This paper explores the impact of the local electricity market (LEM) in a low-voltage distribution network. At first, a LEM model is established in parallel to the retail electricity market (REM), which enables the customers to engage in trading without considering the network constraints. The motivation of the proposed LEM is to minimise the financial transactions associated with the energy exchange with the electricity retailer by boosting local trading. Subsequently, the LEM model is superimposed to the low voltage distribution network (LVDN) model to understand the impact of the local electricity trading on the LVDN operational performances. The proposed LEM reveals a decline of grid supply by 7.32% and thus increase clean energy local consumption. On the contrary, voltage profiles at certain nodes deteriorate as a result of the LEM. Real-life measured data from an energy community in Ireland is considered for the study where all the participating customers are equipped with energy storage and part of them have PV.
Keywords local electricity market, peer-to-peer transactions, low voltage grid, network impact