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Designing flexibility procurement markets for congestion management – investigating two-stage procurement auctions

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  • Bellenbaum, Julia
  • Höckner, Jonas
  • Weber, Christoph

Abstract

Increasing infeed from renewable energy sources poses considerable challenges to system operators (SOs) who are in charge of power system reliability. Accordingly, the frequency of network congestion and the corresponding congestion management costs have increased dramatically over the last years and give reason to extensively discuss alternative approaches. Among these, flexibility markets bear the potential to complement existing congestion management practices by incentivising decentralised resources with large potentials of flexibility to participate in relieving congestion. For this reason, multiple demonstration projects across Europe are currently testing different flexibility market designs.

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  • Bellenbaum, Julia & Höckner, Jonas & Weber, Christoph, 2022. "Designing flexibility procurement markets for congestion management – investigating two-stage procurement auctions," Energy Economics, Elsevier, vol. 106(C).
    • Handle: RePEc:eee:eneeco:v:106:y:2022:i:c:s0140988321006162
    DOI: 10.1016/j.eneco.2021.105775
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    1. Jahns, Christopher & Stein, Tobias & Höckner, Jonas & Weber, Christoph, 2023. "Prevention of strategic behaviour in local flexibility markets using market monitoring – Concept, application example and limitations," Energy Policy, Elsevier, vol. 174(C).

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