Proposing a electricity market framework for the Energy Internet

Smart Grid is drawing increasing attentions and reshaping the traditional view of power systems in the last decade. The Future Renewable Electric Energy Delivery and Management (FREEDM) Systems provide a promising solution to accommodate the high penetration of intermittent renewable energy resources and the emerging Smart Grid technologies. As a future automated and flexible electric power distribution system, the envisioned FREEDM systems enable the customers to fully participate in a deregulated electricity market. The customers are not only the price-takers but also the electricity suppliers by locally operating and managing their own Distributed Generators (DGs), Distributed Energy Storage Devices (DESDs), and dispatchable loads. This paper proposes a novel framework for a deregulated electricity market to enable the “Energy Internet” in a residential distribution system. It can achieve the flexible energy/power dispatch by allowing the customers to maximize their own benefits and compete with each other. Some game-theoretic methodologies (e.g., Nikaido-Isoda function and relaxation algorithm) are applied to determine the equilibrium solutions in a deregulated electricity market. A numerical case study is performed to validate the proposed approach. Accordingly, the numerical simulation results demonstrate the effectiveness and accuracy of the proposed framework for clearing the deregulated electricity market price enabling the “Energy Internet”.