Equity-based Fair Market Algorithm to Effectively Integrate DER in Retail Market Pricing

Abstract

This paper presents a market mechanism based on an equity-based market algorithm to incorporate DER in the retail market considering different financing options of solar owners. This paper first investigates the impact of power curtailment on solar owners with different financing options using different parameters when the Distribution System Operator (DSO) optimal operations of the distribution system. Then we proposed a methodology to weighting the power curtailment based on the Return on Investment (ROI) value to achieve maximum social welfare.