IEEE Power Electronics Magazine - March 2022 - 21

In a TE electric system, traditional consumers, independent
producers or even prosumers will negotiate
between themselves and with energy suppliers' dispatch
systems. Ideally, TE should rely on two-way communication
systems combined with decisions on local issues
made locally. Typical end-users should be able to [7]:
■ modify their electrical consumption taking into consideration
market energy prices;
■ calculate the price they are willing to pay for the purchased
energy;
■ bid amounts of electricity.
Although, the role of aggregation is becoming clearer
operated microgrids, or any other energetic association
that can use the DSO services to cooperate with the bulk
power and wholesale markets. The basic concept of the
TE framework considers the energy market as a platform
to trade energy keeping the necessary power balance.
These markets can take the form of P2P, community-based
market, or even a combination of both. However,
this energy trading usually takes place at the
smaller prosumer-local energy provider level. This
aggregation level at the end of the supply chain has
gained particular interest in the past few year s, under
several H2020 demonstration projects (NOBELGRID1,
Stora ge4Grid2, POCIT YF3, REACT 4), and the European
Commission initiative " Clean Energy for All Europeans. "
Local energy communities' role is clearly defined in the
European Parliament's proposal for a directive focused
on common rules for the internal market in electricity
[5]. The flexibility provided by the aggregated end-users
will be essential to allow a smooth transition into a realistic
TE paradigm [6].
1 https://nobelgrid.eu
2 https://www.storage4grid.eu/pages/index.html
3 https://pocityf.eu
4, https://react2020.eu
and more important as several countries have accepted
their participation in the energy markets (Austria, Denmark,
Finland, France, United States), most studies do
not address them within decentralized frameworks.
Regarding end-users, usually only HVAC (Heating,
Ventilation and Air Conditioning) and thermostatically
controlled loads (typically electric water heaters) are
considered and frequently associated with Demand
Response programs. TE demonstration pilots often use
smart appliances or consider Home Energy Management
Systems (HEMS) [8]. The use of storage systems
and intelligent energy routing (either on the LV side or
on the LV/MV conversion side) has not yet been fully
considered. Most of the previous research work was
based on the simulation studies, seldom considering
real and practical implementation challenges or security
and privacy issues. The main topic of interest was
associated with the electrical and physical constrains
of the energy grid. Some simulation works address
essentially the trading process and discard some physical
constrains that cannot be discarded in real life. The
second issue is related with the multiplicity of scenarios
that can be considered while studying TE transactions
(energy or market wise). The possible number of scenarios
is so high that is often very difficult to make the
correct choice while studying a possible application of
the TE concept.
Transactive Nodes
By the time of its introduction, transactive control was
regarded as a transactive market methodology to manage
consumption and resources in the demand-side. Transactive
Nodes (TNs) are defined as linking points between distinct
parts of the electric grid. TNs can be considered as the
equivalent to the flowgate concept widely used in bulk
power system operations [9]. While in the bulk power systems
the flowgate can be defined as a transmission element,
in TE it has a wider concept. Within the bulk power systems
it concerns only transmission capacity that can limit the
transmitted amount of power. Whilst in TE it should also
address the market transactions and the hosting capacities
of the several nodes.
A TN is constantly exchanging information with other
TNs sharing their operative status so that decisions can
March 2022 z IEEE POWER ELECTRONICS MAGAZINE 21
https://www.nobelgrid.eu https://www.storage4grid.eu/pages/index.html https://www.pocityf.eu https://www.react2020.eu
IEEE Power Electronics Magazine - March 2022

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