Trends in local electricity market design: Regulatory barriers and the role of tariffs

New concepts of local electricity markets (LEMs) have led increased focus on the decentralization of energy systems and a raise in local energy communities (LECs). Under the right market-regulatory incentives, peer-to peer (P2P) electricity trading schemes facilitate direct trade among the prosumers and enable active consumers of energy to share the self-generated electricity and make effective use of flexibility services provided by distributed energy resources (DERs). The paper presents a review of the state of implementation of LEMs and P2P. The research questions are: What grid tariff designs affect the value of peer-to-peer? How does a local energy market benefit from grid tariff designs? To address these questions, the authors survey the latest regulatory frameworks in Europe, focusing especially on Austria, Ireland, and Norway.

Automated summary

This paper reviews the implementation of local electricity markets and peer-to-peer electricity trading schemes, focusing on regulatory frameworks in Europe, especially Austria, Ireland, and Norway. The research questions examine how grid tariff designs affect the value of peer-to-peer trading and how local energy markets benefit from these designs.