IEA ISGAN Working Group 9: Flexibility Markets - Development and Implementation (Working Period 2023 - 2025)

The objectives of Working Group 9 include expanding and disseminating the understanding of market mechanisms for decentralized flexibilities. It has encouraged knowledge building and international exchange, facilitating the discovery of new strategies and insights applicable to similar issues. It also allows for the validation of different solution approaches with international experts. Austria's participation in this Working Group adds value by positioning Austrian projects internationally and connecting with relevant stakeholders, fostering new collaborations and joint projects that benefit the entire Austrian research and industrial landscape in the field of flexibility markets in power supply.

The focus in 2024 is placed on three key areas:

• Task 1 (Lead: Austria and Switzerland): End-Use Flexibility Characterization and Grid Utilization
• Task 2 (Lead: UK): Price Signals and Tariffs for Consumer Flexibility
• Task 3 (Lead: UK and Spain): Coordination and interplay of different flexibility markets

The project objectives from an Austrian perspective include the elaboration of transnational definitions and characterizations of flexibility markets, as well as a better understanding of their interaction, the design and effects of different tariff structures and the identification of new flexibility mechanisms such as capacity mechanisms, in the context of short and long-term planning and their design. Both internationally existing and potentially implementable tariff structures as well as capacity mechanisms are analysed, as well as their implementation concepts and effects.

Under the joint leadership of Austria and Switzerland, Task 1 aims to further analyse the integration of flexibility in the planning and operation of distribution grids, while aiming to integrate more and more renewable energy and to decentralize the systems. The aim is to reduce the need for grid reinforcement by utilizing flexible energy solutions. First, methods that incorporate flexibility, such as demand response and energy storage into grid planning will be surveyed and their effectiveness and integration challenges assessed. Second, it analyses how different stakeholders use local flexibility and the market models that support these efforts, with a focus on understanding roles, best practices and hurdles. The final assessment summarizes the collected findings by developing a comparative analysis of the benefits and challenges. The aim is to provide a comprehensive overview of the operational and economic impacts and to support grid operators in adapting to the evolving energy landscape and improving grid resilience.

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

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