Distribution-Level Flexibility Markets—A Review of Trends, Research Projects, Key Stakeholders and Open Questions
Abstract
:1. Introduction and Motivation
1.1. Evolution of the Power Systems
1.2. Why Is Flexibility Needed?
- Intermittent sources penetration,
- Variable fuel prices,
- Environmental concerns,
- Orientation towards new technologies and approaches.
1.3. Paper Contribution and Structure
2. Status in the European Union
3. Overview of the Existing Markets
3.1. General Characteristics
3.2. Example: Denmark
4. Flexibility in General
- Power flexibility,
- Energy flexibility,
- Transfer capacity flexibility,
- Voltage flexibility.
- The energy capacity [MWh] that can be provided continuously,
- The maximum (and minimum) power output [MW],
- The ramp rate [MW/min] to indicate how fast an unit may change its power output.
- Congestion management,
- System balancing,
- Portfolio balancing (by balance responsible parties (BRPs)).
- Market prices (for how much the generated energy will be sold),
- Revenue stream (if there is little curtailment, it can be considered stable) [55].
5. Distribution Level-Markets
5.1. Architectures
- Peer-to-peer (P2P) trading,
- Trading through a mediator,
- Combination of the two previous cases.
5.1.1. Centralized Optimization Models
5.1.2. Auction-Theory Based Models
5.1.3. Simulation Models
5.1.4. Game-Theory Based Models
Cooperative Game Theory
Non-Cooperative Game Theory
5.1.5. What Design to Choose?
5.2. Market-Clearing Models
5.2.1. Centralized Optimization
5.2.2. Decomposition Methods
5.2.3. Bi-Level Optimization
5.3. Trading Services
- Congestion management,
- Voltage control,
- Support for network planning,
- Phase balancing,
- Support for extreme events,
- Support for planned/unplanned operations.
5.4. Alternatives to the Distribution-Level Markets
- Local flexibility markets,
- Local energy markets,
- Price-based control,
- Transactive energy.
6. Wholesale Meets Local Markets and TSO Faces DSO
- Centralized ancillary services market model,
- Local ancillary services market model,
- Shared balancing responsibility model,
- Common TSO-DSO ancillary services market model,
- Integrated flexibility market model.
6.1. Centralized Ancillary Services Market Model
6.2. Local Ancillary Services Market Model
6.3. Shared Balancing Responsibility Model
- nominations of balance responsible parties taking the energy-only market as a base,
- nominations of balance responsible parties and historical forecasts at each TSO-DSO interconnection point.
6.4. Common TSO-DSO Ancillary Services Market Model
6.5. Integrated Flexibility Market
6.6. Alternative Grouping of TSO-DSO Coordination Mechanisms
7. Research Initiatives and Platforms
7.1. Projects
- local ancillary services real-time market,
- TSO-DSO ancillary services market model.
7.2. Platforms
- Cornwall Local Energy Market [114]
- -
- Owned by centrica and it encompasses the TSO-DSO level
- -
- Pricing method: Pay-as-clear
- Enera [115]
- -
- Owned by TSO, DSOs and EPEX SPOT, and it encompasses the TSO-DSO level
- -
- Pricing method: Pay-as-bid
- GOPACS [116]
- -
- Owned by TSO and DSOs and it encompasses the TSO-DSO level
- -
- Pricing method: Pay-as-bid
- NODES [117]
- -
- Owned by power exchange (NordPool) and encompasses the TSO-DSO level
- -
- Pricing method: Pay-as-bid
- Piclo Flex [118]
- -
- Owned by Piclo and encompasses only the DSO level
- -
- Pricing method: Pay-as-bid
- CoordiNet [104]
- -
- Owned by TSOs and DSOs and it encompasses the TSO-DSO level
- -
- Pricing method: Pay-as-bid and Pay-as-clear (depends from case to case)
- INTERRFACE [105]
- -
- The ownership is not yet decided, but the platform will encompass the TSO-DSO level
- -
- Pricing method: Pay-as-bid
- FLEXGRID ATP [98]
- -
- No market stakeholder or grid owner can be a major owner of the FLEXGRID marketplace, ideally it would be fully independent. It is focused on the DSO, but interaction with the is taken into account
- -
- Under development
- InteGrid [106]
- -
- Owned by TSOs and DSOs and encompasses the TSO-DSO level
