A Study of Energy Trading in a Low-Voltage Network: Centralised and Distributed Approaches

Abstract: Over the past years, distributed energy resources (DER) have been the object of many studies, which recognise and establish their emerging role in the future of power systems. However, the implementation of many scenarios and mechanism are still challenging. This paper provides an overview of a local energy market and explores the approaches in which consumers and prosumers take part in this market. Therefore, the purpose of this paper is to review the benefits of local markets for users. This study assesses the performance of distributed and centralised trading mechanisms, comparing scenarios where the objective of the exchange may be based on individual or social welfare. Simulation results show the advantages of local markets and demonstrate the importance of advancing the understanding of local markets.