Dynamic transactive energy scheme for smart distribution networks in a Latin American context

Current feed-in-tariff (FIT) schemes for photovoltaic (PV) generators are set in the long term, thus they do not provide optimal dynamic price signals on the operational state of the distribution system. This work presents a transactive energy scheme to jointly optimise the operation of smart distribution networks, residential flexible loads and distributed PV-battery systems. With this aim, a day-ahead dynamic pricing (DADP) is proposed, which results in the economic social welfare maximisation of both distribution system operator (DSO) and prosumers in a 24 h time window, considering AC network constraints. DADP consists of distribution locational marginal prices that quantify DSO power delivery costs over time and across distribution network buses. To enable the participation of PV batteries in the DADP settlement scheme, and to consider the value of stored energy, a preference model is proposed on the willingness of prosumers to charge or discharge active power from batteries. The social welfare maximisation problem is proposed within the context of Latin American distribution networks and solved using the alternating direction method of multipliers, which is tested via simulations on a radial test feeder. Results indicate that DADP outperforms FIT scheme in terms of social welfare, and volume of exchanges among prosumers, DSO and wholesale market.