Analysis of new flexibility market models in Europe

M. Valarezo, T. Gómez, J.P. Chaves, L. Lind, M. Correa, D. Ziegler, R. Escobar

Energies Vol. 14, nº. 12, pp. 3521-1 - 3521-25

Summary:

To identify the trends in new flexibility markets, a set of market and aggregator platforms were selected and compared. The analyzed initiatives are relevant to consider alternative designs for European electricity markets. This review proposes a common methodology for analyzing these market models by comparing their description, market structure, market timing, and implementation. Furthermore, a range of policy implications and future research directions towards implementing these markets are presented. The results provide compelling evidence that the new market models represent a promising business with technical and economic justification, as they incentivize the uptake of flexibility from distributed resources by providing services to Distribution System Operators (DSOs) in coordination with Transmission System Operators (TSOs). Moreover, the interactions between these new market platforms and existing markets are of particular interest, and the contributions from aggregator platforms are also relevant to enhance the political vision of empowering the customers through their active participation in markets.

Spanish layman's summary:

Este artículo propone una metodología para analizar nuevos modelos de mercados de flexibilidad en Europa, comparando su descripción, estructura, cazación del mercado e implementación. Además, se presenta una serie de implicaciones regulatorias y futuras líneas de investigación sobre estos mercados.

English layman's summary:

This review proposes a methodology for analyzing new flexibility market models in Europe by comparing their description, market structure, market timing, and implementation. Furthermore, a range of policy implications and future research directions towards implementing these markets are presented.

Keywords: aggregators; electricity market; distributed energy resources; distribution system operators; flexibility; local markets; market design; power system.

JCR Impact Factor and WoS quartile: 3,252 - Q3 (2021); 3,000 - Q3 (2023)

DOI reference: https://doi.org/10.3390/en14123521

Published on paper: June 2021.

Published on-line: June 2021.

Citation:
M. Valarezo, T. Gómez, J.P. Chaves, L. Lind, M. Correa, D. Ziegler, R. Escobar, Analysis of new flexibility market models in Europe. Energies. Vol. 14, nº. 12, pp. 3521-1 - 3521-25, June 2021. [Online: June 2021]