## 2 State of the Art  
### Local Energy Market  
Recent research by [PERSON] et al. [9] and [PERSON] et al. [10] emphasized the emergence of the LEM as a solution that prioritizes consumers in integrating DERs into distribution networks effectively. The LEM approach allows the efficient management of DERs, thereby increasing their utilization and overall impact on the distribution grid. Figure 1: The consumer-centric structure of LEM  
LEMs facilitate prosumers' unfettered access to the electricity market, leading to increased flexibility in the grid and creating revenue streams for small-scale prosumers while supporting balancing, congestion management, and ancillary services [11]. An LEM comprises small-scale energy deployments and energy assets located in a small or a wide geographic area. They are connected to the distribution grid in a decentralized structure where participants cooperate with the available resources (DERs, DR, EVs) on a community level, as depicted in Figure 2. LEM's main objective is to encourage market participation by providing monetary incentives to prosumers to trade energy with one another with minimum or no intermediate (e.g., energy aggregators) [12]. In this market, prosumers can share the benefits of local flexibility within the community, promoting the deployment of distributed renewable generation and DR [13]. To promote prosumers' participation, the LEM achieves load balancing at a lower price compared to the external grid. Consumers (buyers) can reduce energy costs by buying energy at a lower price. In comparison, producers (sellers) can increase their profit by offering energy at a higher price compared to the external grid. Moreover, from a social perspective, it allows participants to be active members of their communities by supporting and enabling them to consume renewable energy and benefit from its distributed generation. The pricing mechanisms of an LEM constitute one of its most important elements; many algorithms for the LEM clearing price have been proposed. Specifically, [PERSON] et al. [14] investigated the feasibility of social cooperation among prosumers participating in a peer-to-peer (P2P) energy trading market by utilizing a canonical coalition game approach. The results indicated that the proposed scheme can increase the prosumers' willingness to participate in P2P energy trading schemes. [PERSON] et al. [15] proposed a direct electricity trading market, in which the electricity pricing scheme achieves a fair allocation of profits between consumers and small-scale energy suppliers by using the asymptotic Shapley value function. [PERSON] et al. [16] presented a TES where an auction mechanism is implemented with non-convex prosumer models and resource constraints. [PERSON] et al. [17] presented three examples of a P2P market structure, namely bill sharing, mid-market rate, and auction-based pricing, to validate the effectiveness of the proposed markets. These market structures were applied on a residential community microgrid with a PV system. [PERSON] et al. [18] proposed a blockchain-based microgrid energy market without central coordination and evaluated the 'Brooklyn Microgrid Project' as a case study. Finally, [PERSON] et al. [19] introduced a game-theoretic approach for P2P energy trading among prosumers, where consumers can adjust their consumption according to market conditions. Figure 2: The future decentralized electricity system. Since LEMs are not fully restricted in electricity production, [PERSON] et al. [20] presented a corresponding multi-energy structure that utilizes its full flexibility potential, while [PERSON] et al. [21] facilitated the efficient flexibility procurement by an aggregator. In the proposed platform, an aggregator can communicate directly with the participants and determine costs and rewards between them so the benefits for both the aggregator and the electrical systems are mutually increased. [PERSON] et al.