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A novel community‐based local electricity market for multiple communities with joint energy trading considering the risk of participation

A novel community‐based local electricity market for multiple communities with joint energy... Growing penetration of distributed energy resources (DER) leads to emerging changes and issues in future power systems. A system oprator aims to maximise demnad side energy trading while minimising energy improts from upstream grid. This paper proposes a reliable local energy market (LEM) trading mechanism in which consumers and prosumers can trade self‐produced energy in a multiple community‐based market (MCBM) framework to optimally provide the balance. The proposed framework intends to maximise social welfare by fair allocation of resources, increasing the provided reserve for the main grid, and shaving the peak power resulting in enhancement of network flexibility. The overall model is formulated in the style of a bi‐level problem in which the lower‐level clears the market and the upper‐level is designated to redistribute the costs and benefits among market participants. Furthemore, the conditional value at risk (CVaR) approach is employed to evaluate how risk affects social welfare. Moreover, the impact of multiple communities and joint energy trading on the outcomes of the market is examined. The proposed model has been evaluated by analysing IEEE 33‐bus standard test system, and numerical studies verify the effectiveness of the proposed approach. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png IET Generation Transmission & Distribution Wiley

A novel community‐based local electricity market for multiple communities with joint energy trading considering the risk of participation

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Publisher
Wiley
Copyright
© 2023 The Institution of Engineering and Technology.
eISSN
1751-8695
DOI
10.1049/gtd2.12723
Publisher site
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Abstract

Growing penetration of distributed energy resources (DER) leads to emerging changes and issues in future power systems. A system oprator aims to maximise demnad side energy trading while minimising energy improts from upstream grid. This paper proposes a reliable local energy market (LEM) trading mechanism in which consumers and prosumers can trade self‐produced energy in a multiple community‐based market (MCBM) framework to optimally provide the balance. The proposed framework intends to maximise social welfare by fair allocation of resources, increasing the provided reserve for the main grid, and shaving the peak power resulting in enhancement of network flexibility. The overall model is formulated in the style of a bi‐level problem in which the lower‐level clears the market and the upper‐level is designated to redistribute the costs and benefits among market participants. Furthemore, the conditional value at risk (CVaR) approach is employed to evaluate how risk affects social welfare. Moreover, the impact of multiple communities and joint energy trading on the outcomes of the market is examined. The proposed model has been evaluated by analysing IEEE 33‐bus standard test system, and numerical studies verify the effectiveness of the proposed approach.

Journal

IET Generation Transmission & Distribution – Wiley

Published: Mar 1, 2023

Keywords: power markets; distributed power generation

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