IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i5p2251-d1081068.html
   My bibliography  Save this article

The Impact of Battery Storage on Power Flow and Economy in an Automated Transactive Energy Market

Author

Listed:
  • Shida Zhang

    (Electrical and Computer Engineering, University of Alberta, Edmonton, AB T6G 1H9, Canada)

  • Petr Musilek

    (Electrical and Computer Engineering, University of Alberta, Edmonton, AB T6G 1H9, Canada)

Abstract

This article explores the use of battery energy storage in a transactive energy approach for a heavily solar-penetrated community. We hypothesize that the efficient market interactions between independently acting, fully automated agents (some equipped with battery energy storage) can result in both bill savings and improvements in power flow, without explicitly optimizing for power flow ahead of time. A test setting of nine typical residential prosumers and one heavily loaded prosumer is used. The heavily loaded prosumer initially experiences multiple undervoltage violations, and a 13.5 kWh battery is installed to alleviate the problem. Two profile-shaping strategies are compared. The first scenario uses greedy control that maximizes self-sufficiency, while the second scenario uses a local market to enable energy trading between participants and a rule-based trading and management agent for control. The results show that the first scenario made minimal improvements to power flow, but the second scenario eliminated all occurrences of under-voltage violations. Furthermore, the total amount of energy from the grid is reduced by 24.3%, and the amount of energy injected into the grid is reduced by 39.2%. This results in lower bills for every participant and a bill reduction of 16.7% for the community as a whole.

