Effects of Local Electricity Trading on Power Flows and Voltage Levels for Different Elasticities and Prices

Abstract

Local electricity trading is a concept that allows active electricity trading between consumers, producers and/or prosumers located in a local low voltage distribution grid. The concept should provide added value to the participants and accelerate the democratization, decarbonization and decentralization of the power sector. The effects of local electricity trading on voltage levels in distribution grids are just in the early stage of research, together with the possible means of control, market design, market-clearing approaches and integration of the local electricity trading within the electricity markets. The aim of this work is to contribute to the research by examining if near real-time local electricity trading can be implemented in a distribution grid without time-consuming security-constrained unit commitment calculations for the observed time horizon and without security-constrained economic dispatch calculations for each trading period. Moreover, this work investigates if the implementation of local electricity trading can contribute to the avoidance of unpredictable and unfavorable consumption/production patterns, which can appear in the distribution grid due to the random behavior of a large number of participants. It is analyzed if a contribution to the maintenance of the voltages and currents within limits can be achieved that way. The method for simulation of a local electricity market and analysis of power flows and voltage levels is presented. The auction-based local electricity trading is simulated and applied on the modified IEEE European Low Voltage Test Feeder where the effects of local electricity trading on power flows and voltage levels are studied for boundary elasticities and prices of demand and supply offering curves. It is shown that the local electricity trading has potential to incentivize active participation of prosumers, which can lead to better demand/supply balancing at the local level and to a decrease of voltage fluctuations.

Impact of local energy markets integration in power systems layer: A comprehensive review

“…Conversely, if photovoltaic (PV) inverters are equipped with voltage controllers, many of these transactions will be curtailed for voltage regulation and non-dispatchable PV is the most common DER at household level since other DERs like wind, geothermal, biogas are location-specific [79]. The impact of P2P trading on voltage variations has also been studied by Herencic et al in [53]. The study shows that voltage levels, as well as power flows, are primarily affected by prosumers' strategies for demand.…”

Impact of Local Energy Markets Integration in Power Systems Layer: A Comprehensive Review

“…Voltage variation High voltage [45] Scenario with high rooftop PV penetration level [46] Scenarios without including prosumers' trading strategies Minimization of voltage drops [46] Affected by prosumers' trading strategies [47] Once LEM mechanism is introduced, voltage issues are removed No specific effect [48] -…”

“…Conversely, if photovoltaic (PV) inverters are equipped with voltage controllers, many of these transactions will be curtailed for voltage regulation and non-dispatchable PV is the most common DER at household level since other DERs like wind, geothermal, biogas are location-specific [71]. The impact of P2P trading on voltage variations has also been studied by Herencic et al in [46]. The study shows that voltage levels, as well as power flows, are primarily affected by prosumers' strategies for demand.…”

Local Energy Trading in Future Distribution Systems

“…Trading in local energy markets is a concept that should enable electricity trading between different peers (decentralized generation, processors, and consumers) in the local distribution network, thereby provide adding value for the participants. This concept also accelerates the integration of renewable resources in the distribution network, improves network stability, and provides auxiliary services to the rest of the power system [13].…”