Local energy markets: Concept, design and operation

Teotia, Falti; Bhakar, Rohit

doi:10.1109/npsc.2016.7858975

Cited by 49 publications

(34 citation statements)

References 22 publications

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“…Due to the distributed nature of renewable energy generations, there has been growing interest in forming local energy markets for renewable energy suppliers and consumers to trade electricity at the distribution level [3]. Such local energy markets will allow consumers to purchase electricity from the least costly sources locally [4], and allow suppliers to compete in selling electricity directly to consumers (instead of dealing with the utility companies).…”

Section: A Background and Motivationmentioning

confidence: 99%

Storage or No Storage: Duopoly Competition Between Renewable Energy Suppliers in a Local Energy Market

Zhao

Wang

Huang

et al. 2020

IEEE J. Select. Areas Commun.

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Renewable energy generations and energy storage are playing increasingly important roles in serving consumers in power systems. This paper studies the market competition between renewable energy suppliers with or without energy storage in a local energy market. The storage investment brings the benefits of stabilizing renewable energy suppliers' outputs, but it also leads to substantial investment costs as well as some surprising changes in the market outcome. To study the equilibrium decisions of storage investment in the renewable energy suppliers' competition, we model the interactions between suppliers and consumers using a three-stage game-theoretic model. In Stage I, at the beginning of the investment horizon (containing many days), suppliers decide whether to invest in storage. Once such decisions have been made (once), in the day-ahead market of each day, suppliers decide on their bidding prices and quantities in Stage II, based on which consumers decide the electricity quantity purchased from each supplier in Stage III. In the real-time market, a supplier is penalized if his actual generation falls short of

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Section: A Background and Motivationmentioning

confidence: 99%

Storage or No Storage: Duopoly Competition Between Renewable Energy Suppliers in a Local Energy Market

Zhao

Wang

Huang

et al. 2020

IEEE J. Select. Areas Commun.

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“…The system operators relied on the supply-side flexibility and there was no interest in procuring flexibility from the demand-side or from distributed resources. In the recent years, European institutions and policymakers have brought attention to this new unexploited flexibility potential alongside the willingness to move the electricity markets closer to the final user, resulting in a growing interest towards local markets [10][11][12]. In local energy markets, prosumers can (directly or via aggregators) gain more benefit from valuing their resources by offering energy or flexibility services at the local level.…”

Section: Dispatchable Loads (Dls)mentioning

confidence: 99%

Local Markets for Flexibility Trading: Key Stages and Enablers

et al. 2018

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The European energy transition is leading to a transformed electricity system, where Distributed Energy Resources (DERs) will play a substantial role. Renewable Energy Sources (RES) will challenge the key operational obligation of real-time balancing and the need for flexibility will consequently increase. The introduction of a local flexibility market (LFM) would allow the trading of flexibility supplied by both producing and consuming units at the distribution level, providing market access to DERs, a support tool for Distribution System Operators (DSOs) and a value stream for energy suppliers. Aggregators and DSOs for different reasons can enhance the valuation of flexible DERs. Several research papers have assumed aggregators fully interacting with the electricity markets and DSOs contracting services with power system actors. These interactions are still not allowed in many European countries. This article aims to analyze the European regulation to identify the most important enablers and pave the way towards the full exploitation of DER flexibility, culminating in the establishment of an LFM. Therefore, three main stages, emerging from the progressive withdrawal of the current regulatory and market barriers, are identified: (1) enabling the aggregator’s trading, (2) evolution of the DSO’s role, and (3) key-design challenges of an LFM.

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“…In contrast with the previous peer-to-platform approaches, Kok et al [22] and Teotia et al [23] described Peer-to-Peer (P2P) negotiation mechanisms. The main advantage of P2P is to avoid the need for a central entity.…”

Section: Introductionmentioning

confidence: 99%

Local Flexibility Market Design for Aggregators Providing Multiple Flexibility Services at Distribution Network Level

et al. 2018

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This paper presents a general description of local flexibility markets as a marketbased management mechanism for aggregators. The high penetration of distributed energy resources introduces new flexibility services like prosumer or community self-balancing, congestion management and time-of-use optimization. This work is focused on the flexibility framework to enable multiple participants to compete for selling or buying flexibility. In this framework, the aggregator acts as a local market operator and supervises flexibility transactions of the local energy community. Local market participation is voluntary. Potential flexibility stakeholders are the distribution system operator, the balance responsible party and end-users themselves. Flexibility is sold by means of loads, generators, storage units and electric vehicles. Finally, this paper presents needed interactions between all local market stakeholders, the corresponding inputs and outputs of local market operation algorithms from participants and a case study to highlight the application of the local flexibility market in three scenarios. The local market framework could postpone grid upgrades, reduce energy costs and increase distribution grids' hosting capacity.

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Local energy markets: Concept, design and operation

Cited by 49 publications

References 22 publications

Storage or No Storage: Duopoly Competition Between Renewable Energy Suppliers in a Local Energy Market

Storage or No Storage: Duopoly Competition Between Renewable Energy Suppliers in a Local Energy Market

Local Markets for Flexibility Trading: Key Stages and Enablers

Local Flexibility Market Design for Aggregators Providing Multiple Flexibility Services at Distribution Network Level

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