Economic Effects of A Nationwide Roll-Out of Energy Sharing In Local Energy Markets

In order to allow for economically feasible energy sharing, financial incentives for locally exchanging electricity could be introduced. In a possible nationwide roll-out of energy sharing in the future, the trading concept and incentives could lead to economic effects. To evaluate these economic effects, we propose a methodology for modeling a national energy system, identifying and simulating the trade within representative market areas, and extrapolating the results to the national level. In a case study, we apply the methodology for a future scenario in Germany. The results show positive effects on end customers by reducing electricity procurement costs and increasing self-sufficiency. However, reduced electricity procurement costs for end customers result from redistribution of taxes, grid fees, levies, and utilities.