Assessing the Contribution of Flexibility to System Adequacy in a Pan-European Market

This research explores the dynamics of flexibility contribution to system adequacy in the context of a pan-European electricity market, focusing on the “National Trend” scenario of ENTSO-E 2022 Ten Year Network Development Plan (TYNDP). The study compares the impacts of two key participants, Battery Energy Storage Systems (BESS) and Demand Side Response (DSR), on the objective function, which target is system operation costs minimization, and specifically addressing Energy Not Provided (ENP) and Overgeneration (OG) under varying bidding prices. The key objectives of the study include understanding which form of flexibility optimally benefits electricity market operations and examining how flexibility can manage the risks associated with system adequacy. The main findings indicate that flexibility reduces the system costs up to 4%, ENP by 90%, and overgeneration by 35%, with a 2% reduction in the average price. A sensitivity case underscores the crucial impact of flexibility, particularly in market areas facing system adequacy risks, where DSR and BESS significantly affects price, overgeneration, and ENP reduction.