1,784 research outputs found
Evaluation of Hierarchical, Multi-Agent, Community-Based, Local Energy Markets Based on Key Performance Indicators
In recent years, local energy markets (LEMs) have been introduced to empower end-customers within energy communities at the distribution level of the power system, in order to be able to trade their energy locally in a competitive and fair environment. However, there is still some challenge with regard to the most efficient approach in organising the LEMs for the electricity exchange between consumers and prosumers while ensuring that they are responsible for their electricity-related choices, and concerning which LEM model is suitable for which prosumer or consumer type. This paper presents a hierarchical model for the organisation of agent-based local energy markets. According to the proposed model, prosumers and consumers are enabled to transact electricity within the local energy community and with the grid in a coordinated manner to ensure technical and economic benefits for the LEM’s agents. The model is implemented in a software tool called Grid Singularity Exchange (GSyE), and it is verified in a real German energy community case study. The simulation results demonstrate that trading electricity within the LEM offers economic and technical benefits compared to transacting with the up-stream grid. This can further lead to the decarbonization of the power system sector. Furthermore, we propose two models for LEMs consisting of multi-layer and single-layer hierarchical agent-based structures. According to our study, the multi-layer hierarchical model is more profitable for household prosumers as compared to trading within the single-layer hierarchical LEM. However, the single-layer LEM is more be beneficial for industrial prosumers.© 2022 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).fi=vertaisarvioitu|en=peerReviewed
Peer-to-peer and community-based markets: A comprehensive review
The advent of more proactive consumers, the so-called "prosumers", with
production and storage capabilities, is empowering the consumers and bringing
new opportunities and challenges to the operation of power systems in a market
environment. Recently, a novel proposal for the design and operation of
electricity markets has emerged: these so-called peer-to-peer (P2P) electricity
markets conceptually allow the prosumers to directly share their electrical
energy and investment. Such P2P markets rely on a consumer-centric and
bottom-up perspective by giving the opportunity to consumers to freely choose
the way they are to source their electric energy. A community can also be
formed by prosumers who want to collaborate, or in terms of operational energy
management. This paper contributes with an overview of these new P2P markets
that starts with the motivation, challenges, market designs moving to the
potential future developments in this field, providing recommendations while
considering a test-case
Consensus-based approach to peer-to-peer electricity markets with product differentiation
With the sustained deployment of distributed generation capacities and the
more proactive role of consumers, power systems and their operation are
drifting away from a conventional top-down hierarchical structure. Electricity
market structures, however, have not yet embraced that evolution. Respecting
the high-dimensional, distributed and dynamic nature of modern power systems
would translate to designing peer-to-peer markets or, at least, to using such
an underlying decentralized structure to enable a bottom-up approach to future
electricity markets. A peer-to-peer market structure based on a Multi-Bilateral
Economic Dispatch (MBED) formulation is introduced, allowing for
multi-bilateral trading with product differentiation, for instance based on
consumer preferences. A Relaxed Consensus+Innovation (RCI) approach is
described to solve the MBED in fully decentralized manner. A set of realistic
case studies and their analysis allow us showing that such peer-to-peer market
structures can effectively yield market outcomes that are different from
centralized market structures and optimal in terms of respecting consumers
preferences while maximizing social welfare. Additionally, the RCI solving
approach allows for a fully decentralized market clearing which converges with
a negligible optimality gap, with a limited amount of information being shared.Comment: Accepted for publication in IEEE Transactions on Power System
An Exchange Mechanism to Coordinate Flexibility in Residential Energy Cooperatives
Energy cooperatives (ECs) such as residential and industrial microgrids have
the potential to mitigate increasing fluctuations in renewable electricity
generation, but only if their joint response is coordinated. However, the
coordination and control of independently operated flexible resources (e.g.,
storage, demand response) imposes critical challenges arising from the
heterogeneity of the resources, conflict of interests, and impact on the grid.
Correspondingly, overcoming these challenges with a general and fair yet
efficient exchange mechanism that coordinates these distributed resources will
accommodate renewable fluctuations on a local level, thereby supporting the
energy transition. In this paper, we introduce such an exchange mechanism. It
incorporates a payment structure that encourages prosumers to participate in
the exchange by increasing their utility above baseline alternatives. The
allocation from the proposed mechanism increases the system efficiency
(utilitarian social welfare) and distributes profits more fairly (measured by
Nash social welfare) than individual flexibility activation. A case study
analyzing the mechanism performance and resulting payments in numerical
experiments over real demand and generation profiles of the Pecan Street
dataset elucidates the efficacy to promote cooperation between co-located
flexibilities in residential cooperatives through local exchange.Comment: Accepted in IEEE ICIT 201
Local flexibility market design for aggregators providing multiple flexibility services at distribution network level
This paper presents a general description of local flexibility markets as a market-based 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.Postprint (published version
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