Framework to Facilitate Electricity and Flexibility Trading within, to, and from Local Markets

Salla Annala, Lurian Klein, Luisa Matos, Sirpa Repo, Olli Kilkki, Arun Narayanan and Samuli Honkapuro
Additional contact information
Salla Annala: School of Energy Systems, LUT University, Yliopistonkatu 34, 53850 Lappeenranta, Finland
Lurian Klein: Virtual Power Solutions—A Cleanwatts Company, Ladeira da Paula 6, 3040-574 Coimbra, Portugal
Luisa Matos: Virtual Power Solutions—A Cleanwatts Company, Ladeira da Paula 6, 3040-574 Coimbra, Portugal
Sirpa Repo: Enerim Oy, Valimotie 9-11, 00380 Helsinki, Finland
Olli Kilkki: Enerim Oy, Valimotie 9-11, 00380 Helsinki, Finland
Arun Narayanan: School of Energy Systems, LUT University, Yliopistonkatu 34, 53850 Lappeenranta, Finland
Samuli Honkapuro: School of Energy Systems, LUT University, Yliopistonkatu 34, 53850 Lappeenranta, Finland

Energies, 2021, vol. 14, issue 11, 1-20

Abstract: Peer-to-peer (P2P) electricity sharing or trading can empower consumers and prosumers, incentivize the balancing of generation and demand locally, increase system resilience and reliability, and help in achieving societal goals, such as increasing renewable energy penetration. Nevertheless, the development of P2P trading in actual environments has been slow due to the unclear position of P2P markets in the power system. Recent developments in the European legislation are promising for the establishment of P2P markets and energy communities. Hence, the interplay between local trading and existing market structures needs to be addressed carefully. Furthermore, P2P trading with distributed resources presumes that electricity end users will become active players in the power system. This paper proposes a bidding and pricing mechanism for local markets, considering the external markets; a new approach to balance settlement and balance responsibility when local trading occurs; and an interface to promote end-user interest in, and interactions with, local energy trading. The proposed local market concept and interface solution promote the coupling between local and existing retail, wholesale and ancillary service markets, and can be seen as a step towards the establishment of local energy markets in real-life settings.

Keywords: peer-to-peer electricity trading; local energy market; energy community; balance responsibility; end-user interface; demand response (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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