Skip to main content

Please enter a keyword and click the arrow to search the site

Evaluation of flexibility markets for retailer-DSO-TSO coordination


IEEE Transactions on Power Systems


Management Science and Operations

Authors / Editors

Vicente-Pastor A;Nieto-Martin J;Bunn D W;Laur A


Publication Year



The rise of Distributed Energy Resources (DERs) can enhance the efficiency of system operations by providing flexibility services to the different agents involved, but they also pose a major resource allocation problem. This study considers three different agents procuring DER services: Distribution System Operators (DSOs) for local congestion management, Transmission System Operators (TSOs) for system-wide reserve deployment, and Retailers for hedging against network usage tariffs based upon peak-load pricing. A variety of market mechanisms are identified to co-ordinate these needs, and three schemes are developed in detail. These are (a) separate markets for each agent, (b) co-ordinated Shapley value allocations for TSO and DSO, and (c) a co-ordinated mechanism including Retailers. These designs are evaluated on a realistic distribution network in Britain for two operational days. The results show a more efficient dispatch from the TSO-DSO co-ordinated procurement over independent sequential procurements. However, the inclusion of Retailers in the joint dispatch is surprisingly less attractive due to the lack of improvement in social welfare, and the undesirable impacts on the DSO.


Distributed energy resources; Flexibility market; TSO-DSO co-ordination

Available on ECCH


Select up to 4 programmes to compare

Select one more to compare
subscribe_image_desktop 5949B9BFE33243D782D1C7A17E3345D0

Sign up to receive our latest news and business thinking direct to your inbox


Sign up to receive our latest course information and business thinking

Leave your details above if you would like to receive emails containing the latest thought leadership, invitations to events and news about courses that could enhance your career. If you would prefer not to receive our emails, you can still access the case study by clicking the button below. You can opt-out of receiving our emails at any time by visiting: or by unsubscribing through the link provided in our emails. View our Privacy Policy for more information on your rights.