Success of local flexibility market implementation: A review of current projects

The development of distributed energy sources will challenge the management of the electrical system. Local flexibility markets (LFMs) are a promising solution to coordinate the dispatch of distributed energy sources. The LFM development is in its infancy, and numerous challenges should be addressed. This study focuses on four topics for LFM success: the governance model, coordination issues, inc-dec gaming, and competition. Based on a review of current projects, we identify challenges related to the four topics and discuss solutions to overcome these challenges. The proposed solutions are crucial to achieving market efficiency and cannot be considered independently.