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Local Flexibility Markets for Distribution Network Congestion-Management in Center-Western Europe: Which Design for Which Needs?

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  • Theo Dronne

    (Chaire European Electricity Markets, Paris-Dauphine University—PSL, 75016 Paris, France
    EDF R&D, 91120 Palaiseau, France)

  • Fabien Roques

    (Chaire European Electricity Markets, Paris-Dauphine University—PSL, 75016 Paris, France
    Florence School of Regulation, 50133 Firenze, Italy)

  • Marcelo Saguan

    (EDF R&D, 91120 Palaiseau, France)

Abstract

With the growth of decentralized resources, congestion management at the distribution level has become a growing issue in Europe. Several initiatives with local flexibility markets are being implemented, with different designs and objectives. In this paper, we provide a comparative assessment of four case studies of local flexibility markets (ENERA, GOPACS, UKPN, and ENEDIS) in different center-western Europe countries: Germany, the Netherlands, the United Kingdom, and France. We identify a number of differences across these countries that have an impact on the drivers of implementation of these local flexibility markets and their market design such as the type and depth of congestion, the organization and governance of networks operators, the current approach for congestion management, and the need for the development of additional flexibility sources. We find that the different market design choices can be explained by the local specificities and use the four case studies to generalize our findings and define a typology of possible approaches for flexibility markets depending on the electricity system local specificities, as well as the sector governance and the policy priorities.

Suggested Citation

  • Theo Dronne & Fabien Roques & Marcelo Saguan, 2021. "Local Flexibility Markets for Distribution Network Congestion-Management in Center-Western Europe: Which Design for Which Needs?," Energies, MDPI, vol. 14(14), pages 1-18, July.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:14:p:4113-:d:590412
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    References listed on IDEAS

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    Cited by:

    1. 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).
    2. Ajla Mehinovic & Matej Zajc & Nermin Suljanovic, 2023. "Interpretation and Quantification of the Flexibility Sources Location on the Flexibility Service in the Distribution Grid," Energies, MDPI, vol. 16(2), pages 1-18, January.
    3. Jahns, Christopher & Stein, Tobias & Höckner, Jonas & Weber, Christoph, 2023. "Prevention of strategic behaviour in local flexibility markets using market monitoring – Concept, application example and limitations," Energy Policy, Elsevier, vol. 174(C).
    4. Ádám Sleisz & Dániel Divényi & Beáta Polgári & Péter Sőrés & Dávid Raisz, 2022. "A Novel Cost Allocation Mechanism for Local Flexibility in the Power System with Partial Disintermediation," Energies, MDPI, vol. 15(22), pages 1-18, November.
    5. Potenciano Menci, Sergio & Valarezo, Orlando, 2024. "Decoding design characteristics of local flexibility markets for congestion management with a multi-layered taxonomy," Applied Energy, Elsevier, vol. 357(C).

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