Hierarchical Architecture for Transactive Wholesale-Retail Market Integration

Transactive control strategies for managing realtime energy consumption have been under study for a number of years. This work investigates a hierarchical control framework for such a system. This framework consist of two control layers to aggregate and reflect the flexibility of demand assets in the wholesale markets. Computation at each layer and communication across layers is designed to be minimal. The minimization of data exchange is done through demand curve approximation. To manage these two approximations, two intermediate layer dispatch strategies are compared: price-priority and quantity- priority. The price-priority dispatch results in significant differences between the wholesale cleared load and the actual retail load while the quantity-priority dispatch manages load much better at the cost of introducing uncertainty into the business cases of the intermediate layers.