Evaluation of Hierarchical, Multi-Agent, Community-Based, Local Energy Markets Based on Key Performance Indicators

Godwin C. Okwuibe, Amin Shokri Gazafroudi, Sarah Hambridge, Christopher Dietrich, Ana Trbovich, Miadreza Shafie-khah, Peter Tzscheutschler and Thomas Hamacher
Additional contact information
Godwin C. Okwuibe: School of Engineering and Design, Technical University of Munich, Arcisstrasse 21, 80333 Munich, Germany
Amin Shokri Gazafroudi: OLI Systems GmbH, Speyerer Strasse 90, 67376 Harthausen, Germany
Sarah Hambridge: Grid Singularity, Am Weinhang 9, 10965 Berlin, Germany
Christopher Dietrich: Grid Singularity, Am Weinhang 9, 10965 Berlin, Germany
Ana Trbovich: Grid Singularity, Am Weinhang 9, 10965 Berlin, Germany
Miadreza Shafie-khah: School of Technology and Innovations, University of Vaasa, 65200 Vaasa, Finland
Peter Tzscheutschler: School of Engineering and Design, Technical University of Munich, Arcisstrasse 21, 80333 Munich, Germany
Thomas Hamacher: School of Engineering and Design, Technical University of Munich, Arcisstrasse 21, 80333 Munich, Germany

Energies, 2022, vol. 15, issue 10, 1-23

Abstract: In recent years, local energy markets (LEMs) have been introduced to empower end-customers within energy communities at the distribution level of the power system, in order to be able to trade their energy locally in a competitive and fair environment. However, there is still some challenge with regard to the most efficient approach in organising the LEMs for the electricity exchange between consumers and prosumers while ensuring that they are responsible for their electricity-related choices, and concerning which LEM model is suitable for which prosumer or consumer type. This paper presents a hierarchical model for the organisation of agent-based local energy markets. According to the proposed model, prosumers and consumers are enabled to transact electricity within the local energy community and with the grid in a coordinated manner to ensure technical and economic benefits for the LEM’s agents. The model is implemented in a software tool called Grid Singularity Exchange (GSyE) , and it is verified in a real German energy community case study. The simulation results demonstrate that trading electricity within the LEM offers economic and technical benefits compared to transacting with the up-stream grid. This can further lead to the decarbonization of the power system sector. Furthermore, we propose two models for LEMs consisting of multi-layer and single-layer hierarchical agent-based structures. According to our study, the multi-layer hierarchical model is more profitable for household prosumers as compared to trading within the single-layer hierarchical LEM. However, the single-layer LEM is more be beneficial for industrial prosumers.

Keywords: bidding strategy; decentralized energy system; grid singularity exchange; local energy market; multi agent system; peer-to-peer (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: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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