Microgrids for macro impact : smart trading for energy transition

Abstract

For several years, increasing energy consumption and a lack of alternative energy sources have posed a challenge to the world economy. One of the possible solutions to avoid future energy shortages could be the steadily greater use of renewable sources of energy on a local level and a change of generation and distribution of energy itself. This thesis describes the option to produce and trade electric energy locally. This change in energy production and distribution can bring high-efficiency gains if handled skillfully. Dubbed energy transition, these changes will play a central role in future electricity supply and trading. The research methods for this thesis are comparative and qualitative analyses of trading, technological aspects and the social impact on society. The findings indicate that the best solution for future energy production is a combination of electricity production on a centralized level for factories and a decentralized level for households. This transition in electricity production would allow selling locally generated energy surpluses via virtual power plant. End consumers would lower their electricity expenses due to flexible tariffs. Household electricity producers would enjoy a higher income due to automated software controlling the trading process. Further research should focus on the financial aspects and economic viability of energy decentralization.