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How will Local Energy Markets influence the pan-European Day-ahead Market and Transmission Systems? A Case Study for Local Markets in France and Germany
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  • Carlo Schmitt ,
  • Klemens Schumann ,
  • Katharina Kollenda ,
  • Andreas Blank ,
  • Olivier Rebenaque ,
  • Théo Dronne ,
  • Arnault Martin ,
  • Philippe Vassilopoulos ,
  • Fabien Roques ,
  • Albert Moser
Carlo Schmitt
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Klemens Schumann
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Katharina Kollenda
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Andreas Blank
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Olivier Rebenaque
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Théo Dronne
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Arnault Martin
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Philippe Vassilopoulos
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Fabien Roques
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Albert Moser
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The energy system decarbonization leads to a decentralization of generation and flexibility. Among the new concepts to integrate the distributed flexibility are local energy markets. While a broad range of research investigates local energy markets on a distribution grid level in detail, research on their system impact has been limited. Therefore, we develop a framework to investigate different configurations of local markets and operation of distributed energy resources and their interaction with the wholesale markets. This framework is applied to a pan-European case study with detailed bottom-up modeling of local energy markets in France and Germany. Additionally, transmission grid simulations are carried out to investigate the impact of local trading on grid congestions. Our results show that a direct coordination of distributed flexibility within the wholesale market is more efficient than a preference of local trading. Nonetheless, local energy markets can be used as an incentive for expansion of distributed flexibility as well as a way to break down the complexity of coordinating millions of distributed assets in a single market. Additionally, our results show that local trading relieves the transmission grid.
Nov 2022Published in Applied Energy volume 325 on pages 119913. 10.1016/j.apenergy.2022.119913