Local Energy Markets in Action: Smart Integration of National Markets, Distributed Energy Resources and Incentivisation to Promote Citizen Participation

Abstract

Since the Paris Agreement in 2016, the goals of limiting climate change and moving toward climate resilience stand. With a share of about 80% of global CO2 emissions, the energy sector is an essential driver for these goals. A shift to low-carbon energy production and a decentralized system for more efficient energy transmission distribution is necessary. In this paper, we present our work on Modelling of Power Exchanges, Algorithms for Local Energy Market (LEM), Competitiveness of Combined Heat and Power Plant (CHP) and Energy Feedback Devices. The study was conducted considering technical, economic, social and regulatory framework. For easy integration into energy simulations or a district energy management system (DEMS), a model for power exchanges was created that allows flexible input or deterministic price patterns. The algorithm handles the clearing of an LEM by a district aggregator using limit orders with the goal of increasing the share of locally consumed electricity using economic incentives. An investigation was conducted into the operation of flexible CHPs in low-carbon power systems to balance the volatility of renewable energy. An Energy Signal Light (ESL) was developed as an energy feedback device, which is integrated into the DEMS in a living lab and allows individual configuration. In summary, the results presented should be compared with those of other research approaches in the future and require qualitative and quantitative evaluation.