Local Energy Trading in Future Distribution Systems

Abstract

Today, the pace of development of decentralized transactive management systems has increased significantly due to growing renewable energy source technologies and communication infrastructure at the distribution system level. Such bilateral energy transactions have changed the structure of electricity markets and led to the emergence of a local energy market in electricity distribution. While examining this change of attitude, this paper analyzes the effects of local market formation on the performance and performance of distribution companies. Accordingly, the technical requirements in the three areas of operation, network control, and ICT in the new workspace are thoroughly examined. The hardware requirements will be presented in two parts for the end-user and the distribution systems. Then, the proposed local distribution market framework will be introduced, and finally, the conclusion will be presented.