Implementation and evaluation of an electricity market operated at district level

The increasing penetration of distributed energy resources (DERs) in the distribution grid, in combination with the liberalization of the electricity markets, introduces small-scale electricity producers in a market architecture designed for large-scale power plants. This work examines a double-auction electricity market for a residential area, designed to facilitate the electricity exchange between local consumers and prosumers. The motivation for implementing such a market is twofold. First, to integrate DERs in the electricity market architecture. Second, to ensure the economic viability of renewable energy generators in the absence of subsidized support schemes. In this work, a local market structure with photovoltaic (PV) generators and dispatchable fuel-based generators is considered as a use-case to examine the efficiency of the local electricity market. The efficiency of the market is determined by comparing the average market price of the double auction to the competitive price of the market operating ideally.