Abstract
Current power market establishes a balance between supply and demand but the reliability and flexibility is not considered. The uncertainty of distributed energy resources (DERs) and the flexibility of demand should be reflected in price. This letter proposes a novel peer-to-peer (P2P) trading local energy market (LEM) framework in the distribution-level networks. In LEM, prosumers determine the offering prices based on their own supply reliability. A credit factor is proposed to ensure the minimum electricity which must be provided by prosumers. Based on P2P trading mechanism, the consumers could take advantage of their flexible loads to choose energy products with proper price and supply reliability. The LEM extends the market trading into four dimensions from price and quantity to reliability and flexibility. The case study has shown that the LEM could not only reflect the real value of DERs with different uncertainty but also give an economic signal for flexible demand to counteract the uncertainty of DERs.
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