Boosting energy markets in grid with a focus on battery storage, including flexible loads and electric vehicles, via a two-stage optimization framework

This paper introduces a detailed dual-level structure designed for the efficient organization of energy and supportive service markets throughout transport and delivery systems. The framework delineates the organization of energy markets at the first level and supportive services at the second. Traditional thermal units serve as providers for the spinning reserve market, while rapid response generators, energy storage systems, electric vehicles, and demand response aggregators supply capacity adjustments. Simulations applied to a 30-bus transmission network linked to four 8-bus distribution networks show that integrating distribution network resources in the spinning reserve market reduces reliance on thermal units by 22%, decreasing daily operational costs by approximately 15%. Furthermore, including demand response aggregators, storage systems, and electric vehicles in market regulation improves voltage profiles by 7%. The framework is constructed as a linear optimization model and simulated using the CPLEX solver in GAMS software.