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

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.

Battery energy storage systems for ancillary services in Renewable energy communities

“…The project consortium comprised 20 partners from 9 European countries. By designing, developing, and validating a transparent and scalable local energy market solution, the project aimed to enable the discovery and development of new demand response, aggregation, grid management, and peer-to-peer trading services [14], [15].…”

Forecast‐aided power and flexibility trading of prosumers in peer to peer markets

“…This transition paves the way towards creating new businesses which ultimately improves the social welfare and, if implemented correctly, facilitates the operation of legacy power grid infrastructure [4, 5]. Despite notable breakthroughs in developing P2P trading mechanisms, the primary focus has been on trading power and incorporation of ancillary services, like flexibility, is relatively underscored [6].…”

Distribution Grid Energy Flexibility: The Ebalance-Plus Technologies Developed for the University of Calabria Demo Site

“…In this context, various frameworks have been defined to ease the energy flexibility and in particular, the associated market. Indeed, in [5], a new bidding and pricing mechanism for local markets taking into account the external energy and flexibility markets has been introduced. In [1], a review of the energy flexibility market is presented, starting from local flexibility to the DSO-TSO coordination to provide energy flexibility.…”