Electricity Market Structure in the Distribution Sector

Abstract

This paper proposes a whole-system electricity market structure which expresses all commercial elements in the electricity system. Filling the gap of existing research which is limited within the trading operation and possible options, the market structure proposed in this paper provides a macroscopic perspective from the whole-system angle. In the meantime, a future electricity market structure under centralized control is also demonstrated, providing the market structure in the distribution sector adapting future energy development. This paper contributes in three areas: i) The proposed whole-system electricity market structure offers a mentality to research market structure from the overall point of view, paving a foundation for understanding, constructing and operating distributed energy business. ii) The functions and potential changes of market participators are explored and discussed, complying with the transition trend from DNO to DSO. iii) The demonstration of future market structure in the distribution sector provides a glance of future market options, paving the way for future energy development and their commerce.