How will local energy markets influence the pan-European day-ahead market and transmission systems? A case study for local markets in France and Germany

Carlo Schmitt, Klemens Schumann, Katharina Kollenda, Andreas Blank, Olivier Rebenaque, Théo Dronne, Arnault Martin, Philippe Vassilopoulos, Fabien Roques and Albert Moser

Applied Energy, 2022, vol. 325, issue C, No S0306261922011710

Abstract: The energy system decarbonization leads to a decentralization of generation and flexibility. Among the new concepts to integrate distributed flexibility are local energy markets. While a broad range of research investigates local energy markets on a distribution grid level in detail, research on their system impact has been limited. Therefore, we develop a framework to investigate different configurations of local markets as well as the operation of distributed energy resources and their interaction with the wholesale markets. This framework is applied to a pan-European case study with detailed bottom-up modeling of local energy markets in France and Germany. Additionally, transmission grid simulations are carried out to investigate the impact of local trading on grid congestions. Our results show that a direct coordination of distributed flexibility within the wholesale market is more efficient than a preference for local trading. Nonetheless, local energy markets can be used as an incentive for the expansion of distributed flexibility as well as a way to break down the complexity of coordinating millions of distributed assets in a single market. Additionally, our results show that local trading relieves the transmission grid.

Keywords: Local energy market; Energy system modeling; Day-ahead market; Transmission grid (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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DOI: 10.1016/j.apenergy.2022.119913

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