Centrica establishes a local energy market to trade distributed energy resources energy and flexibility

November 12, 2018 | Case Study

In late 2016, Centrica announced the development of a local energy market (LEM) in Cornwall as part of a £19 ($23.6) million program financed primarily by the European Regional Development Fund, Centrica, and the British Gas Energy for Tomorrow Fund to test "the use of flexible demand, generation, and storage" and reward participants for this flexibility. Centrica's LEM is a distributed energy resource (DER) marketplace that allows energy trading as well as flexibility for the grid and the wholesale energy market. Centrica's plan is to bring together different stakeholders, such as residential and commercial consumers, aggregators, retailers, and distribution and transmission utilities, and allow them to participate in the marketplace. Furthermore, Centrica integrated LO3 Energy's blockchain-based platform to manage energy transactions. There are a number of local commercial businesses already participating in the marketplace, and only recently, the company started the installation of solar and energy storage systems in 100 homes.