Smart grid turns the end users into prosumers (producer + consumer) and they will become the

most prominent Domain within the Smart Grid.

There are plenty of research areas related to the smart grid that can be used for creating new
business opportunities, thus producing so-called “green economy” which focuses on turning
intelligent energy usage into a profitable market.

With the usage of information, communication technologies, computational ability and control, the
new power grid will give way to deliver extra energy into the power network, increase the power
network capacity and efficiently consume electricity (since now the people know its cost). The
integration of Renewable energy sources from the end users, turn them into "prosumers" who have
a diverse role in the entire power grid system.

LOCAL MARKET MODEL:

A decentralised inevitable interaction

structure for trading versatility among prosumers and actors present in active distribution grid in an
economically-efficient way.

The proposed framework consists of two planning and scheduling mechanisms:

1. Ahead planning
2. Real-time dispatching

The ahead market-based planning consists of two mechanisms:

1. Day-ahead
2. Intra-day

The local market operator will manage both the above arrangements. Each local market attempts to
balance the energy programs before they are submitted to the wholesale energy market so that
there will be no congestion issues in the distribution grid. The aggregator's stores flexibility offers
and introduces them to the local flexibility market.

The real-time dispatching includes a list of control measures that are determined and executed by
the Distribution System Operator (DSO) to resolve the network overcrowding issue. The primary goal
of real-time dispatching is to support the security of the grid at minimum cost. The DSO will take
over the control and makes independent decisions to adjust loads or generation in the network. The
current e-commerce MNCs like Amazon, Flipkart etc. can work in the wholesale market to sell the
energy at minimum cost.

The modelling of the electricity markets was separated from truth to reach a reasonable solution. All
buyers and sellers are expected to make their bids and offer at their marginal prices.

www.mdpi.com/1996-1073/7/9/6142/pdf