IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v13y2019i1p165-d303191.html
   My bibliography  Save this article

Towards Flexibility Trading at TSO-DSO-Customer Levels: A Review

Author

Listed:
  • Hosna Khajeh

    (School of Innovations and Technology, Electrical Engineering, University of Vaasa, 65200 Vaasa, Finland)

  • Hannu Laaksonen

    (School of Innovations and Technology, Electrical Engineering, University of Vaasa, 65200 Vaasa, Finland)

  • Amin Shokri Gazafroudi

    (Institute for Automation and Applied Informatics, Karlsruhe Institute of Technology (KIT), 76344 Eggenstein-Leopoldshafen, Germany)

  • Miadreza Shafie-khah

    (School of Innovations and Technology, Electrical Engineering, University of Vaasa, 65200 Vaasa, Finland)

Abstract

The serious problem of climate change has led the energy sector to modify its generation resources from fuel-based power plants to environmentally friendly renewable resources. However, these green resources are highly intermittent due to weather dependency and they produce increased risks of stability issues in power systems. The deployment of different flexible resources can help the system to become more resilient and secure against uncertainties caused by renewables. Flexible resources can be located at different levels in power systems like, for example, at the transmission-level (TSO), distribution-level (DSO) and customer-level. Each of these levels may have different structures of flexibility trading as well. This paper conducts a comprehensive review from the recent research related to flexible resources at various system levels in smart grids and assesses the trading structures of these resources. Finally, it analyzes the application of a newly emerged ICT technology, blockchain, in the context of flexibility trading.

