Optimal Power Management of Multi-energy Community Considering The Local Energy Market

This paper proposes a market mechanism that enables the advanced distribution management system (ADMS) for energy trading in the local energy market. Two primary functions of the ADMS are discussed: reducing operational costs and coordinating the energy community (EC). The integration of these two functionalities considers all the constraints for maintaining distribution system reliability. Two energy transaction actions are allowed for the ECs: 1) each prosumer in the EC trades energy locally to maximize the global social welfare and pay network usage fees to the distributed system operator (DSO); 2) the EC trades energy with the DSO to sell their exceed energy or purchase energy to meet their load demand. The payment among the ECs is subject to a clearing price. In the market, the Newton distributed algorithm has been used to achieve the equilibrium point, and the ADMS actively optimizes voltage, and reactive power (Volt-VAR) via controlling distributed energy resources (DER) and managing the iterative process. To confirm the functionality of the model, 33-bus networks have been used to model the ECs.