Technical and economic analysis for integrating consumer-centric markets with batteries into distribution networks

Widespread adoption of distributed energy re- sources led to changes in low-voltage power grids, turning prosumers into active members of distribution networks. This in- centivized the development of consumer-centric energy markets. These markets enable trades between peers without third-party involvement. However, violations in network technical constraints during trades challenges integration of market and grid. The methodology used in this work employs batteries to prevent network violations and improve social welfare in communities. The method uses sequential simulations of market optimization and distribution network power flows, installing batteries if violations are identified. Simulation solves nonlinear deterministic optimization for market trades and results are used in power flow analysis. The main contribution is assessing battery participation in energy markets to solve distribution network violations. Case studies use realistic data from distribution grids in Costa Rica neighborhoods. Results indicate potential gains in social welfare when using batteries, and case-by-case analysis for prevention of network violations.