A Framework for Offering Short-Term Demand-Side Flexibility to a Flexibility Marketplace

Stig Ødegaard Ottesen, Martin Haug and Heidi S. Nygård
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Stig Ødegaard Ottesen: eSmart Systems AS and Smart Innovation Norway, 1783 Halden, Norway
Martin Haug: Faculty of Science and Technology, Norwegian University of Life Sciences (NMBU), 1432 Ås, Norway
Heidi S. Nygård: Faculty of Science and Technology, Norwegian University of Life Sciences (NMBU), 1432 Ås, Norway

Energies, 2020, vol. 13, issue 14, 1-17

Abstract: The decarbonization of the power sector involves electrification and a massive deployment of variable renewable energy sources, leading to an increase of local transmission congestion and ramping challenges. A possible solution to secure grid stability is local flexibility markets, in which prosumers can offer demand-side flexibility to the distribution system operator or other flexibility buyers through an aggregator. The purpose of this study was to develop a framework for estimating and offering short-term demand-side flexibility to a flexibility marketplace, with the main focus being baseline estimation and bid generation. The baseline is estimated based on forecasts that have been corrected for effects from earlier flexibility activations and potential planned use of internal flexibility. Available flexibility volumes are then estimated based on the baseline, physical properties of the flexibility asset and agreed constraints for baseline deviation. The estimated available flexibility is further formatted into a bid that may be offered to a flexibility marketplace, where buyers can buy and activate the offered flexibility, in whole or by parts. To illustrate and verify the proposed methodology, it was applied to a grocery warehouse. Based on real flexibility constraints, historic meter values, and forecasts for this use-case, we simulated a process where the flexibility is offered to a hypothetic flexibility marketplace through an aggregator.

Keywords: demand-side flexibility; flexibility marketplace; aggregator; flexibility trading; batteries (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: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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