Building upon the foundation laid in our previous whitepaper in collaboration with Guidehouse in 2Q 2022, this blog post provides a timely update on the advancements in Local Energy Markets and how they play a pivotal role in supporting the 24/7 Clean and sustainable Energy (CFE) vision. 

Challenges in the era of Distributed Energy Resources (DERs): As the global energy landscape continues to witness a surge in DERs, conventional grid systems face unprecedented challenges. Congestion and reliability issues have become increasingly evident, necessitating innovative solutions.

In this blog post, we delve into how local energy markets (LEMs) can effectively address these challenges. Let's explore the multifaceted benefits that LEMs bring to the utilities, participants, and society at large.

Grid Stability and Beyond: LEMs significantly contribute to grid stability by managing and reducing distribution line congestion, particularly in regions with high variable renewable energy shares and underdeveloped grid infrastructure. By integrating energy storage and demand response mechanisms, LEMs offer efficient solutions to balance local energy demand primarily with a local supply.

Economic and Environmental Impact: More DERs are making congestion and reliability issues worse, which is speeding up the obsolescence of existing grid infrastructures. LEMs reduce capital expenditure by addressing congestion and grid stability issues. Beyond grid stability, LEMs offer substantial economic benefits, fostering local investments and driving economic growth in communities. By improving the DER penetration, LEMs also play a crucial role in reducing greenhouse gas emissions.

Community Empowerment: One of the key highlights is the empowerment of communities through increased energy self-sufficiency. LEMs enable residents and businesses to actively participate in renewable energy production and trading, fostering a shift from centralised to decentralised energy models. This transition enhances local energy resilience and contributes to a cleaner, resilient and sustainable energy future.

Use of blockchain and AI will further make LEMs better. The implementation of LEMs is crucial for achieving a more sustainable, efficient, and equitable energy landscape. These markets are essential building blocks in our journey toward higher electrification and a swift transition to net-zero energy consumption. 

If you a utility is still hesitant about embracing change, it's time to take the leap. Reach out to us and unlock the transformative potential of Local Energy Markets.

Download our latest Local Energy Market Whitepaper here