Impact of Spot Market Interfaces on Local Energy Market Trading

The arising concepts of local energy markets for integrating distributed energy sources into the energy system lead to the question of how the interaction between local and central, i.e. wholesale, spot market platforms should be organized. In this paper, different interface options between local and central market platforms are proposed. An existing Nash Equilibrium modeling approach is expanded to model local energy markets and to examine the different interface options with respect to their impact on local energy market trading. This paper shows that either a cost-neutral aggregation of local market residue by the local market operator or an open local market platform are advisable interfaces to maximize local welfare.