Abstract
Purpose of Review Balancing a large share of solar and wind power generation in the power system will require a
well synchronized coordination of all possible flexibility sources. This entails developing market designs that incentivize
flexibility providers, and define new flexibility products. To this end, the paper reviews latest trends in the characterization
of flexibility by understanding its dimensions in terms of time, spatiality, resource type, and associated risks. Also, as
aggregators have emerged as important actors to deliver, and to reward end-user flexibility, the paper reviews latest trends in
the topic.
Recent Findings The review reports latest trends and discussions on power system flexibility and their relations to market
design. The current academic literature indicates that there are open question and limited research on how to reward shortterm flexibility while considering its long-term economic viability. Demand-side flexibility through aggregation holds great
potential to integrate renewables.
Summary Research in power system flexibility has to put effort on analysing new time-structures of electricity markets and
define new marketplaces that consider the integration of new flexibility products, actors (e.g. aggregators, end-users), and
mechanisms (e.g. TSO-DSO coordination).
well synchronized coordination of all possible flexibility sources. This entails developing market designs that incentivize
flexibility providers, and define new flexibility products. To this end, the paper reviews latest trends in the characterization
of flexibility by understanding its dimensions in terms of time, spatiality, resource type, and associated risks. Also, as
aggregators have emerged as important actors to deliver, and to reward end-user flexibility, the paper reviews latest trends in
the topic.
Recent Findings The review reports latest trends and discussions on power system flexibility and their relations to market
design. The current academic literature indicates that there are open question and limited research on how to reward shortterm flexibility while considering its long-term economic viability. Demand-side flexibility through aggregation holds great
potential to integrate renewables.
Summary Research in power system flexibility has to put effort on analysing new time-structures of electricity markets and
define new marketplaces that consider the integration of new flexibility products, actors (e.g. aggregators, end-users), and
mechanisms (e.g. TSO-DSO coordination).