A Market-Based Mechanism for Local Energy Trading in Integrated Electricity-Heat Networks

Abstract

Due to the proliferation of power-to-X-to-power (P2X2P) conversion technologies across various energy systems, the sector-integration concept has gained considerable attention in recent years. In this context, to facilitate the integration of local energy systems at the distribution level and take advantage of their provided privileges, the development of an efficient and pragmatic market-based mechanism is required. Hence, the present chapter focuses on modeling a local energy market (LEM) framework that enables the integration of electrical distribution systems (EDSs) as well as district heating systems (DHSs) via power-to-heat (P2H) conversion technologies. The suggested LEM platform is based on a centralized one-sided auction-based energy trading process which is settled by the distribution system operator (DSO) with the objective of social welfare maximization. In the end, the raised LEM clearing model is applied on an integrated electricity-heat network (IEHN) in the presence of technical constraints of both EDS and DHS.