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The German government is aiming to increase the share of renewable energies in the electricity supply to 80% in 2050. To date, however, neither the technical requirements nor the market requirements to implement this aim are provided: Germany is struggling to establish the technical requirements and the market requirements to meet this goal. As an important incentive mechanism, the German government has used and continues to use support measures, such as guaranteed feed-in tariffs, and continuously adapts these to market developments and requirements of the European Union. The purpose of the study is to outline a concept for the implementation of regional flexibility markets in Europe based on a thorough review of technical solutions. The method of a comprehensive review of research in regional flexibility markets of electricity, distribution, and pricing from the study is applied to summarize and discuss the opportunities, risks, and future potentials of grid distribution technology. Based on the insights, a new market-based supply and distribution scheme for electricity, which is aimed to benefit of a fully regenerative, decentral and fairly priced electricity markets on the European level is presented. The study suggests a blockchain based pricing mechanism which shall allow equal market access for consumer, providers, and grid operators and rewards regenerative production and short-distance transmission.
Ecological concerns on the climatic effects of the emissions from electricity production stipulate the remuneration of electricity grids to accept growing amounts of intermittent regenerative electricity feed-in from wind and solar power. Germany’s eager political target to double regenerative electricity production by 2030 puts pressure on grid operators to adapt and restructure their transmission and distribution grids. The ability of local distribution grids to operate autonomous of transmission grid supply is essential to stabilize electricity supply at the level of German federal states. Although congestion management and collaboration at the distribution system operator (DSO) level are promising approaches, relatively few studies address this issue. This study presents a methodology to assess the electric energy balance for the low-voltage grids in the German federal state of Baden-Württemberg, assuming the typical load curves and the interchange potential among local distribution grids by means of linear programming of the supply function and for typical seasonal electricity demands. The model can make a statement about the performance and development requirements for grid architecture for scenarios in 2035 and 2050 when regenerative energies will—according to present legislation—account for more than half of Germany’s electricity supply. The study details the amendment to Baden-Württemberg’s electricity grid required to fit the system to the requirements of regenerative electricity production. The suggested model for grid analysis can be used in further German regions and internationally to systematically remunerate electricity grids for the acceptance of larger amounts of regenerative electricity inflows. This empirical study closes the research gap of assessing the interchange potential among DSO and considers usual power loads and simultaneously usual electricity inflows.