Towards sustainable energy: Implementation framework for a decentralized peer-to-peer transactive energy system

Abstract

Power distribution infrastructures are deteriorating rapidly due to the geometric increase in electricity consumption, without corresponding infrastructural development. Distributed Energy Resource (DER) integration into energy distribution is increasingly important to address this energy shortfall, enhance grid reliability, and alleviate environmental concerns associated with non-renewable energy generation. An emerging energy solution, the Transactive Energy System (TES), enables customers with DERs to provide grid services to their peers within the network, thereby balancing the energy demanded and supplied. Adequate literature has reported on TES’ theoretical background, but little has been done about its implementation; even the available work suffers from inadequate robustness, low reliability, and scalability at the communication layer. Integrating decentralized peer-to-peer (P2P) to TES is pivotal in resolving challenges associated with meeting energy demand, market efficiency, and grid reliability. Consequently, we proposed an implementation framework for decentralized P2P-TES to address identified challenges. The results obtained from the framework achieved a reliability rating of 89.71% and a 15% reduction in energy bill. The proposed framework fosters transparent and secure transactions within the TES. Moreover, we addressed the critical issues of data security, privacy, scalability, and long-term sustainability of the proposed system, which were enhanced through the framework. Additionally, we demonstrated the suitability of P2P-based TES in facilitating seamless interaction among components during energy exchange among peers using control and economic techniques. Furthermore, the economic viability of the developed system was assessed through a cost-benefit analysis. In conclusion, the implementation of this research has the potential to guide the TES experts in making informed decisions and advance technological knowledge for building more resilient and sustainable energy systems without expanding infrastructural capacity, thereby minimizing operation and investment costs.