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Prosumers in many regions are facing reduced feed-in tariffs and currentlyhave no possibility to influence the level of remuneration for the locallyproduced solar energy. Peer-to-peer communities may offer an alternative to thefeed-in tariff model by enabling prosumers to directly sell their solar energyto local consumers (possibly at a rate that is beneficial for both consumer andprosumer). The Quartierstrom project investigates a transactional energy systemthat manages the exchange and remuneration of electricity between consumers,prosumers and the local electric grid provider in the absence ofintermediaries. This whitepaper describes the prototypical real-world systembeing implemented in the town of Walenstadt, Switzerland, with 37 participatinghouseholds. The community members of this pilot project pay a reduced tarifffor grid usage if the electricity produced by a prosumer is sold to anothercommunity member, which is located on the same voltage or grid level downstreama substation1. Such a tariff structure incentivizes local balancing, i.e.locally produced energy can be consumed locally whenever possible to avoidcosts from higher grid levels. The blockchain is a novel technology suitable tolog the produced and consumed units of energy within a community, making itpossible to implement market places. In those marketplaces, both prosumers andconsumers can indicate a price at which they are willing to sell / buy locallyproduced solar energy without the intermediation of a utility. The key goals ofthis project are the assessment of A) the technical, economical and ecologicalfeasibility of a blockchain-based community energy system regarding localutilization of solar energy, grid quality and energy efficiency and B)resulting dynamics regarding local market prices and user acceptance.

Quartierstrom -- Implementation of a real world prosumer centric local energy market in Walenstadt, Switzerland