Eggs, milk and power directly from the neighbor

The visit to the weekly market is already an integral part of the consumer shopping culture in many regions. Local energy markets will also make this possible in the future.

The reasons for this are logical: The increasing number of renewable energy systems and the expected increasing demand for electrical energy from electric vehicles and heat pumps will make the operation of distribution networks, the backbone of the energy transition, increasingly complex. Automating the control of flexibilities distributed in this way therefore becomes one of his most important tasks. In addition, many plant operators will face the challenge of finding an alternative and new marketing opportunity for their assets after the end of their legally guaranteed feed-in tariff. And ultimately, growing customer demand for regenerative energy from the region is a development that needs to be addressed as an energy provider. “Simple” regional products are increasingly being offered and requested by energy traders.

A local energy market is the concept that meets these challenges. It offers a marketing opportunity for renewable energies, can increase previously unused flexibility potential through price incentives and thus contribute to a more efficient operation of the distribution network:

Producers and consumers automatically communicate bids for production and consumption via software agents and thus act on one platform. There are also flexibility requirements, e.g. for battery storage or controllable loads such as heat pumps or charging stations for electric vehicles taken into account by the market. The distribution system operator knows the network topology on which the LEM market area is based and every participant. He calculates the network bottlenecks for the LEM, which he communicates to the platform in advance. The market platform then maximizes the locally tradable energy, taking into account the performance of the distribution network and the bids of producers and consumers.

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