Abstract
The role of the distribution system operator (DSO) is evolving with the increasing possibilities of demand management and flexibility. Rather than implementing conventional approaches to mitigate network congestions, such as upgrading existing assets, demand flexibility services have been gaining much attention lately as a solution to defer the need for network reinforcements. In this paper, a framework for a decentralized local market that enables flexibility services trading at the distribution level is introduced. This market operates on two timeframes, day-ahead and real-time and it allows the DSO to procure flexibility services which can help in its congestion management process. The contribution of this work lies in considering the uncertainty of demand during the day-ahead period. As a result, we introduce a probabilistic process that supports the DSO in assessing the true need of obtaining flexibility services based on the probability of congestion occurrence in the following day of operation. Besides being able to procure firm flexibility for high probable congestions, a new option is introduced, called the right-to-use option, which enables the DSO to reserve a specific amount of flexibility, to be called upon later if necessary, for congestions that have medium probabilities of taking place. In addition, a real-time market for flexibility trading is presented, which allows the DSO to procure flexibility services for unforeseen congestions with short notice. Also, the effect of the penetration level of flexibility on the DSO’s total cost is discussed and assessed. Finally, a case study is carried out for a real distribution network feeder in Spain to illustrate the impact of the proposed flexibility framework on the DSO’s congestion management process.
Highlights
In the past decades, market operators have been implementing demand response (DR) programs in a straightforward fashion
Demand flexibility can be considered as a new source of revenue for customers willing to participate in such programs
probabilistic forecasting assessment (PFA) indicate that a congestion can be expected at this hour with a high probability of occurrence, indicate that a congestion can be expected at this hour with a high probability of occurrence, the the distribution system operator (DSO) can procure firm flexibility services in the DA Flex-DLM
Summary
Market operators have been implementing demand response (DR) programs in a straightforward fashion. By using time-of-use (TOU) tariffs, commonly used in France, Spain, Germany and Italy [1,2], where energy prices are designed to be expensive during on-peak periods and low-cost at off-peak periods In this way, customers can plan their activities in order to save money. The penetration of demand flexibility in the current electricity market structure can take many forms [11] One of such is through connection agreements, which provides limited access to the involved parties, such as generators or consumers, when the network is suffering from a contingency. Another way for flexibility acquisition can be through market-based solutions which can deliver cost-efficient flexibility services for several market agents by facilitating competition between different flexibility providers. Recent studies have been paying more attention to them to promote for demand flexibility services but there are several factors that can affect the efficiency of such solution and ought to be assessed
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
