Abstract

Nowadays, problems facing Distribution System Operators (DSOs) due to demand increase and the wide penetration of renewable energy are usually solved by means of grid reinforcement. However, the smart grid paradigm enables the deployment of demand flexibility for congestion management in distribution grids. This could substitute, or at least postpone, these needed investments. A key role in this scheme is the aggregator, who can act as a “flexibility provider” collecting the available flexibility from the consumers. Under this paradigm, this paper proposes a flexibility market led by the DSO and aimed at solving distribution grid congestions. The proposal also includes a flexibility market clearing algorithm, which is easy to implement, has low computational requirements and considers the energy rebound effect. The proposed design has the advantage of excluding the DSO’s need for trading in energy markets. Also, the solution algorithm proposed is fully compatible with already existing grid analysis tools. The proposed electricity market is tested with two case studies from a real Spanish distribution network, where the proposed clearing algorithm is used, and finally, results are presented and discussed.

Highlights

  • The deployment of new technologies to manage the grid operational levels, starting from the generation and down to the demand level, is set to create a reliable, efficient and economic power system

  • This paper focuses on demand side flexibility (DSF), which is one of main types of incentive-based demand response (DR) programs [6,7,8]

  • The objective of this paper is to propose a market for flexibility transactions that facilitates the trading between the Distribution System Operators (DSOs) and the aggregators, who are bidding on behalf of their customers

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Summary

Introduction

The deployment of new technologies to manage the grid operational levels, starting from the generation and down to the demand level, is set to create a reliable, efficient and economic power system. This is one of the main benefits of the current evolution of conventional electric grids into smarter and more flexible ones. Various market players and policy makers have encouraged the idea of flexible resources as a way of coping with such challenges New technologies such as intelligent smart meters, autonomous load controllers and advanced information and communication automations, are capable of providing sustainable minute-by-minute information to efficiently deploy demand response (DR) programs [1,2]. DSF encourages customers to actively participate in electricity markets by submitting increasing or decreasing capacity volumes [9,10,11]

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