Planning and operation of distribution networks is becoming more and more complex in the presence of intermittent energy production by renewables and this creates new challenges with respect to the technical, economic and regulatory aspects of grid management.

However the increase in DERs (Distributed Energy Resources) also offers opportunities: their operation can be optimized by using the concept of local energy balancing and by employing them to provide ancillary services to the electricity grid. However, in order to utilize their full potential and further integrate DERs in distribution systems, it is necessary to construct a proper market, in which the DERs’ owners can engage by trading, buying and selling, thereby creating value for their assets and services.

In other words, the efficient participation of DERs in distribution grids can only take place if they have enough economic incentives to do so and the access to markets or other mechanisms for participation in trading energy and services. The main objective of the TU/e PhD sub-project work is to propose a modeling and simulation tool that enables ancillary services from DERs and ensures a stable and efficient operation of active (smart) grids and local energy markets.