Effect of Future Distributed Energy Resources Penetration Levels on a Local Electricity Market

Local electricity markets are likely to be implemented in future distribution grids to deal with the increase of various distributed energy resources. However, the number and type of distributed energy resources connected to the grid will probably increase and change even after implementing such a market, potentially creating a situation where a local electricity market initially operates satisfactorily but is unsatisfactory in a future scenario. Therefore, this paper aims to determine if there are future scenarios of distributed energy resource penetration in which a local congestion pricing market functions unsatisfactory by increasing the penetration levels of electric vehicles and photovoltaic panels. It was found that future scenarios of distributed energy resource penetration exist wherein market participants are limited too often and price increases become too high. Increasing device flexibility, upgrading grid components, and implementing additional market components are given as possible solutions.