Distribution System Operator Services: A Comparative Assessment of Multi-Product Co-Optimization for Congestion Management and Voltage Control Using a Local Flexibility Market

E.C. Ormeño-Mejía, M. Troncia, M. Valarezo, M. Galici, R. Cossent, J.P. Chaves

IEEE Access Vol. 14, pp. 97920 - 97934

Summary:

The increasing penetration of distributed energy resources into distribution grids poses significant planning and operational challenges for power systems, particularly for local congestion and voltage regulation. This paper presents an assessment of a multi-product and multi-service Local Flexibility Market (LFM) aimed at supporting distribution system operators (DSOs) in procuring flexibility products based on active (P) and reactive (Q) power for DSO services of congestion management (CM) and voltage control (VC). The proposed linearised LFM model incorporates AC sensitivity factors for network representation into the market-clearing formulation to capture non-linear interactions between flexibility procured from service providers and resulting grid impacts. Using a synthetic medium-voltage network derived from a real Polish grid, this paper evaluates the technical and economic performance of different service-product market designs (e.g. CMVC_PQ) to address local network needs. The results demonstrate that jointly P and Q in an LFM for CM and VC can significantly reduce DSO network needs and total flexibility procurement costs, compared to traditional single-service or single-product approaches. These findings underscore the value of coordinated market designs in effective and cost-efficient flexibility deployment in distribution grids.

Spanish layman's summary:

Este trabajo presenta una evaluación comparativa de mercados locales de flexibilidad multiproducto y multiservicio para los servicios de los operadores de redes de distribución (DSO). Mediante un modelo de casación de mercado basado en factores de sensibilidad AC aplicado a una red representativa de media tensión, se demuestra que la adquisición conjunta de potencia activa y reactiva para la gestión de congestión y el control de tensión mejora el desempeño de la red y reduce los costos de adquisición de flexibilidad frente a enfoques convencionales de un solo producto o servicio.

English layman's summary:

This paper presents a comparative assessment of multi-product and multi-service local flexibility markets for Distribution System Operator (DSO) services in distribution grids. Using an AC sensitivity-based market-clearing model on a representative medium-voltage network, the study demonstrates that the joint procurement of active and reactive power for congestion management and voltage control enhances network performance while reducing flexibility procurement costs compared with conventional single-product or single-service approaches.

Keywords: Active power, congestion management, DSO services, flexibility products, local flexibility markets, reactive power, voltage control.

JCR-JIF Impact Factor and WoS quartile: 4,200 - Q2 (2025)

DOI reference: https://doi.org/10.1109/ACCESS.2026.3706408

Published on paper: 2026.

Published on-line: June 2026.

Citation:
E.C. Ormeño-Mejía, M. Troncia, M. Valarezo, M. Galici, R. Cossent, J.P. Chaves, "Distribution System Operator Services: A Comparative Assessment of Multi-Product Co-Optimization for Congestion Management and Voltage Control Using a Local Flexibility Market", IEEE Access, Vol. 14, pp. 97920 - 97934, 2026. [Online: June 2026] doi: 10.1109/ACCESS.2026.3706408