IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v253y2022ics0360544222008921.html
   My bibliography  Save this article

Stochastic local flexibility market design, bidding, and dispatch for distribution grid operations

Author

Listed:
  • Kara, Güray
  • Pisciella, Paolo
  • Tomasgard, Asgeir
  • Farahmand, Hossein
  • Crespo del Granado, Pedro

Abstract

In order to unlock the flexibility potential of energy consumers and prosumers, the development of market mechanisms for flexibility planning and procurement is necessary. The authors propose a stochastic local flexibility market to solve grid issues such as voltage deviations and grid congestion in a distribution grid. Their proposed solution includes activation of flexibility assets at the consumers’ premises, using a stochastic local flexibility market design. They consider a pooled local flexibility market design under demand uncertainty and stochastic bidding process. Optimization models are used to determine flexibility demand and supply bids by the distribution system operator and the aggregator respectively. A stochastic AC-optimal power model to determine flexibility demand and a two-stage stochastic model to supply flexibility are implemented to simulate a stochastic local flexibility market. This allows to determine stochastic flexibility supply bid curves, and optimum flexibility supply dispatch. The analysis shows that the cost of grid operations is reduced when the system uses the local flexibility market. The proposed methodology is applicable for local flexibility market designs aiming to use potential end-user flexibility for grid operations.

