Working Group 9 "Flexibility Markets" of the International Smart Grid Action Network (ISGAN) is dedicated to advancing and internationally disseminating knowledge on market designs and mechanisms for the use of flexibility in the electricity supply system. Against the backdrop of increasing electrification, high shares of decentralized renewable generation, and growing uncertainties in network and system development, flexibility is increasingly becoming a strategic instrument to ensure security of supply and to enable the efficient use of existing grid infrastructure. The objective of the Working Group is to establish a shared understanding of how flexibilities can be identified, assessed, classified, and integrated into both operational and long-term decision-making processes.

The substantive work of WG 9 is structured into several tasks, each addressing different but closely interlinked aspects of flexibility (according to PoW24-25):

• Task 1: Flexibility-aware long-term system planning (Lead: AT; Co-Lead: CH)
  This task focuses on the systematic integration of flexibility into distribution network planning processes, including the role of end-user flexibility concepts. In addition, both centralized and decentralized capacity mechanisms are examined as alternative solutions.
• Task 2: Price Signals and Tariffs for Consumer Flexibility (Lead: Ireland)
  This task concentrates on the design of price signals and tariff models intended to incentivize flexible electricity demand on the consumer side.
• Task 3: Mechanisms for DSO remuneration with consideration of flexibility solutions (Lead: Spain)
  This task investigates remuneration mechanisms for distribution system operators that appropriately account for the use of flexibility solutions.
• Task 4: Flexibility Market Definition (Lead: UK)
  The objective of this task is to define and delineate flexibility markets.

From an Austrian perspective, the primary focus lies on the flexibility-oriented further development of distribution network planning principles, as well as on the systematic analysis and classification of flexibility mechanisms. This includes examining under which conditions flexibility can serve as an alternative or complement to conventional grid reinforcement and how its economic value can be transparently assessed. A key element is the development of a consistent classification of flexibility mechanisms, facilitating international comparison and establishing a common language for research, regulation, and market stakeholders.

Overall, the activities of WG 9 contribute to establishing flexibility as an integral component of future electricity system design. The Working Group provides valuable decision-making support for network operators, policymakers, and researchers, and supports the transition toward a robust, efficient, and sustainable energy system.

Belgium, Ireland, Japan, Korea, Austria, Sweden, Switzerland, Spain, United Kingdom (WG lead)

AIT Austrian Institute of Technology GmbH
Regina Hemm
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E-Mail: regina.hemm@ait.ac.at