Analyzing Potential Schemes for Regulated Electricity Price Components in Local Energy Markets
Sebastian Schreck, Sebastian Thiem, Arvid Amthor, Michael Metzger, Stefan Niessen
Abstract
Regulated Electricity Price Components (REPCs) such as fees, taxes and levies dominate the cost structure for every consumed, stored, or even generated kWh of electricity in Germany and other European countries. This decreases financial incentives for flexible consumption, storage or generation which will be needed to handle increasing volatility in generation and demand.In this paper, we propose a linear optimization-based market matching mechanism for Local Energy Markets (LEMs) which considers REPCs. With this approach, the REPCs can be split and allocated to substations, feeders, and participants thereby incentivizing trades within close spatial proximity.We compare different schemes for spatially distributed REPCs for a demonstration scenario with 120 LEM participants with electric vehicles, battery storage and solar PV systems. Compared to a business as usual scenario, local self-sufficiency can be increased by about 14 percentage points. Additionally, peak loads during midday and evening can be decreased by 13-58 %.