The Role of Transactive Energy in the Future Energy Industry: A Critical Review

Abstract

Transactive energy is a highly effective technique for peers to exchange and trade energy resources. Several interconnected blocks, such as generation businesses, prosumers, the energy market, energy service providers, transmission and distribution networks, and so on, make up a transactive energy framework. By incorporating the prosumers concept and digitalization into energy systems at the transmission and distribution levels, transactive energy systems have the exciting potential to reduce transmission losses, lower electric infrastructure costs, increase reliability, increase local energy use, and lower customers’ electricity bills at the transmission and distribution levels. This article provides a state-of-the-art review of transactive energy concepts, primary drivers, architecture, the energy market, control and management, network management, new technologies, and the flexibility of the power system, which will help researchers comprehend the various concepts involved.