Retail electricity market model for active power distribution systems

Power distribution systems are evolving from passive to active by the application of distributed generation and storage technologies, demand flexibility, and communication infrastructure. The ever-increasing penetration of distributed renewable generation within distribution networks promotes numerous opportunities which actively engage distribution systems and consumers in the power system operation. Flexible demand should play an important role in these systems as compensate uncertainties caused by the new generation resources, such as solar photovoltaic. This work proposes a retail electricity market model for active distribution system that addresses some future challenges power systems may face. The market mechanisms are modeled in a simulator that uses a stochastic optimization procedure to guide the decision making of individual players. To evaluate the proposed model, a case study is simulated and the results show that the defined market architecture with a stochastic optimization provides a good strategy for energy resources management and system stability.