Framework for Deterministic Assessment of Risk-Averse Participation in Local Flexibility Markets <sup>†</sup>
Local flexibility markets (LFMs) are a market-based concept to integrate distributed energy resources into congestion management. However, the activation of flexibility for storage-based flexibility changes the respective state of charge. Compensation in later points of time is needed to regain the...
| Main Authors: | , , , , , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2021-05-01
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| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/14/11/3012 |
| _version_ | 1797533026611101696 |
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| author | Carlo Schmitt Felix Gaumnitz Andreas Blank Olivier Rebenaque Théo Dronne Arnault Martin Philippe Vassilopoulos Albert Moser Fabien Roques |
| author_facet | Carlo Schmitt Felix Gaumnitz Andreas Blank Olivier Rebenaque Théo Dronne Arnault Martin Philippe Vassilopoulos Albert Moser Fabien Roques |
| author_sort | Carlo Schmitt |
| collection | DOAJ |
| description | Local flexibility markets (LFMs) are a market-based concept to integrate distributed energy resources into congestion management. However, the activation of flexibility for storage-based flexibility changes the respective state of charge. Compensation in later points of time is needed to regain the original flexibility potential. Therefore, we propose a LFM bid formulation including both flexibility and compensation. Furthermore, flexibility market participation might lead to inc-dec-gaming, i.e., congestion-increasing behavior to maximize profits. However, this inc-dec-gaming might lead to electricity market schedule deviations if LFM offers are not activated. We propose a risk-averse modeling formulation considering the potential non-activation of LFM bids to provide a framework for the assessment of LFM participation comparing different approaches. Our exemplary case studies demonstrate the proposed LFM bid formulation and show the impact of LFM participation modeling on inc-dec-gaming and congestion management costs. |
| first_indexed | 2024-03-10T11:08:45Z |
| format | Article |
| id | doaj.art-d92f32e03f7447f08da6e6002d11e8bb |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T11:08:45Z |
| publishDate | 2021-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-d92f32e03f7447f08da6e6002d11e8bb2023-11-21T20:57:52ZengMDPI AGEnergies1996-10732021-05-011411301210.3390/en14113012Framework for Deterministic Assessment of Risk-Averse Participation in Local Flexibility Markets <sup>†</sup>Carlo Schmitt0Felix Gaumnitz1Andreas Blank2Olivier Rebenaque3Théo Dronne4Arnault Martin5Philippe Vassilopoulos6Albert Moser7Fabien Roques8Institute for High Voltage Equipment and Grids, Digitalization and Energy Economics (IAEW), RWTH Aachen University, 52062 Aachen, GermanyInstitute for High Voltage Equipment and Grids, Digitalization and Energy Economics (IAEW), RWTH Aachen University, 52062 Aachen, GermanyInstitute for High Voltage Equipment and Grids, Digitalization and Energy Economics (IAEW), RWTH Aachen University, 52062 Aachen, GermanyLEDa, University Paris-Dauphine, University PSL, CGEMP, CNRS, 75016 Paris, FranceLEDa, University Paris-Dauphine, University PSL, CGEMP, CNRS, 75016 Paris, FranceEPEX SPOT SE, 75002 Paris, FranceEPEX SPOT SE, 75002 Paris, FranceInstitute for High Voltage Equipment and Grids, Digitalization and Energy Economics (IAEW), RWTH Aachen University, 52062 Aachen, GermanyLEDa, University Paris-Dauphine, University PSL, CGEMP, CNRS, 75016 Paris, FranceLocal flexibility markets (LFMs) are a market-based concept to integrate distributed energy resources into congestion management. However, the activation of flexibility for storage-based flexibility changes the respective state of charge. Compensation in later points of time is needed to regain the original flexibility potential. Therefore, we propose a LFM bid formulation including both flexibility and compensation. Furthermore, flexibility market participation might lead to inc-dec-gaming, i.e., congestion-increasing behavior to maximize profits. However, this inc-dec-gaming might lead to electricity market schedule deviations if LFM offers are not activated. We propose a risk-averse modeling formulation considering the potential non-activation of LFM bids to provide a framework for the assessment of LFM participation comparing different approaches. Our exemplary case studies demonstrate the proposed LFM bid formulation and show the impact of LFM participation modeling on inc-dec-gaming and congestion management costs.https://www.mdpi.com/1996-1073/14/11/3012local flexibility marketscongestion managementoperational planningstorage systems |
| spellingShingle | Carlo Schmitt Felix Gaumnitz Andreas Blank Olivier Rebenaque Théo Dronne Arnault Martin Philippe Vassilopoulos Albert Moser Fabien Roques Framework for Deterministic Assessment of Risk-Averse Participation in Local Flexibility Markets <sup>†</sup> Energies local flexibility markets congestion management operational planning storage systems |
| title | Framework for Deterministic Assessment of Risk-Averse Participation in Local Flexibility Markets <sup>†</sup> |
| title_full | Framework for Deterministic Assessment of Risk-Averse Participation in Local Flexibility Markets <sup>†</sup> |
| title_fullStr | Framework for Deterministic Assessment of Risk-Averse Participation in Local Flexibility Markets <sup>†</sup> |
| title_full_unstemmed | Framework for Deterministic Assessment of Risk-Averse Participation in Local Flexibility Markets <sup>†</sup> |
| title_short | Framework for Deterministic Assessment of Risk-Averse Participation in Local Flexibility Markets <sup>†</sup> |
| title_sort | framework for deterministic assessment of risk averse participation in local flexibility markets sup † sup |
| topic | local flexibility markets congestion management operational planning storage systems |
| url | https://www.mdpi.com/1996-1073/14/11/3012 |
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