A Clustering Algorithm for Connected Entities in a Transactive Energy System for Optimal Battery Usage

Various new advances in the power systems technology have led to the grid modernization stage. The concept of microgrid has quickly developed in this modernized grid, aided by several key advances in renewable energy and battery energy storage systems. This has led to the rise of the Prosumer model of electricity usage, wherein a user does both: produce and consume energy. Guided by these factors the peer to peer energy transfer mechanism is slowly developing into a proper grid architecture. This paper aims to show the development of a clustering algorithm for connected entities in a system such that there is an optimal use of battery energy storage systems and renewable energy. For this purpose a system with several connected prosumer entities is chosen. The clustering algorithm is then deployed which clusters the entities in a manner that the subgroup is almost self-sufficient and also has an efficiently performing battery storage system.