IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v402y2025ipas0306261925015478.html

Energy storage configuration in transactive distribution systems incorporating integrated network flexibility

Author

Listed:
  • Jiang, Shuqi
  • Ma, Li
  • Pei, Wei
  • Xiao, Hao

Abstract

The rapid growth of renewable energy sources (RESs) has introduced significant variability and uncertainty into distribution networks, challenging their stable and efficient operation. To address these issues, energy storage systems (ESSs) help mitigate uncertainties from RES generation by enabling local energy exchanges and supporting flexible network operations, including adaptive routing and energy balancing. This study aims to develop a comprehensive optimization framework for transactive-driven ESS configurations in distribution networks with flexible interconnections, integrating both planning and operational considerations to enhance the flexibility, efficiency, and local consumption of distributed energy resources (DERs). A local energy sharing mechanism is proposed, including an innovative wheeling charge calculation model designed for flexible distribution networks with soft open points (SOPs). Then a robust transactive operation optimization model is proposed to handle the uncertainty of DERs' outputs and load demands, considering network operation flexibility as a consequence of SOPs' power adjustments and topology configuration of traditional on-off switches. The ESS configuration problem is formulated as a two-stage optimization, with the first stage determining the optimal storage deployment and the second stage incorporating the robust operational model, solved efficiently via a Column and Constraint Generation (C&CG) algorithm. The proposed models are validated in a modified 33-bus and 118-bus test systems. Results demonstrate that integrating SOPs with network reconfiguration provides flexible routing options for local energy sharing, enhancing local consumptions of DERs; moreover, the proposed ESS configuration optimizes supply-demand balance to improve system efficiency and reduce main grid reliance. It is also observed that ESS configuration is influenced by the local energy-sharing scheme and network flexibility, particularly in terms of SOPs' location and capacity.