Suggested Citation

  • Hosna Khajeh & Hannu Laaksonen & Amin Shokri Gazafroudi & Miadreza Shafie-khah, 2019. "Towards Flexibility Trading at TSO-DSO-Customer Levels: A Review," Energies, MDPI, vol. 13(1), pages 1-19, December.
    • Handle: RePEc:gam:jeners:v:13:y:2019:i:1:p:165-:d:303191
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/13/1/165/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/13/1/165/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Siano, Pierluigi, 2014. "Demand response and smart grids—A survey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 461-478.
    2. Mario Collotta & Giovanni Pau, 2015. "A Solution Based on Bluetooth Low Energy for Smart Home Energy Management," Energies, MDPI, vol. 8(10), pages 1-23, October.
    3. Ramos, Ariana & De Jonghe, Cedric & Gómez, Virginia & Belmans, Ronnie, 2016. "Realizing the smart grid's potential: Defining local markets for flexibility," Utilities Policy, Elsevier, vol. 40(C), pages 26-35.
    4. Pol Olivella-Rosell & Pau Lloret-Gallego & Íngrid Munné-Collado & Roberto Villafafila-Robles & Andreas Sumper & Stig Ødegaard Ottessen & Jayaprakash Rajasekharan & Bernt A. Bremdal, 2018. "Local Flexibility Market Design for Aggregators Providing Multiple Flexibility Services at Distribution Network Level," Energies, MDPI, vol. 11(4), pages 1-19, April.
    5. Augustine Ikpehai & Bamidele Adebisi & Khaled M. Rabie, 2016. "Broadband PLC for Clustered Advanced Metering Infrastructure (AMI) Architecture," Energies, MDPI, vol. 9(7), pages 1-19, July.
    6. Francisco Prieto-Castrillo & Amin Shokri Gazafroudi & Javier Prieto & Juan Manuel Corchado, 2018. "An Ising Spin-Based Model to Explore Efficient Flexibility in Distributed Power Systems," Complexity, Hindawi, vol. 2018, pages 1-16, May.
    7. Wang, Fei & Xu, Hanchen & Xu, Ti & Li, Kangping & Shafie-khah, Miadreza & Catalão, João. P.S., 2017. "The values of market-based demand response on improving power system reliability under extreme circumstances," Applied Energy, Elsevier, vol. 193(C), pages 220-231.
    8. Olivella-Rosell, Pol & Bullich-Massagué, Eduard & Aragüés-Peñalba, Mònica & Sumper, Andreas & Ottesen, Stig Ødegaard & Vidal-Clos, Josep-Andreu & Villafáfila-Robles, Roberto, 2018. "Optimization problem for meeting distribution system operator requests in local flexibility markets with distributed energy resources," Applied Energy, Elsevier, vol. 210(C), pages 881-895.
    9. Nikoobakht, Ahmad & Aghaei, Jamshid & Khatami, Roohallah & Mahboubi-Moghaddam, Esmaeel & Parvania, Masood, 2019. "Stochastic flexible transmission operation for coordinated integration of plug-in electric vehicles and renewable energy sources," Applied Energy, Elsevier, vol. 238(C), pages 225-238.
    10. Amin Shokri Gazafroudi & Javier Prieto & Juan Manuel Corchado, 2019. "Virtual Organization Structure for Agent-Based Local Electricity Trading," Energies, MDPI, vol. 12(8), pages 1-11, April.
    11. Aghaei, Jamshid & Alizadeh, Mohammad-Iman, 2013. "Demand response in smart electricity grids equipped with renewable energy sources: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 64-72.
    12. Haider, Haider Tarish & See, Ong Hang & Elmenreich, Wilfried, 2016. "A review of residential demand response of smart grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 166-178.
    13. Giovanni Pau & Mario Collotta & Antonio Ruano & Jiahu Qin, 2017. "Smart Home Energy Management," Energies, MDPI, vol. 10(3), pages 1-5, March.
    14. Mohamed A. Ahmed & Yong Cheol Kang & Young-Chon Kim, 2015. "Communication Network Architectures for Smart-House with Renewable Energy Resources," Energies, MDPI, vol. 8(8), pages 1-20, August.
    15. Julio Pascual & Pablo Sanchis & Luis Marroyo, 2014. "Implementation and Control of a Residential Electrothermal Microgrid Based on Renewable Energies, a Hybrid Storage System and Demand Side Management," Energies, MDPI, vol. 7(1), pages 1-28, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nikolaos Efkarpidis & Andrija Goranović & Chen-Wei Yang & Martin Geidl & Ingo Herbst & Stefan Wilker & Thilo Sauter, 2022. "A Generic Framework for the Definition of Key Performance Indicators for Smart Energy Systems at Different Scales," Energies, MDPI, vol. 15(4), pages 1-30, February.
    2. Andreas Zeiselmair & Simon Köppl, 2021. "Constrained Optimization as the Allocation Method in Local Flexibility Markets," Energies, MDPI, vol. 14(13), pages 1-21, June.
    3. Đorđe Lazović & Željko Đurišić, 2023. "Advanced Flexibility Support through DSO-Coordinated Participation of DER Aggregators in the Balancing Market," Energies, MDPI, vol. 16(8), pages 1-26, April.
    4. Bhargav Appasani & Sunil Kumar Mishra & Amitkumar V. Jha & Santosh Kumar Mishra & Florentina Magda Enescu & Ioan Sorin Sorlei & Fernando Georgel Bîrleanu & Noureddine Takorabet & Phatiphat Thounthong , 2022. "Blockchain-Enabled Smart Grid Applications: Architecture, Challenges, and Solutions," Sustainability, MDPI, vol. 14(14), pages 1-33, July.
    5. Muhammad Waseem & Muhammad Adnan Khan & Arman Goudarzi & Shah Fahad & Intisar Ali Sajjad & Pierluigi Siano, 2023. "Incorporation of Blockchain Technology for Different Smart Grid Applications: Architecture, Prospects, and Challenges," Energies, MDPI, vol. 16(2), pages 1-29, January.
    6. Hamzah Khan & Tariq Masood, 2022. "Impact of Blockchain Technology on Smart Grids," Energies, MDPI, vol. 15(19), pages 1-27, September.

