21 Local Trading Within Energy Communities
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Michael Merz
Abstract
This chapter looks at the development of energy communities, which are expected to provide a further organizational form of energy trading beyond wholesale trading and the feed-in tariff principle. In several EU member countries, the regulatory basis for this has already been created. Since energy communities are more likely to be formed regionally, pricing also tends to take place locally, and thus deviates from the principle of zonal pricing as practiced by today’s wholesale spot markets. If trading within energy communities takes place in real time, market participants contribute to congestion management by offering flexibility triggered by external price signals. This paper concludes with a proposal for a market model that ensures that spot trading is grid-supportive by providing individual price signals a-priori by the underlying trading platform. Given the increasing volumes in renewable energy generation and consumption, this paper aims to demonstrate the importance of synchronizing grid management and market processes: a market mechanism is needed to allocate energy supplies efficiently, while at the same time act in a grid-supportive manner in order to reduce the need for subsequent redispatch measures.
Abstract
This chapter looks at the development of energy communities, which are expected to provide a further organizational form of energy trading beyond wholesale trading and the feed-in tariff principle. In several EU member countries, the regulatory basis for this has already been created. Since energy communities are more likely to be formed regionally, pricing also tends to take place locally, and thus deviates from the principle of zonal pricing as practiced by today’s wholesale spot markets. If trading within energy communities takes place in real time, market participants contribute to congestion management by offering flexibility triggered by external price signals. This paper concludes with a proposal for a market model that ensures that spot trading is grid-supportive by providing individual price signals a-priori by the underlying trading platform. Given the increasing volumes in renewable energy generation and consumption, this paper aims to demonstrate the importance of synchronizing grid management and market processes: a market mechanism is needed to allocate energy supplies efficiently, while at the same time act in a grid-supportive manner in order to reduce the need for subsequent redispatch measures.
Chapters in this book
- Frontmatter I
- List of Contributing Authors V
- Foreword by Professor Andris Piebalgs, Former EU Commissioner for Energy XI
- Foreword by Dr. Peter Körte, Chief Technology Officer & Chief Strategy Officer at Siemens AG XV
- Preface of the Editors XIX
- Contents XXV
- Abbreviations XXXI
- Frequently Used Metric Prefixes and Physical Quantities XLV
- 1 History and Current Challenges of Electrical Power Supply Systems 1
- 2 General Technical Aspects of the Electrical Power System: A Case Study of the German Power System in Transition 37
- 3 Power Sector Transformation: An Indian Perspective 53
- 4 Major Non-technical Questions of Today’s Energy Supply: Between Energy Policy and Regulation 95
- 5 Scenarios for the Energy System 111
- 6 How Europe Regulates the Internal Energy Market 127
- 7 Requirements for the Reliability of Energy System Planning 137
- 8 Currents of Change: Electrification for a Greener Future 151
- 9 Understanding the Levelized Cost of Energy 167
- 10 Influence of CO2 Targets on Energy Planning: Optimal Energy Supply from a Climate Perspective 185
- 11 Energy Planning With a Special Focus on Hard-To-Abate Sectors and Decarbonization 203
- 12 Energy Storage Technologies in Support of the Energy Transition and Climate Neutrality 235
- 13 Electrical Supply Infrastructure Under Transformation 249
- 14 Innovation (Not Only) in the Grid Sector: Market and Regulation Also Require Reinvention 275
- 15 Challenges of Today’s Energy Distribution 303
- 16 Resilience: Considering Disruptive Events in the Energy Planning of Buildings and Neighborhoods 335
- 17 Siemens Princeton Resilient Campus: Defining the Future of Energy with a Sustainable and Reliable Microgrid 351
- 18 Introduction to Energy Trading and the Role of Energy Exchanges 361
- 19 The Role of Power Exchanges (PX) in the Energy Transition: Between Cross-Border and Local Trading 375
- 20 Energy Markets, Grids and Flexibility: A Future Market Design for a Decarbonized Energy System 395
- 21 Local Trading Within Energy Communities 419
- 22 Verification Methods for Renewable Electricity: Guarantees of Origin, PPAs, and Renewable Fuels of Non-biological Origin 435
- 23 The Unique German Smart Metering Approach in Contrast to International Strategies 453
- 24 Real-Time as a Natural System Boundary 473
- 25 Internet of Things (IoT) and Sensor Technology in Electrical Energy Supply Systems 495
- 26 The Perfect Storm: Where the Energy Transition Meets the Digital Transformation 509
- 27 The Dark Side of Digitalization 529
- 28 Artificial Intelligence and Data Efficiency 543
- 29 Aspects of Data Protection and Security in Smart Electronical Systems out of “European Perspective” 565
