Flexibility acquisition mechanism designs

E.C. Ormeño-Mejía, M. Troncia, J.P. Chaves

Summary:

The transition of power systems, driven by renewable source integration, electrification, and consumer participation, is creating planning and operational challenges for DSOs. While traditional grid reinforcements remain costly and time-consuming, given the substantial investment required, along with long administrative lead times, flexibility from DERs is emerging as a complementary alternative for solving network problems. This report analyses three acquisition mechanisms—network tariffs, flexible connection agreements, and local flexibility markets—that enable DSOs to access such flexibility. The purpose is to characterise the design dimensions and options of these mechanisms, evaluate current European practices, and examine coordination requirements when multiple acquisition mechanisms coexist. The analysis builds on a structured design-dimension framework, complemented by surveys of partners across the ISGAN, BRIDGE, and BeFlexible initiatives, providing insights from different countries and demonstration projects on how the design of these mechanisms can interplay. The findings underscore that, despite their potential for providing flexibility, these 
acquisition mechanisms are often developed in isolation, creating risks of overlapping signals and potential distortions. This reinforces the need for coordinated design principles and integrated regulatory frameworks to ensure complementarities and avoid inefficiencies. 

Spanish layman's summary:

El informe analiza cómo tarifas eléctricas, conexiones flexibles y mercados locales de flexibilidad pueden ayudar a las redes eléctricas a integrar recursos energéticos distribuidos. Destaca la necesidad de coordinar estos mecanismos para mejorar la eficiencia y reducir costos.

English layman's summary:

The report analyses how network tariffs, flexible connection agreements, and local flexibility markets can help power systems integrate distributed energy resources. It highlights the need to coordinate these mechanisms to improve efficiency and reduce costs.

Keywords: Flexibility acquisition mechanisms, Network tariffs, flexible connection agreements, Local flexibility markets, Distributed energy resources (DERs), Distribution system operators (DSOs)

IIT Project: BeFlexible (BeFlexible)

Funding entity: Comisión Europea. Horizon Europe

Publication date: 23-Jan-2026