Abstract
The increasing volume of distributed resources and user-dependent loads in local networks has increased the concern for congestion and voltage management in distribution networks. To mitigate these issues, the implementation of local flexibility markets has been proposed to assist distribution system operators (DSOs) to manage their networks efficiently. This paper presents the framework of a local flexibility market, including the market participants and their roles. This framework aims to empower DSOs with a market-based instrument for the alleviation of congestion incidents by exploiting the flexibility of local resources. The proposed market aims to provide a tool for the holistic management of distribution networks by trading both reservation and activation of flexibility services, indifferent of the type and the timeline of the needed service. Three market modes are proposed, i.e., long-term, short-term and real-time market, and the interactions among those modes are shown. The operation of the market is explained in detail, including the identification of the needed services, the activation of the market as well as the proposed bidding, clearing and settlement mechanisms. The modelling of the long-term and real-time markets is also presented, along with some indicative simulation results for long-term and real-time services. Finally, the future developments as well as the major conclusions are discussed.
Highlights
The need for energy transition has led to increased penetration of distributed energy resources (DERs) in distribution networks
These methods may not lead to effective congestion relief in distribution networks, as dispatching is more complex in distribution than in transmission, due to the high penetration of small-scale distributed generators with volatile output [4]
The participating aggregators should have good understanding of the local market mechanisms as well as the ability to adequately determine the price of the flexibility services that will be provided by their associated resources. They are responsible for representing their portfolio in the settlement phase of the market; they will be paid by the distribution system operators (DSOs) through the LFMO for the provided services, and they will be responsible to allocate these financial benefits among their resources according to their participation in the respective service
Summary
The need for energy transition has led to increased penetration of distributed energy resources (DERs) in distribution networks. The main novelty of the proposed LFM framework is the envision of the different market modes and the interaction among them to facilitate the reservation and activation of flexibility This way, the proposed LFM provides a market-based instrument to the DSOs to avoid the grid reinforcement cost in the long term, while ensuring the secure operation of the distribution system closer to real time. A real-time market mode is proposed that will trade the activation of flexibility to alleviate real-time congestions and emergency problems This novel approach provides the DSOs with the necessary market-based tools to mitigate congestion incidents and effectively manage their networks in different time horizons;.
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