- 30 Actively Shaping the Digital Transformation Process with Systemic Organizational Development 581
- 31 New IT for the Digital Energy of the Future 609
- 32 Connecting and Digitalizing the Energy Sector with a Dynamic IT Strategy 629
- 33 Information Security and Digitalization at Distribution System Operators 649
- 34 Digital Efficiency – a Powerful Tool! 671
- 35 Asset Management in the Energy Transition: Requirements and Technologies 695
- 36 Power Shortage Situation 715
- 37 Blackout: The European Electricity Supply System in Transition 733
- 38 Everyday Life Without Electricity in the Household Customer Sector 781
- 39 Technical Requirements and Implications of Functioning Sector Coupling 791
- 40 Transition from Planning to Implementation of District Projects with Sector Coupling 819
- 41 Green Hydrogen Potentials for the Power Sector in Germany 831
- 42 Electricity is Easy, Fuels are Hard: Lessons from the Maritime Industry 843
- 43 Project example “pebbles” 867
- 44 New Digital Technologies Find Their Way into the Grid Sector 889
- 45 Environmental, Social, Governance (ESG), and Digitalization in the Commercial Real Estate Industry 909
- 46 Scenarios for Training and Continuing Education 923
- 47 Electricity Market and Electricity System Transformation: North American Perspective 943
- Index 953
Chapters in this book
- Frontmatter I
- List of Contributing Authors V
- Foreword by Professor Andris Piebalgs, Former EU Commissioner for Energy XI
- Foreword by Dr. Peter Körte, Chief Technology Officer & Chief Strategy Officer at Siemens AG XV
- Preface of the Editors XIX
- Contents XXV
- Abbreviations XXXI
- Frequently Used Metric Prefixes and Physical Quantities XLV
- 1 History and Current Challenges of Electrical Power Supply Systems 1
- 2 General Technical Aspects of the Electrical Power System: A Case Study of the German Power System in Transition 37
- 3 Power Sector Transformation: An Indian Perspective 53
- 4 Major Non-technical Questions of Today’s Energy Supply: Between Energy Policy and Regulation 95
- 5 Scenarios for the Energy System 111
- 6 How Europe Regulates the Internal Energy Market 127
- 7 Requirements for the Reliability of Energy System Planning 137
- 8 Currents of Change: Electrification for a Greener Future 151
- 9 Understanding the Levelized Cost of Energy 167
- 10 Influence of CO2 Targets on Energy Planning: Optimal Energy Supply from a Climate Perspective 185
- 11 Energy Planning With a Special Focus on Hard-To-Abate Sectors and Decarbonization 203
- 12 Energy Storage Technologies in Support of the Energy Transition and Climate Neutrality 235
- 13 Electrical Supply Infrastructure Under Transformation 249
- 14 Innovation (Not Only) in the Grid Sector: Market and Regulation Also Require Reinvention 275
- 15 Challenges of Today’s Energy Distribution 303
- 16 Resilience: Considering Disruptive Events in the Energy Planning of Buildings and Neighborhoods 335
- 17 Siemens Princeton Resilient Campus: Defining the Future of Energy with a Sustainable and Reliable Microgrid 351
- 18 Introduction to Energy Trading and the Role of Energy Exchanges 361
- 19 The Role of Power Exchanges (PX) in the Energy Transition: Between Cross-Border and Local Trading 375
- 20 Energy Markets, Grids and Flexibility: A Future Market Design for a Decarbonized Energy System 395
- 21 Local Trading Within Energy Communities 419
- 22 Verification Methods for Renewable Electricity: Guarantees of Origin, PPAs, and Renewable Fuels of Non-biological Origin 435
- 23 The Unique German Smart Metering Approach in Contrast to International Strategies 453
- 24 Real-Time as a Natural System Boundary 473
- 25 Internet of Things (IoT) and Sensor Technology in Electrical Energy Supply Systems 495
- 26 The Perfect Storm: Where the Energy Transition Meets the Digital Transformation 509
- 27 The Dark Side of Digitalization 529
- 28 Artificial Intelligence and Data Efficiency 543
- 29 Aspects of Data Protection and Security in Smart Electronical Systems out of “European Perspective” 565
- 30 Actively Shaping the Digital Transformation Process with Systemic Organizational Development 581
- 31 New IT for the Digital Energy of the Future 609
- 32 Connecting and Digitalizing the Energy Sector with a Dynamic IT Strategy 629
- 33 Information Security and Digitalization at Distribution System Operators 649
- 34 Digital Efficiency – a Powerful Tool! 671
- 35 Asset Management in the Energy Transition: Requirements and Technologies 695
- 36 Power Shortage Situation 715
- 37 Blackout: The European Electricity Supply System in Transition 733
- 38 Everyday Life Without Electricity in the Household Customer Sector 781
- 39 Technical Requirements and Implications of Functioning Sector Coupling 791
- 40 Transition from Planning to Implementation of District Projects with Sector Coupling 819
- 41 Green Hydrogen Potentials for the Power Sector in Germany 831
- 42 Electricity is Easy, Fuels are Hard: Lessons from the Maritime Industry 843
- 43 Project example “pebbles” 867
- 44 New Digital Technologies Find Their Way into the Grid Sector 889
- 45 Environmental, Social, Governance (ESG), and Digitalization in the Commercial Real Estate Industry 909
- 46 Scenarios for Training and Continuing Education 923
- 47 Electricity Market and Electricity System Transformation: North American Perspective 943
- Index 953
