A method for establishing an energy clearing price for electrical energy within a microgrid is provided. The method comprising receiving, at a microgrid market management ("MMM") system, a price for electrical energy delivered to the microgrid from a transmission/distribution system or the transmission/distribution system from the microgrid; monitoring electric power flow between a first and a second prosumer systems and the microgrid using respective first and second prosumer meters located at respective locations of said first and second prosumer systems within the microgrid; monitoring electric power flow between the microgrid and the transmission/distribution system using a meter located at a point of common coupling ("PCC") between the microgrid and the transmission/distribution system; and determining, at the MMM, the energy clearing price from the price for electrical energy delivered to the microgrid from the transmission/distribution system or the transmission/distribution system from the microgrid; the respective locations of the first and second prosumer systems within the microgrid; and, the electric power flow between the first and second prosumer systems and the microgrid.
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