A Decentralized Local Flexibility Market Considering the Uncertainty of Demand

Abstract

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.

ADMM-based market clearing and optimal flexibility bidding of distribution-level flexibility market for day-ahead congestion management of distribution networks

“…This market is based on a network of bilateral flexibility contracts with multiple contracts between each pair of agents that are able to trade with one other. In [14]- [20], the pool-based DFM framework was studied, where flexibility sellers and buyers offer bids in the market and the market operator clears the market for different operational purposes. The proposed DFM frameworks in [14]- [20] share a similar operational mechanism that the aggregators or end-users bid flexibility service in the DFM and then the market operator clears the market to satisfy the DSO's flexibility requirements with different market clearing models.…”

“…In [14]- [20], the pool-based DFM framework was studied, where flexibility sellers and buyers offer bids in the market and the market operator clears the market for different operational purposes. The proposed DFM frameworks in [14]- [20] share a similar operational mechanism that the aggregators or end-users bid flexibility service in the DFM and then the market operator clears the market to satisfy the DSO's flexibility requirements with different market clearing models. A DFM framework for day-ahead and intraday congestion management was proposed in [15], in which market participants consist of the DSO, market operator, balance responsible party (BRP), and aggregator.…”

Ict Solutions for Local Flexibility Markets

“…Three variants of market design for trading the local flexibility that handles grid and balancing issues are identified in [8]: a) trading flexibility together with the wholesale market; b) distinct flexibility market; c) the power system reserve capacity market. A framework for LFM with two stages, planning and real-time is proposed in [9] and [10] enabling DSO to acquire the cheapest flexibility for managing grid issues.…”

Mathematical modeling of optimal product supply strategies for manufacturer-to-group customers based on semi-real demand patterns

“…Avila-Torres et al 8 constructed a mathematical model of urban transport planning under uncertainty in demand and travel time. Esmat et al 9 stated a decentralized local flexibility market under uncertainty of demand. Butters 10 stated the news vendor model under the uncertainty of demand.…”