Interaction between local and open energy markets – guidelines for local market design

The local energy market provides a mechanism for consumers and prosumers to share or trade energy and flexibility within the community and to offer aggregated energy or flexibility to the external markets or to network operators. If a local market would be created within an off-grid community, the community members could design the market relatively freely. However, if a grid-connected community wants to gain the full benefits of the local market and all its potential revenue streams, the trading mechanisms and information exchange procedures must be designed to be compatible with the external markets. This study analyses how the arrangements in the retail, wholesale and ancillary service markets affect the local markets and their design.