A Decentralized Local Flexibility Market Considering the Uncertainty of Demand

Ayman Esmat, Julio Usaola and Ángeles Moreno Mª
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Ayman Esmat: Department of Electrical Engineering, Universidad Carlos III de Madrid, 28911 Madrid, Spain
Julio Usaola: Department of Electrical Engineering, Universidad Carlos III de Madrid, 28911 Madrid, Spain
Ángeles Moreno Mª: Department of Electrical Engineering, Universidad Carlos III de Madrid, 28911 Madrid, Spain

Energies, 2018, vol. 11, issue 8, 1-32

Abstract: The role of the distribution system operator (DSO) is evolving with the increasing possibilities of demand management and flexibility. Rather than implementing conventional approaches to mitigate network congestions, such as upgrading existing assets, demand flexibility services have been gaining much attention lately as a solution to defer the need for network reinforcements. In this paper, a framework for a decentralized local market that enables flexibility services trading at the distribution level is introduced. This market operates on two timeframes, day-ahead and real-time and it allows the DSO to procure flexibility services which can help in its congestion management process. The contribution of this work lies in considering the uncertainty of demand during the day-ahead period. As a result, we introduce a probabilistic process that supports the DSO in assessing the true need of obtaining flexibility services based on the probability of congestion occurrence in the following day of operation. Besides being able to procure firm flexibility for high probable congestions, a new option is introduced, called the right-to-use option, which enables the DSO to reserve a specific amount of flexibility, to be called upon later if necessary, for congestions that have medium probabilities of taking place. In addition, a real-time market for flexibility trading is presented, which allows the DSO to procure flexibility services for unforeseen congestions with short notice. Also, the effect of the penetration level of flexibility on the DSO’s total cost is discussed and assessed. Finally, a case study is carried out for a real distribution network feeder in Spain to illustrate the impact of the proposed flexibility framework on the DSO’s congestion management process.

Keywords: aggregators; demand flexibility; flexibility market; payback effect; uncertainty (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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