Concept for Automated Energy Trading in MV and LV Electrical Distribution Grids Based on Approximated Supply Function Equilibrium

Abstract

The introduction of new technologies and local energy trading concepts in distribution grids are on a rise. However, even though significant progress is being made, there is no single best solution applicable across all locations. To ensure benefits, concepts must find balance considering hardware and software requirements, user-friendliness, and provided functionalities. Further, due to the diverse regulatory and economic landscapes in Europe, feasibility is not granted, and concepts have to be tailor-made considering the applicable regulatory provisions. In this paper we present a novel trading concept based on supply function equilibrium (SFE) called approximated automated SFE trading algorithm (ASFET). The concept is designed for automated electrical energy trading in middle and low voltage distribution grids. The algorithm could ensure better calculation performance, easier implementation, and scalability. The aspects of the presented concept are discussed in the paper.