Market-Based TSO–DSO Coordination: A Comprehensive Theoretical Market Framework and Lessons from Real-World Implementations

Matteo Troncia (), José Pablo Chaves Ávila, Carlos Damas Silva, Helena Gerard and Gwen Willeghems
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Matteo Troncia: Institute for Research in Technology (IIT), Comillas Pontifical University, 28015 Madrid, Spain
José Pablo Chaves Ávila: Institute for Research in Technology (IIT), Comillas Pontifical University, 28015 Madrid, Spain
Carlos Damas Silva: E-REDES, Distribuição de Eletricidade, S.A., 1050-121 Lisbon, Portugal
Helena Gerard: Flemish Institute for Technological Research (VITO), Boeretang 200, 2400 Mol, Belgium
Gwen Willeghems: Flemish Institute for Technological Research (VITO), Boeretang 200, 2400 Mol, Belgium

Energies, 2023, vol. 16, issue 19, 1-28

Abstract: This paper introduces a theoretical market framework (TMF) for conceptualizing and designing electricity markets, integrating transmission system operator and distribution system operator (TSO–DSO) coordination mechanisms. The TMF represents a comprehensive tool that formalizes new, innovative market concepts and their impact on existing markets, and outlines fundamental categories and decisions essential to market design. This paper, through the TMF, addresses the integration challenges posed by new mechanisms for system services. Utilizing the TMF, the study maps 13 European demonstrators’ TSO–DSO coordination solutions, identifying real-world challenges in designing and implementing novel system services markets. Drawing on these real-world insights, the paper offers market design and policy recommendations to address and overcome the specific challenges in market-based TSO–DSO coordination.

Keywords: TSO–DSO coordination; real-world demonstrators; electricity market design; system services (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: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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