How will local energy markets influence the pan-European day-ahead market and transmission systems? A case study for local markets in France and Germany

The energy system decarbonization leads to a decentralization of generation and flexibility. Among the new concepts integrate distributed flexibility are local markets. While broad range research investigates markets on distribution grid level in detail, their impact has been limited. Therefore, we develop framework investigate different configurations as well operation resources interaction with wholesale This is applied pan-European case study detailed bottom-up modeling France Germany. Additionally, transmission simulations carried out trading congestions. Our results show that direct coordination within market more efficient than preference for trading. Nonetheless, can be used an incentive expansion way break down complexity coordinating millions assets single market. our relieves grid.