Impacts of Transactive Energy Trading on the Load Point Reliability Indices of LV Distribution System

Abstract

The optimal allocation of renewable energy sources and energy storage systems in medium-voltage distribution grids to achieve several objectives was followed by low-voltage applications. However, the main obstacle against large-scale renewable penetration at low voltage grids has been found as a centralized energy market structure where it is almost impossible to achieve all the benefits of renewable energy sources. At this point, the transactive energy market, which enables selling the surplus energy of the distributed generation owners to a consumer in their neighborhood or reverse feeding the utility through intelligent metering devices, is an attractive option. This paper presents how the transactive energy market can improve renewable energy share and customer reliability in the low voltage distribution grid. The impact of the increase in the number of prosumers who prefer to participate in the market on load point reliability indices has been studied in detail. European low voltage Test Feeder is used as an application system with sun irradiation and PV generation in a specific geographical area in Turkey. Energy market prices and their estimated future are also based on Turkey’s market prices. Reliability indices for a different number of prosumers in the network have been evaluated, and discussion has been provided regarding the network reaction to the increase in the number of prosumers. The results show that installing low voltage PV systems is an uncoordinated process, which requires a pre-simulation to estimate the economic benefits for the prospective prosumer locations, considering the consumer intentions on supply preferences.