Market power assessment in regional smart markets

New tools are needed in order to make local flexibility available for congestion management as increasing penetration of distributed energy resources and new electrical loads are a growing challenge in the distribution grid. In order to enhance the DSO’s options for congestion management, coordination and allocation platforms for flexibility such as the Altdorfer Flexmarkt are being developed. As congestion is location-specific, the range of available local flexibility is limited. This leads to a higher susceptibility to market power. Therefore several approaches to identify potential market power are being presented. An adapted version of the Residual Supply Index (RSI) was chosen to dynamically identify and monitor potential market power tendencies. Several analyses presented show results in an exemplary medium voltage strand. A critical review and best practice proposals give an outlook for future applications in local flexibility markets.