LAUSR

Abstract This paper proposes a novel decentralised control approach dedicated to coordinating the operation of a large population of residential thermal energy storage characterised by diversified specifications, while innovatively considering the operational constraints on both the national and the local level. The presented iterative algorithm sequentially updates the storage operational schedule under the real-time electricity price scheme to achieve cost savings for each individual participant and the total system, while effectively avoiding the violation of local distribution network restrictions. The transmission topology is explicitly considered to investigate the impacts of transmission congestion on the electricity marginal prices. The results of a series of case studies demonstrate that the proposed coordination approach can effectively enable individual energy arbitrage and achieve 22.53 % system cost savings compared to the 10.34 % savings when coordination is absent. Moreover, the simulation results manifest that the coordinated control approach can cost-effectively perform distribution congestion management to ensure no local network is overloaded, which will cause 12.3 % increase in system operational costs. Overall, through coordinating the operation of numerous residential thermal energy storage to perform both energy arbitrage and distribution network congestion management, the proposed control approach can benefit the system operation at both the national and local levels.