@inbook{d1736f52e09e4a8aa55f793e8a39795d,
title = "Local Energy Markets: From Concepts to Reality",
abstract = "Local energy markets can create new societal value by offering a variety of energy services tailored to the local context and community desire. Based on real-world experience, this chapter describes how to enable active participation of a diverse set of local system stakeholders through a novel hybrid electricity market architecture. This market is the product of an agile co-design process carried out within Project LEO (Local Energy Oxfordshire), one of three large-scale energy community demonstrator initiatives in the United Kingdom. Firstly, we discuss the underlying concepts and desired services to be provided by the market. Next, we describe the agile approach taken to trial whole-system innovation in real-world contexts, describing the end-to-end procedures, data requirements and the digital platforms that enable local energy markets to function. Finally, we discuss some of the challenges faced and provide an outlook to the future of local energy markets.",
keywords = "Energy markets, Energy transition, Flexibility, Grid-edge, Smart local energy",
author = "Scot Wheeler and Filiberto Fele and Masaō Ashtine and Thomas Morstyn and David Wallom and Malcolm McCulloch",
note = "Funding Information: The authors would like to thank the Project LEO consortium without whom the learning outputs presented would not have been possible: Scottish and Southern Electricity Networks, Low Carbon Hub, Origami Energy, Piclo, Nuvve, EDF, Oxfordshire County Council, Oxford City Council, Oxford Brookes University and other researchers and staff at the University of Oxford. The authors are also grateful to Dr. Elnaz Azizi for the helpful discussions and proofreading. This work was supported by Innovate UK grant ref. 104781—Project LEO, and EPSRC project EP/S031901/1 EnergyREV—Market Design for Scaling up Local Clean Energy Systems. The data that support the findings of this study are available from the corresponding author, SW, upon reasonable request. Funding Information: LEO operates in parallel to the TRANSITION project, led by Scottish and Southern Electricity Networks (SSEN) and funded by the Government{\textquoteright}s energy regulator in Great Britain, Ofgem (Scottish and Southern Energy Networks (SSEN) 2022). TRANSITION is designing and implementing trials that support the transition from the role of Distribution Network Operator (DNO) to that of Distribution System Operator (DSO). While the exact model of a DSO is still to be agreed by the industry, it reflects the move towards the {\textquoteleft}smart-grid{\textquoteright} which delivers additional data, monitoring and control systems at the local network level to enable bi-directional energy flow creating a more active and customer led flexible network while maintaining safety and reliability; this is in contrast to traditional DNO activities which largely focuses on infrastructure development and maintenance. Funding Information: LEO is one of the most ambitious and holistic smart grid trials ever conducted in the UK. Part funded by the Industrial Strategy Challenge Fund{\textquoteright}s {\textquoteleft}Prospering from the Energy Revolution{\textquoteright} (PFER) fund (UK Research and Innovation (UKRI) 2022), LEO seeks to understand how new LEMs and improved local engagement can unlock additional societal, financial and environmental value for households, businesses and communities provided by a smarter, more flexible, electricity system (Project LEO 2018). LEO brings together an exceptional set of system stakeholders from the energy industry, local government, community organisations, and academia. By mimicking the requirements of the future electricity system LEO is building an evidence base that will inform future market design. Funding Information: Acknowledgements The authors would like to thank the Project LEO consortium without whom the learning outputs presented would not have been possible: Scottish and Southern Electricity Networks, Low Carbon Hub, Origami Energy, Piclo, Nuvve, EDF, Oxfordshire County Council, Oxford City Council, Oxford Brookes University and other researchers and staff at the University of Oxford. The authors are also grateful to Dr. Elnaz Azizi for the helpful discussions and proofreading. This work was supported by Innovate UK grant ref. 104781—Project LEO, and EPSRC project EP/S031901/1 EnergyREV—Market Design for Scaling up Local Clean Energy Systems. The data that support the findings of this study are available from the corresponding author, SW, upon reasonable request. Publisher Copyright: {\textcopyright} 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.",
year = "2023",
month = feb,
day = "14",
doi = "10.1007/978-3-031-21402-8_1",
language = "English",
isbn = "978-3-031-21401-1",
series = "Lecture Notes in Energy",
publisher = "Springer",
pages = "1--38",
booktitle = "Trading in Local Energy Markets and Energy Communities",
address = "United Kingdom",
}