Models for the integration of Local Energy Communities in energy markets

Abstract

This paper presents two models for the integration of Distributed Energy Resources (DERs) in the electricity markets. The first one assumes a centrally organized market, where the DERs participate by providing bids like the rest of the conventional units. The second one assumes the existence of Local Energy Communities (LEC) coordinated by an independent entity (e.g. Aggregator) representing the DERs in the market procedures. The two models are formulated as mixedinteger linear programming problems. Three scenarios pertaining to the cost of the DERs are examined and conclusions are drawn regarding the impact of the two models in the operation and costs of the electricity system.