Market Mechanisms for Local Electricity Markets: A review of models, solution concepts and algorithmic techniques

Τσαούσογλου, Γεώργιος; Giraldo, Juan S.; Paterakis, Nikolaos G.

doi:10.1016/j.rser.2021.111890

Cited by 71 publications

(27 citation statements)

References 125 publications

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“…As a remark, we point out that a reduction in the total final energy cost (P = n π n ) would not necessarily reflect a drop in the revenue of the CPO since the latter may be able to receive a settlement from external parties due to flexibility services, e.g., by its participation in a local flexibility market [7].…”

Section: B Proposed Compensation Mechanismmentioning

confidence: 99%

“…Nonetheless, EVs also represent new potential flexibility sources due to their inherent load characteristics (manageable), which may help deal with technical issues in the distribution grid in the form of services [4]. Therefore, compensation mechanisms that allow EV users to provide flexibility services to charging point operators (CPOs) acting as aggregators, distribution system operators, or energy suppliers might be needed in future scenarios [5]- [7]. On the other hand, the emergence of quality policies for EV charging services in terms of energy supplied can be designed using compensation mechanisms.…”

Section: Introductionmentioning

confidence: 99%

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A Compensation Mechanism for EV Flexibility Services using Discrete Utility Functions

Giraldo¹,

Arias²,

Duque³

et al. 2022

Preprint

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Compensation mechanisms are used to counterbalance the discomfort suffered by users due to quality service issues. Such mechanisms are currently used for different purposes in the electrical power and energy sector, e.g., power quality and reliability. This paper proposes a compensation mechanism using EV flexibility management of a set of charging sessions managed by a charging point operator (CPO). Users' preferences and bilateral agreements with the CPO are modelled via discrete utility functions for the energy not served. A mathematical proof of the proposed compensation mechanism is given and applied to a test scenario using historical data from an office building with a parking lot in the Netherlands. Synthetic data for 400 charging sessions was generated using multivariate elliptical copulas to capture the complex dependency structures in EV charging data. Numerical results validate the usefulness of the proposed compensation mechanism as an attractive measure both for the CPO and the users in case of energy not served.

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Section: B Proposed Compensation Mechanismmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

A Compensation Mechanism for EV Flexibility Services using Discrete Utility Functions

Giraldo¹,

Arias²,

Duque³

et al. 2022

Preprint

Self Cite

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“…In the context of an increasing decentralisation of the electric grid, the connection of decentralised units (e.g., microgrids) to the wholesale electricity markets is supported by the emergence of local electricity markets that incentivise the management of resources at lower levels [33]. Current research identifies that flexibility markets and local electricity markets can function either separately alongside each other or in a hybrid form [34].…”

Section: Dr Service Providers and Flexibility Servicesmentioning

confidence: 99%

Demand Response Impact Evaluation: A Review of Methods for Estimating the Customer Baseline Load

et al. 2022

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Climate neutrality is one of the greatest challenges of our century, and a decarbonised energy system is a key step towards this goal. To this end, the electricity system is expected to become more interconnected, digitalised, and flexible by engaging consumers both through microgeneration and through demand side flexibility. A successful use of these flexibility tools depends widely on the evaluation of their effects, hence the definition of methods to assess and evaluate them is essential for their implementation. In order to enable a reliable assessment of the benefits from participating in demand response, it is necessary to define a reference value (“baseline”) to allow for a fair comparison. Different methodologies have been investigated, developed, and adopted for estimating the customer baseline load. The article presents a structured overview of methods for the estimating the customer baseline load, based on a review of academic literature, existing standardisation efforts, and lessons from use cases. In particular, the article describes and focuses on the different baseline methods applied in some European H2020 projects, showing the results achieved in terms of measurement accuracy and costs in real test cases. The most suitable methodology choice among the several available depends on many factors. Some of them can be the function of the Demand Response (DR) service in the system, the broader regulatory framework for DR participation in wholesale markets, or the DR providers characteristics, and this list is not exclusive. The evaluation shows that the baseline methodology choice presents a trade-off among complexity, accuracy, and cost.

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“…In addition, a key aspect of successfully managing the physical constraints of the grid infrastructure is a close integration of LEMs with the current power system, as well as their integration and coordination with the traditional energy markets such as wholesale, retail and balancing markets. Some work has already been done in this direction (see for example [15,167,168]). Furthermore, apart from their integration, quantifying the effect of these local energy markets on the traditional markets is something that needs in-depth investigation.…”

Section: Consideration Of Physical Constraintsmentioning

confidence: 99%

“…Similarly, [14] classify and organise the literature on market designs and clearing methods, with a focus on local flexibility markets. [15] review LEMs focusing on four key attributes of the market: scope, modelling assumptions, objectives, and mechanisms. [16] review consumer-centric electricity markets, integrating the behaviour of all market participants, not only prosumers.…”

Section: Introductionmentioning

confidence: 99%

A Systematic Literature Review of Peer-to-Peer, Community Self-Consumption, and Transactive Energy Market Models

et al. 2021

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Market Mechanisms for Local Electricity Markets: A review of models, solution concepts and algorithmic techniques

Cited by 71 publications

References 125 publications

A Compensation Mechanism for EV Flexibility Services using Discrete Utility Functions

A Compensation Mechanism for EV Flexibility Services using Discrete Utility Functions

Demand Response Impact Evaluation: A Review of Methods for Estimating the Customer Baseline Load

A Systematic Literature Review of Peer-to-Peer, Community Self-Consumption, and Transactive Energy Market Models

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