Cybersecurity Issues in Local Energy Markets

Local Energy Markets (LEMs), though pivotal to the energy transition, face growing cybersecurity threats due to their reliance on smart grid communication standards and vulnerable Internet-of-Things (IoT)-enabled devices. This is a critical issue because such vulnerabilities can be exploited to manipulate market operations, compromise participants' privacy, and destabilize power distribution networks. This work maps LEM communication flows to existing standards, highlights potential impacts of key identified vulnerabilities, and simulates cyberattack scenarios on a privacy-preserving LEM model to assess their impacts. Findings reveal how attackers could distort pricing and demand patterns. We finally present recommendations for researchers, industry developers, policymakers, and LEM stakeholders to secure future LEM deployments.

@article{dabashi2025_2507.01536,
  title={ Cybersecurity Issues in Local Energy Markets },
  author={ Al Hussein Dabashi and Sajjad Maleki and Biswarup Mukherjee and Gregory Epiphaniou and Carsten Maple and Charalambos Konstantinou and Subhash Lakshminarayana },
  journal={arXiv preprint arXiv:2507.01536},
  year={ 2025 }
}