Smart home integration and distribution network optimization through transactive energy framework – a review

Sadam Hussain, M. Imran Azim, Chunyan Lai and Ursula Eicker

Applied Energy, 2025, vol. 395, issue C, No S0306261925009237

Abstract: In today’s world, more residential consumers are using distributed energy resources (DERs), including solar photovoltaic (PV) and other energy storage systems (ESSs), thanks to incentives. However, operating ESSs to maximize profits can cause power flows that may exceed voltage and thermal limits in distribution networks. This paper articulates an in-depth analysis of the relationship between smart home energy management systems (SHEMS), distribution transformers, and system constraints following a transactive energy framework. The main focuses are SHEMS, aggregators, peer-to-peer (P2P) energy trading, optimal power flow (OPF), and operating limits. SHEMS are indispensable tools that optimize energy usage, facilitate DERs’ operation, manage ESSs and electric vehicles (EVs), and aid demand response (DR) programs. Nevertheless, their dynamic nature presents challenges for distribution transformers, which must adapt to varying loads and energy profiles. The transactive energy framework (TEF) provides a promising approach to managing these interactions, enabling efficient energy transactions and grid optimization.

Keywords: Smart homes; Peer-to-peer trading; Transactive energy framework; Distribution transformer; Distribution network constraints (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1016/j.apenergy.2025.126193

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