Bottom-up Modeling of Local Energy Markets within a Pan-European
Wholesale Electricity Market Model
Abstract
The energy system decarbonization and decentralization
require coordination schemes for distributed generators
and flexibilities. One coordination approach is local energy markets for
trading energy among local producers and consumers. The resulting local
coordination leads to the questions of how the interaction between local
and wholesale markets will be designed and of how the introduction of
local energy markets influences the wholesale market system. Therefore,
this paper proposes a bottom-up modeling method for local markets within
a pan- European wholesale market model. Furthermore, an
aggregation-disaggregation method for local markets is developed to
reduce computational effort. A case study for local markets in Germany
shows the computational advantages of the aggregation-disaggregation
method. Preliminary results indicate the impact of different interaction
designs between local and wholesale markets on the wholesale market and
show the need for further research.