Extension of market concept with market-driven optimisation of distribution system operation

This report describes the development of a pricing mechanism for the alleviation of congestion at the 10kV distribution network level using demand flexibility in a 5-minute real-time market environment. Demand was incorporated into an OPF based market clearing procedure in which demand bids were not explicitly submitted, but derived from historic demand response behaviour.

The locational prices resulting from this local optimisation were used to alleviate the congestion that would result from response to a global price, as issued within the EcoGrid EU real time market for system balancing services from distributed resources. A complementary direct control framework was developed to operate in tandem with the pricing mechanism to ensure the reliable alleviation of congestion