Coordinated Trading of Capacity and Balancing Products in Multi-Area Local Flexibility Markets

In a scenario with high penetration of renewable and distributed energy resources, Local Flexibility Markets (LFMs) emerge to enhance operation of distribution networks. They deal with new consumption patterns, flexibility, and storage systems to mitigate imbalances and congestions. In recent years, efforts toward the definition of stand-alone LFMs have been made, enabling energy trading in isolated systems. This paper present an alternative solution for congestion and imbalance mitigation using capacity and balancing flexibility products. Products prices are defined considering their intrinsic relation with traditional markets, what enhances compatibility and enables full deployment of this local structures. Besides of that, using the properties of an adaptive ADMM algorithm, the market clearing problem is solved under a Multi-Area setting while information privacy is preserved. The feasibility of the proposed approach is demonstrated on a radial network based on the IEEE 34 bus system, where the solution for the two-area LFM is found in four tens iterations. Furthermore, the scalability analysis provides shows a linear relation between the number of areas and the convergence.