IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v82y2023ics0957178723000772.html
   My bibliography  Save this article

The value of distributed flexibility for reducing generation and network reinforcement costs

Author

Listed:
  • Pichou, Marion
  • Dussartre, Virginie
  • Lâasri, Maxime
  • Keppler, Jan-Horst

Abstract

This paper studies the costs and benefits of distributed flexibility for the 2030's electric system for generation and the reinforcement of the distribution network. Two key results emerge from this work based on real-world microdata for flexibility resources and network description and assessed with a detailed unit commitment model. First, the economic benefits of local flexibility resources to minimize generation costs are substantial but counterbalanced by high investments in distribution grids whenever a short-term signal for flexibility control is used. Second, these benefits increase with filtering, the technical limitation by the network operator of bids to avoid congestion.

Suggested Citation

  • Pichou, Marion & Dussartre, Virginie & Lâasri, Maxime & Keppler, Jan-Horst, 2023. "The value of distributed flexibility for reducing generation and network reinforcement costs," Utilities Policy, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:juipol:v:82:y:2023:i:c:s0957178723000772
    DOI: 10.1016/j.jup.2023.101565
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178723000772
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jup.2023.101565?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Catherine Mitchell, 2016. "Momentum is increasing towards a flexible electricity system based on renewables," Nature Energy, Nature, vol. 1(2), pages 1-6, February.
    2. Nicolas Astier, 2021. "Second‐best pricing for incomplete market segments: Application to electricity pricing," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(6), pages 1287-1311, December.
    3. Orlando Valarezo & Tomás Gómez & José Pablo Chaves-Avila & Leandro Lind & Mauricio Correa & David Ulrich Ziegler & Rodrigo Escobar, 2021. "Analysis of New Flexibility Market Models in Europe," Energies, MDPI, vol. 14(12), pages 1-24, June.
    4. Heggarty, Thomas & Bourmaud, Jean-Yves & Girard, Robin & Kariniotakis, Georges, 2019. "Multi-temporal assessment of power system flexibility requirement," Applied Energy, Elsevier, vol. 238(C), pages 1327-1336.
    5. Gough, Rebecca & Dickerson, Charles & Rowley, Paul & Walsh, Chris, 2017. "Vehicle-to-grid feasibility: A techno-economic analysis of EV-based energy storage," Applied Energy, Elsevier, vol. 192(C), pages 12-23.
    6. McConnell, Dylan & Forcey, Tim & Sandiford, Mike, 2015. "Estimating the value of electricity storage in an energy-only wholesale market," Applied Energy, Elsevier, vol. 159(C), pages 422-432.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Flottmann, Jonty H. & Akimov, Alexandr & Simshauser, Paul, 2022. "Firming merchant renewable generators in Australia’s National Electricity Market," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 262-276.
    2. Li, Yanxue & Zhang, Xiaoyi & Gao, Weijun & Ruan, Yingjun, 2020. "Capacity credit and market value analysis of photovoltaic integration considering grid flexibility requirements," Renewable Energy, Elsevier, vol. 159(C), pages 908-919.
    3. Karim L. Anaya & Michael G. Pollitt, 2021. "How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects," Energies, MDPI, vol. 14(15), pages 1-26, July.
    4. Zhang, Chengquan & Kitamura, Hiroshi & Goto, Mika, 2024. "Feasibility of vehicle-to-grid (V2G) implementation in Japan: A regional analysis of the electricity supply and demand adjustment market," Energy, Elsevier, vol. 311(C).
    5. Davi-Arderius, Daniel & Schittekatte, Tim, 2023. "Carbon emissions impacts of operational network constraints: The case of Spain during the Covid-19 crisis," Energy Economics, Elsevier, vol. 128(C).
    6. Wadim Strielkowski & Dalia Streimikiene & Alena Fomina & Elena Semenova, 2019. "Internet of Energy (IoE) and High-Renewables Electricity System Market Design," Energies, MDPI, vol. 12(24), pages 1-17, December.
    7. Karoliina Isoaho & Jochen Markard, 2020. "The Politics of Technology Decline: Discursive Struggles over Coal Phase‐Out in the UK," Review of Policy Research, Policy Studies Organization, vol. 37(3), pages 342-368, May.
    8. Lefeng, Shi & Shengnan, Lv & Chunxiu, Liu & Yue, Zhou & Cipcigan, Liana & Acker, Thomas L., 2020. "A framework for electric vehicle power supply chain development," Utilities Policy, Elsevier, vol. 64(C).
    9. Kuang, Yanqing & Chen, Yang & Hu, Mengqi & Yang, Dong, 2017. "Influence analysis of driver behavior and building category on economic performance of electric vehicle to grid and building integration," Applied Energy, Elsevier, vol. 207(C), pages 427-437.
    10. Chun Xia-Bauer & Florin Vondung & Stefan Thomas & Raphael Moser, 2022. "Business Model Innovations for Renewable Energy Prosumer Development in Germany," Sustainability, MDPI, vol. 14(13), pages 1-17, June.
    11. Brinkel, N.B.G. & Schram, W.L. & AlSkaif, T.A. & Lampropoulos, I. & van Sark, W.G.J.H.M., 2020. "Should we reinforce the grid? Cost and emission optimization of electric vehicle charging under different transformer limits," Applied Energy, Elsevier, vol. 276(C).
    12. Rappaport, Ron D. & Miles, John, 2017. "Cloud energy storage for grid scale applications in the UK," Energy Policy, Elsevier, vol. 109(C), pages 609-622.
    13. Lind, Leandro & Chaves-Ávila, José Pablo & Valarezo, Orlando & Sanjab, Anibal & Olmos, Luis, 2024. "Baseline methods for distributed flexibility in power systems considering resource, market, and product characteristics," Utilities Policy, Elsevier, vol. 86(C).
    14. Aguado, José A. & Paredes, Ángel, 2023. "Coordinated and decentralized trading of flexibility products in Inter-DSO Local Electricity Markets via ADMM," Applied Energy, Elsevier, vol. 337(C).
    15. Olsen, Karen Pardos & Zong, Yi & You, Shi & Bindner, Henrik & Koivisto, Matti & Gea-Bermúdez, Juan, 2020. "Multi-timescale data-driven method identifying flexibility requirements for scenarios with high penetration of renewables," Applied Energy, Elsevier, vol. 264(C).
    16. Jaržemskis Andrius & Jaržemskienė Ilona, 2022. "European Green Deal Implications on Country Level Energy Consumption," Folia Oeconomica Stetinensia, Sciendo, vol. 22(2), pages 97-122, December.
    17. Ahmed Mohamed & Rémy Rigo-Mariani & Vincent Debusschere & Lionel Pin, 2023. "Stacked Revenues for Energy Storage Participating in Energy and Reserve Markets with an Optimal Frequency Regulation Modeling," Post-Print hal-04182119, HAL.
    18. Loisel, Rodica & Simon, Corentin, 2021. "Market strategies for large-scale energy storage: Vertical integration versus stand-alone player," Energy Policy, Elsevier, vol. 151(C).
    19. Eerika Janhunen & Niina Leskinen & Seppo Junnila, 2020. "The Economic Viability of a Progressive Smart Building System with Power Storage," Sustainability, MDPI, vol. 12(15), pages 1-18, July.
    20. François Salanié & Vera Zaporozhets, 2022. "Water allocation, crop choice, and priority services," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(1), pages 140-158, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juipol:v:82:y:2023:i:c:s0957178723000772. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/journal/utilities-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.