Distribution Network Local Energy Market: A Comprehensive Review

The rapid power grid transition from wholesale electricity market toward liberalized distribution market has evolved over a decade time with increasing penetration of distributed energy resources (DERs) and digitization of grid. It has facilitated two-way communication between the market players by enabling peer-to-peer (P2P) energy trading. P2P market allows flexible energy trades between peers, i.e., the local prosumers in a distribution network local energy market (D-LEM) framework. Such energy trading is challenging as it requires different market mechanism and different pricing scheme considering all the physical network constraints as well as uncertainties to be handled at the same time. This study briefs different aspects of D-LEM that have evolved in diverse market framework across different countries, their potential development and challenges.