Thoughts on conceiving a “fair” value for flexibility

Avramidis, Iason-Iraklis; Capitanescu, Florin; Deconinck, Geert

doi:10.1016/j.ijepes.2022.108893

Cited by 2 publications

(2 citation statements)

References 17 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The long-term flexibility products are designed to defer network investment, while the short-term flexibility products target congestion management and the strengthening of network resilience. However, a significant challenge lies in determining the appropriate price caps (or annual flexibility budget), which is comparatively more straightforward regarding long-term products associated with investment deferral [24].…”

Section: A Flexibility Market Operationmentioning

confidence: 99%

“…However, it is important to acknowledge that liquidity issues related to flexibility markets can still arise. For instance, the price cap established through the long-term analysis [24] may significantly limit revenue opportunities for Flexibility Service Providers (FSPs) in technical constraints management markets, particularly for those already involved in more lucrative markets such as wholesale energy trading and frequency control. While addressing liquidity problems falls beyond the scope of this work, the proposed methodology offers valuable contributions to mitigate this issue.…”

Section: A Flexibility Market Operationmentioning

confidence: 99%

See 1 more Smart Citation

Uncertainty-Aware Procurement of Flexibilities for Electrical Grid Operational Planning

Bessa

Moaidi

Viana

et al. 2024

IEEE Trans. Sustain. Energy

View full text Add to dashboard Cite

In the power system decarbonization roadmap, novel grid management tools and market mechanisms are fundamental to solving technical problems concerning renewable energy forecast uncertainty. This work proposes a predictive algorithm for procurement of grid flexibility by the system operator (SO), which combines the SO flexible assets with active and reactive power short-term flexibility markets. The goal is to reduce the cognitive load of the human operator when analyzing multiple flexibility options and trajectories for the forecasted load/RES and create a human-in-the-loop approach for balancing risk, stakes, and cost. This work also formulates the decision problem into several steps where the operator must decide to book flexibility now or wait for the next forecast update (timeto-decide method), considering that flexibility (availability) price may increase with a lower notification time. Numerical results obtained for a public MV grid (Oberrhein) show that the timeto-decide method improves up to 22% a performance indicator related to a cost-loss matrix, compared to the option of booking the flexibility now at a lower price and without waiting for a forecast update.

show abstract

Section: A Flexibility Market Operationmentioning

confidence: 99%

Section: A Flexibility Market Operationmentioning

confidence: 99%