Proactive demand-side participation: Centralized versus transactive demand-Supply coordination

The active participation of demand-side flexible resources in the wholesale market price formation and load dispatch process is crucial to encouraging participation. This calls for a joint supply-demand coordination mechanism fully take advantage distribution systems, including distributed energy (DERs) responsive loads (RLs). paper aims at comparing evaluating centralized transactive distribution-level mechanisms. We introduce demand-supply mechanisms elaborate on structural difference between two frameworks. Relevant metrics test scenarios are proposed meaningful comparison. key observations comparative study generalized from perspective different entities market: fixed loads, DERs, conventional generators. It observed that while approach leads socially optimum solutions, by allowing competitive bidding distribution-level, results clearing higher demand, thus electricity cost transmission-level. As result, DERs receive surplus approach, generators more profitable approach.