25/07/2023 14:53 Co-simulation platform for the assessment of transactive energy systems - ScienceDirect

Electric Power Systems Research Summarize

Volume 223, October 2023, 109693

Co-simulation platform for the assessment of transactive energy

systems
Lucas Silveira Melo a, Fernando Lessa Tofoli b, Diego Issicaba c, Marcos Eduardo Pivaro Monteiro d,
Giovanni Cordeiro Barroso e, Raimundo Furtado Sampaio a, Ruth Pastora Saraiva Leão a

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Abstract

The integration of distributed energy resources (DERs) into smart grids provides great flexibility in terms of
ancillary services like the restoration of power supply, regulation of voltage levels, and reactive power
support, among others. In this context, this work introduces a simulation model applied in the conception of
a transactive energy system (TES) architecture. The proposed approach allows for the integration of distinct
domains associated with smart grids considering the joint use of simulation tools that constitute a
multidomain system, thus enabling the assessment of control actions, optimization algorithms, load flow,
and communication infrastructure. The Simulation Model for Transactive Energy Systems (SIMTES)
framework relies on a multiagent system (MAS) and consists of two main stages: operation scheduling and
real-time operation. The obtained results demonstrate the applicability of SIMTES, showing that the use of
DERs associated with the grid and prosumers clearly influences energy pricing in electricity markets.

Introduction

Electricity markets are already well consolidated on the transmission level in terms of competitive
procurement, wholesaler, and retailer models. The competitive procurement model aims at stimulating
competition for the incorporation of additional generating units into the system [1]. In the latter scenario,
the tariff regime is regulated and there is a monopoly on the sale of energy by the utilities to the final
consumers. The wholesaler market allows for both distributors and large consumers to negotiate directly
with generators in a highly competitive environment [2]. In turn, the retail electricity market is often
regulated by electricity agencies [3].

The opening and modernization of the electricity retail market is a strong trend observed in countries where
changes focused on implementing the smart grid concept are at an advanced level while incorporating an
advanced metering infrastructure framework [4]. However, an in-depth analysis is still necessary for
identifying and proposing appropriate electricity market frameworks that, in addition to guaranteeing the

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operational security of the power network, can bring benefits to consumers. This is only likely to occur if
regulations of the electricity sector are capable of incorporating new perspectives of active consumer
participation, as well as technical requirements related to rigorous testing and simulation procedures [5].

The integration of distributed energy resources (DERs) into distribution networks based on market
regulations has been the focus of many recent studies and pilot projects [6]. In this context, active
distribution networks (ADNs) present a bidirectional power flow, whereas DERs play an important role in
the implementation of a functional electricity market [7]. According to [8], ADNs often rely on day-ahead
and real-time markets for the proper coordination of electricity supply.

Even though transactive energy (TE) is a consolidated concept as discussed in [9], it is of major importance
for the implementation of smart grids in practice [10]. The authors in [11] classify the electricity markets
associated with transactive energy systems (TESs) into three categories considering the interaction among
the participants as a criterion. In the full peer-to-peer (P2P) architecture, the peers can perform energy
trades without involving intermediary agents as demonstrated in [12]. The community-based P2P market
relies on a manager for coordinating the energy trades inside a community while acting as an intermediary
between the community peers and the rest of the system [13]. In turn, the hybrid P2P market comprises
mixed characteristics of both the aforementioned approaches [14].

Considering the existence of distinct DERs, the distribution system operator (DSO) is responsible for
ensuring their coordinated operation, as well as performing energy exchange and providing flexibility of the
available resources. Other tasks include avoiding grid congestion, limiting the number of connections if
miscoordination of the TES comes to occur, and enabling primary protection mechanisms [15]. By
combining DERs and the TES concept, one can provide prosumers with access to both local and wholesale
markets. Thus, demand-side control becomes a general concept that may incorporate the participation not
only of loads but also of generating units and energy storage resources that can be used to maintain the
balance between demand and consumption [16].

In the latter scenario, TE-based systems do require advanced communication and control systems capable of
both carrying out economical transactions and managing the grid, also involving modern equipment like
smart meters and energy management systems (EMSs) [17]. The study reported in [18] identified some of
the main requirements for the conception of efficient and reliable electricity markets. Among them, one can
cite the desired outcomes associated with the transactions, the required technology for the full-scale
implementation, market type, bidding strategies, system integration, and figures of merit for the proper
evaluation of energy trade strategies, among others. The authors also state that there are two predominant
market structures: P2P energy, in which the agents negotiate with each other directly; and electricity pools,
in which a single price is available to prosumers, who submit bids and offers to a unified marketplace.

