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Local Energy Market

A marketplace that matches many local energy users with many local energy assets like solar, storage and EV charging. Local users have the potential to buy directly from a local generator or buy other energy services available in the market. The market is facilitated by a software platform which could be run by a number of different parties in the local area.

Why is it better for Net Zero?

Creates a market for local green energy from many local generators and many local buyers

What makes it a SLES?

Marketplace / platform for buying and trading energy

Main Low Carbon Interventions

Solar, Storage, EV Charging, heating

Key Benefits

Net Zero

  • Accelerate reduction of local carbon emissions.
  • Increase Local Participation in Net Zero.

 

Financial

  • Lower energy bills for customers.
  • Improved business case for generators.

Economic Opportunity

  • Increases local economic growth and employment.

System Resilience

  • Increase Flexibility in Local Network.

Considerations

Policy & Regulatory

  • Complex to setup – new market rules required.
  • Relationship with system operators. Need to understand how DNO and National Grid will interact with the LEM.

Creating Value

  • Creating value in the local market. It is not yet clear who pays for the value a local energy market can generate.
  • Market requires sufficient volume and liquidity to be viable.

Digital and Data

  • Safely handling user data in the local energy market.

Fair Transition

  • Extra support will be required to support vulnerable customers and address fuel poverty concerns.

Where could local authorities fit into Local Energy Markets?

Own the Local Energy Market set market signals to incentivise climate strategy. Generate Income for council and potential replication in other LA’s.

Invest in energy assets – like solar, storage and EV charging infrastructure. LEM will improve business case by increasing value of local power.

Become and Energy Service Provider – create local energy tariff and sell through the market. Could include locally owned generation.

Smart Local Energy Systems

Supporting the creation of Smart Local Energy Systems to attract innovative low carbon businesses, infrastructure, investment and jobs

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