    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. Giovanni Pau & Mario Collotta & Antonio Ruano & Jiahu Qin, 2017. "Smart Home Energy Management," Energies, MDPI, vol. 10(3), pages 1-5, March.
    2. Venkat Durvasulu & Timothy M. Hansen, 2018. "Benefits of a Demand Response Exchange Participating in Existing Bulk-Power Markets," Energies, MDPI, vol. 11(12), pages 1-21, December.
    3. Jin, Xiaolong & Wu, Qiuwei & Jia, Hongjie, 2020. "Local flexibility markets: Literature review on concepts, models and clearing methods," Applied Energy, Elsevier, vol. 261(C).
    4. Meyabadi, A. Fattahi & Deihimi, M.H., 2017. "A review of demand-side management: Reconsidering theoretical framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 367-379.
    5. Paterakis, Nikolaos G. & Erdinç, Ozan & Catalão, João P.S., 2017. "An overview of Demand Response: Key-elements and international experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 871-891.
    6. Märkle-Huß, Joscha & Feuerriegel, Stefan & Neumann, Dirk, 2018. "Large-scale demand response and its implications for spot prices, load and policies: Insights from the German-Austrian electricity market," Applied Energy, Elsevier, vol. 210(C), pages 1290-1298.
    7. Nizami, Sohrab & Tushar, Wayes & Hossain, M.J. & Yuen, Chau & Saha, Tapan & Poor, H. Vincent, 2022. "Transactive energy for low voltage residential networks: A review," Applied Energy, Elsevier, vol. 323(C).
    8. Lüth, Alexandra & Zepter, Jan Martin & Crespo del Granado, Pedro & Egging, Ruud, 2018. "Local electricity market designs for peer-to-peer trading: The role of battery flexibility," Applied Energy, Elsevier, vol. 229(C), pages 1233-1243.
    9. Ayman Esmat & Julio Usaola & Mª Ángeles Moreno, 2018. "A Decentralized Local Flexibility Market Considering the Uncertainty of Demand," Energies, MDPI, vol. 11(8), pages 1-32, August.
    10. Faia, Ricardo & Lezama, Fernando & Soares, João & Pinto, Tiago & Vale, Zita, 2024. "Local electricity markets: A review on benefits, barriers, current trends and future perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 190(PA).
    11. da Fonseca, André L.A. & Chvatal, Karin M.S. & Fernandes, Ricardo A.S., 2021. "Thermal comfort maintenance in demand response programs: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 141(C).
    12. Ziras, Charalampos & Heinrich, Carsten & Bindner, Henrik W., 2021. "Why baselines are not suited for local flexibility markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    13. Gržanić, M. & Capuder, T. & Zhang, N. & Huang, W., 2022. "Prosumers as active market participants: A systematic review of evolution of opportunities, models and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    14. Heinrich, Carsten & Ziras, Charalampos & Syrri, Angeliki L.A. & Bindner, Henrik W., 2020. "EcoGrid 2.0: A large-scale field trial of a local flexibility market," Applied Energy, Elsevier, vol. 261(C).
    15. Erik Heilmann & Nikolai Klempp & Kai Hufendiek & Heike Wetzel, 2022. "Long-term Contracts for Network-supportive Flexibility in Local Flexibility Markets," MAGKS Papers on Economics 202224, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    16. Andreas Zeiselmair & Simon Köppl, 2021. "Constrained Optimization as the Allocation Method in Local Flexibility Markets," Energies, MDPI, vol. 14(13), pages 1-21, June.
    17. Okur, Özge & Heijnen, Petra & Lukszo, Zofia, 2021. "Aggregator’s business models in residential and service sectors: A review of operational and financial aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    18. Rebenaque, Olivier & Schmitt, Carlo & Schumann, Klemens & Dronne, Théo & Roques, Fabien, 2023. "Success of local flexibility market implementation: A review of current projects," Utilities Policy, Elsevier, vol. 80(C).
    19. McPherson, Madeleine & Stoll, Brady, 2020. "Demand response for variable renewable energy integration: A proposed approach and its impacts," Energy, Elsevier, vol. 197(C).
    20. Hu, Maomao & Xiao, Fu & Wang, Lingshi, 2017. "Investigation of demand response potentials of residential air conditioners in smart grids using grey-box room thermal model," Applied Energy, Elsevier, vol. 207(C), pages 324-335.

    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:gam:jeners:v:13:y:2019:i:1:p:165-:d:303191. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.