Suggested Citation

  • Shida Zhang & Petr Musilek, 2023. "The Impact of Battery Storage on Power Flow and Economy in an Automated Transactive Energy Market," Energies, MDPI, vol. 16(5), pages 1-13, February.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:5:p:2251-:d:1081068
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/5/2251/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/5/2251/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Friedman, Daniel, 1991. "A simple testable model of double auction markets," Journal of Economic Behavior & Organization, Elsevier, vol. 15(1), pages 47-70, January.
    2. Ismael, Sherif M. & Abdel Aleem, Shady H.E. & Abdelaziz, Almoataz Y. & Zobaa, Ahmed F., 2019. "State-of-the-art of hosting capacity in modern power systems with distributed generation," Renewable Energy, Elsevier, vol. 130(C), pages 1002-1020.
    3. Hannie Zang & JongWon Kim, 2021. "Reinforcement Learning Based Peer-to-Peer Energy Trade Management Using Community Energy Storage in Local Energy Market," Energies, MDPI, vol. 14(14), pages 1-18, July.
    4. Temitayo O. Olowu & Aditya Sundararajan & Masood Moghaddami & Arif I. Sarwat, 2018. "Future Challenges and Mitigation Methods for High Photovoltaic Penetration: A Survey," Energies, MDPI, vol. 11(7), pages 1-32, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Corgnet, Brice & DeSantis, Mark & Porter, David, 2020. "The distribution of information and the price efficiency of markets," Journal of Economic Dynamics and Control, Elsevier, vol. 110(C).
    2. Giuseppe Attanasi & Samuele Centorrino & Ivan Moscati, 2011. "Double Auction Equilibrium and Efficiency in a Classroom Experimental Search Market," LERNA Working Papers 11.03.337, LERNA, University of Toulouse.
    3. Jan Krahnen & Martin Weber, 2001. "Marketmaking in the Laboratory: Does Competition Matter?," Experimental Economics, Springer;Economic Science Association, vol. 4(1), pages 55-85, June.
    4. X. Fernández, Bernardo & Fernández Q, Vladimir & Aldazosa, E. René, 2018. "Una subasta doble de divisas para la determinación del tipo de cambio en Bolivia," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 29, pages 152-189, May.
    5. Itzhak Rasooly, 2022. "Competitive equilibrium and the double auction," Economics Series Working Papers 974, University of Oxford, Department of Economics.
    6. Md Tariqul Islam & M. Jahangir Hossain & Md. Ahasan Habib & Muhammad Ahsan Zamee, 2025. "Adaptive Hosting Capacity Forecasting in Distribution Networks with Distributed Energy Resources," Energies, MDPI, vol. 18(2), pages 1-25, January.
    7. Sabiou M. Inoua & Vernon L. Smith, 2022. "Perishable goods versus re-tradable assets: A theoretical reappraisal of a fundamental dichotomy," Chapters, in: Sascha Füllbrunn & Ernan Haruvy (ed.), Handbook of Experimental Finance, chapter 15, pages 162-171, Edward Elgar Publishing.
    8. Lewis Waswa & Munyaradzi Justice Chihota & Bernard Bekker, 2021. "A Probabilistic Conductor Size Selection Framework for Active Distribution Networks," Energies, MDPI, vol. 14(19), pages 1-19, October.
    9. Yao, Hongmin & Qin, Wenping & Jing, Xiang & Zhu, Zhilong & Wang, Ke & Han, Xiaoqing & Wang, Peng, 2022. "Possibilistic evaluation of photovoltaic hosting capacity on distribution networks under uncertain environment," Applied Energy, Elsevier, vol. 324(C).
    10. C. Birk Jones & Matthew Lave & Matthew J. Reno & Rachid Darbali-Zamora & Adam Summers & Shamina Hossain-McKenzie, 2020. "Volt-Var Curve Reactive Power Control Requirements and Risks for Feeders with Distributed Roof-Top Photovoltaic Systems," Energies, MDPI, vol. 13(17), pages 1-17, August.
    11. Ahmed I. Omar & Ziad M. Ali & Mostafa Al-Gabalawy & Shady H. E. Abdel Aleem & Mujahed Al-Dhaifallah, 2020. "Multi-Objective Environmental Economic Dispatch of an Electricity System Considering Integrated Natural Gas Units and Variable Renewable Energy Sources," Mathematics, MDPI, vol. 8(7), pages 1-37, July.
    12. Peter Klement & Tobias Brandt & Lucas Schmeling & Antonieta Alcorta de Bronstein & Steffen Wehkamp & Fernando Andres Penaherrera Vaca & Mathias Lanezki & Patrik Schönfeldt & Alexander Hill & Nemanja K, 2022. "Local Energy Markets in Action: Smart Integration of National Markets, Distributed Energy Resources and Incentivisation to Promote Citizen Participation," Energies, MDPI, vol. 15(8), pages 1-24, April.
    13. Costa, Vinicius Braga Ferreira da & Bonatto, Benedito Donizeti, 2023. "Cutting-edge public policy proposal to maximize the long-term benefits of distributed energy resources," Renewable Energy, Elsevier, vol. 203(C), pages 357-372.
    14. Andrei M. Tudose & Dorian O. Sidea & Irina I. Picioroaga & Nicolae Anton & Constantin Bulac, 2023. "Increasing Distributed Generation Hosting Capacity Based on a Sequential Optimization Approach Using an Improved Salp Swarm Algorithm," Mathematics, MDPI, vol. 12(1), pages 1-21, December.
    15. Muhyaddin Rawa & Abdullah Abusorrah & Yusuf Al-Turki & Saad Mekhilef & Mostafa H. Mostafa & Ziad M. Ali & Shady H. E. Abdel Aleem, 2020. "Optimal Allocation and Economic Analysis of Battery Energy Storage Systems: Self-Consumption Rate and Hosting Capacity Enhancement for Microgrids with High Renewable Penetration," Sustainability, MDPI, vol. 12(23), pages 1-25, December.
    16. Mandel, Antoine & Gintis, Herbert, 2016. "Decentralized Pricing and the equivalence between Nash and Walrasian equilibrium," Journal of Mathematical Economics, Elsevier, vol. 63(C), pages 84-92.
    17. Kirchsteiger, G. & Niederle, M. & Potters, J.J.M., 1998. "The Endogenous Evolution of Market Institutions : An Experimental Investigation," Other publications TiSEM 5655ebed-6950-4ab7-b671-b, Tilburg University, School of Economics and Management.
    18. Kirchsteiger, Georg & Niederle, Muriel & Potters, Jan, 2005. "Endogenizing market institutions: An experimental approach," European Economic Review, Elsevier, vol. 49(7), pages 1827-1853, October.
    19. Gupta, Ruchi & Pena-Bello, Alejandro & Streicher, Kai Nino & Roduner, Cattia & Farhat, Yamshid & Thöni, David & Patel, Martin Kumar & Parra, David, 2021. "Spatial analysis of distribution grid capacity and costs to enable massive deployment of PV, electric mobility and electric heating," Applied Energy, Elsevier, vol. 287(C).
    20. Md. Shouquat Hossain & Naseer Abboodi Madlool & Ali Wadi Al-Fatlawi & Mamdouh El Haj Assad, 2023. "High Penetration of Solar Photovoltaic Structure on the Grid System Disruption: An Overview of Technology Advancement," Sustainability, MDPI, vol. 15(2), pages 1-25, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:16:y:2023:i:5:p:2251-:d:1081068. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.