Flexibility services and strategy of integration of distribution system users in the electricity market

This paper explains the flexibility of distribution energy resources and presents potential concepts of integration of distribution system users into the electricity market. As a passive market player so far, DSOs have a chance to become more active, because almost all renewables are connected to DSO level. All distributed resources that have an ability of intentional deviation of planned consumption/production profile are potential flexibility market players. Three different options of flexibility (implicit, explicit and combined) for using resources are proposed, primarily end-users as an active consumers (prosumers), and their participation in the electricity market, especially in terms of congestion management and balancing market. The most challenging step would be an integration of distribution system in the market procedure and implementation an aggregator as a new member of power sector. It can be different from country to country because it is based on a national regulation which must be in line with security and reliability of the system operations. Some of the recommendations based on TSO-DSO report are proposed in this paper. In addition to defining the strategy for integration of the stated power system users into the electricity market, guidelines for future cooperation between transmission system operators and distribution system operators are included as well. Due to technical limitations in the transmission and distribution networks, the specific market properties, as well as the regulatory constraints, three different market models are given which define concept of the future congestion management and balancing market.