Abstract
This paper presents a general description of local flexibility markets as a market-based management mechanism for aggregators. The high penetration of distributed energy resources introduces new flexibility services like prosumer or community self-balancing, congestion management and time-of-use optimization. This work is focused on the flexibility framework to enable multiple participants to compete for selling or buying flexibility. In this framework, the aggregator acts as a local market operator and supervises flexibility transactions of the local energy community. Local market participation is voluntary. Potential flexibility stakeholders are the distribution system operator, the balance responsible party and end-users themselves. Flexibility is sold by means of loads, generators, storage units and electric vehicles. Finally, this paper presents needed interactions between all local market stakeholders, the corresponding inputs and outputs of local market operation algorithms from participants and a case study to highlight the application of the local flexibility market in three scenarios. The local market framework could postpone grid upgrades, reduce energy costs and increase distribution grids’ hosting capacity.
Highlights
Decarbonization of the European electricity system has been set in motion with the rapid proliferation of distributed and renewable energy production sources
This paper presents the concept of the local flexibility market based on both references
Aggregators should have new consumption and generation data every quarter-hour or hour to favor local flexibility markets deployment. Another policy implication is about the conflict resolution between Distribution System Operator (DSO) and aggregators when the flexibility requested by the DSO is not enough to prevent a grid outage
Summary
Decarbonization of the European electricity system has been set in motion with the rapid proliferation of distributed and renewable energy production sources. Community (LEC) definition in Article 16 of the proposal for a directive on common rules for the internal market in electricity [1] and considered them to be an efficient way to manage energy at the community level. As stated in Sajn et al [2], LECs are citizen-led renewable energy cooperatives, housing associations, foundations or charities, which are not commercial actors, but produce energy meant for self-consumption, mainly by solar PV panels and wind turbines. Schoor et al [3] analyzed LECs in The Netherlands, and their common characteristic is their intention to prioritize community benefits. It is not clear if an LEC should be under the same
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