A hierarchical transactive energy management system for microgrids

This paper presents a hierarchical transactive
energy management framework for a residential microgrid to
share excess energy of prosumers with neighbors. A three-level
hierarchical structure is proposed in this paper which facilitates
energy management in different houses, energy sharing and
transactions among neighbors and with the grid. The priority
of sharing energy among different houses in a microgrid as well
as with the grid is set in such a way that the houses, which
have their own generation, will first fulfill their own demand.
The power sharing among different houses demonstrates that
there are some savings in electricity for a certain period. A
generalized cost-benefit analysis framework has been developed
by considering different tariff structures (flat rate and feed-in
tariff) to assess the financial benefits of patrons to be involved in
energy sharing projects. Results from the analysis demonstrate
that with the ever decreasing feed-in tariff in Australia, not
only the prosumers but the residents without renewable energy
sources and energy storage systems can be benefitted through
the proposed transactive energy management scheme.