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Analysis of New Flexibility Market Models in Europe

Author

Listed:
  • Orlando Valarezo

    (Institute for Research in Technology (IIT), ICAI School of Engineering, Comillas Pontifical University, 28015 Madrid, Spain)

  • Tomás Gómez

    (Institute for Research in Technology (IIT), ICAI School of Engineering, Comillas Pontifical University, 28015 Madrid, Spain)

  • José Pablo Chaves-Avila

    (Institute for Research in Technology (IIT), ICAI School of Engineering, Comillas Pontifical University, 28015 Madrid, Spain)

  • Leandro Lind

    (Institute for Research in Technology (IIT), ICAI School of Engineering, Comillas Pontifical University, 28015 Madrid, Spain)

  • Mauricio Correa

    (Institute for Research in Technology (IIT), ICAI School of Engineering, Comillas Pontifical University, 28015 Madrid, Spain)

  • David Ulrich Ziegler

    (Institute for Research in Technology (IIT), ICAI School of Engineering, Comillas Pontifical University, 28015 Madrid, Spain)

  • Rodrigo Escobar

    (Iberian Electricity Market Operator—OMIE, 28014 Madrid, Spain)

Abstract

To identify the trends in new flexibility markets, a set of market and aggregator platforms were selected and compared. The analyzed initiatives are relevant to consider alternative designs for European electricity markets. This review proposes a common methodology for analyzing these market models by comparing their description, market structure, market timing, and implementation. Furthermore, a range of policy implications and future research directions towards implementing these markets are presented. The results provide compelling evidence that the new market models represent a promising business with technical and economic justification, as they incentivize the uptake of flexibility from distributed resources by providing services to Distribution System Operators (DSOs) in coordination with Transmission System Operators (TSOs). Moreover, the interactions between these new market platforms and existing markets are of particular interest, and the contributions from aggregator platforms are also relevant to enhance the political vision of empowering the customers through their active participation in markets.

Suggested Citation

  • Orlando Valarezo & Tomás Gómez & José Pablo Chaves-Avila & Leandro Lind & Mauricio Correa & David Ulrich Ziegler & Rodrigo Escobar, 2021. "Analysis of New Flexibility Market Models in Europe," Energies, MDPI, vol. 14(12), pages 1-24, June.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:12:p:3521-:d:574364
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    References listed on IDEAS

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    Cited by:

    1. Karim L. Anaya & Michael G. Pollitt, 2021. "How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects," Energies, MDPI, vol. 14(15), pages 1-26, July.
    2. Dorian Frieden & Andreas Tuerk & Ana Rita Antunes & Vasilakis Athanasios & Alexandros-Georgios Chronis & Stanislas d’Herbemont & Mislav Kirac & Rita Marouço & Camilla Neumann & Esteban Pastor Catalayu, 2021. "Are We on the Right Track? Collective Self-Consumption and Energy Communities in the European Union," Sustainability, MDPI, vol. 13(22), pages 1-26, November.
    3. Schwidtal, Jan Marc & Agostini, Marco & Coppo, Massimiliano & Bignucolo, Fabio & Lorenzoni, Arturo, 2023. "Optimized operation of distributed energy resources: The opportunities of value stacking for Power-to-Gas aggregated with PV," Applied Energy, Elsevier, vol. 334(C).
    4. Rebenaque, Olivier & Schmitt, Carlo & Schumann, Klemens & Dronne, Théo & Roques, Fabien, 2023. "Success of local flexibility market implementation: A review of current projects," Utilities Policy, Elsevier, vol. 80(C).
    5. Lynne L. Kiesling & Leonardo Meeus & Michael G. Pollitt, 2021. "Special Issue “Innovation, Policy, and Regulation in Electricity Markets”," Energies, MDPI, vol. 14(19), pages 1-4, September.
    6. Chris Johnathon & Ashish Prakash Agalgaonkar & Joel Kennedy & Chayne Planiden, 2021. "Analyzing Electricity Markets with Increasing Penetration of Large-Scale Renewable Power Generation," Energies, MDPI, vol. 14(22), pages 1-15, November.
    7. Domagoj Badanjak & Hrvoje Pandžić, 2021. "Distribution-Level Flexibility Markets—A Review of Trends, Research Projects, Key Stakeholders and Open Questions," Energies, MDPI, vol. 14(20), pages 1-26, October.
    8. Chun Xia-Bauer & Florin Vondung & Stefan Thomas & Raphael Moser, 2022. "Business Model Innovations for Renewable Energy Prosumer Development in Germany," Sustainability, MDPI, vol. 14(13), pages 1-17, June.
    9. Josh Eichman & Marc Torrecillas Castelló & Cristina Corchero, 2022. "Reviewing and Exploring the Qualitative Impacts That Different Market and Regulatory Measures Can Have on Encouraging Energy Communities Based on Their Organizational Structure," Energies, MDPI, vol. 15(6), pages 1-19, March.
    10. Aguado, José A. & Paredes, Ángel, 2023. "Coordinated and decentralized trading of flexibility products in Inter-DSO Local Electricity Markets via ADMM," Applied Energy, Elsevier, vol. 337(C).
    11. Ajla Mehinovic & Matej Zajc & Nermin Suljanovic, 2023. "Interpretation and Quantification of the Flexibility Sources Location on the Flexibility Service in the Distribution Grid," Energies, MDPI, vol. 16(2), pages 1-18, January.
    12. Davi-Arderius, Daniel & Schittekatte, Tim, 2023. "Environmental Impacts of Redispatching in Decarbonizing Electricity Systems: A Spanish Case Study," Working Papers 1-2023, Copenhagen Business School, Department of Economics.
    13. Mahendra Singh & Jiao Jiao & Marian Klobasa & Rainer Frietsch, 2022. "Servitization of Energy Sector: Emerging Service Business Models and Startup’s Participation," Energies, MDPI, vol. 15(7), pages 1-20, April.
    14. Pichou, Marion & Dussartre, Virginie & Lâasri, Maxime & Keppler, Jan-Horst, 2023. "The value of distributed flexibility for reducing generation and network reinforcement costs," Utilities Policy, Elsevier, vol. 82(C).
    15. Felix Heider & Amra Jahic & Maik Plenz & Detlef Schulz, 2022. "Extended Residential Power Management Interface for Flexibility Communication and Uncertainty Reduction for Flexibility System Operators," Energies, MDPI, vol. 15(4), pages 1-23, February.
    16. Tomin, Nikita & Shakirov, Vladislav & Kurbatsky, Victor & Muzychuk, Roman & Popova, Ekaterina & Sidorov, Denis & Kozlov, Alexandr & Yang, Dechang, 2022. "A multi-criteria approach to designing and managing a renewable energy community," Renewable Energy, Elsevier, vol. 199(C), pages 1153-1175.
    17. Attar, Mehdi & Repo, Sami & Mann, Pierre, 2022. "Congestion management market design- Approach for the Nordics and Central Europe," Applied Energy, Elsevier, vol. 313(C).
    18. Leandro Lind & Rafael Cossent & Pablo Frias, 2022. "TSO-DSO Coordination for the Procurement of Balancing and Congestion Management Services: Assessment of a meshed-to-meshed topology," Papers 2209.02360, arXiv.org.
    19. Kara, Güray & Tomasgard, Asgeir & Farahmand, Hossein, 2022. "Characterizing flexibility in power markets and systems," Utilities Policy, Elsevier, vol. 75(C).
    20. Kalina, Jacek, 2023. "The quest for game changers - Review of new trends and innovations in the design of large-scale energy systems," Energy, Elsevier, vol. 277(C).

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