The State of the Art in Local Energy Markets: A Comparative Review

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System operators are facing a significant challenge with the increasing number of distributed energy resources (DER) in the distribution grid. Local energy markets (LEM) are a solution to this challenge as these allow system operators to use DERs for alleviating grid congestions and aiding with supply-demand balancing. Continuously, studies on how to improve the capabilities of LEMs are conducted around the world. Inevitably causing differences in methodology and, possibly, missed opportunities. Therefore, in this paper, a comparative overview is given of state-of-the-art literature by classifying literature on four properties (transactivity, inclusivity, congestion management, and balancing) of LEMs. The goal is to observe the current progress of state-of-the-art studies on LEMs, align these studies, and give recommendations on structuring future LEM research. The recommendations found are the use of a standardized underlying structure, or framework, such that LEMs with different properties are compatible and work together if combined, the creation of a benchmark such that performance of LEMs is easy to compare, and considering the settlement problem of lacking reference profiles.

Original languageEnglish
Title of host publication2021 IEEE Madrid PowerTech, PowerTech 2021 - Conference Proceedings
PublisherInstitute of Electrical and Electronics Engineers
ISBN (Electronic)9781665435970
Publication statusPublished - 29 Jul 2021
Event2021 IEEE Madrid PowerTech, PowerTech 2021 - Madrid, Madrid, Spain
Duration: 28 Jun 20212 Jul 2021


Conference2021 IEEE Madrid PowerTech, PowerTech 2021

Bibliographical note

Funding Information:
ACKNOWLEDGEMENT The authors would like to thank the Dutch Research Council’s (NWO) research program Complexity–Programmable Self-organisation for funding this study, which is part of the Self-organising Marketplace to realize a Self-Organised Sustainable Power System (AGILE) project.

Publisher Copyright:
© 2021 IEEE.


  • Balancing
  • Grid Congestion
  • Inclusive
  • Local Energy Market
  • Transactive


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