Demonstration of market-based real-time electricity pricing on a congested feeder

Congestion management can delay grid reinforcements needed due to the growth of distributed technologies like photovoltaics and electric vehicles. This paper presents a method of congestion management for low voltage feeders using indirect control from the smart grid demonstration EcoGrid EU, where five minute electricity pricing is sent to demand. A method for forecasting demand and generating prices in a market framework is presented, and a novel mechanism to ensure prices are fair to customers who can and cannot participate is developed. The proposed market is currently being used to send prices to 1900 houses, with a virtual feeder of 28 houses receiving congestion pricing. Simulations are used to calculate the cost from using this congestion management method, while demonstration results indicate that congestion can be managed successfully.