Suggested Citation

  • Kara, Güray & Pisciella, Paolo & Tomasgard, Asgeir & Farahmand, Hossein & Crespo del Granado, Pedro, 2022. "Stochastic local flexibility market design, bidding, and dispatch for distribution grid operations," Energy, Elsevier, vol. 253(C).
    • Handle: RePEc:eee:energy:v:253:y:2022:i:c:s0360544222008921
    DOI: 10.1016/j.energy.2022.123989
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544222008921
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2022.123989?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pol Olivella-Rosell & Pau Lloret-Gallego & Íngrid Munné-Collado & Roberto Villafafila-Robles & Andreas Sumper & Stig Ødegaard Ottessen & Jayaprakash Rajasekharan & Bernt A. Bremdal, 2018. "Local Flexibility Market Design for Aggregators Providing Multiple Flexibility Services at Distribution Network Level," Energies, MDPI, vol. 11(4), pages 1-19, April.
    2. Cherrelle Eid & Paul Codani & Yurong Chen & Yannick Perez & Rudi Hakvoort, 2015. "Aggregation of demand side flexibility in a smart grid: A review for European market design," Post-Print hal-01230914, HAL.
    3. Jafari, Mehdi & Botterud, Audun & Sakti, Apurba, 2020. "Estimating revenues from offshore wind-storage systems: The importance of advanced battery models," Applied Energy, Elsevier, vol. 276(C).
    4. Bjørndal, Endre & Bjørndal, Mette & Midthun, Kjetil & Tomasgard, Asgeir, 2018. "Stochastic electricity dispatch: A challenge for market design," Energy, Elsevier, vol. 150(C), pages 992-1005.
    5. Henriot, Arthur & Glachant, Jean-Michel, 2013. "Melting-pots and salad bowls: The current debate on electricity market design for integration of intermittent RES," Utilities Policy, Elsevier, vol. 27(C), pages 57-64.
    6. Ottesen, Stig Ødegaard & Tomasgard, Asgeir & Fleten, Stein-Erik, 2016. "Prosumer bidding and scheduling in electricity markets," Energy, Elsevier, vol. 94(C), pages 828-843.
    7. Geoffrey Pritchard & Golbon Zakeri & Andrew Philpott, 2010. "A Single-Settlement, Energy-Only Electric Power Market for Unpredictable and Intermittent Participants," Operations Research, INFORMS, vol. 58(4-part-2), pages 1210-1219, August.
    8. Simone Minniti & Niyam Haque & Phuong Nguyen & Guus Pemen, 2018. "Local Markets for Flexibility Trading: Key Stages and Enablers," Energies, MDPI, vol. 11(11), pages 1-21, November.
    9. Tsaousoglou, Georgios & Giraldo, Juan S. & Paterakis, Nikolaos G., 2022. "Market Mechanisms for Local Electricity Markets: A review of models, solution concepts and algorithmic techniques," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    10. Jean Michel Glachant & Arthur Henriot, 2013. "Melting-pots and salad bowls: the current debate on electricity market design for RES integration," Cambridge Working Papers in Economics 1354, Faculty of Economics, University of Cambridge.
    11. Eid, Cherrelle & Bollinger, L. Andrew & Koirala, Binod & Scholten, Daniel & Facchinetti, Emanuele & Lilliestam, Johan & Hakvoort, Rudi, 2016. "Market integration of local energy systems: Is local energy management compatible with European regulation for retail competition?," Energy, Elsevier, vol. 114(C), pages 913-922.
    12. Cherrelle Eid & Paul Codani & Yannick Perez & Javier Reneses & Rudi Hakvoort, 2016. "Managing electric flexibility from Distributed Energy Resources: A review of incentives for market design," Post-Print hal-01792419, HAL.
    13. Ottesen, Stig Ødegaard & Tomasgard, Asgeir & Fleten, Stein-Erik, 2018. "Multi market bidding strategies for demand side flexibility aggregators in electricity markets," Energy, Elsevier, vol. 149(C), pages 120-134.
    14. Jin, Xiaolong & Wu, Qiuwei & Jia, Hongjie, 2020. "Local flexibility markets: Literature review on concepts, models and clearing methods," Applied Energy, Elsevier, vol. 261(C).
    15. Eid, Cherrelle & Codani, Paul & Perez, Yannick & Reneses, Javier & Hakvoort, Rudi, 2016. "Managing electric flexibility from Distributed Energy Resources: A review of incentives for market design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 237-247.
    16. Kühnbach, Matthias & Bekk, Anke & Weidlich, Anke, 2022. "Towards improved prosumer participation: Electricity trading in local markets," Energy, Elsevier, vol. 239(PE).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wu, Shengyang & Ding, Zhaohao & Wang, Jingyu & Shi, Dongyuan, 2023. "Unveiling bidding uncertainties in electricity markets: A Bayesian deep learning framework based on accurate variational inference," Energy, Elsevier, vol. 276(C).
    2. Khojasteh, Meysam & Faria, Pedro & Lezama, Fernando & Vale, Zita, 2023. "A hierarchy model to use local resources by DSO and TSO in the balancing market," Energy, Elsevier, vol. 267(C).
    3. 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).
    4. Tong, Ziqiang & Mansouri, Seyed Amir & Huang, Shoujun & Rezaee Jordehi, Ahmad & Tostado-Véliz, Marcos, 2023. "The role of smart communities integrated with renewable energy resources, smart homes and electric vehicles in providing ancillary services: A tri-stage optimization mechanism," Applied Energy, Elsevier, vol. 351(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kara, Güray & Tomasgard, Asgeir & Farahmand, Hossein, 2022. "Characterizing flexibility in power markets and systems," Utilities Policy, Elsevier, vol. 75(C).
    2. Guray Kara & Asgeir Tomasgard & Hossein Farahmand, 2021. "Characterization of flexible electricity in power and energy markets," Papers 2109.03000, arXiv.org.
    3. Karim L. Anaya & Michael G. Pollitt, 2021. "How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects," Energies, MDPI, vol. 14(15), pages 1-26, July.
    4. Gržanić, M. & Capuder, T. & Zhang, N. & Huang, W., 2022. "Prosumers as active market participants: A systematic review of evolution of opportunities, models and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    5. Piao, Longjian & de Vries, Laurens & de Weerdt, Mathijs & Yorke-Smith, Neil, 2021. "Electricity markets for DC distribution systems: Locational pricing trumps wholesale pricing," Energy, Elsevier, vol. 214(C).
    6. Aikaterini Forouli & Emmanouil A. Bakirtzis & Georgios Papazoglou & Konstantinos Oureilidis & Vasileios Gkountis & Luisa Candido & Eloi Delgado Ferrer & Pandelis Biskas, 2021. "Assessment of Demand Side Flexibility in European Electricity Markets: A Country Level Review," Energies, MDPI, vol. 14(8), pages 1-23, April.
    7. Okur, Özge & Heijnen, Petra & Lukszo, Zofia, 2021. "Aggregator’s business models in residential and service sectors: A review of operational and financial aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    8. 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).
    9. Cruz, Marco R.M. & Fitiwi, Desta Z. & Santos, Sérgio F. & Catalão, João P.S., 2018. "A comprehensive survey of flexibility options for supporting the low-carbon energy future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 338-353.
    10. Rancilio, G. & Rossi, A. & Falabretti, D. & Galliani, A. & Merlo, M., 2022. "Ancillary services markets in europe: Evolution and regulatory trade-offs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    11. Cramer, Wilhelm & Schumann, Klemens & Andres, Michael & Vertgewall, Chris & Monti, Antonello & Schreck, Sebastian & Metzger, Michael & Jessenberger, Stefan & Klaus, Joachim & Brunner, Christoph & Heri, 2021. "A simulative framework for a multi-regional assessment of local energy markets – A case of large-scale electric vehicle deployment in Germany," Applied Energy, Elsevier, vol. 299(C).
    12. Jin, Xiaolong & Wu, Qiuwei & Jia, Hongjie, 2020. "Local flexibility markets: Literature review on concepts, models and clearing methods," Applied Energy, Elsevier, vol. 261(C).
    13. Stig Ødegaard Ottesen & Martin Haug & Heidi S. Nygård, 2020. "A Framework for Offering Short-Term Demand-Side Flexibility to a Flexibility Marketplace," Energies, MDPI, vol. 13(14), pages 1-17, July.
    14. Pavlos S. Georgilakis, 2020. "Review of Computational Intelligence Methods for Local Energy Markets at the Power Distribution Level to Facilitate the Integration of Distributed Energy Resources: State-of-the-art and Future Researc," Energies, MDPI, vol. 13(1), pages 1-37, January.
    15. Gonzalez Venegas, Felipe & Petit, Marc & Perez, Yannick, 2021. "Active integration of electric vehicles into distribution grids: Barriers and frameworks for flexibility services," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    16. Zhang, Weiqi & Zavala, Victor M., 2022. "Remunerating space–time, load-shifting flexibility from data centers in electricity markets," Applied Energy, Elsevier, vol. 326(C).
    17. Mao, Jiachen & Jafari, Mehdi & Botterud, Audun, 2022. "Planning low-carbon distributed power systems: Evaluating the role of energy storage," Energy, Elsevier, vol. 238(PA).
    18. Gerard, Helena & Rivero Puente, Enrique Israel & Six, Daan, 2018. "Coordination between transmission and distribution system operators in the electricity sector: A conceptual framework," Utilities Policy, Elsevier, vol. 50(C), pages 40-48.
    19. Steffen Wehkamp & Lucas Schmeling & Lena Vorspel & Fabian Roelcke & Kai-Lukas Windmeier, 2020. "District Energy Systems: Challenges and New Tools for Planning and Evaluation," Energies, MDPI, vol. 13(11), pages 1-20, June.
    20. Hashemipour, Naser & Crespo del Granado, Pedro & Aghaei, Jamshid, 2021. "Dynamic allocation of peer-to-peer clusters in virtual local electricity markets: A marketplace for EV flexibility," Energy, Elsevier, vol. 236(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:253:y:2022:i:c:s0360544222008921. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.