Prosumer energy trading embedded in a dynamic operating envelopes framework

High penetrations of distributed energy resources increasingly stress distribution networks and require new approaches to allocate limited network capacity. Dynamic operating envelopes (DOE) provide time-varying limits on power injections and withdrawals, but their allocation is typically centralised. We present a market mechanism in which the system operator is the leader, and the follower are energy prosumers. We formulate it as a bilevel equilibrium problem enabling the exchange of DOE rights among network participants and investigates how initial allocations affect outcomes of the market.