Market-based control in emerging distribution system operation

In emerging electrical distribution systems, a multitude of self-interested individual decision makers interacts among themselves and with the power grid. The optimal operation of the grid, according to a set of predefined technical and economic targets, can be achieved by influencing the behaviors of the decision makers with appropriate market signals. The technical feasibility and performance of the system, for example, in terms of line flow limits, network losses, and appropriate voltage profile, can thus be controlled to a certain extent, by market signals. In this paper, we present a conceptual framework for 'Market-based Control' for the operation of emerging distribution systems. Characterized by distributed and adaptive control signals over prosumers, market-based control needs to make prosumer benefits aligned with regulator/DSOs concerns, thus satisfying the requirements from both sides. By applying market-based control in network charging, both network and market performances can be improved. The complexity in the environment and in the interactions among players prompt techniques to be derived from complex systems theory. A multiagent model was built up for testing the market control strategies strategy. The concept and applications are illustrated with reference to a standard CIGRE medium-voltage distribution network.