Transactive energy in power distribution systems: Paving the path towards cyber-physical-social system

Abstract: Transactive energy (TE) is emerging as a novel tool of localized market mechanism to keep supply and demand in balance as more distributed energy resources (DERs) and flexible loads are integrated with power systems. TE is focused on the energy transactions in power distribution systems, which is closely related to human behaviors and social activities and can also be easily extended to multi-energy carrier systems. Moreover, recent developments in cutting-edge artificial intelligence (AI) technologies enable participation in various TE markets more automatically and intelligently. Accordingly, TE paves the path towards the cyber-physical-society system and price signal-defined open access energy facilities. This paper provides a comprehensive review of TE conceptual development in power distribution systems, including its fundamental features, structure, key implementation techniques, transactive control methodology, and existing pilot projects. In addition, TE integrated with the cyber-physical-society system is discussed in terms of AI, multi-energy carriers, social and human impact.