Economics Working Papers

Publication Date

4-23-2021

Number

21005

Abstract

This study develops a consensus-based transactive energy system design managed by an independent distribution system operator (DSO) for an unbalanced radial distribution network. The network is populated by welfare-maximizing customers with price-sensitive and fixed (non-price-sensitive) demands who make multiple successive power decisions during each real-time operating period OP. The DSO and customers engage in an iterative negotiation process in advance of each OP to determine retail price-to-go sequences for OP that align customer power decisions with network reliability constraints in a manner that respects customer privacy. The convergence properties of a dual decomposition algorithm developed to implement this negotiation process are analytically established. A case study is presented for an unbalanced 123-bus radial distribution network populated by household customers that demonstrates the practical effectiveness of the design.

JEL Classification

C6, C7, D4, D6, L1, Q4

Version History

Original Release Date: April 23, 2021

Departments

Department of Economics, Iowa State University

File Format

application/pdf

Length

30 pages

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