A Local Market Model Involving Prosumers Taking Into Account Distribution Network Congestions in Smart Cities

Abstract

In this paper, the authors describe how the smart grid technologies allow to realize aggregations of collaborative users in a Smart City context by a new entity, the City Energy Provider. The goal of the City Energy Provider is to manage the financial and physical energy transactions implementing local markets. In order to realize this aim, appropriate models of local electricity market are proposed. In particular, a model able to take into account congestions in the distribution network is proposed. It is based on the identification of critical area and the well-known market splitting procedure. Most significant numerical results on a test system are reported.