A Local Energy Market Benefiting Power Grids and Energy Users: A P2P Trading-based Case Study

The increasing amount of renewable generation creates challenges for the energy providers. variable renewable energy (VRE), as the name suggests, creates a varying or fluctuating electricity supply. A local energy market (LEM) helps to reduce the impact of fluctuating supply by strategically controlling the VREs and loads. Such a mechanism allows consumers and prosumers (customers who can generate solar PV energy, for instance), that are within a defined geography, to trade energy with one another in a peer-To-peer (P2P) fashion. LEMs have better financial outcomes for the consumers and prosumers. Therefore, it encourages better VRE technology diffusion while lowering the impact on the grid by reducing the imports and exports from the medium voltage grid. In this paper we outline the results of a LEM case study using real customer data in WA-to evaluate the performance of P2P trading in comparison with their BAU. The battery energy storage system (BESS) is included in the LEM model to introduce greater flexibility and capture the implications on electricity costs and grid export and import. Compared to BAU, the results of Powerledger's LEM platform shows that prosumers with BESS receive minimum electricity bills and ensure maximum reduction in power grid export 28% and import 33%.