Local Flexibility Markets in Europe: A Review of Flexibility Products, Services, and Potential Improvements

With the increasing need for flexibility to ensure the safe and secure operation of electricity grids, Local Flexibility Markets (LFMs) are expected to become a key tool for mobilizing flexibility from resources connected to distribution grids. This paper reviews existing LFMs in Europe, highlighting the situation in countries such as the United Kingdom, France, the Netherlands, Norway, Italy, and Spain, which already have fully operational markets or in a precommercial stage. The analysis covers the characteristics of flexibility products, the services provided, and the market architectures. Additionally, the authors analyse the main challenges faced by LFMs and propose potential enhancements to improve various aspects of these markets.