Blockchain based ElectricitY trading for the integration Of National and Decentralized local markets

Digitalization and ICT (Information and Communication Technologies) will be a key enablers in integrating large shares of renewable energy sources in regional and local energy systems. Internet of Things, Blockchain technologies and digital platforms are bringing new paradigms to develop innovative business models for the integration of local-to-regional electricity markets, to define local flexibility markets based on end-user participation, and to develop market platforms among consumers and prosumers for Peer-to-Peer (P2P) electricity sharing. Energy communities and Local electricity markets are central to the development and realization of a consumer-centric energy transition as envisioned in directives of the EU Commission. The BEYOND project has developed new market designs to support the establishment of prosumers-consumers electricity markets and analyzed the opportunities for energy communities. The project has primarily focused on researching and analyzing the related business models surrounding the formation of local electricity markets and their related challenges. Hence, the BEYOND project is based on a local energy system approach as well as taking into account the participation of key stakeholders (e.g., grid operators, role of regulation, need owners, digital platform providers, etc.). In addition, the BEYOND project analyzed the interactions of local markets and energy communities into the regional landscape. There, the project contributed to develop frameworks for: the integration of distributed generation, the rules for local electricity prices, the coordination of flexibility for grid services, and the inclusion of digitalization tools to facilitate local trading as well as the prospect integration to wholesale markets. To reach TRL 6-7, the BEYOND project has validated and demonstrated the viability of local market in five real-life pilots or demonstrators in three different countries: Ireland, Norway and Austria. The project developed concepts and new frameworks that focused on understanding how a secure, automatized, and decentralized local market should be developed in the mentioned countries based on smart contracts, blockchain technologies or other ICT technologies. The project outlined the impact of these designs as well as analyzed potential commercialization prospects. The project also identified regulatory and policy recommendations for the implementation of local markets. The BEYOND project has produced more than twenty scientific publications focused on the formation of local markets and energy communities. These have been published (or under review) in top ranked peer-reviewed journals, or in leading international conferences in the field. These major successes have led to multiple spotlight discussions with external partners, engagement with spin-offs projects, education and training material, and others. Also, the project developed and tested digital market platforms based on blockchain or other ICT technologies to showcase the viability of these technologies, concluding that the ICT infrastructure is ready for uptake and large-scale deployment. of local markets The project was composed by a diverse set of partners with an equal balance between research institutions and SMEs, thirteen partners from Norway, Austria, Ireland and Spain. In reference to the Three-layer model of the ERA-Net initiative, the main results are: - Technology Layer. The project output resulted in: hands on experiences on developing digital market platforms, testing new algorithms for prosumer-consumer trading schemes, developing advanced modelling frameworks for the operation and control of Local markets interactions with grid operators, and others. - Market Layer. This was a central focus of the project which resulted in: reviews about local electricity markets developments in EU, role of aggregators as market player, a new innovative concept to create virtual electricity markets or communities that opens and diversify the geographical scope, developed a framework to create an energy retailer based on energy communities, formulated new marketplaces to reward flexibility and trade surplus energy from local markets to external actors (e.g., industry or other building complexes), and others. - Adoption Layer. The project engaged, via demonstrators and pilots, with end-users and adopters (actual prosumers and consumers) of local markets and energy communities. Surveys were collected and analyzed. Also training and gamification materials were developed (e.g. a board game to explain the integration of renewables) and strong involvement of students on higher education (PhDs and MSc theses). The BEYOND project has documented most of the open-public results and scientific publications at: https://beyond-project.eu/ Also various open source codes and models are available here: https://github.com/LocalEnergyMarkets/

- The project has quantified reduction costs for all demos when implementing variants of local electricity markets. This has been documented in deliverables, journal publications and conference papers. The outcome is that in most cases a form of local electricity markets brings overall benefits and cost reductions to the demos. This is highly subjected to regulatory limitations, energy prices, network tariffs and others. The outcome changes from country to country. Various estimations and market designs were developed to quantify the costs reductions or impacts. In short, energy communities and local electricity markets have great potential for commercialization or related business models. More quantification and further test in other demos is needed. - The project developed various spotlight ideas and new research output. Some spotlights and impact of these: i) A new concept of creating cluster/virtual Local market to develop new marketplaces for prosumers and consumers as well as reward flexibility (e.g., EVs), ii) A novel idea of defining a new market player: the energy community as an energy retailer. Automatization of energy balance brings the possibility of an Energy Community or Local Market to become an energy retailer on behalf of consumers and prosumers. This spotlight idea has been developed further and 2 journal publications have further tested, conceptualized, and proof the viability of this novel idea. iii) Another new market player spotlight developed in the project was the following: Develop an independent market operator focused on handling the surplus of energy communities to allow inter-trading among communities and other players while also having the regional grid acting as market participant to procure flexibility. A scientific paper has been developed analyzing this. iv) The digital tools and related technologies (ICT, Blockchain, etc) are ready for deployment. The technology is there. The project developed two digital platforms that showcase the possibilities on implementing local markets. Developing and incorporating further services to this platform will certainly bring further potential outcomes in future projects. vi) DSO/Grid operators interaction with LEM/Energy communities. The project analyzed different approaches to integrate operations of energy communities into grid operations. The role of DSO remains an important aspect to continue in future research. Development of new follow-up-projects - We are preparing and leading a proposal for the Horizon Europe Call: HORIZON-CL5-2023-D3-03-05: Creation of a standardized and open-source peer-to-peer energy sharing platform architecture for the energy sector - Some of the content and research activities have been included in training and educations - SME partners in the project are looking at commercialization prospects - Looking at more demonstrators and pilots to continue testing and developing solutions

The project BEYOND is based on a local energy system approach with a strong focus on the participation of all stakeholders. To this end, BEYOND will demonstrate market designs for the integration of local 'smart grids' into centralized grids (transmission system). Blockchain technologies will open new paradigms to design costumer sized business models for the integration of local energy and flexibility markets based on Peer-to-Peer (P2P) and aggregated trading. Current and future market-regulatory frameworks to incentivize the local trading will be tested. A special focus lies on: the integration of distributed generation, the rules for local electricity prices, grid services, and the inclusion of digitalization tools to facilitate local trading in the integration to wholesale markets. To reach TRL 6-7, BEYOND will validate and demonstrate local market designs in four real-life pilots in three different countries.