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

Author

Listed:
  • 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
    MIT Portugal Programme, Energy for Sustainability Initiative, University of Coimbra, 3030-194 Coimbra, Portugal)

  • Luisa Matos

    (Virtual Power Solutions—A Cleanwatts Company, Ladeira da Paula 6, 3040-574 Coimbra, Portugal
    DEGEIT, Campus Universitário de Santiago, University of Aveiro, 3810-193 Aveiro, Portugal)

  • Sirpa Repo

    (Enerim Oy, Valimotie 9-11, 00380 Helsinki, Finland
    Technology and Communication Sciences, Electrical Engineering, Tampere University, Korkeakoulunkatu 7, 33720 Tampere, 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)

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.

Suggested Citation

  • Salla Annala & Lurian Klein & Luisa Matos & Sirpa Repo & Olli Kilkki & Arun Narayanan & Samuli Honkapuro, 2021. "Framework to Facilitate Electricity and Flexibility Trading within, to, and from Local Markets," Energies, MDPI, vol. 14(11), pages 1-20, May.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:11:p:3229-:d:566641
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