It is undeniable that congestion is an increasing problem of power systems nowadays. Ways to tackle it embrace non-market and market-based solutions. Network reinforcement, network reconfiguration, reactive power control, etc., are some instances of non-market-based solutions. In contrast, solutions based on market mechanisms such as zonal pricing, nodal pricing, redispatch, and markets for flexibility (e.g., congestion management market (CMM)) are considered market-based alternatives. Among the said alternatives, CMM is the newest concept, leading to many unknown issues associated with it that initiated us to present the article. The article discusses the congestion problem and criteria to evaluate congestion management (CM) alternatives. In addition, to have a practical grasp of CM, its cost, and how congestion is traditionally handled, a real-life problem solving of a distribution system operator (DSO) is presented. Concerning CMMs, four conditions that need to be met before considering CMM as a CM solution are specified. In addition, three CM services, including long-term, short-term, and operational, followed by different implementations of those services, are proposed and compared. In general, CMM design is a complex problem because several stakeholders with different tasks, visions, business models, and capabilities must work together; therefore, looking at the situation from various angles is beneficial. This article thrives on providing a vivid view on the features of different CMM models to stakeholders such as DSOs, transmission system operators (TSOs), flexibility service providers (FSPs), regulators, existing markets, retailers, balance responsible parties (BRPs), etc., that may have interest in CMMs.
Nowadays, due to changes in both generation and consumption, distribution networks experience increasing stress that can cause congestion. In the consumption sector, about 2.5 billion people are expected to be added to urban areas worldwide within the next 30 years . Besides, the international energy agency (IEA) electric vehicles’ (EVs’) outlook anticipates an increasing growth over the next decade. According to the stated policy scenario incorporating the existing governmental policies, EVs will reach 145 million in 2030 compared to 7.2 million in 2019 . This level of electrification will lead to 550TWh electricity demand in 2030 (about a six-fold rise from the 2019 level). In Europe, EV demand will account for 4 percent of electricity consumption (i.e., national/regional) in 2030 . Urbanization and upward trend in EV penetration are two instances of higher stress on distribution networks in the consumer segment for years to come.
Various market models could be thought of when designing a CMM from scratch. Therefore, the article attempts to clarify some of the essential aspects related to CMMs, such as understanding the congestion problem, requirements for using CMMs, the market’s role in CM, current ways to tackle congestion at the distribution and transmission level and then analyzing possible CMM structures. In addition, in this article, CMM aspects are seen from different stakeholders’ perspectives to have practical discussions because a thriving market results from synergy and shared understanding between stakeholders. Besides, to enhance the article’s practicality, the approach of pioneering flexibility markets in Europe, including Enera, GOPACS, NODES, and Piclo Flex, is considered in the discussions. Except for GOPACS that procures flexibility from ETPA, non of the flexibility markets in Europe are yet fully commercial, which makes the need for the current article with a holistic approach necessary.