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Efficient Operationalization of Flexibility Procurement: Market Design Analysis and Process Definition

Author

Listed:
  • Sarah Fanta

    (AIT Austrian Institute of Technology GmbH, Giefinggasse 4, 1210 Vienna, Austria)

  • Ksenia Tolstrup

    (Magnus Energy, Gooimer 5-39, 1411 DD Naarden, The Netherlands)

  • Markus Riegler

    (APG Austrian Power Grid, IZD-Tower, Wagramer Str. 19, 1220 Vienna, Austria)

  • Lukas Obernosterer

    (APG Austrian Power Grid, IZD-Tower, Wagramer Str. 19, 1220 Vienna, Austria)

  • Christina Wirrer

    (APG Austrian Power Grid, IZD-Tower, Wagramer Str. 19, 1220 Vienna, Austria)

Abstract

Flexibility provision for ancillary services and electricity markets has been widely seen as crucial for the future of highly interconnected energy systems with high shares of renewables. Yet, little research has so far addressed (1) how its procurement could be best operationalized and (2) how limited flexible resources can be used more efficiently given the growing system needs. This paper focuses on flexibility services for transmission operators, specifically balancing and redispatch, as well as the intraday market within the context of the European electricity market. To analyze possible services and/or market combinations, we compare three modes of flexibility procurement: (a) sequential, (b) parallel and (c) combined. We evaluate the different modes of procurement options based on eight criteria. We further investigate how the procurement of flexibility, including small-scale technical units, could be organized via a flexibility platform given the most promising implementation setup, and detail the process for “flexibility service provider <> flexibility platform <> market interaction”, taking the multi-use-case logic into account.

Suggested Citation

  • Sarah Fanta & Ksenia Tolstrup & Markus Riegler & Lukas Obernosterer & Christina Wirrer, 2024. "Efficient Operationalization of Flexibility Procurement: Market Design Analysis and Process Definition," Energies, MDPI, vol. 17(12), pages 1-19, June.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:12:p:2876-:d:1413189
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    References listed on IDEAS

    as
    1. 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.
    2. Attar, Mehdi & Repo, Sami & Mann, Pierre, 2022. "Congestion management market design- Approach for the Nordics and Central Europe," Applied Energy, Elsevier, vol. 313(C).
    3. Heilmann, Erik & Klempp, Nikolai & Wetzel, Heike, 2020. "Design of regional flexibility markets for electricity: A product classification framework for and application to German pilot projects," Utilities Policy, Elsevier, vol. 67(C).
    4. 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).
    5. Schittekatte, Tim & Meeus, Leonardo, 2020. "Flexibility markets: Q&A with project pioneers," Utilities Policy, Elsevier, vol. 63(C).
    Full references (including those not matched with items on IDEAS)

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