Local electricity market design for the coordination of distributed energy resources at district level

The increasing penetration of distributed energy resources at the distribution grid level creates concerns about their successful integration in the existing electric grid, designed for centralized generation by large power plants. Failure to the proper integration of distributed energy resources might lead to violation of technical limits in the grid, thus lower power quality for the end-user, and reduces the efficiency of the electricity market. Nevertheless, the coexistence of generation and consumption at the premises of a neighborhood, caused by the increasing penetration of distributed energy resources such as photovoltaic generators in the distribution grid, diminishes the power transmission losses, inherent to a grid based on central power generation. Moreover, it enables the creation of a local electricity market, a step towards the market and technical integration of distributed energy resources if combined with the concept of market-based control. While market-based control seems to be the dominant solution for the control of distributed energy resources, the implementation of market-based control can be distributed or centralized and depends on the electricity market design. This work focuses on identifying the characteristics of the participants of the electricity market for the case study of residential customers with photovoltaic generation, residential energy storage and inelastic demand. Design choices are derived based on these characteristics in order to realize market-based control for the coordination of distributed energy resources via an efficient local electricity market.