Local electricity market pricing mechanisms’ impact on welfare distribution, privacy and transparency

Local energy communities and electricity markets have emerged as possibilities for interaction among prosumers. A substantial effort has been invested into creating efficient pricing mechanisms various market arrangements, all of which take consideration distinct characteristics local trading. However, since they are evaluated in terms systems conditions, it is challenging to directly compare the mechanisms. In this research, three well-established from literature systematically compared under identical settings on their influence welfare distribution across participant groups, privacy protection, transparency complexity level. According findings, supply–demand ratio system leads lowest costs consumers also most compliant transparent. Furthermore, prosumers obtain highest cost-savings through consensus alternating direction method multipliers mechanism, whereas equilibrium mechanism performs best regarding economic fairness. The aim article provide insight performance different regulators facilitators. comparative analysis should aid making informed decisions implementation markets.