The fast-growing penetration of distributed energy resources (DERs) is transforming traditional unidirectional power system networks into dynamic, bidirectional systems. This evolution demands new coordination mechanisms between distribution system operators (DSOs) and DER owners through aggregators to maintain network reliability while enabling active market participation. Existing transactive energy (TE) frameworks often treat market clearing, network constraints, and real-time DER control in isolation, limiting their practical deployability. To address this gap, this paper proposes a hierarchical TE framework that couples the day-ahead (DA) and intra-day (ID) markets with model predictive control (MPC)-based DER management. The DSO first derives network-certified export limits for each aggregator by enforcing voltage and thermal limits on a modified IEEE 123-bus feeder. These limits serve as operating bounds in a two-stage DA-ID market clearing process that selects cost-effective aggregators while respecting network and energy budget constraints. Aggregators then employ MPC to schedule DERs optimally within these limits while adapting to updated market signals. A unified settlement mechanism links the market and control layers across timescales. Simulation results on a modified IEEE-123 bus test system show that the proposed framework maintains network feasibility, supports coordinated DA-ID redispatch, and enables adaptive DER scheduling under varying operating conditions, offering a practical solution for network-aware transactive coordination in future decentralized power systems. © 2013 IEEE.
