Simultaneous ascending auction: a local flexibility mechanism tool

Coordination of local resources is required to efficiently utilize the increasingly flexibility available from customers in the shortterm and investment in distributed energy resources (DERs) in the long-term. Local Flexibility Mechanisms (LFMs) complement efficient distribution network charges. Such mechanisms will lead to efficient end-user responses, integration of new flexibility services, avoidance of unnecessary network investments and consequently lower total system costs. One type of LFM is presented here: short-term LFM that operates through Simultaneous Ascending Auction (SAA). SAA operates within the dayahead
time frame. When network peak hours are expected the next day, SAA operates to utilize customers’ flexibility by allowing them to book their network capacities in advance, and hedge against expected high distribution network charges.