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Iterative Algorithm For Local Electricity Trading

Distribution networks are more active due to demand response programs which causes flexible behavior of end-users. This paper proposes an iterative algorithm to transact electricity based on interplay between aggregators and the Distribution Company (DisCo) considering the amount which the bottom-layer of a distribution system can provide from the aggregated end-users. The performance of the proposed trading algorithm was tested on a 33-bus test system for a distribution network. Similations for different scenarios were made to analyze the impact of different flexibility constraints on sustainability of the system and expected cost on distribution grid’s player.