Levelling the playing field for smart renewable energy community in the electricity market through the high street electricity market model

Abstract

This study aims to address critical gaps in Smart Renewable Energy Communities research by examining the potential of it powered by real-time metering and control technology to utilise Peer-to-Peer transactions. It examines the evolution of regulatory frameworks and economic models for individual and Smart Renewable Energy Communities self-consumption, and their impact on grid stability and operations. It introduces the High Street Electricity Market model that allows end-users to participate in an alternative marketplace such as a Peer-to-Peer marketplace while retaining their existing retail relationships. The High Street Electricity Market model, designed to comply with European Union regulations, has been implemented and demonstrated in a live setting within a residential community in Dublin. The paper focusses on Peer-to-Peer contract negotiation, regulatory alignment, and fair competition between Smart Renewable Energy Communities, retailers and individual self- consumption. Out of four scenarios presented in this paper, Scenario 4 presented in Table 5 outlined a balanced competitive environment created by applying a full 100 % discount on the passthrough tariff for individual self-consumption, and a 55 % discount for Smart Renewable Energy Communities self-consumption at the same cost saving of 82 %. This strategy maintains market stability and offers a practical solution for ensuring fairness between individual users and Smart Renewable Energy Communities. It highlights the capacity of Peer-to-Peer to add value to grid operations by controlling community self-consumption, in real-time. Furthermore, it explores the market potential of Smart REC and emphasizes the need for regulatory and market design changes to encourage broader adoption. The findings underscore the feasibility of High Street Electricity Market model in promoting community engagement in the energy transition and advocate for further research to develop a robust model for discounts in passthrough charges and comprehensive licensing protocols for Peer-to-Peer marketplace operators to enhance the realization of societal value by Smart Renewable Energy Communities.