  In recent years extensive research has been conducted on the development of
different models that enable energy trading between prosumers and consumers due
to expected high integration of distributed energy resources. Some of the most
researched mechanisms include Peer-to-Peer energy trading, Community
Self-Consumption and Transactive Energy Models. Here, we present an exhaustive
review of existing research around Local Energy Market integration into
distribution systems, in particular benefits and challenges that the power grid
can expect from integrating these models. We also present a detailed overview
of methods that are used to integrate physical network constraints into the
market mechanisms, their advantages, drawbacks, and scaling potential. We find
that financial energy transactions do not directly reflect the physical energy
flows imposed by the constraints of the installed electrical infrastructure.
Therefore, ensuring the stable and reliable delivery of electricity is vital to
understand the impact of these transactions on the grid infrastructure, e.g.,
impacts on the control, operation, and planning of electricity distribution
systems.
