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Opening of Electricity Markets to Distributed Resources: Numerical Models and Real Implementation

A special issue of Energies (ISSN 1996-1073). This special issue belongs to the section "C: Energy Economics and Policy".

Deadline for manuscript submissions: closed (10 August 2023) | Viewed by 4592

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Guest Editor
Department of Energy, Politecnico di Milano, 20133 Milan, Italy
Interests: electrical engineering; smart grids; energy storage systems; power systems; voltage regulation; grid integration; distributed systems
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

The challenging decarbonization targets set worldwide impose the fast spread of renewable-based electricity generation, usually performed by small power plants, connected to distribution networks and characterized by intermittent and unprogrammable behavior. Traditionally, large generators were in charge of supplying all the regulations required for the reliable operation of the power system; this was usually carried out by conventional units offering their services on the market. With the increasing adoption of distributed generation, however, new actors are needed to supply the control actions required by the grid.

For this purpose, today, many countries around the world are opening their electricity markets to distributed resources, enabling also small users to actively contribute to power system operation. Distributed generators, (partially) programmable loads, prosumers, but also new regulating resources, such as energy storage systems and electric vehicles, are involved in this process.

Many new challenges are posed by this evolution. Since intermittent and scarcely controllable units are involved, effective control strategies are usually required to coordinate the different dispersed resources available to act as a single dispatchable entity. Moreover, the structure of the market, the remuneration schemes, and the technical requirements of the services offered are further aspects requiring investigation.

In the aforementioned framework, this Special Issue aims to bring together scientists and researchers to publish original research contributions analyzing the opportunities offered by the opening of electricity markets to distributed resources and proposing solutions to handle the uncertainties relevant to the considered scenario. From this perspective, both studies based on numerical models and real-life implementations aimed at validating theoretical approaches are of great interest in this Special Issue.

Dr. Davide Falabretti
Guest Editor

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Published Papers (2 papers)

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Research

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21 pages, 2867 KiB  
Article
DER Participation in Ancillary Services Market: An Analysis of Current Trends and Future Opportunities
by Martina Arosio and Davide Falabretti
Energies 2023, 16(5), 2443; https://doi.org/10.3390/en16052443 - 03 Mar 2023
Cited by 1 | Viewed by 1551
Abstract
In an effort to push for low-carbon transition, national governments and regulatory authorities are working to define market structures and legislative frameworks able to effectively support the spreading of electricity production from renewables. To this purpose, the opening of national Ancillary Services Markets [...] Read more.
In an effort to push for low-carbon transition, national governments and regulatory authorities are working to define market structures and legislative frameworks able to effectively support the spreading of electricity production from renewables. To this purpose, the opening of national Ancillary Services Markets (ASMs) to Distributed Energy Resources (DERs) plays a key role. However, pricing schemes and rules in place (e.g., incentives) can act as a barrier to the supply of regulation services by small-sized and renewable-based power plants. In this context, the present work evaluates the economic opportunities for DERs provided by the provision of tertiary reserve and balancing control in the Italian ASM. The research is carried out through the collection and processing of price data from the Italian electricity and gas markets over 4 years (2019–2022). Considering a reference architecture where DER units bid on the market through a Balancing Service Provider, the potential revenues on the ASM of a non-programmable or partially programmable DER unit are compared to the earnings expected of a conventional power plant in order to highlight whether unfair competition can represent a barrier. Then, possible evolutions in the current remuneration schemes are analyzed, to evaluate whether they can be able to support a better DER integration. From the analysis, it emerges that, even if negative prices could be useful to increase the competitiveness of RES-based power plants for downward regulation, the loss of the incentives can act as a deterrent to the offering of services on the market by DERs. Therefore, other regulatory options, such as the incentives retention in case of downward regulation, could also be needed. Full article
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Review

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25 pages, 1778 KiB  
Review
Opening of Ancillary Service Markets to Distributed Energy Resources: A Review
by Francesco Gulotta, Edoardo Daccò, Alessandro Bosisio and Davide Falabretti
Energies 2023, 16(6), 2814; https://doi.org/10.3390/en16062814 - 17 Mar 2023
Cited by 7 | Viewed by 2623
Abstract
Electric power systems are moving toward more decentralized models, where energy generation is performed by small and distributed power plants, often from renewables. With the gradual phase out from fossil fuels, however, Distribution Energy Resources (DERs) are expected to take over in the [...] Read more.
Electric power systems are moving toward more decentralized models, where energy generation is performed by small and distributed power plants, often from renewables. With the gradual phase out from fossil fuels, however, Distribution Energy Resources (DERs) are expected to take over in the provision of all regulation services required to operate the grid. To this purpose, the opening of national Ancillary Service Markets (ASMs) to DERs is considered an essential passage. In order to allow this transition to happen, current opportunities and barriers to market participation of DERs must be clearly identified. In this work, a comprehensive review is provided of the state-of-the-art of research on DER integration into ASMs. The topic at hand is analyzed from different perspectives. First, the current situation and main trends regarding the reformation processes of national ASMs are analyzed to get a clear picture of the evolutions expected and adjustment required in the future, according to the scientific community. Then, the focus is moved to the strategies to be adopted by aggregators for the effective control and coordination of DERs, exploring the challenges posed by the uncertainties affecting the problem. Coordination schemes between transmission and distribution system operators, and the implications on the grid infrastructure operation and planning, are also investigated. Finally, the review deepens the control capabilities required for DER technologies to perform the needed control actions. Full article
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