Designing flexibility procurement markets for congestion management – investigating two-stage procurement auctions

Julia Bellenbaum, Jonas Höckner and Christoph Weber

Energy Economics, 2022, vol. 106, issue C

Abstract: Increasing infeed from renewable energy sources poses considerable challenges to system operators (SOs) who are in charge of power system reliability. Accordingly, the frequency of network congestion and the corresponding congestion management costs have increased dramatically over the last years and give reason to extensively discuss alternative approaches. Among these, flexibility markets bear the potential to complement existing congestion management practices by incentivising decentralised resources with large potentials of flexibility to participate in relieving congestion. For this reason, multiple demonstration projects across Europe are currently testing different flexibility market designs.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:106:y:2022:i:c:s0140988321006162

DOI: 10.1016/j.eneco.2021.105775

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