Transactive Framework for Dynamic Energy Storage Allocation for Critical Load Management.

With the increased penetration of Distributed Energy Resources and Renewable Energy Systems (RES), the conventional distribution grid is advancing towards a transactive framework supervised by a distribution system operator (DSO). However, the inherent uncertainty of RES poses a challenge in meeting the power demand of critical infrastructures in the microgrid unless sufficient battery energy storage is maintained. Yet, maintaining expensive battery storage increases the operating cost of the DSO. In this article, we propose a dynamic resource allocation strategy to optimize the battery reserve requirement while ensuring the critical demand is met with a provable guarantee. Our solution is built upon stochastic control techniques where we model the uncertain nature of RES with geometric Brownian motion. Our proposed scheme enables the DSO to optimize the RES and battery reserve allocation to eliminate the risk of over or underproduction. We apply the proposed scheme to derive battery reserve allocation strategy for conventional and transactive grid settings. Finally, we present numerical simulations under three different scenarios of multiple microgrids with uncertain renewable generation with detailed comparison of the performance of the proposed algorithm for conventional and transactive grid. The simulation results demonstrate the efficacy of the proposed transactive stochastic control algorithm.