Volume 61

How to undermine a Local Flexibility Market: A Case Study of sthlmflex Arvid Nyman, Cajsa Bartusch

Abstract

This paper explores the challenges of local flexibility markets in Sweden, with a case study of “sthlmflex,” a local flexibility market in Stockholm. Local flexibility markets are emerging as important tools for managing local grid congestion, supporting the integration of renewable energy sources, and enhancing the resilience of the electricity grid. The study examines the drivers and barriers faced by market participants, especially aggregators and flexibility service providers. Through qualitative research, the study highlights the operational and challenging dynamics of local flexibility markets. The results show strong interest among actors to learn more about new concepts in the energy sector and to contribute to society. However, the findings also stress the importance of transparent and trustworthy governance, with the distribution system operator not overseeing the market. It is likely that both sellers and buyers would benefit from integrating the ancillary market with the local flexibility market, which should be governed by the transmission system operator.

Keywords Local flexibility market, energy markets, aggregators, drivers, barriers, flexibility service provider