Local energy markets: Concept, design and operation

The overall goal of the electricity market is to provide electricity in an efficient way while meeting the demands of the consumers. The competition and regulations are the different way to achieve this goal. The traditional electricity market is facing challenges in integrating the new sources of generation of electricity, technology, infrastructure, increasing demand and the consumer-oriented market. It has shifted the paradigm towards new market design which will be able to fit in existing market structure. One of such electricity market is local electricity market. The benefits of local power generation, storage and demand response all cooperate together and peer-to-peer model enables the participation of all participants of the market. It uses information and communication technology (ICT) for sustainable and efficiently transfer of electricity to the consumers. It integrates the distributed generation, microgrid, and smart grid into one electricity market at distribution side.