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Hierarchical approach for coordinating energy and flexibility trading in local energy markets

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  • Gazafroudi, Amin Shokri
  • Khorasany, Mohsen
  • Razzaghi, Reza
  • Laaksonen, Hannu
  • Shafie-khah, Miadreza

Abstract

Prosumers play a central role in current distribution networks. Local markets provide an environment for prosumers to interact with each other, either directly through peer-to-peer (P2P) markets, or indirectly via community-based markets. In this paper, we propose a hierarchical approach for local energy and flexibility trading among prosumers in distribution networks, in which prosumers are able to trade energy via P2P manner and transact flexibility in the local energy market to maintain distribution network constraints. The proposed method enables prosumers to manage their resources and participate in a P2P market by submitting their optimal bidding and offering curves. A local market operator runs the P2P market for energy trading among prosumers, and cooperates with the distribution system operator to dispatch the flexibility provided by prosumers. Moreover, a real-world distribution network consisting of ten prosumers is considered to assess the performance of the proposed model for local energy market based on flexible behavior of prosumers in the bottom layer of the distribution network.

Suggested Citation

  • Gazafroudi, Amin Shokri & Khorasany, Mohsen & Razzaghi, Reza & Laaksonen, Hannu & Shafie-khah, Miadreza, 2021. "Hierarchical approach for coordinating energy and flexibility trading in local energy markets," Applied Energy, Elsevier, vol. 302(C).
    • Handle: RePEc:eee:appene:v:302:y:2021:i:c:s0306261921009521
    DOI: 10.1016/j.apenergy.2021.117575
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    References listed on IDEAS

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    1. Khorasany, Mohsen & Shokri Gazafroudi, Amin & Razzaghi, Reza & Morstyn, Thomas & Shafie-khah, Miadreza, 2022. "A framework for participation of prosumers in peer-to-peer energy trading and flexibility markets," Applied Energy, Elsevier, vol. 314(C).
    2. Dukovska, Irena & Slootweg, J.G. (Han) & Paterakis, Nikolaos G., 2023. "Introducing user preferences for peer-to-peer electricity trading through stochastic multi-objective optimization," Applied Energy, Elsevier, vol. 338(C).
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    4. Godwin C. Okwuibe & Amin Shokri Gazafroudi & Sarah Hambridge & Christopher Dietrich & Ana Trbovich & Miadreza Shafie-khah & Peter Tzscheutschler & Thomas Hamacher, 2022. "Evaluation of Hierarchical, Multi-Agent, Community-Based, Local Energy Markets Based on Key Performance Indicators," Energies, MDPI, vol. 15(10), pages 1-23, May.
    5. Jagdish Prasad Nepal & Nuttaya Yuangyai & Saroj Gyawali & Chumpol Yuangyai, 2022. "Blockchain-Based Smart Renewable Energy: Review of Operational and Transactional Challenges," Energies, MDPI, vol. 15(13), pages 1-21, July.
    6. Chang, Weiguang & Dong, Wei & Wang, Yubin & Yang, Qiang, 2022. "Two-stage coordinated operation framework for virtual power plant with aggregated multi-stakeholder microgrids in a deregulated electricity market," Renewable Energy, Elsevier, vol. 199(C), pages 943-956.
    7. Sulman Shahzad & Elżbieta Jasińska, 2024. "Renewable Revolution: A Review of Strategic Flexibility in Future Power Systems," Sustainability, MDPI, vol. 16(13), pages 1-24, June.
    8. Arnob Das & Susmita Datta Peu & Md. Abdul Mannan Akanda & Abu Reza Md. Towfiqul Islam, 2023. "Peer-to-Peer Energy Trading Pricing Mechanisms: Towards a Comprehensive Analysis of Energy and Network Service Pricing (NSP) Mechanisms to Get Sustainable Enviro-Economical Energy Sector," Energies, MDPI, vol. 16(5), pages 1-27, February.
    9. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    10. Fernando García-Muñoz & Mariana Jiménez-Martínez & Josh Eichman & Cristina Corchero & Gabriela Benveniste, 2024. "Exploring the Viability of Local Electricity Markets for Managing Congestion in Spanish Distribution Networks," Energies, MDPI, vol. 17(3), pages 1-18, January.
    11. Faia, Ricardo & Lezama, Fernando & Soares, João & Pinto, Tiago & Vale, Zita, 2024. "Local electricity markets: A review on benefits, barriers, current trends and future perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 190(PA).
    12. Essayeh, Chaimaa & Morstyn, Thomas, 2023. "Optimal sizing for microgrids integrating distributed flexibility with the Perth West smart city as a case study," Applied Energy, Elsevier, vol. 336(C).
    13. Markus Doepfert & Soner Candas & Hermann Kraus & Peter Tzscheutschler & Thomas Hamacher, 2024. "Assessing the techno-economic benefits of LEMs for different grid topologies and prosumer shares," Papers 2410.13330, arXiv.org.
    14. Babagheibi, Mahsa & Jadid, Shahram & Kazemi, Ahad, 2023. "An Incentive-based robust flexibility market for congestion management of an active distribution system to use the free capacity of Microgrids," Applied Energy, Elsevier, vol. 336(C).

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