Dynamics of Communication Infrastructure in Transactive Energy Systems: A Systems Dynamics Model of LoRa Integration

Abstract

Distributed energy resources (DERs) introduce variability and bidirectional power flows that traditional centralized grids struggle to manage. Transactive Energy Systems (TES) offer a decentralized framework for balancing supply and demand through market-based coordination, but their deployment is constrained by communication infrastructure. This paper investigates Long Range (LoRa) technology as a TES communication solution using a system dynamics approach that models stakeholder interactions and feedback mechanisms. The analysis identifies sixteen feedback loops—eleven reinforcing and five balancing—that shape LoRa-TES integration. Critical technical relationships were empirically validated through packet-level network simulations. Results show that adaptive LoRa configurations reduce network-wide energy consumption by more than 99% compared to fixed-parameter baselines and sustain packet delivery ratios above 90% at low–moderate node counts, but also reveal a scalability ceiling of roughly 800–1000 nodes imposed by congestion. These findings highlight LoRa’s potential as an energy-efficient communication layer for small to medium TES deployments, while underscoring the need for hybrid architectures and supportive policy frameworks to overcome scalability and interoperability barriers.