Dynamic economic dispatch of transactive energy market using dynamic programming with state-restructuring feature

Nowadays, transactive energy markets (TEMs) are emerging as interesting frameworks in deregulated power markets (DPMs) to control the balance of supply and demand in the entire electrical infrastructure. TEMs can facilitate power delivery with high efficiency and more economic benefits without any security issues and also encourage interaction between market participants in the DPMs. Due to wide deployment of renewable energy resources, open access transmission systems, and improper dispatch of transactions, the operation of TEMs becomes complex. So, an appropriate dispatch model for TEMs should be designed to achieve the TEMs objectives. This paper presents a novel dynamic programming (DP) based dispatch model for optimal dispatch of transactions without any security and economic issues. New techniques, i.e., variable step size (VSS) and staterestructuring (SR) features are proposed to combine with DP for solving the proposed dynamic dispatch problem of TEMs with minimization of the operational cost of transactions. The VSS and SR features are integrated with DP to reduce the computational burden and operational complexity of the proposed problem remarkably. Also, the proposed approach determines the power contribution of generation units to transactions in order to accurately assess the cost of transactions. An index, relative load-contribution factor is proposed in this paper to analyse the behaviour of generation units with respect to load variations of the transactions. Numerical simulation results on the modified IEEE 14-bus system and modified IEEE 118-bus system illustrate the efficacy of the proposed DP based model in solving the proposed dispatch problem of TEMs with optimal operational costs of the system. The results highlight the proposed approach benefits and provide a strong validation of its applicability to large-scale TEMs.