Optimization model for distributed energy trading based on a market value allocation mechanism in the electricity spot market

This study proposes a novel distributed energy trading market model with a value distribution mechanism to optimize the allocation and transactions of distributed energy resources (DERs). The framework incorporates a direct load management approach via an electricity aggregator agent, simplifying market processes and reducing transaction costs. A Nash bargaining model is employed to design a fair and efficient value distribution mechanism, promoting equitable benefit allocation among participants. The model integrates stochastic programming to account for uncertainties in real-time load and DER output, enhancing its robustness and applicability in real-world scenarios. The proposed mechanism quantifies each DER’s contribution using a market value contribution rate, serving as a foundation for the Nash bargaining model. This approach ensures individual rationality for both the aggregator and DERs while maximizing overall system benefits. Case studies validate the model’s effectiveness, demonstrating improvements in resource utilization and fair benefit allocation. This research contributes to the advancement of distributed energy markets, offering valuable insights for designing efficient and equitable market structures, ultimately promoting grid stability, renewable energy adoption, and the development of more sustainable and flexible energy systems.