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Understanding Localvolts and DER

Localvolts has developed a peer-to-peer electricity trading platform (P2Pe) that allows individuals to trade electricity directly with each other rather than relying solely on large energy utilities. The platform creates a real-time marketplace that matches supply and demand at 5-minute intervals for both current and future periods. It also allows private markets to form for families and communities. Localvolts aims to give individuals control over their energy policy and participation in electricity markets in a simple and transparent way.

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38 views4 pages

Understanding Localvolts and DER

Localvolts has developed a peer-to-peer electricity trading platform (P2Pe) that allows individuals to trade electricity directly with each other rather than relying solely on large energy utilities. The platform creates a real-time marketplace that matches supply and demand at 5-minute intervals for both current and future periods. It also allows private markets to form for families and communities. Localvolts aims to give individuals control over their energy policy and participation in electricity markets in a simple and transparent way.

Uploaded by

manoji
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Localvolts peer-to- peer electricity

Localvolts believe that people are ready to take control of their energy needs – all they need is access to the markets and the tools to exercise
their choice simply and transparently1. Localvolts has developed a peer-to-peer trading platform for the Australian electricity (P2Pe).

In the classic energy utility model, there are central generators, a distributed energy
network, supplying electricity through a retailer network, being managed by the
energy regulator, the Australian Energy Market Operator (AEMO), under rules
established by the Australian Energy Regulator (AER).

In Australia, the energy utility model is National Energy Market (NEM), being 60%
owned by the Federal Government and 40% by the States.

The NEM, transfer of electricity from generators to consumers, is facilitated through a


‘pool’, or spot market, being managed by AEMO, in compliance with the AER’s
National Electricity Law and Rules, and the consumer can only use or supply
through an accredited retailer.

Localvolts has created a unified electricity and derivatives marketplace for


everyone, where individuals are in control to create their own energy policy for
market participation. Local volts is;

• A real-time two-way as-contracted electricity and futures exchange settling


at 5-minute intervals
• Preference-based matching and clearing engine for every current and
future interval at each metering point
• Live forecasts and trading at each metering point and every interval for
more than 20 years into the future
• Private markets for families and communities
• Localvolts is licensed by energy and financial regulators

Localvolts meet all the regulatory conditions, to handle all the complexity inherent
with being in the electricity industry and provide an on-line platform for individuals to
meet and trade electricity simply and transparently.

Localvolts calls this P2Pe.

1 Localvolts Pty Ltd https://localvolts.com/

Community Power & Localvolts Page 1 of 4


Localvolts Model
To understand the Localvolts “revenue stack” for transparent P2Pe participation, noting that each line item is open and transparent to the
Participant on their electricity bill, and there are multiple layers that are clearly defined in the model.

Level Description Notes


The participant can establish their trading preferences for supply of their
electricity to whomever; the market, friend, family or any other
Establishes trading profile for power
Localvolts participant for a specific price.
Participant, as either supply or use preferences.
Customer or Supplier Pays for power used and or earns Equally the participant can set where and from whom they wish to
revenue from supplying power purchase their electricity from and at a price of their choice.
The Participant is responsible for settling their power bill with the NEM

Own generation; solar or battery


Localvolts participants buy electricity from any Localvolts generator
(dispatchable)
Generation of (Participant) and or the Spot market. Also, the Participant can be a
Community generator
Electricity generator (supplier) of electricity at any scale to other Participants or to
Contracted generator through PPA
the Spot market.
Spot market (NEM)

Unless behind the meter or off the grid, network charges are
Poles and wire for energy unavoidable and are charged for the distribution of electricity.
transmission and distribution
Network Ancillary services are used by AEMO to manage the power system
Generation to user
Ancillary services engagement safely, securely, and reliably. Localvolts platform has the capacity for
Participants to participate in this market.

Costs associated to bill outside These are fixed charges for government related fees, STC, LTC etc. These
Government Charges
generation, transmission, and fees. are unavoidable and non-contestable.

Those who facilitate the transaction Customer acquisition programs will be developed by related parties for
for Participants to join Localvolts, people to join Localvolts as Participants and for this work, fees will be
either individually or a Community. paid. This will be transparent to the Participant.
Agent fees
Localvolts is “white labelled” to be Localvolts as a P2Pe trading platform can be licensed and branded by
a branded by a Third Party to a third party to provide a community power network where people will
manage power generation/use have a choice to be a participant.

Community Power & Localvolts Page 2 of 4


Level Description Notes
Localvolts charges a flat fee for the provision of the P2Pe trading system
Fee to provide the Localvolts P2Pe for Participants.
Localvolts fee
platform and retailer license The fee is transparent and clearly listed on the electricity bill.

Community Power Model


Localvolts allows for people to develop their own P2Pe community power model, for the benefit of the participant in their community.

Community Power & Localvolts Page 3 of 4


Community Power Microgrid
Using IoT technology, a community microgrid can be established for power generation, use and storage (dispatchable generation) for load
and supply management across the microgrid (network) for secure and reliable power.

Contact Information
Russell Hanna
M| 04-1213-1155
E| [email protected]

Community Power & Localvolts Page 4 of 4

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