Dynamic Operating Envelope for Cost Optimization in Local Peer-to-Peer Energy Market

Local electricity markets have emerged as a possible route for effective energy exchange among prosumers as the global energy landscape undergoes a paradigm shift towards decentralization and sustainability. This conference paper offers a thorough analysis aimed at reducing system costs in local power markets through peer-to-peer energy exchanges. The main goal of this research is to examine how the adoption of dynamic operating envelopes affects system costs while illuminating the possible economic advantages of these technologies in various circumstances. In order to give a comprehensive knowledge of the dynamics involved in local energy markets with dynamic export and import constraints for prosumers, the paper includes a careful examination of several examples and situations. The study is carried out for 27 household customers. The results show that, in the best-case scenario, the incorporation of dynamic operating envelope into the local power market can result in significant cost reductions of 12.14%.