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The rise of distributed energy generation and storage is creating new opportunities for energy consumers to actively engage with energy markets. Achieving these potential benefits will require the implementation of new business models to address limitations of existing market structures. One promising area of research involves the use of decentralised energy trading markets. These markets can increase renewable energy generation through improved infrastructure utilisation and financial returns. However, facilitating these markets is challenging due to the constraints of physical laws and energy losses. The model presented in this paper addresses these challenges by demonstrating an energy market structure for local energy trading that accounts for physical constraints and losses. It fairly allocates the gains of trade and incentivises agents to minimise distribution losses. This market structure can be implemented with existing metering data and approximate values of electrical distribution network properties. [ABSTRACT FROM AUTHOR]

Peer-to-peer (P2P) energy markets constitute a promising approach for locally coordinating the increasing amount of distributed energy resources (DERs) in the distribution system. Although the benefits of P2P markets for the prosumers are already well understood, their impact on utilities is not well discussed nor well understood. This hinders the development of regulatory frameworks, which are still needed to allow for the widespread adoption of decentralized energy markets in any interested country. So far, research has been conducted in specific isolated aspects, making it difficult to understand the overall implications for utilities. The present study aims to tackle this research gap by comprehensively evaluating P2P markets' effects, considering utilities as primary stakeholders. A qualitative roadmap with the overall benefits and challenges of adopting P2P by utilities is outlined to reach this purpose. Technical and economic criteria are assigned for comparing a P2P market to the current regulatory framework. Each criterion is evaluated in a co-simulation platform connecting a market model to a power flow model. Market performance is assessed by revenue analysis, and grid operation indicators evaluate grid performance. Furthermore, network fees are introduced as compensation mechanisms for the net revenue loss. Comparison scenarios encompass network fees and the number of agents, PV, and storage penetration. Results demonstrate that there is no possible benefit for both utilities and prosumers simultaneously if looking exclusively at the financial balance of the market. An equilibrium in benefits for all stakeholders is achievable if non-financial metrics are considered in an integrated market and fee structure analysis. Moreover, results demonstrate that the design of market structures must be sensitive to network configurations and DER penetration changes. This study contributes toward comprehending how the utilities could embrace P2P markets as a feasible solution for grid coordination challenges, opening a new set of questions for further research. [ABSTRACT FROM AUTHOR]

Energy communities have been designed to empower consumers while maximizing the self-consumption of local renewable energy sources (RESs). Their presence in distribution systems can result in strong modifications in the operation and management of such systems, moving from a centralized operation to a distributed one. In this scope, this work proposes a distributed community-based local energy market that aims at minimizing the costs of each community member, accounting for the technical network constraints. The alternating direction method of multipliers (ADMM) is adopted to distribute the market, and preserve, as much as possible, the privacy of the prosumers' assets, production, and demand. The proposed method is tested on a 10-bus medium voltage radial distribution network, in which each node contains a large prosumer, and the relaxed branch flow model is adopted to model the optimization problem. The market framework is proposed and modeled in a centralized and distributed fashion. Market clearing on a day-ahead basis is carried out taking into account actual energy exchanges, as generation from renewable sources is uncertain. The comparison between the centralized and distributed ADMM approach shows an 0.098% error for the nodes' voltages. The integrated OPF in the community-based market is a computational burden that increases the resolution of the market dispatch problem by about eight times the computation time, from 200.7 s (without OPF) to 1670.2 s. An important conclusion is that the proposed market structure guarantees that P2P exchanges avoid the violation of the network constraints, and ensures that community agents' can still benefit from the community-based architecture advantages. [ABSTRACT FROM AUTHOR]

To identify the trends in new flexibility markets, a set of market and aggregator platforms were selected and compared. The analyzed initiatives are relevant to consider alternative designs for European electricity markets. This review proposes a common methodology for analyzing these market models by comparing their description, market structure, market timing, and implementation. Furthermore, a range of policy implications and future research directions towards implementing these markets are presented. The results provide compelling evidence that the new market models represent a promising business with technical and economic justification, as they incentivize the uptake of flexibility from distributed resources by providing services to Distribution System Operators (DSOs) in coordination with Transmission System Operators (TSOs). Moreover, the interactions between these new market platforms and existing markets are of particular interest, and the contributions from aggregator platforms are also relevant to enhance the political vision of empowering the customers through their active participation in markets. [ABSTRACT FROM AUTHOR]

• U.S. wholesale RTO/ISO markets must be refined to leverage growing DER presence. • DER forecast errors decline as information improves in final hours before dispatch. • Intraday markets provide financial incentives to correct forecasts more efficiently. • Intermediate auctions incorporate principles of U.S. centralized dispatch. • U.S. RTOs/ISOs should adopt intermediate auctions to support DER integration. Deployment of distributed energy resources (DERs) is accelerating across the United States. These assets have the potential to provide cost-effective grid services and bulk power while supporting a low-cost energy transition to carbon-free electricity. Full integration of these resources into the bulk power system remains a barrier to unlocking the potential value of these assets. The regional wholesale energy markets, originally designed to integrate centralized, dispatchable power plants, must be reformed to adapt to the changing potential resource mix. The current day-ahead and real-time system is poorly designed for DERs. Day-ahead DER forecast errors create exposure to real-time price variations, as resources committed in the day-ahead market are required to rebalance in real-time, challenging the business model for DERs. New intraday markets with multiple discrete intermediate auctions between the day-ahead market and real-time market are needed to enable proper integration of DERs and efficient mitigation of forecast uncertainty risk. These markets must incorporate financially-binding commitments, closer-to-dispatch price signals, and adequate liquidity to ensure competition. Intermediate auctions should be built on top of existing intraday processes in each regional market, incorporating the principles of the existing market structures and leveraging the benefits of the centralized dispatch systems. Regional transmission organization (RTOs) and Independent System Operators (ISOs) should pursue and implement intermediate auctions to support fair, open, and efficient markets in the U.S. [ABSTRACT FROM AUTHOR]