric Power Systems Research

DOI:https://doi.org/10.1016/j.epsr.2022.107789· OSTI ID:1977110

Ostadijafari, Mohammad ^[1]; Bedoya, Juan Carlos ^[2]; Wang, Wei ^[3]; Dubey, Anamika ^[4]; Liu, Chen-Ching ^[2]; Yu, Nanpeng

Washington State University, Pullman, WA (United States); OSTI
Virginia Polytechnic Institute and State University (Virginia Tech), Blacksburg, VA (United States)
University of California, Riverside, CA (United States)
Washington State University, Pullman, WA (United States)

The active participation of demand-side flexible resources in the wholesale market price formation and load dispatch process is crucial to encouraging demand-side participation. This calls for a joint supply-demand coordination mechanism to fully take advantage of the flexible resources in distribution systems, including distributed energy resources (DERs) and responsive loads (RLs). Here this paper aims at comparing and evaluating the centralized and transactive distribution-level market coordination mechanisms. We introduce the centralized and transactive demand-supply coordination mechanisms for the distribution-level market and elaborate on the structural difference between the two frameworks. Relevant metrics and test scenarios are proposed for a meaningful comparison. The key observations of the comparative study are generalized from the perspective of different entities in the market: fixed loads, flexible loads, DERs, and conventional generators. It is observed that while the centralized approach leads to socially optimum solutions, the transactive approach by allowing for competitive bidding at the distribution-level, results in clearing higher flexible demand, and thus higher electricity cost at the transmission-level. As a result, DERs and fixed loads receive a higher surplus in the centralized approach, while conventional generators and flexible loads are more profitable in the transactive approach.

View Accepted Manuscript (DOE)

Research Organization:: University of California, Riverside, CA (United States)

Sponsoring Organization:: USDOE; USDOE Office of Electricity Delivery and Energy Reliability (OE)

Grant/Contract Number:: OE0000840

OSTI ID:: 1977110

Alternate ID(s):: OSTI ID: 1840638

Journal Information:: Electric Power Systems Research, Journal Name: Electric Power Systems Research Journal Issue: C Vol. 206; ISSN 0378-7796

Publisher:: ElsevierCopyright Statement

Country of Publication:: United States

Language:: English

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