Local retail electricity markets for distribution grid services

TL;DR

This paper introduces a hierarchical local electricity market (LEM) that coordinates distributed energy resources at different grid levels, improving voltage control and reducing costs in distribution networks.

Contribution

It proposes a novel multi-level market framework with a current injection-based model applicable to various grid configurations, enhancing DER coordination and grid service valuation.

Findings

Successfully achieves voltage regulation in simulations.

Reduces overall network operational costs.

Enables precise DER compensation based on service value.

Abstract

We propose a hierarchical local electricity market (LEM) at the primary and secondary feeder levels in a distribution grid, to optimally coordinate and schedule distributed energy resources (DER) and provide valuable grid services like voltage control. At the primary level, we use a current injection-based model that is valid for both radial and meshed, balanced and unbalanced, multi-phase systems. The primary and secondary markets leverage the flexibility offered by DERs to optimize grid operation and maximize social welfare. Numerical simulations on an IEEE-123 bus modified to include DERs, show that the LEM successfully achieves voltage control and reduces overall network costs, while also allowing us to decompose the price and value associated with different grid services so as to accurately compensate DERs.