Joint TSO-DSO Flexibility Market for Congestion Management

Abstract

As the need for flexibility is increasing, new congestion management methods are needed by system operators. Although several previous studies have presented the concept of a joint TSO-DSO congestion management market, there is still a lack of practical experiences. This paper presents how a joint TSO-DSO congestion management market is designed, set-up, and to be used operationally in Finland for the first time. The paper also describes the requirements for the flexibility service providers, which are designed to be easier to fulfil compared to the balancing markets to reach especially such flexible resources that do not yet offer flexibility. The proposed product structure of a joint TSODSO congestion management market comprises a capacity market auction opened based on the system operator's need and an energy market based on an auction and continuous trading.