Challenge and objective

  • Recently, Distribution System Operators (DSO) are facing increasing congestion management challenges in their grids.
  • DSOs are in many countries not allowed to buy or sell electricity, but must request flexibility through a future local flexibility market (LFM).
  • This paper proposes a LFM architecture which allows the DSO to book flexibility from aggregators and activate flexibility when needed.

Work performed

  • Developed a stochastic optimization program where the DSO books and activates flexibility considering the cost of energy not served and cost of battery degradation.
  • Analysed th use of the model for a Norwegian case study.
  • Studied the impact of battery costs and Value of Lost Load (VoLL) pricing.

Significant results

  • Results illustrate that the batteries are nowadays at affordable prices for flexibility provision.
  • Affordable battery price where no curtailment occurs, is only achievable when prices reach below 200 €/kWh, depending on VoLL.

Impact for distribution system innovation

  • This is a decision aid model and flexibility market architecture that can be deployed for handling local grid congestions.
DSO flexibility booking (1.stage) and activation (2.stage) problem
DSO flexibility booking (1.stage) and activation (2.stage) problem

Magnus Korpås

WP3 Lead
+47 970 42 009
Magnus Korpås
WP3 Lead


Reference in CINELDI