Exposing a locational energy market to uncertainty

Future energy markets for low voltage AC and DC distribution systems will facilitate prosumer participation in the market. To comply with market regulations and grid constraints, a tailored market design reflecting (DC) operational requirements is needed. Our previous work identified a locational energy market design. However, its real-life implementation faces challenges due to uncertainties in system operation, prosumer preferences, and bidding strategies. This article tests the market design under uncertain scenarios. To this end, we develop an agent-based model that simulates typical electric vehicle user preferences and bidding strategies, influenced by varying degrees of range anxiety. The market design is tested in challenging scenarios with a high share of solar panels and electric vehicles, modelled using the high-resolution Pecan Street database. Simulations indicate that the proposed market design maintains both economic efficiency and system reliability under real-life uncertainties. This in turn indicates the practical feasibility of locational energy markets in helping to integrate renewable generation sources and bidirectional power flows.