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Business model and market design for local digitalized electricity trading: Several insights from the NEMoGrid project

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  • Barbara Antonioli Mantegazzini

Abstract

The increasing role of renewables, together with the escalation of digital technologies and the pressure for a more active role of consumers and prosumers, are the natural basis for the development of Local Electricity Markets (LEM). The goal of this paper is to contribute to the current debate on LEM, drafting several proposals about key issues to be considered in outlining the LEM business model and market design. We take advantage of the ongoing project "NEMoGrid", which aims at defining and validating a prototype of LEM by integrating local PVs generation into the grid and with a peer-to-peer trading scheme. Transactions are settled on the Ethereum blockchain and the LEM is validated through onsite tests in Switzerland. Such tests are still running, therefore we use preliminary findings to make our suggestions, also highlighting several caveats and policy complexities. Keywords: local energy markets, peer-to-peer, renewable energy sources, electricity market design, electricity business models.

Suggested Citation

  • Barbara Antonioli Mantegazzini, 2019. "Business model and market design for local digitalized electricity trading: Several insights from the NEMoGrid project," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(2), pages 5-24.
    • Handle: RePEc:fan:efeefe:v:html10.3280/efe2019-002001
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    References listed on IDEAS

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    More about this item

    Keywords

    local energy markets; peer-to-peer; renewable energy sources; electricity market design; electricity business models.;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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