As part of ongoing efforts to develop market-based mechanisms for local flexibility, HEDNO (DSO), IPTO (TSO), and NODES recently participated in an online interview with VITO, contributing their insights from the Local Flexibility Market (LFM) designed for the Greek Pilot within OPENTUNITY. This initiative is part of a broader study commissioned by the Directorate-General for Energy (DG ENER) to support the development of a European framework for demand response and flexibility markets.

The Role of DG ENER and VITO in Local Flexibility Markets

In accordance with Article 59(1)(e) of Regulation (EU) 2019/943, DG ENER is working on the establishment of a network code for demand response, which will set the rules, roles, and procedures for market-based procurement of flexibility services. To support this process, DG ENER has tasked VITO, a leading European research organization, with conducting a study on specification and design criteria for Local Flexibility Markets (LFMs).

The goal of this study is to identify best practices and design criteria tailored to different Member States, ensuring that LFMs contribute effectively to congestion management and other local grid services. Ultimately, the study will inform the upcoming demand response network code, helping to create a structured and scalable approach to flexibility procurement across the EU.

Greece’s Contribution to the Study

Recognized for its pioneering work on LFMs, Greece was invited to share insights from the flexibility market developed for the Greek Pilot in OPENTUNITY. As key stakeholders in this initiative, HEDNO, IPTO, and NODES participated in the study by:

1. Completing a detailed questionnaire addressing various aspects of LFM design and operation.
2. Engaging in a comprehensive interview with VITO’s research team to discuss key challenges and best practices.

The study focused on several critical areas, including:

• LFM Setup – Market structure, key stakeholders, coordination mechanisms, and platform development.
• Product Design – Flexibility products, bid formats, pricing schemes, and aggregation rules.
• Market Design – Prequalification, trading mechanisms, bid selection, and activation processes.
• Market Governance – DSO-TSO coordination, regulatory alignment, and data sharing.
• Performance Indicators – Market liquidity, traded flexibility volumes, transaction frequency, and cost-benefit analysis.
• Scalability & Lessons Learned – Success factors, challenges, and the potential for European harmonization.

By participating in this study, OPENTUNITY plays a vital role in shaping the future of LFMs in Europe, leveraging its experience in DSO-TSO coordination and flexibility procurement.

Towards a Unified European Approach to Flexibility Markets

The insights gathered from various LFM initiatives, including the Greek Pilot, will contribute to the design, implementation, and integration framework for local flexibility procurement. These findings will be shared in an upcoming workshop, facilitating further discussions and knowledge exchange among stakeholders.

Through its participation in this study, OPENTUNITY reaffirms its commitment to developing innovative flexibility solutions, supporting the EU’s vision for a more efficient, coordinated, and resilient electricity market.

Stay tuned for more updates on OPENTUNITY’s work in flexibility markets and local grid innovations! 🚀