Success of local flexibility market implementation: a review of the current projects

Authors

Olivier Rebenaque, Carlo Schmitt, Klemens Schumann, Théo Dronne, Elies Lahmar, Fabien Roques

Abstract

The development of distributed energy sources will challenge the management of the electrical system. Local flexibility markets (LFMs) are a promising solution to coordinate the dispatch of the distributed energy sources. Currently, the development of such markets is in its infancy and numerous challenges need to be addressed to reach market efficiency. In this paper, we focus on four topics that are crucial for the LFM success: the governance model, coordination issues, inc-dec gaming and competition. Based on a review of current project developed, we identify key challenges related to the four topics and discuss solutions to overcome these challenges. The solutions proposed are crucial to reach market efficiency and cannot be considered independently.