Many people in electricity sector believe what is local can not be a market. However, the increasing penetration of distributed energy resources challenges this notion. Local energy markets can be effective tools to reach local energy balance. Increasing retail electricity prices may motivate many local communities to have local energy exchange. Are there examples of such local energy markets? What are the associated institutional design? What are their benefits and challenges?
You may want to investigate 'community energy projects'. This is a fairly broad field, but it may be helpful. Community energy projects can be funded and administered by the community, or facilitated by grants or sponsorship. They vary from individual installations that provide energy to a community facility, to crowd-funded projects that deliver RE to community members and community micro-grids. How they are administered is dependent on how they are set up and who is responsible for them.
There is a wide variety of ways that community energy projects can be administered - examples include: by a private (profit-centred) company, by a not-for-profit company and by the community itself, through some form of collective. It is not often easy to get details of their operations.
Localised energy markets around a node or on a micro-grid are still developing. Much of the metering and data analysis technology needed to appropriately allocate costs and charges has only recently become widely available. Simple models such as a monthly fee to participate can work to a limited extent, but often have a limited ability to penalise people who use more than their fair allocation.
As previously stated, there is a lot more to it!
You may want to investigate 'community energy projects'. This is a fairly broad field, but it may be helpful. Community energy projects can be funded and administered by the community, or facilitated by grants or sponsorship. They vary from individual installations that provide energy to a community facility, to crowd-funded projects that deliver RE to community members and community micro-grids. How they are administered is dependent on how they are set up and who is responsible for them.
There is a wide variety of ways that community energy projects can be administered - examples include: by a private (profit-centred) company, by a not-for-profit company and by the community itself, through some form of collective. It is not often easy to get details of their operations.
Localised energy markets around a node or on a micro-grid are still developing. Much of the metering and data analysis technology needed to appropriately allocate costs and charges has only recently become widely available. Simple models such as a monthly fee to participate can work to a limited extent, but often have a limited ability to penalise people who use more than their fair allocation.
As previously stated, there is a lot more to it!
Dear Binod, if you consider Europe as a local market, we have an energy bourse in Germany. Contact the City of Leipzig energy bourse to find out more details on how it works. It's relatively new, maybe 20 years old or so. Best regards, Ricardo
You might want to consider local distribution of electric power in remote villages in central Africa. Demand is very volatile and gridnet underdimensioned.
One way of solving the problem is local transport of 12V batteries to nearest generator set, purchasing an entity of electric energy, transporting the battery back home for use at peak hour. Energy prices can reach remarkably high levels in such economies.
Sharon has the best answer. Pee Dee Electric is a good example of this in Rockingham, NC USA They have one solar farm that is not on Prime Farm Land. Many remote areas need the land to grow crops because of the need for a consistent food supply. The expense of solar panel on each home or in the yard too too great to justify the costs. A community approach is the best in my opinion.
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