D3.2.1 - State-of-the-art of regional markets from the research to the implementation level

In this deliverable, different market concepts are defined. Regional flexibility market proves to be the most suitable market concept to address redispatch and voltage support. A literature review of markets of this kind, which have been experienced in Europe recently, is made. From this literature review, strengths and blind spots of each market concept are listed. It is shown that it is relevant to link a new regional flexibility market for redispatch to existing markets, for example Day-Ahead, Intraday or Balancing. Thus, higher liquidities could be available reducing market gaming. In REgions, the procurement of redispatch from distributed renewable energy resources (DER) aggregated in virtual power plant (VPP) is addressed. Then, a market closer to real-time enable to reduce forecast errors. That is why it is proposed to link a regional flexibility market to Intraday rather than other markets. Finally, two options are available to link a regional flexibility market with intraday market depending which one is upstream and which one is downstream. Deliverable D3.2.2 will detail the option chosen in Region. Regarding, voltage support, if it seems feasible to address this ancillary service through a market, as in the project Power Potential, the added value of such an option is not so clear compared to its complexity. In the project REgions, the procurement of voltage support with DER-based VPP will be tested but no market for voltage support will be simulated.