The STREAM project has published a new policy brief providing a comprehensive overview of the current state of local flexibility markets (LFM) in Europe, with a focus on the four STREAM pilot countries: Finland, Italy, Slovenia, and Spain.
The brief explores how EU legislation, including the Clean Energy for All Europeans Package, is shaping the development of local flexibility markets, and what still needs to happen for these markets to become a reality across Europe.
Drawing on real-world insights from the STREAM pilot sites, the brief presents country-specific findings on the regulatory landscape, the perspectives of key actors such as DSOs, TSOs, aggregators and market operators, and concrete examples of flexibility pilots already underway.
The key message is clear: while the regulatory foundations are being laid, local flexibility markets are still at an early stage in most countries. Transparent market design, well-defined roles for all stakeholders, digital infrastructure, and stronger consumer engagement will be essential to unlock the full potential of demand-side flexibility.
The policy brief also includes targeted recommendations for each country on how to accelerate the establishment of functioning local flexibility markets.
Download here.