Local Electricity and Flexibility Markets: SWOT Analysis and Recommendations

After the millennium's shift, academic study has systematically researched the Local Energy Market (LEM) and Local Flexibility Market (LFM) principle to promote Europe's energy transformation. However, the use of LEMs in real-world programs did not begin until 2016. Towards this direction, the PARITY European project is actively researching and developing a hybrid market model, attempting to merge these two concepts. In this attempt, the current paper offers a market participant-oriented SWOT study, investigating what the strengths and weaknesses of traditional energy models are, as well as identifying what opportunities and threats such hybrid model could phase. Following a number of responses from market participants across Europe, the authors identified also a number of potential conflicts of interest among the market players. The authors aimed to contribute to the scientific community by offering a number of recommendations and ideas that could potentially address the perceived conflicts of interest and serve as the foundation for further research and experimental assessment within the research, academic, and business communities.