Local flexibility market balance settlement

Electricity system needs to balance the consumption and generation every moment.  Imbalance settlement considers the differences between the allocated and realised volumes of energy of the market participants. Local market, developed in the project DOMINOES will have an effect on the balance settlement since it introduces an additional market place and local market participants trade energy and possibly also flexibility between each other thus interfering the retailer balances. New balance settlement can be handled via smaller BRP units, independent aggregation or multiple retailers. DOMINOES-project proposes two solutions, where balance responsibility is extended to end-user (‘full local balance settlement model’) or extended to local market level (‘light local balance settlement’). Full model proposes the end-user to have responsibility to keep itself in balance. Local market level adds another layer of local balance settlement before the centralised balance settlement. Both approaches are going to be further evaluated in the project validation.