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

Author

Listed:
  • Marion Pichoud

    (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

  • Virginie Dussartre
  • Maxime Lâasri
  • Jan Horst Keppler

    (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

Abstract

Demand flexibility is growing and its proper use can be valuable for the electricity system. This paper estimates the value of coordinating French local flexibility providers through competitive European wholesale markets as well as the resulting investment needs at the level of the French distribution grid in 2030. The main result of this paper is that the economic welfare gains of controlling multiple heterogeneous local flexibility resources are substantial while requiring quite limited investments in the extension of local distribution grids. These gains are even more important with "filtering", an efficient coordination mechanism between DSO and market actors.

Suggested Citation

  • Marion Pichoud & Virginie Dussartre & Maxime Lâasri & Jan Horst Keppler, 2023. "The value of distributed flexibility for reducing generation and network reinforcement costs," Post-Print hal-04278040, HAL.
    • Handle: RePEc:hal:journl:hal-04278040
    DOI: 10.1016/j.jup.2023.101565
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    References listed on IDEAS

    as
    1. 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.
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