A novel approach for flexibility trading in the distribution network

This paper presents a novel approach for flexibility trading in the distribution network. It combines capacity trading for limited network capacities and flexibility trading for ancillary services to Distribution System Operators. Capacity trading aims at avoiding network congestion and can be seen as a market-based substitute for dynamic tariffs. The operation and management of the market is carried out through a tool called MARKETFLEX, which combines a market platform with new market mechanisms that enable the optimal utilization of flexibility at the best price. The tool provides a single point of access to the market at local and wholesale level. Namely, local flexibility should be available to the Transmission System Operator as it can be beneficial for the whole power system. The presented market platform uses a decentralized architecture based on blockchain technology.