Transactive energy revolution: Innovative leverage for reliable operation of modern energy networks—A critical review

The electric industry is developing towards a more efficient, reliable, and resilient electric power network. In this way, utilizing distributed energy resources (DERs), especially renewable DERs (RDERs) are a paradigm change. DERs offer many advantages in power systems, including transmission loss reduction, environmental benefits of RDERs, and enhancement of security, reliability, and resiliency of the network. However, high penetration of DERs increases uncertainty and challenges the efficient and reliable operation of the power system. This paper provides a thorough review of the transactive distribution platform which is essential to address the aforementioned challenges. This distribution platform includes a transactive distribution system operator providing a seamless and coordinated control to dynamically balance supply and demand and follow uncertain generations of RDERs. Indeed, this review paper highlights the capability of transactive energy (TE) by considering its key aspect in providing energy sharing opportunities for the integration of DERs into smart grids (SGs). TE is acombination of economic and control methods that enable optimum, reliable, sustainable, and efficient operation of SGs. Furthermore, a fully transactive framework offers more choices for DERs to control and manage the energy transactions in the retail market, as well as improves the inter operability among various market players.