Scenario-Based Analysis of Technical Efficiency in Local Markets for Low-Voltage Networks

The resulting shift in load and generation profiles on the low voltage (LV) network poses new risks for distribution system operators (DSOs), including issues like congestion and power quality. To address these risks, two approaches are considered: traditional grid reinforcement or flexibility services. An emerging solution for harnessing flexibility is the development of local markets. This paper is focused on defining scenarios for testing the local market, considering different network conditions (load profiles, available capacity limits in the lines), different market clearing mechanisms, and bids. The LV network under study is a real Slovenian LV network in Luče, currently featuring 9 flexible households and one community battery, as part of the X-FLEX project (Horizon 2020, grant agreement n°863927). The second part involves testing these scenarios and conducting an analysis of the results, ensuring network constraints compliance through power flow simulation (using OpenDSS), and performing a technical analysis of the market design based on these results.