The definition of efficient and accurate models is of major importance for the implementation of TESs.
According to [19], there are two frameworks for this purpose, that is, the one-time information exchange-
based model and the iterative information exchange-based model. The first approach is less complex while
presenting less communication requirements and easier scalability [20]. The second one allows for a more
efficient communication and takes into account the operating conditions of the grid but at the cost of a
longer processing time [21]. Another relevant issue is the optimization model used by the different market
schemes, which aims at optimal cost reduction or profit maximization while complying with operating
constraints of the power grid. For instance, the solution described in [22] relies on dual decomposition for
minimizing the cost function associated with the interaction among the market operator, aggregator, and
prosumers. The well-known particle swarm optimization (PSO) algorithm is also adopted in [23] for a
similar purpose.

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The authors in [19] present a TES model that incorporates operating constraints into the analysis while
using DERs associated with the power grid to mitigate undesirable issues like the violation of operating
constraints. Distinct issues like transformer overloading and operation outside acceptable voltage levels are
also taken into account. The simulated system comprises four main agents, that is, prosumers, aggregators,
the DSO, and the market operator. In turn, the PowerMatcher concept described in [24] consists of a
competitive real-time TES that aims at balancing the energy demand and offer while relying on multiagent
systems (MASs), control strategies based on the market dynamics, and locational market pricing applied in
distribution networks. It relies on a decentralized architecture in which the main agents are the devices,
concentrators, objectives, and the market itself.
Overall, it is reasonable to state that TESs are complex multidomain systems that may require the use of
several simulation tools for analyzing distinct aspects of interest. In this context, the authors in [25] can
classify the simulation categories in terms of the relationship between models and solvers as hybrid
simulation, co-simulation, hardware-supported simulation, and hardware-in-the-loop (HIL) simulation. This
taxonomy is expanded in [26] while classifying six existing approaches according to the degree of
complexity defined by the number of models and the existing architecture. The study in [27] also states that
complex systems can be analyzed from two distinct perspectives: (i) considering the system as a whole
while using a single assessment tool in a monolithic simulation; or (ii) adopting specific tools for each
subsystem while employing the co-simulation concept.

Considering the need for integrating multidomain solutions in inherently complex problems, co-simulation
has deserved significant attention from researchers and experts lately. In general, co-simulation relies on
one or more simulation blocks in an attempt to describe the relationship among the existing inputs and
outputs of the models, whereas each unit is treated as a black box [28]. A co-simulation process basically
comprises a model, a solver, and a runtime infrastructure [29]. The model corresponds to a real-world
system represented by logical and/or mathematical rules. The solver consists of a method applied in the
solution of mathematical computer models that can provide exact or approximate results. In turn, the
runtime infrastructure is responsible for performing the orchestration, coordination, and information
exchanges among the simulation units. With the recent advances on the integration of telecommunication
technology and DERs into modern power systems, the conception of cyber-physical energy systems (CPESs)
involves a multidomain analysis in which co-simulation plays an important role [30].

According to [31], there are four main approaches for the evaluation of multidomain systems like CPESs:
performing real-world experiments, mapping the whole system behavior into a single model domain,
adopting a universal modeling language, and coupling a heterogenous set of submodules. In this context, a
typical example that may require co-simulation is the impact assessment of the massive integration of
electric vehicles (EVs) into the grid. This problem involves the use of simulation tools for analyzing the
power system dynamics, communication equipment and infrastructure, energy storage devices (ESDs),
energy consumption profile, and power electronic converters required by the EVs, as well the market
dynamics as a mechanism for the regulation and coordination of DERs.

The author in [32] presents an in-depth analysis of the architectures associated with simulation models. The
study states that a computational model consists of six stages: template, construction assumptions,
correction set, interpretation, and initial justification. Therefore, it should not be treated as an ordinary
solution for performing complex calculations. The work also introduces an innovative architecture of
simulation models that combines a set of mathematical models, databases, and integration models, among
other elements, while also assessing techniques for the coordinated operation of the existing blocks. This
methodology is also referred to as recasting, which allows for clustering multiple models into one fully
computational simulation model.

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Still according to [32], multi-modeling is a complex and elaborate model that involves at least two distinct
units: kernel simulation (KS) and integration modules (IMs), which can interact with each other as shown in
Fig. 1. The KS units represent the implementation of mathematical models using a proper programming
language. In turn, the IMs are responsible for simplifying the integration, connection, and functionality of KS
units using external databases, protocols, and libraries, among others, as well as enabling the synchronism
and compatibility of the existing blocks. The target system (TS) corresponds to the process or the system
under analysis itself.

