With the growth of renewables, the increased interconnection of European grids, the development of local energy initiatives, and the specific requirements on TSO–DSO cooperation as set forth in the different Network Codes and Guidelines, TSOs and DSOs face new challenges that will require greater coordination. The aforementioned measures encourage procurement of services at both the transmission and the distribution level, recognizing that this will enable more efficient and effective network management and will increase the level of demand response and the capacity of renewable generation. Digitalization is a key driver for coordination and active system management in the electricity grid, enabling TSOs and DSOs to optimize the use of distributed resources and ensure a costeffective and secure supply of electricity. It also empowers endusers to become active market participants, supporting selfgeneration and providing demand flexibility. To support the transformation, the INTERRFACE project, started in 2019, will design, develop and exploit an Interoperable pan-European Grid Services Architecture (IEGSA) to act as the interface between the power system (TSO and DSO – transmission system operator, distribution system operator) and the customers, and allow the seamless and coordinated operation of all stakeholders to use and procure common services. This paper describes the approach of one INTERRFACE demonstration, the spatial aggregation of local flexibility and its realization that contributes providing a clear market approach to include local constraints into the already well-established and working wholesale energy market solutions