Evaluating Distribution System Flexibility Markets Based on Smart Grid Key Performance Indicators

Electricity markets are adapting to integrate more renewable sources and to reach the energy transition. But volatile renewable energy sources require compensation mechanisms to support the quality of supply of the power grid. Smart grid technologies have enhanced the degree of observability and controllability of the power system, supporting the quality of supply of the power grid, enabling the development of additional market models for trading flexibility services in distribution grids. In order to assess the impact of the different flexibility market models, it is crucial to identify appropriate key performance indicators (KPIs) that account for the specific variants of each market model, avoiding improper comparison like “apples with oranges”. In this paper, we propose a set of Key Performance Indicators (KPIs) for evaluating flexibility markets in distribution systems with smart grid technologies. First, a bibliometric analysis was conducted to examine existing literature on flexibility markets taxonomies and trading products. Subsequently, KPIs from the electricity market context were selected to assess the impacts of different market models in distribution systems. Finally, a mapping methodology tool was used to examine the relationships between KPIs and the different flexibility market models based on a systematic review of use cases for flexibility markets in distribution systems for solving congestion constraints. The results allow us to compare different flexibility market models based on the social, economic and environmental aspects for specific market model variations.