Impact of local flexibility markets on distribution network hosting capacity

The paper investigates the influence of local flexibility markets, modelled with autonomous agents, on the hosting capacity of distribution networks. As distributed energy resources (DERs) continue to increase, optimising their integration into distribution grids is crucial for ensuring reliability and resilience. The study is intended to assess how local flexibility markets can positively impact distribution network hosting capacity. The behaviour of diverse market participants, including DERs and flexible loads, is modelled with the agent-based approach. The objective is to quantify the impact of local market dynamics on the hosting capacity of distribution networks. The study explores market structures, pricing mechanisms, and agent strategies to determine the conditions under which significant improvements in hosting capacity can be achieved. The focus is modelling market liquidity and its role in influencing hosting capacity. Realistically simulating market conditions, the research aims to provide quantitative insights into the correlation between local market characteristics and distribution network performance. The outcomes are anticipated to offer valuable information for understanding the potential of local flexibility markets in enhancing hosting capacity.