Advanced Flexibility Market for System Services Based on TSO–DSO Coordination and Usage of Distributed Resources

The high and growing share of renewable sources and the more important role of Distributed Energy Resources (DERs) in the Distribution System (DS) is leading to a need for more efficient coordination of those sources. In future power systems, TSO–DSO coordination will play a key role in providing flexibility services. Lack of proper coordination of sources may lead to congestion in the network or to a lack of possibility to generate or consume energy on a requested level. The crucial aspect is that the TSO–DSO coordination must be based on an active role of all participants: TSO, DSO, generation units and the demand. This paper presents the possible application of the TSO–DSO coordination by providing the flexibility services from DS to the Transmission System (TS). The paper presents the complex optimization of TS, DS and its coordination. The main goal of the paper is to show the possibility of the application of the flexibility market into the current system design. It requires the creation of a new platform, where the offers of the flexibility services could be submitted and then exchanged between entities. The paper shows that the usage of flexibility services may decrease the operational cost of the system, and the DERs providing those services may benefit from an additional source of income.