Local electricity market design for peer-to-peer transactions with dynamic grid usage pricing

Abstract

This study presents the market concept of a local peer-to-peer marketplace that enables small consumers to buy electricity different from their local utility and offer their generation for sale. The marketplace considers network constraints to ensure technical feasibility of local market transactions and the grid effect of the trades are priced by a dynamic network usage tariff. Thus, orders at the local market include the related network connection point. Such a local market can provide implicit congestion management and voltage regulation services for distribution system operators.