Local Electricity Market Design Utilizing Network State Dependent Dynamic Network Usage Tariff
The new technologies emerging in the energy sector pose new requirements for both the regulation and the operation of the electricity grid. Revised tariff structures and the introduction of local markets are two approaches that could tackle the issues resulting from the increasing number of active e...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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IEEE
2023-01-01
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| Series: | IEEE Access |
| Subjects: | |
| Online Access: | https://ieeexplore.ieee.org/document/10052640/ |
| _version_ | 1811159105707966464 |
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| author | Bence Suto Daniel P. Divenyi |
| author_facet | Bence Suto Daniel P. Divenyi |
| author_sort | Bence Suto |
| collection | DOAJ |
| description | The new technologies emerging in the energy sector pose new requirements for both the regulation and the operation of the electricity grid. Revised tariff structures and the introduction of local markets are two approaches that could tackle the issues resulting from the increasing number of active end-users. However, a smooth transition from the traditional schemes is critical, thus creating the need for solutions that can be implemented in the current circumstances. This paper proposes a local market concept and a corresponding dynamic tariff system, which can not only be operated parallel to the current retail market, but which also considers possible interactions between the two markets by taking into account the estimated state of the network. The participants of the market can trade energy peer-to-peer via a platform that allocates proper network charges to all transactions. The calculated tariffs consider the physical effect of the transactions on the grid in terms of nodal voltage deviations, branch current flows, and overall system losses. The proposed method is tested and compared to the currently existing local market approach on the IEEE European LV test feeder through market simulations. The results imply that knowledge on network state prior to trades can increase the correctness of network charge allocation. With the proper tuning of DNUT (Dynamic Network Usage Tariff) components, the end-users can even realize larger surplus compared to other local market models, while the security of network operation is also ensured. |
| first_indexed | 2024-04-10T05:35:24Z |
| format | Article |
| id | doaj.art-3b0ef7cb79cd4d938573948a96ced866 |
| institution | Directory Open Access Journal |
| issn | 2169-3536 |
| language | English |
| last_indexed | 2024-04-10T05:35:24Z |
| publishDate | 2023-01-01 |
| publisher | IEEE |
| record_format | Article |
| series | IEEE Access |
| spelling | doaj.art-3b0ef7cb79cd4d938573948a96ced8662023-03-07T00:00:35ZengIEEEIEEE Access2169-35362023-01-0111192471925810.1109/ACCESS.2023.324911310052640Local Electricity Market Design Utilizing Network State Dependent Dynamic Network Usage TariffBence Suto0https://orcid.org/0000-0001-5476-9788Daniel P. Divenyi1Department of Electric Power Engineering, Budapest University of Technology and Economics, Budapest, HungaryDepartment of Electric Power Engineering, Budapest University of Technology and Economics, Budapest, HungaryThe new technologies emerging in the energy sector pose new requirements for both the regulation and the operation of the electricity grid. Revised tariff structures and the introduction of local markets are two approaches that could tackle the issues resulting from the increasing number of active end-users. However, a smooth transition from the traditional schemes is critical, thus creating the need for solutions that can be implemented in the current circumstances. This paper proposes a local market concept and a corresponding dynamic tariff system, which can not only be operated parallel to the current retail market, but which also considers possible interactions between the two markets by taking into account the estimated state of the network. The participants of the market can trade energy peer-to-peer via a platform that allocates proper network charges to all transactions. The calculated tariffs consider the physical effect of the transactions on the grid in terms of nodal voltage deviations, branch current flows, and overall system losses. The proposed method is tested and compared to the currently existing local market approach on the IEEE European LV test feeder through market simulations. The results imply that knowledge on network state prior to trades can increase the correctness of network charge allocation. With the proper tuning of DNUT (Dynamic Network Usage Tariff) components, the end-users can even realize larger surplus compared to other local market models, while the security of network operation is also ensured.https://ieeexplore.ieee.org/document/10052640/Congestion managementdynamic tariffenergy tradinglocal marketpeer-to-peertrading platform |
| spellingShingle | Bence Suto Daniel P. Divenyi Local Electricity Market Design Utilizing Network State Dependent Dynamic Network Usage Tariff IEEE Access Congestion management dynamic tariff energy trading local market peer-to-peer trading platform |
| title | Local Electricity Market Design Utilizing Network State Dependent Dynamic Network Usage Tariff |
| title_full | Local Electricity Market Design Utilizing Network State Dependent Dynamic Network Usage Tariff |
| title_fullStr | Local Electricity Market Design Utilizing Network State Dependent Dynamic Network Usage Tariff |
| title_full_unstemmed | Local Electricity Market Design Utilizing Network State Dependent Dynamic Network Usage Tariff |
| title_short | Local Electricity Market Design Utilizing Network State Dependent Dynamic Network Usage Tariff |
| title_sort | local electricity market design utilizing network state dependent dynamic network usage tariff |
| topic | Congestion management dynamic tariff energy trading local market peer-to-peer trading platform |
| url | https://ieeexplore.ieee.org/document/10052640/ |
| work_keys_str_mv | AT bencesuto localelectricitymarketdesignutilizingnetworkstatedependentdynamicnetworkusagetariff AT danielpdivenyi localelectricitymarketdesignutilizingnetworkstatedependentdynamicnetworkusagetariff |