The value of distributed flexibility for reducing generation and network reinforcement costs

Marion Pichoud, Virginie Dussartre, Maxime Lâasri and Jan Horst Keppler
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Marion Pichoud: LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique

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Abstract: Demand flexibility is growing and its proper use can be valuable for the electricity system. This paper estimates the value of coordinating French local flexibility providers through competitive European wholesale markets as well as the resulting investment needs at the level of the French distribution grid in 2030. The main result of this paper is that the economic welfare gains of controlling multiple heterogeneous local flexibility resources are substantial while requiring quite limited investments in the extension of local distribution grids. These gains are even more important with "filtering", an efficient coordination mechanism between DSO and market actors.

Keywords: Distributed flexibility; Unit commitment; Grid reinforcement; Generation costs; Distribution network (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

Published in Utilities Policy, 2023, 82, ⟨10.1016/j.jup.2023.101565⟩

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Journal Article: The value of distributed flexibility for reducing generation and network reinforcement costs (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04278040

DOI: 10.1016/j.jup.2023.101565

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