IEA ISGAN Working Group 9: Flexibility Markets - Development and Implementation (Working Period 2021 - 2023)

The work of ISGAN Working Group 9 is based on previous efforts which aimed at identifying gaps in the research of flexibilities in the energy system. The main areas of work of Working Group 9 are listed below.

In accordance with the latest IEA guidelines, the term 'Annex' was replaced with 'Working Group'.

Main work areas

• Integration of trading in flexibilities (redispatch)
• Understanding the needs of different market participants and possible conflicting requirements
• Identification and definition of flexibilities and their characteristics
• Development and scaling of interoperable flexibility markets
• Consumer-oriented understanding of flexibilities
• Avoidance of stability or security losses due to diversity losses

Objectives

• Enhancing and disseminating the understanding of market mechanisms for flexibilities in the participating countries
• Creation of a knowledge base to support decision makers
• Discussion of best practices in market design

In the process of defining the current Programme of Work 2022, the workstreams of Working Group 9 have been restructured. The domains of its work have been reviewed and streamlined, leading to the following focus areas for the period of April 2022 to April 2023.

• Task 1 (Lead: Canada): End-Use Flexibility Characterization and Grid Utilization
• Task 2 (Lead: Norway): Consumer focused flexibility
• Task 3 (Lead: United Kingdom): Interoperable markets
• Task 4 (Lead: Austria): Operational planning

In Working Group 9, Austria will lead Task 4: Operational Planning. Project objectives from the Austrian perspective are:

• Elaboration of cross-national definitions and characterizations of flexibility markets
• Definition and development of a uniform understanding of local flexibility markets
• Comparison of methods between different approaches
• Better understanding of the interaction between different flex markets (redispatch, balancing energy, spot markets)
• Potentials for local flexibility markets to support the distribution network
• Identification of best practices and contributions to standardization of flexibilities

The added value of Austria's participation in this Working Group results from:

• International positioning and visibility of Austrian projects
• Validation of problem solutions with international experts
• International networking with relevant stakeholders
• Learning about new strategies and findings that can be applied to similar problems
• Establishing new co-operations and setting up joint projects, from which the relevant Austrian research community and industry can benefit

The knowledge gain arises from cooperation with participating countries and includes the understanding of the functioning of flexibility markets in an international - especially non-European - context and the resulting approaches and opportunities for innovation in the national energy system.

The increase in knowledge, in connection with the improved use of flexibilities in the electricity market, represents an important step in the further expansion of renewable energies in the national electricity market. Flexibility markets, redispatch solutions and their digitalization allow grid operators and consumers to better interact in the market. This encourages them to participate in relevant markets and to benefit from the advantages of using flexibilities.

The collaboration on the definition of flexibilities, characterizations, indicators and relevant markets as well as their digitalization represents a valuable knowledge gain for the application in the Austrian context, especially in the context of the expansion of renewable energy sources and the Renewable Energy Expansion Act (EAG) for Austria.

Publications can be viewed on the page in German.

• Austria
• Belgium
• Canada
• India
• Japan
• Norway
• Republic of Korea
• Sweden
• United Kingdom (Operating Agent)

Interested in joining

• Italy
• the Netherlands
• Russia
• Spain
• Switzerland

AIT Austrian Institute of Technology GmbH
Regina Hemm
Giefinggasse 4
1210 Wien
E-mail: regina.hemm@ait.ac.at