Suggested Citation

  • Jiang, Shuqi & Ma, Li & Pei, Wei & Xiao, Hao, 2025. "Energy storage configuration in transactive distribution systems incorporating integrated network flexibility," Applied Energy, Elsevier, vol. 402(PA).
  • Handle: RePEc:eee:appene:v:402:y:2025:i:pa:s0306261925015478
    DOI: 10.1016/j.apenergy.2025.126817
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261925015478
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2025.126817?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Mahuze, Richard A. & Amadeh, Ali & Yuan, Bo & Zhang, K. Max, 2025. "Collaborative optimization framework for capacity planning of a prosumer-based peer-to-peer electricity trading community," Applied Energy, Elsevier, vol. 384(C).
    2. Rodrigues, Daniel L. & Ye, Xianming & Xia, Xiaohua & Zhu, Bing, 2020. "Battery energy storage sizing optimisation for different ownership structures in a peer-to-peer energy sharing community," Applied Energy, Elsevier, vol. 262(C).
    3. Jiang, Haoran & Hong, Shaozhi & Wang, Zeling & Yu, Qing, 2025. "Integrated charging scheduling and energy management for electrified-autonomous flexible transit with energy storage systems design," Applied Energy, Elsevier, vol. 392(C).
    4. Li, Qiang & Zhou, Yongcheng & Wei, Fanchao & Li, Shuangxiu & Wang, Zhonghao & Li, Jiajia & Zhou, Guowen & Liu, Jinfu & Yan, Peigang & Yu, Daren, 2024. "Multi-time scale scheduling for virtual power plants: Integrating the flexibility of power generation and multi-user loads while considering the capacity degradation of energy storage systems," Applied Energy, Elsevier, vol. 362(C).
    5. Wankouo Ngouleu, Clint Ameri & Koholé, Yemeli Wenceslas & Fohagui, Fodoup Cyrille Vincelas & Tchuen, Ghislain, 2025. "Optimum design and scheduling strategy of an off-grid hybrid photovoltaic-wind-diesel system with an electrochemical, mechanical, chemical and thermal energy storage systems: A comparative scrutiny," Applied Energy, Elsevier, vol. 377(PC).
    6. Chang, Hsiu-Chuan & Ghaddar, Bissan & Nathwani, Jatin, 2022. "Shared community energy storage allocation and optimization," Applied Energy, Elsevier, vol. 318(C).
    7. Zhou, Yuekuan & Lund, Peter D., 2023. "Peer-to-peer energy sharing and trading of renewable energy in smart communities ─ trading pricing models, decision-making and agent-based collaboration," Renewable Energy, Elsevier, vol. 207(C), pages 177-193.
    8. Soto, Esteban A. & Bosman, Lisa B. & Wollega, Ebisa & Leon-Salas, Walter D., 2021. "Peer-to-peer energy trading: A review of the literature," Applied Energy, Elsevier, vol. 283(C).
    9. Liu, Junhong & Long, Qinfei & Liu, Rong-Peng & Liu, Wenjie & Hou, Yunhe, 2023. "Online distributed optimization for spatio-temporally constrained real-time peer-to-peer energy trading," Applied Energy, Elsevier, vol. 331(C).
    10. Zhang, Wen-Yi & Chen, Yue & Wang, Yi & Xu, Yunjian, 2023. "Equilibrium analysis of a peer-to-peer energy trading market with shared energy storage in a power transmission grid," Energy, Elsevier, vol. 274(C).
    11. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    12. He, Ye & Wu, Hongbin & Wu, Andrew Y. & Li, Peng & Ding, Ming, 2024. "Optimized shared energy storage in a peer-to-peer energy trading market: Two-stage strategic model regards bargaining and evolutionary game theory," Renewable Energy, Elsevier, vol. 224(C).
    13. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    14. Ren, Haoshan & Sun, Yongjun & Albdoor, Ahmed K. & Tyagi, V.V. & Pandey, A.K. & Ma, Zhenjun, 2021. "Improving energy flexibility of a net-zero energy house using a solar-assisted air conditioning system with thermal energy storage and demand-side management," Applied Energy, Elsevier, vol. 285(C).
    15. Tushar, Wayes & Yuen, Chau & Saha, Tapan K. & Morstyn, Thomas & Chapman, Archie C. & Alam, M. Jan E. & Hanif, Sarmad & Poor, H. Vincent, 2021. "Peer-to-peer energy systems for connected communities: A review of recent advances and emerging challenges," Applied Energy, Elsevier, vol. 282(PA).
    16. Zhang, Shixu & Li, Yaowang & Du, Ershun & Fan, Chuan & Wu, Zhenlong & Yao, Yong & Liu, Lurao & Zhang, Ning, 2023. "A review and outlook on cloud energy storage: An aggregated and shared utilizing method of energy storage system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 185(C).
