Method for Determining the Impact of Local Energy Markets on the Distribution Grid Expansion

As a novel concept, Local Energy Markets (LEMs) offer price signals to end customers for using their flexibility. The changed flexibility operation could have an impact on the necessary expansion in distribution grids. We propose a methodology that identifies the impact of LEMs on the distribution grid expansion. The method first simulates the trade and flexibility operation in LEMs and then performs a distribution grid expansion planning. In a case study, we apply our methodology to a exemplary MV-region with 179 busses and 11.500 participants. The results show that local exchange of electricity can slightly reduce the necessary expansion of the distribution grid. Besides the positive effects for the grid operator, LEMs also provide benefits to the participants by increasing their self-sufficiency.