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Local electricity markets: A review on benefits, barriers, current trends and future perspectives

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  • Faia, Ricardo
  • Lezama, Fernando
  • Soares, João
  • Pinto, Tiago
  • Vale, Zita

Abstract

Local electricity markets are emerging as a viable solution to overcome the challenges brought by the large penetration of distributed renewable generation and the need to put consumers as central players in the system, with an active and dynamic role. Although there is significant literature addressing the topic of local electricity markets, this is still a rather new and emerging topic. Hence, this study provides an overall view of this domain and a perspective on future needs and challenges that must be addressed. This review introduces the most important concepts in the local electricity market domain, provides an analysis on the different policy and regulatory framework, exposes the most relevant worldwide initiatives related to the field implementation, and scrutinizes the alternative local market models proposed in the literature. The discussion puts forth the main benefits and barriers of the currently proposed local market models, and the expected impact of their widespread implementation. The review is concluded with the wrap-up and discussion on the most relevant paths for future research and development in this field of study.

Suggested Citation

  • Faia, Ricardo & Lezama, Fernando & Soares, João & Pinto, Tiago & Vale, Zita, 2024. "Local electricity markets: A review on benefits, barriers, current trends and future perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 190(PA).
    • Handle: RePEc:eee:rensus:v:190:y:2024:i:pa:s136403212300864x
    DOI: 10.1016/j.rser.2023.114006
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