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, 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 in [1] it is 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 in [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. A local flexibility market architecture is proposed which allows the DSO to book flexibility from aggregators who act on behalf of the battery owners [3]. Another market variant is presented in [4], where a stochastic local flexibility market model is proposed to solve issues in the local distribution grid, taking into account aggregation benefits and detailed grid representation.

In the study reported in [5] an optimization model was tested on a small neighbourhood in Norway consisting of 30 consumers with a set of flexible resources to investigate how local peer-to-peer (P2P) trading could reduce grid costs. The analyses showed that it is possible to reduce peak power imports with P2P (around 11% in the example system), considering a grid tariff structure based on subscription.

Selected publications from CINELDI:

  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.
  4. G. Kara, P. Pisciela, H. Farahmand, A. Tomasgard, and P. Crespo del Granado, “Stochastic local flexibility market design, bidding, and dispatch for distribution grid operations”, Energy, vol 253, 2022. 
  5. M. F. Dynge, P. Crespo del Granado, N. Hashemipour, and M. Korpås, “Impact of local electricity markets and peer-to-peer trading on low-voltage grid operations”, Applied Energy, vol. 301, 2021. doi: 10.1016/j.apenergy.2021.117404.