Market design in uncertain power networks

With the high penetration of renewable resources in energy systems, it is of great importance to build innovative energy operation and management strategies to enhance and promote renewable energy consumption and improve energy efficiency. Next to the unprecedented introduction of renewables into the grid, traditional consumers with inelastic demands are becoming prosumers who are able to actively participate in load side management and even take strategic decisions for the amount of their electricity production/consumption. These prosumers range from households with smart appliances to owners of electric cars and solar panels. It is difficult to imagine, however, that all these individual prosumers directly participate in the wholesale electricity market. Therefore, one should rely on suitable micromanagement by coordinating the distributed energy resources (DERs). DERs management inevitably requires different models and mechanism design compared to those practiced for the conventional bulk power level. A successful integration and management of DERs has far-reaching consequences in having a flexible storage, rapid response to fluctuating supply/demand, and providing voltage support in distribution grids.