Energy system analysis - local energy markets as a link between regional and central energy transition


German Federal Ministry for Economic Affairs and Energy (BMWi)


Stuttgart University of Applied Sciences (HFT)


January 2019 to September 2021

In the research project “Energy System Analysis – Local Energy Markets as a Link between Regional and Central Energy Transition” (EnSys-LE), the EWI, together with the Stuttgart University of Applied Sciences (HFT), is investigating local energy markets and how they are linked to supra-regional markets on behalf of the Federal Ministry for Economic Affairs and Energy (BMWi).

EWI and HFT Stuttgart analyze the economic basis for regulation and market organization that takes into account centralized and decentralized developments throughout the energy system. They also develop a model framework that maps decentralized and centralized market structures with the necessary high level of technical detail. This is done by further developing and coupling existing models:

  • COMODO, EWI’s sector model for the optimization of energy supply options
  • EWI’s European electricity market model DIMENSION
  • the 3D city model SimStadt of the HFT Stuttgart

EWI and HFT Stuttgart simulate parallel and interacting energy supply scenarios in exemplary model regions (on the level of German cities and districts) and scenarios of the electricity and heat system on the federal level. Thus, selected forms of market organization and regulation can be assessed.

EWI’s role in EnSys-LE

  • Economic fundamentals for the possible design of local energy markets, especially concerning the coupling of the market design of local and national markets as well as a corresponding regulation
  • Current political and regulatory framework (e.g., unbundling, network tariff systems, connection to supra-regional markets, technical requirements) as well as future requirements (e.g., political climate targets)
  • Appropriate framework conditions for local energy markets with desirable economic characteristics (for example, efficiency, limited market power, liquidity)
  • Assessment of general economic development and socio-economic framework conditions (for example, general global price development, income)
  • Implementation of local energy markets in EWI’s model COMODO
  • More detailed mapping of the heat market in EWI’s model DIMENSION
  • Coupling of the two EWI models COMODO and DIMENSION as well as the model SimStadt of the HFT Stuttgart

Interim results

  • Presentation at Enerday 2019: “Bottom-up modeling of heating investment using clustered time series data”
  • Presentation at the 48th Annual Conference of EWIR Cologne: “Sector coupling in the household sector – regulation of the grid-market interface”
  • Presentation at the EWI colloquium: “Bottom-up optimization of individual decisions in a power market framework”
  • Presentation at the workshop WeatherAggReOpt 2020: “Temporal reduction of input time series for energy system models using clustering algorithms”
  • Submission to IEAA: “Geodata based modelling on household decision making – A German Use case of heating system investment”