Transactive Energy Market for Energy Management in Microgrids: The Monash Microgrid Case Study
2. Literature Survey
3. Paving the Path for Efficient DER Integration
3.1. DER Integration; Benefits and Challenges
3.2. Smart Microgrids as a Solution
4. Transactive Energy Market: Key Requirements for Market Design
4.1. Need for Transactive Energy Markets
4.2. Transactive DER
4.3. Pricing Mechanism
4.4. Market Scenarios
4.4.1. Energy Service
4.4.2. Flexibility Service
- Frequency Control Ancillary Services (FCAS): to maintain the frequency of the system, at any point in time close to the nominal frequency
- Network Support and Control Ancillary Services (NSCAS):
- Control the voltage at different points of the electrical network to within the prescribed standards. DERs absorb or generate reactive power from or onto the electricity grid and control the local voltage accordingly.
- Control the power flow on network elements to within the physical limitations of those elements to control the flow on inter-connectors to within short term limits.
4.5. Example Scenario: Demand Reduction Request from External Market
4.5.1. Auction-Based Pricing
4.5.2. Distributed Optimization Pricing
5. Case Study: The Monash Microgrid
5.1. Project Overview
5.2. Smart Microgrid Platform
5.3. TEM Implementation: Diagrams and Technical Architecture
5.4. Illustrative Example
6. Conclusions and Discussion
- Valuation of network services provided by microgrids: In a disaggregated market, where DERs have access to different markets, splitting incentives for different markets is a challenging task. The challenge is to provide clear price signals to DERs to highlight the importance of services provided by DERs considering the complexity due to competing or additional price signals from other sectors of the electricity value chain.
- Interaction of TEM with existing electricity system: The integration of the TEM into the existing electricity system requires regulatory and policy reformation. The ways in which TEM is expected to interact with other stakeholders, such as retailers and network operators depend on the new regulatory and policy framework. Because the need for policy reform is still emerging, how TEM is enabled and developed for microgrids needs to be considered in the context of electricity policy more broadly.
- Managing power quality issues in the TEM: Due to the increase DER integration to the grid, power quality management has become an issue in microgrids. Flexible DERs can support local networks by providing active and reactive power flexibility. However, a fixed technical response to manage power quality issues will not achieve the best value for DERs or for the network. Therefore, it is crucial to incorporate power quality management in the pricing mechanism. Future research needs to be performed to design pricing mechanisms to adjust DERs and responsive DER’ contribution to power quality management in a way that achieves customer equity.
- Cybersecurity in smart microgrids: Grid modernization through the integration of cyber systems introduces cyber-attack issues, which may affect the resilience of microgrid and result in loss of benefits for DER owners. Hence, countermeasure techniques should be considered to counter cyber attacks. These techniques should embrace different areas, such as prevention, detection, response, and recovery.
Conflicts of Interest
|API||Application Program Interface|
|BAS||Building Automation System|
|DER||Distributed Energy Resource|
|FCAS||Frequency Control Ancillary Services|
|GWAC||GridWise Architecture Council|
|HVAC||Heating, Ventilating, and Air Conditioning|
|ICT||Information and Communication Technologies|
|TEM||Transactive Energy Market|
|MQTT||Message Queuing Telemetry Transport|
|NSCAS||Network Support and Control Ancillary Services|
|NSP||Network Service Provider|
|VPP||Virtual Power Plant|
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|Type of Services|
|Scheduling local resources at minimum cost in the time ahead,|
achieving an equilibrium point between local demand,
local supply, and grid exchange.
|Modifying generation and/or consumption patterns in|
reaction to market signals to provide services in internal
and external markets (e.g., providing network services, or
balancing local trading commitments)
|Potential approaches to achieve market objectives|
|• local trading|
• scheduled demand/generation
|• Change in active/reactive power|
• Change in demand/generation
• Shift in demand
|• High generation in the microgrid|
• Price spike due to high demand
|• Network Service Provider requires demand curtailment on heat wave day|
• Network Service Provider requires a generation drop at the substation
• Providing emergency services
• Ancillary service markets for local voltage control
• Demand response request from the retailer
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Khorasany, M.; Azuatalam, D.; Glasgow, R.; Liebman, A.; Razzaghi, R. Transactive Energy Market for Energy Management in Microgrids: The Monash Microgrid Case Study. Energies 2020, 13, 2010. https://doi.org/10.3390/en13082010
Khorasany M, Azuatalam D, Glasgow R, Liebman A, Razzaghi R. Transactive Energy Market for Energy Management in Microgrids: The Monash Microgrid Case Study. Energies. 2020; 13(8):2010. https://doi.org/10.3390/en13082010Chicago/Turabian Style
Khorasany, Mohsen, Donald Azuatalam, Robert Glasgow, Ariel Liebman, and Reza Razzaghi. 2020. "Transactive Energy Market for Energy Management in Microgrids: The Monash Microgrid Case Study" Energies 13, no. 8: 2010. https://doi.org/10.3390/en13082010