Decoding design characteristics of local flexibility markets for congestion management with a multi-layered taxonomy

S. Potenciano Menci, M. Valarezo

Applied Energy Vol. 357, pp. 122203-1 - 122203-23

Summary:

Local flexibility markets are becoming increasingly popular smart grid solutions. They connect customers who require flexible electricity supply and demand with local flexibility providers. However, the growing number of diverse solutions has led to a proliferation of concepts, projects, and companies in this market, with this diversity making understanding and comparison difficult. To tackle this challenge, we propose a multi-layered taxonomy of local flexibility market solutions. This focuses on congestion management on the distribution side of this activity; a crucial service for distribution system operators. Our taxonomy utilizes the Smart Grid Architecture Model to describe these markets comprehensively. We employ an iterative taxonomy-building method, refining and evaluating it through insights from ongoing implementations and twenty-eight expert interviews. Moreover, we present a complete instantiation of our taxonomy and offer a discussion with practical recommendations for practitioners in the local flexibility market landscape.

Spanish layman's summary:

El creciente interés en los Mercados Locales de Flexibilidad (LFM) ha generado diversidad de conceptos, proyectos y modelos de negocio, complicando su comprensión y comparación. Para abordar esta situación, proponemos una taxonomía enfocada en LFMs para la gestión de congestiones a nivel de distribución. Además, presentamos ejemplos prácticos de su aplicación incluyendo recomendaciones.

English layman's summary:

The growing number of Local Flexibility Market (LFM) solutions has led to a proliferation of concepts, projects, and companies, complicating their understanding and comparison. To tackle this, we propose a multilayered taxonomy for LFMs focused on congestion management at the distribution level. We also provide a full instantiation of our taxonomy including practical recommendations.

Keywords: Local flexibility markets; Smart grid architecture model; Congestion management service; Electricity flexibility serviceTaxonomy; Classification

JCR Impact Factor and WoS quartile: 11,200 - Q1 (2022)

DOI reference: https://doi.org/10.1016/j.apenergy.2023.122203

Published on paper: March 2024.

Published on-line: December 2023.

Citation:
S. Potenciano Menci, M. Valarezo, Decoding design characteristics of local flexibility markets for congestion management with a multi-layered taxonomy. Applied Energy. Vol. 357, pp. 122203-1 - 122203-23, March 2024. [Online: December 2023]