Active Players in Local Energy Markets

Power systems are undergoing a fundamental transition as energy resources are increasingly distributed through all layers of the electricity grid. Local energy markets offer opportunities for value co-creation through the coordination of these resources, with benefits at the individual, community and societal levels. This chapter presents an overview of the main active players in local energy markets, their objectives, and the ways in which they can participate. We then present a systematic taxonomy of coordination strategies for these players with heterogeneous objectives and constraints. The coordination mechanisms can be classified in terms of the level of agency of participating players, the information communication structure, and whether the local energy market represents a competitive or cooperative game. A numerical case study is then conducted to illustrate the value obtained by active players through competition and cooperation. Finally, we discuss avenues forward to help integrate and coordinate the active players in local energy markets.