Lopes, Fernando2021-07-282021-07-282021-07Lopes, F., From wholesale energy markets to local flexibility markets: structure, models and operation, In: Local Electricity Markets, Chapter 03, pp. 37−61, Academic Press (2021)978-0-12-820074-2http://hdl.handle.net/10400.9/3572Most energy markets (EMs) across Europe are based on a design framework involving day-ahead, intraday, and bilateral markets, operating together with balancing markets. This framework was set out, however, when the vast majority of generation units were controllable and fuel-based. The increasing levels of renewable generation create unique challenges in the operation of EMs. In this context, flexibility markets are starting to be recognized as a promising and powerful tool to adequately valorize demand-side flexibility. This chapter describes the models underlying both centralized and bilateral markets, analyzes the operation of several European markets, introduces some energy management tools, analyzes the pressing issue of flexibility in system operation, and describes various pioneering flexibility platforms.engEnergy marketsMarket architectureMarket models and operationRenewable energiesClean energy transitionFlexibility in system operationFlexibility marketsAgent-based tools for energy marketsbook parthttps://doi.org/10.1016/B978-0-12-820074-2.00009-5