Electrification and distributed generation of renewable energy are factors which provide both opportunities and challenges for distribution grids. While both demand and production can put the distribution grid under considerable strain, they can also represent potential flexible resources that can help the DSO and TSO relieve congestion, balance frequency, and improve voltage quality.  One way to utilize flexible resources is to implement local flexibility markets in distribution grids. For the local flexibility market to solve grid problems or increase self-sufficiency, the market architecture needs to be well understood. In CINELDI so far, the flexibility market design has been researched in terms of its potential, uncertainties and how to integrate various flexible resources into the market.

The energy strategy of the EU envisions the end-user as a key participant in the electricity market, and Zepter et al. [1] studied how prosumers can be incentivized and regulated for participation in the market. A framework was proposed for integration of prosumers into the existing day-ahead and intraday markets, called Smart electricity Exchange Platform (STEP). The study identified peer-to-peer trade and local power storage as options to increase the self-sufficiency of the community.

In Norway, flexibility opportunities stemming from the charging of electric vehicles (EV) is an important aspect of local flexibility markets. Trial projects involving EV charging were reviewed by Ilieva and Bremdal [2], such as Inspiria Charge Court, E-REGIO and INVADE. Research questions related to flexibility potential, optimal market design and implementation were discussed.

Energy storage systems are researched as promising technologies for dealing with congestion management. However, DSOs are in many countries not allowed to buy or sell electricity, so they themselves cannot own the batteries. Bjarghov et al. [3] proposed a local flexibility market architecture which allows the DSO to book flexibility from aggregators who act on behalf of the battery owners.

[1]          J. M. Zepter, A. Lüth, P. Crespo del Granado, and R. Egging, “Prosumer integration in wholesale electricity markets: Synergies of peer-to-peer trade and residential storage,” Energy and Buildings, vol. 184, pp. 163–176, Feb. 2019, doi: 10.1016/j.enbuild.2018.12.003.
[2]          I. Ilieva and B. Bremdal, “Implementing local flexibility markets and the uptake of electric vehicles – the case for Norway,” in 2020 6th IEEE International Energy Conference (ENERGYCon), Sep. 2020, pp. 1047–1052. doi: 10.1109/ENERGYCon48941.2020.9236611.
[3]          S. Bjarghov, M. Kalantar-Neyestanaki, R. Cherkaoui, and H. Farahmand, “Battery Degradation-Aware Congestion Management in Local Flexibility Markets,” in 2021 IEEE Madrid PowerTech, Jun. 2021, pp. 1–6. doi: 10.1109/PowerTech46648.2021.9494829.