One can also associate the simulation model and co-simulation concepts with MASs, which consist of a
popular approach for representing flexible and expandable software- and hardware-based systems, as well
as modeling complex and distributed systems [33]. Thus, the meta-modeling concept proposed in [32]
allows for integrating the mathematical models that represent the dynamics of physical systems responsible
for the management of multiple microgrids, automatic restoration, adaptive protection, and power quality
assessment, among other aspects. One can represent the models in terms of KSs to obtain the coordinated
operation of multidomain systems, but it is also necessary to incorporate nondeterministic characteristics
typical of distributed control into the analysis. MASs can be used for this purpose, while also representing
the independent behavior of prosumers, market mechanisms, and other regulation issues.

It is noteworthy that the National Institute of Standards and Technology (NIST) developed the Smart Grid
Conceptual Model 4.0 (SGCM-4.0) as a model for smart grids aiming at providing the proper coordination of
interoperable systems. Besides defining the distribution, transmission, and generation domains with DERs
clearly, SGCM-4.0 establishes four additional domains associated with the monitoring and control of power
grids, that is, customer, market, service, and operations [34].

The development of co-simulation platforms for assessing TESs in the context of smart grids is still incipient
in the literature, which does not present many works on this subject. The authors in [35] recognize that such
tools must be flexible and multi-disciplinary while ensuring transparency in the valuation of involved
parameters. In this sense, the latter work describes a simulation environment capable of integrating the
wholesale and TE markets, distribution and transmission systems, as well as residential and commercial
buildings associated with their respective controllers. Similarly, the framework proposed in [36] relies on
high-performance computing for the simultaneous analysis of thousands of distribution systems with a
high penetration of residential devices capable of responding to TE signals, resulting in a low computational
burden. The work in [37] describes a co-simulation platform that incorporates the detailed modeling of the
different elements of the TE market, resulting in the implementation of two models, that is, a pseudo-
wholesale market and an asynchronous matching market. However, it is worth mentioning that the impact
of the communication system on the analysis is not really taken into account in [35], [36], [37].
Given the above, this work presents a multi-domain simulation model for the assessment of smart grids and
the conception of a proper electricity market framework for TESs named Simulation Model for Transactive
Energy Systems (SIMTES). The main contributions of the present study include:
• A multi-domain simulation model that enables the representation and co-simulation of control actions,
network analysis, optimization strategies, communication infrastructure, and energy transactions
(SiMTES), among other aspects in a smart grid, whereby different domains are synchronized with each
other to provide a synergetic and accurate response to represent real physical processes accurately;

• An advanced retail electricity market that minimizes the operational costs of prosumers/consumers
while taking into account uncertainties like intermittent generation, consumption profile, and market
pricing, also mitigating the harmful impacts of scheduling on the grid.

• The flexible application of ESDs for providing ancillary services while considering two possibilities, that
is, EDSs directly controlled by the DSO or by a transactive control approach.
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The remainder of this work is organized as follows. Section 2 describes the introduced framework referred to
as SIMTES while also describing a scenario for the application of the proposed TES model, the adopted MAS
architecture, the existing DERs, the optimization model, and the network communication system. Section 3
discusses the simulation results involving the schedule, operation, and communication network of the
proposed architecture. Section 4 presents the concluding remarks.

Section snippets

Proposed architecture

Considering the definition of a simulation model, one can employ recasting for representing, simulating,
and analyzing complex systems in the context of smart grids. This methodology enables the integration of
multiple tools in a coordinated, distributed, and shared environment, as well as representing multidomain
systems accurately. In this sense, the present work introduces the SIMTES platform, which relies on the
architecture shown in Fig. 2.

Following the multi-modeling representation…

Results and discussion

The co-simulation process considers that the intermittent solar generation, prosumer DERs, and DERs
responsible for ancillary services are associated with 50%, 50%, and 30% of the total amount of buses in the
low-voltage distribution network, respectively. A co-simulation comprising a 24-hour period is executed for
assessing the proposed architecture. The analysis focuses on the operation schedule, the real-time
operation, and the communication network between the agents.…

Conclusion

This work has presented a co-simulation model for the analysis of smart grids and the representation of
TESs called SIMTES. This architecture relies on the flexible allocation of DERs in the grid and prosumer
facilities, whose behavior may be strongly influenced by the eventual violation of operating constraints. The
proposed co-simulation framework is capable of integrating distinct components such as smart agents
developed in the PADE environment, load flow tools for assessing the grid…

CRediT authorship contribution statement

Lucas Silveira Melo: Formal analysis, Investigation, Methodology, Validation. Fernando Lessa Tofoli:
Writing – original draft, Writing – review & editing. Diego Issicaba: Visualization. Marcos Eduardo Pivaro
Monteiro: Visualization. Giovanni Cordeiro Barroso: Conceptualization. Raimundo Furtado Sampaio:
Methodology, Supervision. Ruth Pastora Saraiva Leão: Methodology, Supervision.…

Declaration of Competing Interest

The authors declare that they have no known competing financial interests or personal relationships that
could have appeared to influence the work reported in this paper.…

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