I am not sure how the LO3 system works in particular. But I have been involved in helping create a still experimental system that enables exactly the use case you described: make trading across the grid happen by allowing producers and consumers to agree on the amount and origins of the electricity in circulation at any given point in time.
Personally I think we are missing "peer authority" in the Brooklyn grid. As long as we just electricity vs. money exchange is dealed with there is no real added value. From my point of few a Business Object (as linked) for the energy blockchain drives new services and general business transformation better than just redo something based on Hype-Tec.