Optimization of a Local Energy Market Operation in a Transactive Energy Environment

ICT advancements (low latency new generation networks) transform the Distributed Energy Resources (DERs) at the edge of the electrical grid gradually into grid assets and drive the energy system towards a decentralized transactive operation. Local Energy Markets (LEMs) have been proposed as a means to facilitate and orchestrate the vast penetration of DERs. We propose here a LEM operation which concludes into fair pricing with monetary gains for both prosumers and consumers participating in the LEM. For the Day-Ahead LEM operation we apply a chance-constrained optimization algorithm in order to tackle the uncertainties governing the Day-Ahead LEM operation. The proposed LEM architecture is validated upon an IEEE low voltage European test feeder benchmark.