March 27, 2023

When a Local Energy Market (LEM) is done well

This paper presents the application of a community battery energy storage system (CBESS)-integrated microgrid (MG) in a blockchain-enabled local energy market (LEM).

The proposed LEM balances the community energy requirement while facilitating frequent peer-to-peer (P2P) energy transactions between several energy users in the presence of both energy supplier and energy operator.

The architecture is formulated by taking a number of local market and network constraints, that include residential battery energy storage system (RBESS) constraints; CBESS constraints; P2P traded price constraints; P2P traded power constraints; margin constraints of the stakeholders; power grid export and import constraints; and network energy balance constraints, so as to not only incentivise energy users but also reduce import/export from/to power grid while keeping the margins of energy supplier and energy operator unaffected.

Different types of transactions data including energy users’ P2P pricing bids and P2P traded energy volume are also stored in the blockchain database. Further, the developed LEM framework is also validated through a case study executed on an actual Australian power grid network, comprising 260 residential energy users; two energy suppliers; an energy operator; and a CBESS, and the performance of the proposed P2P trading-based LEM strategy is compared with the existing business-as-usual (BAU) that directs energy users to buy/sell energy at the time-of-use (ToU)/ feed-in-tariff (FiT) rate.

The extensive and comparative simulation results confirm the superior performance of the proposed LEM mechanism in terms of minimising energy users’ electricity bill; lowering power grid import and export; and retaining margins of energy suppliers and the energy operator; and thus, emphasise its application suitability in the current electricity market.

Download and read the full IEEE article here.

Authors: Dr. Liaqat Ali, Dr. M. Imran Azim, Jan Peters, Dr. Vivek Bhandari, Anand Menon, Vinod Tiwari, Dr. Jemma Green and S. M. Muyeen.

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