Grid flexibility services from local energy markets: a three-stage model

This paper proposes an energy community management system for local energy sharing with grid flexibility services to solve the potential grid constraints of the local distribution network. A three-stage model is proposed. Stage 1 is the individual minimization of the energy bill of each prosumer by optimizing the schedules of its battery. The second stage optimizes the energy bill of the energy community by sharing internally the prosumers energy surplus and re-dispatching their batteries, while guaranteeing that each new individual prosumer energy bill is always equal or less than its stage 1 bill. The third stage is performed by the DSO to solve the grid constraints by re-dispatching the batteries, curtailing local generation or reducing consumption. Stage 3 minimizes the impact on stage 2 by minimizing the loss of profit or utility of every prosumer which is compensated accordingly.