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Title
Risk-aware distributed transactive energy management for multi-area systems with cloud energy storage participation
Type Article
Keywords
Coordinated optimization; Multi-area energy management system; Cloud energy storage; Peer-to-peer trade; Market price uncertainty
Abstract
Energy storage systems provide ancillary services, support grid flexibility, and balance energy in residential systems. Among them, cloud energy storage (CES) offers scalability for large markets, capacity-sharing for small consumers, and participation in multiple energy and ancillary service markets. This paper proposes a risk-based, day-ahead distributed energy management framework for coordinated optimization between CES and interconnected clustered residential houses (CRHs) within a multi-area energy management system (MAEMS). The framework models CES and CRHs as independent agents capable of direct power trading, virtual-capacity rental, and peer-to-peer (P2P) energy exchange, while maintaining local autonomy and data privacy. Market price uncertainty is incorporated using a conditional value-at-risk (CVaR) formulation, ensuring risk-averse scheduling under volatility. Coordination between CES profit maximization and CRH cost minimization is achieved via a compact Benders decomposition (CBDM)-based master–subproblem approach, enabling scalable, distributed optimization. Three case studies demonstrate that integrating multi-market CES participation, P2P trading, bidirectional energy exchanges, and virtual battery rentals significantly improves performance: CES net profit rises by approximately 30%, CRHs' total operating costs drop by ~75%, and CES degradation costs decrease through optimized charge–discharge management. Overall, the proposed MAEMS enhances both economic efficiency and operational resilience under risk-constrained conditions.
Researchers Ali Bayat (First researcher) , Mohammad Mohammadi (Second researcher) , Behrooz Zaker (Third researcher) , Dariush Keihan Asl (Fourth researcher)