    17. Feng, Chen & Liu, Andrew L., 2025. "Peer-to-peer energy trading of solar and energy storage: A networked multiagent reinforcement learning approach," Applied Energy, Elsevier, vol. 383(C).
    18. Li, Junhui & Zhang, Jingxiang & Mu, Gang & Li, Cuiping & Yan, Gangui & Zhu, Xingxu & Jia, Chen, 2024. "Dynamic partitioning method for independent energy storage zones participating in peak modulation and frequency modulation under the auxiliary service market," Applied Energy, Elsevier, vol. 361(C).
    19. Zhang, Tianhan & Qiu, Weiqiang & Zhang, Zhi & Lin, Zhenzhi & Ding, Yi & Wang, Yiting & Wang, Lianfang & Yang, Li, 2023. "Optimal bidding strategy and profit allocation method for shared energy storage-assisted VPP in joint energy and regulation markets," Applied Energy, Elsevier, vol. 329(C).
    20. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K., 2020. "Investigating the impact of P2P trading on power losses in grid-connected networks with prosumers," Applied Energy, Elsevier, vol. 263(C).
    21. Zheng Wang, & Luther, Mark & Horan, Peter & Matthews, Jane & Liu, Chunlu, 2025. "Technical and economic analyses of grid-connected residential PV considering batteries and peer-to-peer energy sharing," Renewable Energy, Elsevier, vol. 252(C).
    22. Xia, Yuanxing & Xu, Qingshan & Chen, Lu & Du, Pengwei, 2022. "The flexible roles of distributed energy storages in peer-to-peer transactive energy market: A state-of-the-art review," Applied Energy, Elsevier, vol. 327(C).
    23. Tang, Haotian & Li, Rui & Song, Tongqing & Ju, Shenghong, 2025. "Short-term optimal scheduling and comprehensive assessment of hydro-photovoltaic-wind systems augmented with hybrid pumped storage hydropower plants and diversified energy storage configurations," Applied Energy, Elsevier, vol. 389(C).
    24. Deakin, Matthew & Sarantakos, Ilias & Greenwood, David & Bialek, Janusz & Taylor, Phil C. & Walker, Sara, 2023. "Comparative analysis of services from soft open points using cost–benefit analysis," Applied Energy, Elsevier, vol. 333(C).
    25. Yuan, Meng & Sorknæs, Peter & Lund, Henrik & Liang, Yongtu, 2022. "The bidding strategies of large-scale battery storage in 100% renewable smart energy systems," Applied Energy, Elsevier, vol. 326(C).
    26. Pan, Yushu & Ju, Liwei & Yang, Shenbo & Guo, Xinyu & Tan, Zhongfu, 2024. "A multi-objective robust optimal dispatch and cost allocation model for microgrids-shared hybrid energy storage system considering flexible ramping capacity," Applied Energy, Elsevier, vol. 369(C).
    27. Lüth, Alexandra & Zepter, Jan Martin & Crespo del Granado, Pedro & Egging, Ruud, 2018. "Local electricity market designs for peer-to-peer trading: The role of battery flexibility," Applied Energy, Elsevier, vol. 229(C), pages 1233-1243.
    28. Zhang, Wen-Yi & Zheng, Boshen & Wei, Wei & Chen, Laijun & Mei, Shengwei, 2022. "Peer-to-peer transactive mechanism for residential shared energy storage," Energy, Elsevier, vol. 246(C).
    29. Bian, Yifan & Xie, Lirong & Ye, Jiahao & Ma, Lan & Cui, Chuanshi, 2024. "Peer-to-peer energy sharing model considering multi-objective optimal allocation of shared energy storage in a multi-microgrid system," Energy, Elsevier, vol. 288(C).
    30. Chen, Liudong & Liu, Nian & Li, Chenchen & Zhang, Silu & Yan, Xiaohe, 2021. "Peer-to-peer energy sharing with dynamic network structures," Applied Energy, Elsevier, vol. 291(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhou, Yuekuan & Lund, Peter D., 2023. "Peer-to-peer energy sharing and trading of renewable energy in smart communities ─ trading pricing models, decision-making and agent-based collaboration," Renewable Energy, Elsevier, vol. 207(C), pages 177-193.
    2. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    3. He, Ye & Wu, Hongbin & Wu, Andrew Y. & Li, Peng & Ding, Ming, 2024. "Optimized shared energy storage in a peer-to-peer energy trading market: Two-stage strategic model regards bargaining and evolutionary game theory," Renewable Energy, Elsevier, vol. 224(C).
