SETUP Develops an Optimal Market Selection Algorithm

Over the past 10 months, SETUP, in collaboration with Avantcar and the University of Ljubljana, has been working on an innovative algorithm designed to help flexibility providers make smarter decisions across multiple energy markets.

As part of the OPENTUNITY project, this work focuses on how the flexibility of distributed energy assets, such as electric vehicles, batteries, or demand-response resources, can be effectively offered in different market environments, each with its own technical and regulatory rules.

The result is an optimal market selection algorithm that identifies the most beneficial market combinations for flexibility providers. It analyses opportunities across day-ahead, intraday, ancillary services, and local DSO markets, recommending how and where flexibility should be offered to maximise its value.

By processing data on tariffs, market prices, and technical constraints, the algorithm provides:

  • The optimal market or market combination for each asset,
  • The expected revenues or cost savings, and
  • The optimal operating schedule for flexibility deployment.

market selection algorithm

This development represents a significant step forward in enabling data-driven decision-making for aggregators and flexibility service providers, ensuring that flexibility assets deliver the greatest possible benefit to both the grid and end users.

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