Survey and Analysis of Local Energy Markets Based on Distributed Ledger Technologies

Local energy markets (LEMs) provide opportunity to handle the challenges arising from the lower grid level while using the traditional top-down approach to manage distributed generated renewable energy resources. Blockchain-based local energy markets (LEMs) have been introduced in recent years as a way to enable local consumers/prosumers to trade their energy locally in a distributed and highly secured manner in an LEM. However, there are still some challenges regarding the main factors that can drive local consumers/prosumers to participate in a blockchain-based LEM, optimal community size, and prosumer to consumer ratio for an efficient LEM. Also, there is still no information on how the quantifying factors for participation on a blockchain-based LEM can affect the performance of an LEM. This paper presents a survey and simulation based analysis of quantifying factors for participation in a blockchain-based LEM. The survey was distributed among local consumers/prosumers and a total of 261 responses were received from the responders. The results from the responders were analyzed using a Python code based statistical analysis model. The simulation based analysis was conducted using a community based LEM model and evaluated using data received from a combination of German household profiles and standard load profiles. The survey results showed that the major drive for local consumers/prosumers to participate on blockchain-based LEM is their willingness to support renewable energy integration, transparency, and trust offered by a blockchain network. On the other hand, the simulation based analysis showed that small and medium communities with prosumers to consumer ratios between 0.3 to 0.5 create more economic and technical benefits for local consumers/prosumers compared to large communities. The community based simulation results were modelled together with the survey results to determine how the individual quantifying factors for participating in a blockchain-based LEM can affect the performance of an LEM.