Efficient Microgrid System with Community Energy Market for Power Price and Emissions Reduction in Pakistan

The integration of solar photovoltaic (PV) systems and smart grids has enabled distributed energy trading, yet the development of regulatory frameworks for microgrid energy markets remains a challenge. Rising energy costs and greenhouse gas emissions necessitate innovative strategies to ensure affordable, sustainable, and reliable power for communities. This paper proposes a Community Energy Market (CEM) leveraging Linear Programming (LP) optimization to minimize energy costs and enhance renewable energy utilization. The results demonstrate that the CEM approach significantly increases energy self-sufficiency, reducing reliance on the grid. This method achieves Rs.38,830 cost saving. Furthermore, local energy trading within communities yields 68.75% % energy savings and reduces CO2 emissions by 88.01%. These findings highlight the effectiveness of the CEM model in fostering community collaboration, improving microgrid resilience, and promoting environmental sustainability. The proposed solution emphasizes the need for diversifying energy sources and adopting advanced energy market systems to deliver long-term, cost-effective, and eco-friendly energy solutions.