Co-Simulating Distribution Networks and Local Flexibility Markets for Techno-Economic Analysis

M. Troncia, J.P. Chaves, E.C. Ormeño-Mejía, M. Valarezo, S. Solat, M. Galici

61st International Universities Power Engineering Conference - UPEC 2026, Cagliari (Italy). 30 August - 02 September 2026

Summary:

Local flexibility markets are mechanisms to support congestion management and voltage control in distribution networks with high penetrations of controllable distributed energy resources. This paper presents the design of a co-simulation framework integrating electricity network operation and local flexibility market processes within a unified framework. The framework identifies network issues, quantifies flexibility needs, clears the market through a sensitivity-based optimization process, and validates the effectiveness of the market solution through power flow calculations. The framework computes techno-economic key performance indicators, including procurement costs, VOLL-related costs, and unresolved network issues, to enable the quantitative assessment of alternative flexibility procurement mechanisms and market designs for future distribution systems.

Spanish layman's summary:

Marco de cosimulación para redes de distribución y mercados locales de flexibilidad. Detecta y cuantifica congestiones y problemas de tensión, adjudica ofertas con optimización por sensibilidades, valida resultados con flujos de carga, y compara diseños con indicadores técnico-económicos.

English layman's summary:

Co-simulation framework for distribution network operation with local flexibility markets. It detects congestion and voltage issues, quantifies needs, clears bids via sensitivity-based optimisation, validates outcomes with power flow, and compares designs using techno-economic indicators.

 

Keywords: Flexibility markets, co-simulation, distribution networks, congestion management, voltage control, distributed energy resources, optimization.

Publication date: 30-Aug-2026.

Citation:
M. Troncia, J.P. Chaves, E.C. Ormeño-Mejía, M. Valarezo, S. Solat, M. Galici, "Co-Simulating Distribution Networks and Local Flexibility Markets for Techno-Economic Analysis", presented at 61st International Universities Power Engineering Conference - UPEC 2026, Cagliari, Italy, 30 August - 02 September 2026

IIT-26-232C