Realistic Local Electricity Markets: A Survey of Enabling Technologies

Local electricity markets (LEMs) present a paradigm shift towards decentralized energy production and consumption, allowing communities to produce, consume, and manage their own electricity locally. LEMs offer a promising pathway towards a more sustainable and resilient energy future by promoting renewable energy (RE) adoption and providing mechanisms for sharing these resources locally. However, to realize the full potential of LEMs and overcome feasibility challenges, the integration of advanced technologies is essential. These technologies not only enable innovative applications such as LEMs but are also necessary to ensure the reliability of power systems with high RE penetration. This paper investigates the infrastructure and technology requirements of LEMs. A survey of recently proposed LEMs is conducted to identify the required advancements in power system technologies that enable LEM implementation. Firstly, we present the essential power installations for LEM participation, including distributed energy resources (DERs), grid integration systems, and monitoring equipment. Secondly, we analyze the technology and infrastructure requirements of LEMs, as identified from the reviewed literature. The paper also discusses the impact of LEMs on power systems, including voltage regulation and grid stability. Future research directions are discussed, and conclusions are drawn.