Click here to download

Business model and market design for local digitalized electricity trading: Several insights from the NEMoGrid project
Author/s: Barbara Antonioli Mantegazzini 
Year:  2019 Issue: Language: English 
Pages:  20 Pg. 5-24 FullText PDF:  295 KB
DOI:  10.3280/EFE2019-002001
(DOI is like a bar code for intellectual property: to have more infomation:  clicca qui   and here 

The increasing role of renewables, together with the escalation of digital technologies and the pressure for a more active role of consumers and prosumers, are the natural basis for the development of Local Electricity Markets (LEM). The goal of this paper is to contribute to the current debate on LEM, drafting several proposals about key issues to be considered in outlining the LEM business model and market design. We take advantage of the ongoing project "NEMoGrid", which aims at defining and validating a prototype of LEM by integrating local PVs generation into the grid and with a peer-to-peer trading scheme. Transactions are settled on the Ethereum blockchain and the LEM is validated through onsite tests in Switzerland. Such tests are still running, therefore we use preliminary findings to make our suggestions, also highlighting several caveats and policy complexities. Keywords: local energy markets, peer-to-peer, renewable energy sources, electricity market design, electricity business models.
Jel Code: D40, D47, Q41, Q42

  1. Agora Energiewende (2020). The European Power Sector in 2019: Up-to-Date Analysis on the Electricity Transition.
  2. Antonioli Mantegazzini B., Giusti A. (2018). Smart grid, load management and dynamic pricing for electricity: Simulation results from a field project in Switzerland. Competition and Regulation in Network Industries, 19(3-4): 200-217., DOI: 10.1177/1783591719836629
  3. Bilil H., Aniba G., Maaroufi M. (2014). Probabilistic economic/environmental power dispatch of power system integrating renewable energy sources. Sustainable Energy Technologies and Assessments, 8: 181-190.
  4. Block C., Neumann D., Weinhardt C. (2008, January). A market mechanism for energy allocation in micro-chp grids. In Proceedings of the 41st Annual Hawaii International Conference on System Sciences (HICSS 2008) (pp. 172-172). IEEE.
  5. Bódis K., Kougias I., Jäger-Waldau A., Taylor N., Szabó S. (2019). A high-resolution geospatial assessment of the rooftop solar photovoltaic potential in the European Union. Renewable and Sustainable Energy Reviews, 114, 109309.
  6. Bridge Business Models Working Group, Second Report (2018). Business Models Issues, Horizon 2020.
  7. Cameron P. (2002). Competition in Energy Markets: Law and Regulation in the European Union. Oxford: Oxford University Press.
  8. Cappers P., MacDonald J., Goldman C., Ma O. (2013). An assessment of market and policy barriers for demand response providing ancillary services in US electricity markets. Energy Policy, 62: 1031-1039.
  9. Mengelkamp E., Diesing J., Weinhardt C. (2019). Tracing local energy markets: A literature review. it-Information Technology, 61(2-3): 101-110.
  10. Mengelkamp E., Notheisen B., Beer C., Dauer D., Weinhardt C. (2018). A blockchain-based smart grid: Towards sustainable local energy markets. Computer Science-Research and Development, 33(1-2): 207-214.
  11. Morstyn T., Farrell N., Darby S. J., McCulloch M. D. (2018). Using peer-to-peer energytrading platforms to incentivize prosumers to form federated power plants. Nature Energy, 3(2): 94-101.
  12. Müsgens F., Ockenfels A., Peek M. (2014). Economics and design of balancing power markets in Germany. International Journal of Electrical Power & Energy Systems, 55: 392-401.
  13. Newbery D. (2017). --
  14. Olivella-Rosell P., Bullich-Massagué E., Aragüés-Peñalba M., Sumper A., Ottesen S. O., Vidal-Clos J. A., Villafáfila-Robles R. (2018). Optimization problem for meeting distribution system operator requests in local flexibility markets with distributed energy resources. Applied Energy, 210: 881-895.
  15. Parag Y., Sovacool B. K. (2016). Electricity market design for the prosumer era. Nature Energy, 1(4): 1-6.
  16. Park J. H., Park J. H. (2017). Blockchain security in cloud computing: Use cases, challenges, and solutions. Symmetry, 9(8): 164.
  17. Perez-Arriaga I. (2016). The transmission of the future: the impact of distributed energy resources on the network. IEEE Power Energy Mag., 14(4): 41-53.
  18. Rani D., Suresh K. G., Yadav A. K., Jha S. N., Bhattacharyya D., Varma M. R., Alam A. (2017). Structural, electronic, magnetic, and transport properties of the equiatomic quaternary Heusler alloy CoRhMnGe: Theory and experiment. Physical Review B, 96(18): 184404.
  19. Rathnayaka A. D., Potdar V. M., Dillon T., Hussain O., Kuruppu S. (2012, July). Analysis of energy behaviour profiles of prosumers. IEEE 10th International Conference on Industrial Informatics: 236-241.
  20. Roy A., Bruce A., MacGill I. (2016). The potential value of peer-to-peer energy trading in the Australian national electricity market. In Asia-pacific solar research conference.
  21. Sensfuß F., Ragwitz M., Genoese M. (2008). The merit-order effect: A detailed analysis of the price effect of renewable electricity generation on spot market prices in Germany. Energy Policy, 36(8): 3086-3094.
  22. Sorin E. et al. (2019). Consensus-based approach to peer-to-peer electricity markets with product differentiation. IEEE Transactions on Power Systems, 34(2), March: 994-1004.
  23. Sousa T., Soares T., Pinson P., Moret F., Baroche T., Sorin E. (2019). Peer-to-peer and community-based markets: A comprehensive review. Renewable and Sustainable Energy Reviews, 104: 367-378.
  24. Sperling K. (2017). How does a pioneer community energy project succeed in practice? The case of the Samsø Renewable Energy Island. Renewable and Sustainable Energy Reviews, 71: 884-897.
  25. Toffler A. (1980). The Third Wave. Bantam Books, New York.
  26. Tsui K. M., Chan S. C. (2012). Demand response optimization for smart home scheduling under real-time pricing. IEEE Transactions on Smart Grid, 3(4): 1812-1821.
  27. Wierling A., Schwanitz V. J., Zeiß J. P., Bout C., Candelise C., Gilcrease W., Gregg J. S. (2018). Statistical evidence on the role of energy cooperatives for the energy transition in European countries. Sustainability, 10(9): 3339.
  28. Zhang C., Wu J., Cheng M., Zhou Y., Long C. (2016). A bidding system for peer-to-peer energy trading in a grid-connected microgrid. Energy Procedia, 103: 147-152.
  29. Zhou Y., Wu J., Long C., Cheng M., Zhang C. (2017). Performance evaluation of peer-topeer energy sharing models. Energy Procedia, 143: 817-822.
  30. Zizzo G., Sanseverino E. R., Ippolito M. G., Silvestre M. L. D., Gallo P. (2018). A technical approach to P2P energy transactions in microgrids. IEEE Transactions on Industrial Informatics, 3203.

Barbara Antonioli Mantegazzini, in "ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT" 2/2019, pp. 5-24, DOI:10.3280/EFE2019-002001


FrancoAngeli is a member of Publishers International Linking Association a not for profit orgasnization wich runs the CrossRef service, enabing links to and from online scholarly content