The innovative role of local system operator as a facilitator of grid and community services in the local electricity market

Abstract

Local electricity markets offer attractive solutions to long pending grid challenges associated with grid balancing, power quality and supply security, particularly with increased introduction of distributed renewable energy resources. This paper addresses questions regarding the roles, responsibilities and rights associated with local market participation, as well as issues that relate to the activities which can be carried out in the market. We describe the local system operator (LSO) as the most central role that is in charge of the operation of the local electricity market and we add to the state-of-the-art by paying particular attention to the possibilities that digitization offers within the local market context. More specifically, the capabilities of utilizing big data, machine learning and artificial intelligence to provide new or amplified business opportunities for the local market participants are central for the market design configuration that this paper focuses upon. Furthermore, we expect high stakeholder interest in the digitizationenabled innovative services around smart mobility and complementary offers of high diversity.