Day-ahead scheduling in a local electricity market

Abstract

Local electricity markets offer new trading opportunities for existing and emerging actors in the energy sector. In this study, a mathematical model is created for the hourly scheduling of a day-ahead local electricity market. The local electricity market has local producers and consumers and a connection with a retailer. The local resources considered are solar PV production, and an energy storage system. Therefore, the local electricity market has local resources, the inflexible and flexible residential loads, and the connection to the distribution network. This connection is used for buying energy from the wholesale market through a retailer. For evaluating the feasibility of the scheduling in a local energy market, an optimization model is proposed in this study to maximize the operational profits from the local electricity market, which is managed by an energy service company (ESCO). There are revenues from selling the energy to all residential loads, while the costs come from buying the electricity and managing all the local resources. A case study illustrates the energy profiles of all the resources managed, which have an impact on revenues and costs of the local market. From the case study, we draw some practical conclusions about the impact of local resources on the local electricity market.