LEM for DERs and flexible loads

Abstract

The increasing of distributed energy resources (DERs) requires efficient energy market mechanisms, but the existing market cannot directly reflect the uncertainty of renewable energy and the flexibility of demand on price. This study proposes a novel local energy market (LEM) framework, in which the DERs are traded between prosumers and consumers. In the LEM, a guarantee level mechanism is proposed to distinguish the difference of the renewable distributed generators’ (DGs’) uncertainty and loads’ flexibility. It divides the LEM into different levels for prosumers and consumers to select based on their own conditions. The proposed mechanism extends the market trading into four dimensions which are price, quantity, reliability and flexibility. To promote the efficiency of the LEM, an iterative clearing approach is proposed. The prosumers and consumers determine their trading parameters based on the proposed two-stage stochastic optimisation models. The case studies are conducted to verify the efficiency of the proposed LEM. The results shows that the market with guarantee level mechanism not only gives an economic signal for flexible loads to counteract the uncertainty of renewable DGs, but also promotes the integration of DERs and increase the welfare of prosumers and consumers.