Local Electricity Markets (LEM) and peer-to-peer trading are new mechanisms to encourage the uptake of solar PV and to support the emergence of consumer-centric electricity markets. There is a lot of promise in this field, but they are not without their challenges. LEMs and P2P trading schemes can have scalability issues in terms of optimal allocation and market settlement calculations. Additionally, it can create power quality problems in the grid and therefore must be coordinated with local TSOs.
This paper, produced by BEYOND partner NTNU, proposes a new vision on how to address the above challenges and to study new opportunities in the formation of virtual LEMs. Under the hypothesis of large-scale adoption of LEM and P2P schemes, it assumes a scenario in which millions of prosumers and consumers already exist, ready to tap into LEM opportunities. This presents scalability issues on how to organize prosumers and consumers into LEMs.
This paper is centered on the following research questions:
- ● What is the value of creating dynamic virtual local electricity markets (via clustering)? How does a ‘virtual LEM’ incentivize P2P trade, flexibility, self-sufficiency and integration of RES?
- ● What is the impact of Electrical Vehicles’ flexibility on the creation of virtual LEMs? What benefits would this marketplace bring?
If you are interested in the paper’s findings, please read onward at: https://www.sciencedirect.com/science/article/pii/S0360544221016765?via%3Dihub