This chapter discusses the role of, and advancements in, local energy systems, emphasizing the integration of distributed generation, energy storage, and digital technologies. The key focus is on how these local systems contribute to the whole or wider energy system through enhancing efficiency, reliability, resilience and sustainability. The chapter outlines the benefits of decentralized energy production, such as reduced transmission losses and increased local resilience, and highlights the importance of the role of energy storage in balancing supply and demand. Overarching all of this is the significance of digitalization in managing, controlling and optimizing energy systems, paving the way for a more flexible and robust energy infrastructure. The chapter also touches on the challenges and technological innovations necessary to support this transition towards a modern and sustainable energy future.