    4. Wang, Dongxue & Fan, Ruguo & Yang, Peiwen & Du, Kang & Xu, Xiaoxia & Chen, Rongkai, 2024. "Research on floating real-time pricing strategy for microgrid operator in local energy market considering shared energy storage leasing," Applied Energy, Elsevier, vol. 368(C).
    5. Talihati, Baligen & Tao, Shengyu & Fu, Shiyi & Zhang, Bowen & Fan, Hongtao & Li, Qifen & Lv, Xiaodong & Sun, Yaojie & Wang, Yu, 2024. "Energy storage sharing in residential communities with controllable loads for enhanced operational efficiency and profitability," Applied Energy, Elsevier, vol. 373(C).
    6. Filipe Bandeiras & Álvaro Gomes & Mário Gomes & Paulo Coelho, 2023. "Exploring Energy Trading Markets in Smart Grid and Microgrid Systems and Their Implications for Sustainability in Smart Cities," Energies, MDPI, vol. 16(2), pages 1-41, January.
    7. Schwidtal, J.M. & Piccini, P. & Troncia, M. & Chitchyan, R. & Montakhabi, M. & Francis, C. & Gorbatcheva, A. & Capper, T. & Mustafa, M.A. & Andoni, M. & Robu, V. & Bahloul, M. & Scott, I.J. & Mbavarir, 2023. "Emerging business models in local energy markets: A systematic review of peer-to-peer, community self-consumption, and transactive energy models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 179(C).
    8. Zheng Wang, & Luther, Mark & Horan, Peter & Matthews, Jane & Liu, Chunlu, 2025. "Technical and economic analyses of grid-connected residential PV considering batteries and peer-to-peer energy sharing," Renewable Energy, Elsevier, vol. 252(C).
    9. Huang, Chung-Ting & Scott, Ian J., 2024. "Peer-to-peer multi-period energy market with flexible scheduling on a scalable and cost-effective blockchain," Applied Energy, Elsevier, vol. 367(C).
    10. Félix González & Paul Arévalo & Luis Ramirez, 2025. "Game Theory and Robust Predictive Control for Peer-to-Peer Energy Management: A Pathway to a Low-Carbon Economy," Sustainability, MDPI, vol. 17(5), pages 1-23, February.
    11. Kaiss, Mateus & Wan, Yihao & Gebbran, Daniel & Vila, Clodomiro Unsihuay & Dragičević, Tomislav, 2025. "Review on Virtual Power Plants/Virtual Aggregators: Concepts, applications, prospects and operation strategies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 211(C).
    12. Zheyuan Sun & Sara Tavakoli & Kaveh Khalilpour & Alexey Voinov & Jonathan Paul Marshall, 2024. "Barriers to Peer-to-Peer Energy Trading Networks: A Multi-Dimensional PESTLE Analysis," Sustainability, MDPI, vol. 16(4), pages 1-23, February.
    13. Tabassum, Fariya & Azim, M.Imran & Islam, Md.Rashidul & Rahman, M.A. & Ali, Liaqat & Rahman, Md.Mahfuzur & Hossain, M.J., 2025. "Energy data security and pricing model in local energy markets using artificial intelligence," Applied Energy, Elsevier, vol. 401(PB).
    14. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    15. Andreolli, Francesca & D’Alpaos, Chiara & Kort, Peter, 2025. "Does P2P trading favor investments in PV–Battery Systems?," Energy Economics, Elsevier, vol. 145(C).
    16. Pu, Yuchen & Li, Qi & Huo, Shasha & Breaz, Elena & Chen, Weirong & Gao, Fei, 2024. "Optimal configuration for shared electric-hydrogen energy storage for multiple integrated energy systems with mobile hydrogen transportation," Renewable Energy, Elsevier, vol. 237(PC).
    17. Fu, Yang & Shan, Jie & Li, Zhenkun & Pan, Jeng-Shyang, 2025. "P2P energy trading of multi-energy prosumers: An electricity-heat coupling double auction market," Applied Energy, Elsevier, vol. 390(C).
    18. Zhang, Wen-Yi & Chen, Yue & Wang, Yi & Xu, Yunjian, 2023. "Equilibrium analysis of a peer-to-peer energy trading market with shared energy storage in a power transmission grid," Energy, Elsevier, vol. 274(C).
    19. Xie, Yulong & Li, Lee & Hou, Tianyu & Luo, Kang & Xu, Zhenyu & Dai, Mingcheng & Zhang, Lixiong, 2024. "Shared energy storage configuration in distribution networks: A multi-agent tri-level programming approach," Applied Energy, Elsevier, vol. 372(C).
    20. Barone, G. & Buonomano, A. & Forzano, C. & Palombo, A. & Russo, G., 2023. "The role of energy communities in electricity grid balancing: A flexible tool for smart grid power distribution optimization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 187(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:402:y:2025:i:pa:s0306261925015478. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.