The proposed Latrobe Valley Microgrid (LVM) will demonstrate how local distributed energy resources (DERs) can be incorporated into a Local Energy Market (LEM) to improve economic and social outcomes for participants and support a more efficient grid.
Report extract
The proposed Latrobe Valley Microgrid (LVM) will demonstrate how local distributed energy resources (DERs) can be incorporated into a Local Energy Market (LEM) to improve economic and social outcomes for participants and support a more efficient grid. The LVM will implement LO3 Energy’s blockchain based Local Energy Market (LEM) platform and smart metering devices to bind participants together in an Internet of Things (IoT) digital market place, enabling participants to buy and sell locally produced renewable electricity using an eBay style auction mechanism.
To support the implementation of the LVM project this feasibility analysis was completed to test the economic benefits to consumers and prosumers potentially available from participating in a LEM. The modelling undertaken for the feasibility analysis demonstrated the potential for a LEM to deliver financial benefits to consumers. If implemented under existing market arrangements the modelling showed that consumers could potentially save between 6% and 12% on their energy purchases by making those purchases from the LEM, depending on their bidding strategies, compared to energy purchases they currently make at the retail price. Prosumers could potentially gain between 18% and 37% compared to selling their surplus electricity to their retailer at the existing Feed in Tariff (FiT).