An Optimized Energy System Planning and Operation on Distribution Grid Level—the Decentralized Market Agent As a Novel Approach

The present paper proposes a concept to exploit the unused flexibility potentials in Germany’s distributed heat, cold and electricity systems and to improve sector coupling and strategic utilization of decentralized systems. The authors suggest a mechanism that ensures the use of distributed heat and electricity technologies to benefit from coupling potential and make decentralized flexibilities available to central markets, simultaneously targeting a cost efficient operation and expansion planning of the distribution grid. It is assigned to a new market role, the Decentralized Market Agent (DMA). The paper discusses the necessary requirements for such a role to be implemented such as sufficient information and communication infrastructure. Furthermore, the approaches to its legal form and implementation in the energy markets are discussed, showing that the ownership structure significantly influences the potential areas of business of the proposed concept. The paper evaluates all possible approaches and shows which political focus can be met best with which concept.