- -
- Pricing method: Pay-as-bid
- EU-SysFlex [107]
- -
- Owned by TSOs and DSOs and it encompasses the TSO-DSO level
- -
- Pricing method: Pay-as-bid and Pay-as-clear
- GOFLEX [108]
- -
- Owned by smaller DSOs and local energy suppliers and encompasses the TSO-DSO level
- -
- Pricing method: no unambiguous answer
- DRES2Market [109]
- -
- The ownership is not yet decided, but it will encompass only the DSO level
- InterFlex [101]
- -
- Owned by DSOs and encompasses only the DSO level
- EUniversal [110]
- Flexible Power [119]
- sthlmflex [111]
- OneNet [112]
8. Conventions
9. Stakeholders and Role of the FMO
9.1. Prosumers
9.2. Aggregator
9.3. DSO
9.4. Local Flexibility Market Operator
10. Conclusions and Future Work
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
Abbreviations
AC | Alternate-current |
aFRR | automatic Frequency Restoration Reserve |
BRP | Balance Responsible Party |
CBA | Cost-Benefit Analysis |
CCGT | Combined Cycle Gas Turbines |
CHP | Combined Heat and Power |
DER | Distributed Energy Resource |
DSM | Demand Side Management |
DSO | Distribution System Operator |
EU | European Union |
FCR | Frequency Containment Reserve |
FMO | Flexibility Market Operator |
HVAC | Heating, Ventilation, Air-Condition |
KKT | Karush-Kuhn-Tucker |
LFM | Local Flexibility Market |
mFRR | manual Frequency Restoration Reserve |
OPF | Optimal Power Flow |
P2G | Power to Gas |
P2P | Peer-to-Peer |
PV | Photovoltaic |
RES | Renewable Energy Source |
TSO | Transmission System Operator |
UMEI | Universal Market Enabling Interface |
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Aggregator | Focus Group | Business Model | State |
---|---|---|---|
Energy Pool | Large industries and heavy electricity consumers | (1) DR flexibility–load reduction by making optimal decisions for each customer (2) Balancing markets, reserves, capacity and energy markets | France |
Voltalis | Residential users | (1) Reductions in electric heating devices (2) Balancing markets and DR mechanism for TSO | Great Britain |
Direct Energy | Pilot phase—users that used the same company as a retailer | Mainly users with water heaters and convector heaters Load-shedding programs | France |
Flextricity | Large industrial and commercial customers | (1) Generation and load aggregation, (2) DR programs -triad management (3) Participating in the short-term operating reserve | United Kingdom |
Delaware EV pilot | flexibility service providing Electric Vehicles (EVs) | (1) Vehicle to Grid (V2G) project (2) Frequency regulation | USA |
Paper | DSO | Aggregator | 3rd Party |
---|---|---|---|
Olivella-Rosell et al. [18] | X | ||
Esmat et al. [126] | X | ||
Li et al. [122] | X | ||
Heinrich et al. [102] | X | ||
Morstyn et al. [61] | X | ||
Ilieva et al. [62] | X | ||
Khajeh et al. [21] | X | ||
Zhang et al. [103] | X | ||
Torbaghan et al. [64] | X | ||
Spiliotis et al. [13] | X | ||
Eid et al. [129] | X | ||
Ramos et al. [25] | X | X | |
Heussen et al. [67] | X | ||
Kornrumpf et al. [123] | X | ||
Köppl et al. [65] | X | ||
Ross [52] | X | ||
Vallés et al. [54] | X |
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Badanjak, D.; Pandžić, H. Distribution-Level Flexibility Markets—A Review of Trends, Research Projects, Key Stakeholders and Open Questions. Energies 2021, 14, 6622. https://doi.org/10.3390/en14206622
Badanjak D, Pandžić H. Distribution-Level Flexibility Markets—A Review of Trends, Research Projects, Key Stakeholders and Open Questions. Energies. 2021; 14(20):6622. https://doi.org/10.3390/en14206622
Chicago/Turabian StyleBadanjak, Domagoj, and Hrvoje Pandžić. 2021. "Distribution-Level Flexibility Markets—A Review of Trends, Research Projects, Key Stakeholders and Open Questions" Energies 14, no. 20: 6622. https://doi.org/10.3390/en14206622
APA StyleBadanjak, D., & Pandžić, H. (2021). Distribution-Level Flexibility Markets—A Review of Trends, Research Projects, Key Stakeholders and Open Questions. Energies, 14(20), 6622. https://doi.org/10.3390/en14206622