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Local Markets for Flexibility Trading: Key Stages and Enablers

Author

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  • Simone Minniti

    (Electrical Energy Systems Group, Eindhoven University of Technology, 5600 MB Eindhoven, The Netherlands)

  • Niyam Haque

    (Electrical Energy Systems Group, Eindhoven University of Technology, 5600 MB Eindhoven, The Netherlands)

  • Phuong Nguyen

    (Electrical Energy Systems Group, Eindhoven University of Technology, 5600 MB Eindhoven, The Netherlands)

  • Guus Pemen

    (Electrical Energy Systems Group, Eindhoven University of Technology, 5600 MB Eindhoven, The Netherlands)

Abstract

The European energy transition is leading to a transformed electricity system, where Distributed Energy Resources (DERs) will play a substantial role. Renewable Energy Sources (RES) will challenge the key operational obligation of real-time balancing and the need for flexibility will consequently increase. The introduction of a local flexibility market (LFM) would allow the trading of flexibility supplied by both producing and consuming units at the distribution level, providing market access to DERs, a support tool for Distribution System Operators (DSOs) and a value stream for energy suppliers. Aggregators and DSOs for different reasons can enhance the valuation of flexible DERs. Several research papers have assumed aggregators fully interacting with the electricity markets and DSOs contracting services with power system actors. These interactions are still not allowed in many European countries. This article aims to analyze the European regulation to identify the most important enablers and pave the way towards the full exploitation of DER flexibility, culminating in the establishment of an LFM. Therefore, three main stages, emerging from the progressive withdrawal of the current regulatory and market barriers, are identified: (1) enabling the aggregator’s trading, (2) evolution of the DSO’s role, and (3) key-design challenges of an LFM.

Suggested Citation

  • Simone Minniti & Niyam Haque & Phuong Nguyen & Guus Pemen, 2018. "Local Markets for Flexibility Trading: Key Stages and Enablers," Energies, MDPI, vol. 11(11), pages 1-21, November.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:11:p:3074-:d:181329
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    References listed on IDEAS

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    Cited by:

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    11. Guray Kara & Asgeir Tomasgard & Hossein Farahmand, 2021. "Characterization of flexible electricity in power and energy markets," Papers 2109.03000, arXiv.org.
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    14. Gržanić, M. & Capuder, T. & Zhang, N. & Huang, W., 2022. "Prosumers as active market participants: A systematic review of evolution of opportunities, models and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    15. Heinrich, Carsten & Ziras, Charalampos & Syrri, Angeliki L.A. & Bindner, Henrik W., 2020. "EcoGrid 2.0: A large-scale field trial of a local flexibility market," Applied Energy, Elsevier, vol. 261(C).
    16. Luca Mendicino & Daniele Menniti & Anna Pinnarelli & Nicola Sorrentino & Pasquale Vizza & Claudio Alberti & Francesco Dura, 2021. "DSO Flexibility Market Framework for Renewable Energy Community of Nanogrids," Energies, MDPI, vol. 14(12), pages 1-19, June.
    17. Ádám Sleisz & Dániel Divényi & Beáta Polgári & Péter Sőrés & Dávid Raisz, 2022. "A Novel Cost Allocation Mechanism for Local Flexibility in the Power System with Partial Disintermediation," Energies, MDPI, vol. 15(22), pages 1-18, November.
    18. Kara, Güray & Tomasgard, Asgeir & Farahmand, Hossein, 2022. "Characterizing flexibility in power markets and systems," Utilities Policy, Elsevier, vol. 75(C).
    19. Kara, Güray & Pisciella, Paolo & Tomasgard, Asgeir & Farahmand, Hossein & Crespo del Granado, Pedro, 2022. "Stochastic local flexibility market design, bidding, and dispatch for distribution grid operations," Energy, Elsevier, vol. 253(C).
    20. Pedro Faria & Zita Vale, 2019. "Distributed Energy Resources Management 2018," Energies, MDPI, vol. 13(1), pages 1-4, December.
    21. Nieta, Agustín A. Sánchez de la & Ilieva, Iliana & Gibescu, Madeleine & Bremdal, Bernt & Simonsen, Stig & Gramme, Eivind, 2021. "Optimal midterm peak shaving cost in an electricity management system using behind customers’ smart meter configuration," Applied Energy, Elsevier, vol. 283(C).
    22. 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.
    23. Antonio Jiménez-Marín & Juan Pérez-Ruiz, 2021. "A Robust Optimization Model to the Day-Ahead Operation of an Electric Vehicle Aggregator Providing Reliable Reserve," Energies, MDPI, vol. 14(22), pages 1-18, November.
    24. Ali Sahebi & Shahram Jadid & Morteza Nazari-Heris, 2023. "Flexibility Analysis for Multi-Energy Microgrid and Distribution System Operator under a Distributed Local Energy Market Framework," Sustainability, MDPI, vol. 15(13), pages 1-23, June.
    25. Babagheibi, Mahsa & Jadid, Shahram & Kazemi, Ahad, 2023. "An Incentive-based robust flexibility market for congestion management of an active distribution system to use the free capacity of Microgrids," Applied Energy, Elsevier, vol. 336(C).

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