University / Organisation : Université Paris-Dauphine

Paper or project ? project

Title : Governance and Organization of Local Energy Markets in the Management of Decentralized Production and Storage Resources

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Abstract : In response to the accelerating European energy transition and the rise of distributed energy resources (DERs) such as photovoltaic and onshore wind power, national electricity systems are undergoing a profound transformation toward decentralized production and storage. This thesis investigates the conditions for the emergence and structuring of Local Energy Markets (LEMs) that allow prosumers — including households, businesses, and local authorities — to exchange energy at the local level within a regulated framework. The study aims to identify market mechanisms that incentivize the effective integration of DERs into the grid, analyzing their impacts on profitability, stakeholder engagement, and system stability. It also explores how the roles of network operators — in particular, distribution system operators (DSOs) and transmission system operators (TSOs) — must evolve to organize, manage, and oversee these markets. The development of LEMs raises key trade-offs between economic efficiency, technical coordination, and governance in a context marked by actor heterogeneity and increasing system interdependence. This research will draw on in-depth analysis of European pilot projects for DER integration, combining theoretical insights from network economics, regulatory framework analysis, and empirical assessment of operational outcomes. It is structured around three main research questions: (1) Which market mechanisms can support the development and interoperability of LEMs? (2) Which network actor should act as market operator, and what are the associated risks of market failure? (3) How should network codes evolve to ensure efficient, secure, and transparent transactions within LEMs?