An alternative approach for market integration of distributed energy resources

Distributed energy resources present important economic and technical advantages for operation and development of power grid. However, the level of their deployment in power systems is still rather low. It is considered that one of the main reasons behind this is their poor integration in electricity market. This paper firstly analyses the main approaches currently being used to address the given problem, namely employment of virtual power plants and application of retail real-time pricing. As an alternative solution the paper then proposes a new framework for electricity retail, which among other benefits encourages new installations and effectively manages high grid penetration of distributed energy resources.