Analysis of the Value of Distributed Energy Resources through the Regional Electricity Market

The development of the smart grid has enabled end-users of electricity to use efficiently distributed energy resources (DERs). End-users can sell as well as purchase electricity, and they are called Prosumers. A Prosumer can manage its daily consumption pattern by controlling the heat, ventilation and air conditioning (HVAC) load, deferrable load, and energy storage system (ESS) therefore minimizing its electricity cost and discomfort. Prosumers can share the electricity surplus with the main grid and or with their neighboring Prosumers to maximize their profit. The main objective of this paper is to analyze the value of renewable energy and controllable loads such as HVAC, deferrable load, and ESS in the Prosumers network through the electricity price in the regional market. Diverse case studies show that the value of the regional market heavily depends on the surplus and deficit of electricity from renewable energy of Prosumers, and the main grid electricity price.