Flexibility Markets: Q&A with Project Pioneers

24 Pages Posted: 11 Jun 2019

See all articles by Tim Schittekatte

Tim Schittekatte

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Leonardo Meeus

Vlerick Business School; European University Institute

Date Written: May 2019

Abstract

Flexibility markets are recognised as a promising tool to make better use of existing distribution grids and thereby also reduce the need for grid investments. In this paper, we analyse four pioneering projects implementing flexibility markets: Piclo Flex, Enera, GOPACS and NODES. Based on a literature review, we develop a six-question framework and we then analyse the projects with that framework.

The questions are:

(1) Is the flexibility market integrated in the existing sequence of EU electricity markets;

(2) Is the flexibility market operator a third party;

(3) Are there reservation payments;

(4) Are the products standardised;

(5) Is there TSO-DSO cooperation for the organisation of the flexibility market;

(6) Is there DSO-DSO cooperation for the organisation of the flexibility market.

We find that all the considered flexibility markets are operated by a third party. All projects also engage with multiple DSOs in order to become the standardised platform provider. Important differences between the projects are the extent to which the flexibility markets are integrated into other markets, the use of reservation payments, the use of standardised products and the way TSO-DSO cooperation has been implemented.

Keywords: market design, flexibility, DSO, flexibility markets, distributed energy resources, redispatch

Suggested Citation

Schittekatte, Tim and Meeus, Leonardo, Flexibility Markets: Q&A with Project Pioneers (May 2019). Robert Schuman Centre for Advanced Studies Research Paper No. RSCAS 2019/39, Available at SSRN: https://ssrn.com/abstract=3401882 or http://dx.doi.org/10.2139/ssrn.3401882

Tim Schittekatte (Contact Author)

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

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Leonardo Meeus

Vlerick Business School ( email )

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European University Institute ( email )

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