Uncertainty-Aware Trading of Congestion and Imbalance Mitigation Services for Multi-DSO Local Flexibility Markets

Abstract

The design of Local Flexibility Markets (LFMs) for energy and reserve dispatch of Renewable Distributed Energy Resources (RDERs) has recently been a topic of wide research. However, in an scenario with high penetration of RDERs deployed among different Distribution System Operators (DSOs) jurisdictions, further operational requirements concerning congestion and imbalance mitigation services may lay down. In this context, the relationship between capacity and energy products and the uncertainty management scheme becomes essential for procuring of RDERs flexibility. This paper proposes an uncertainty-aware Multi-DSO LFM. This market setting uses flexibility products to mitigate congestions and imbalances among different DSOs. First, capacity products hold back the flexibility of the RDERs in anticipation of contingencies. Then, energy products are activated within each time slot if the event finally occurs. LFM is solved in a coordinated and decentralised fashion using the properties of the Alternating Direction Method of Multipliers (ADMM), preserving participants' privacy. Uncertainty of RDERs and energy events duration are modelled using chance-constraint linear optimisation. The proposed methodology has been tested in a case study based on a realistic dataset and radial distribution systems.