Abstract
Peer-to-peer energy trading and next generation local energy market mechanisms are expected to provide new use cases and opportunities within the future sharing economy landscape. To this anticipation, we propose alternative incentive mechanisms as energy policy instruments that can be used by policy makers for directly supporting local energy producers, and hence indirectly the consumers, at current local energy markets using capabilities provided by contemporary distributed ledger technology. Under such peer-to-peer local market setting, we first detail market pricing and relevant market parameters thoroughly, and then we discuss fair incentive distribution to local producers in detail, by means of two distinct incentive systems what we call as the fixed stipend and the decaying stipend incentive mechanisms, respectively. We provide an analysis of market pricing and market parameters under German power market conditions, and an illustration of proposed support instruments with resorting to three scenarios experimented on a local energy market test bed that is equipped with realistic energy generation and consumption profiles for its participants.
Highlights
Stages of the industrial era is evolved alongside energy technologies
This paper proposes an alternative techno-political approach which can be applied in future local market mechanisms
The distributed ledger technology (DLT) and blockchain, which we briefly reviewed in the previous section, are two emerging technologies that reinforce recent progress in local energy markets and their operation
Summary
Stages of the industrial era is evolved alongside energy technologies. The first industrial revolution started with the invention of the steam engines and advanced through corresponding infrastructure supported by derivatives such as the factories and railways. In the past, centralized and fossil fuel-based power production technologies had dominated the market during the second and third industrial era until the OPEC crisis occurred in the mid-1970s This global incident had an impact on the entire industry and triggered research and development activities in alternative green energy resources and technologies. Energy policy, business, power market and pricing layers are connected using off-chain convention where the associated local market inference is derived using the new energy policy instrument. The organization of this manuscript is as follows.
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