All Reports
3Q 2020

Flexibility Markets and Enabling Technologies

Local Flexibility Market Deployments, Market Drivers and Barriers, Technology Enablers, and Global Market Forecasts

Traditionally, a transmission or distribution system operator (DSO) faced with aging equipment or increased load demand would simply replace conduct poles and wires. No thought was given to alternative methods to address the issue. However, grid management and distributed energy resources (DER) technologies have improved, and policy concerns related to cost and the environment have increased. Utilities are looking to engage customers and provide more value-added services. 

As a result, creative solutions are being explored to address infrastructure needs at a lower cost with greater customer and environmental benefits. Increasingly, distribution grid operators in deregulated markets are opting to deploy flexibility markets to help them manage grids. Local flexibility markets are ready to become a bigger piece of distribution grid management based on the growth of DER technology and operators’ and regulators’ willingness to try new means of infrastructure replacement that can reduce the cost of the overall system. 

This report examines local flexibility markets and the enabling technologies in five major geographic regions, presenting a 10-year forecast and market sizing from 2020 through 2029. The regions covered include North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Guidehouse Insights provides market sizing and forecasts with respect to spending on or investments in flexibility market transaction activity and platforms. Additionally, Guidehouse Insights explores the flexibility market deployment trends to highlight varying regional activity and designs. 

Pages 35
Tables | Charts | Figures 19
  • What are local flexibility markets?
  • What are the market drivers incentivizing the deployment of local flexibility markets in Europe and abroad?
  • What factors may inhibit their expansion?
  • What new technologies and business models are enabling and are enabled by local flexibility markets?
  • How fast will local flexibility markets grow in various regions around the world?
  • Smart Grid Hardware and Software Vendors
  • DSO/TSO
  • Energy Suppliers
  • Government Energy Agencies
  • System Operators/Regional Transmission Operators (ISO/RTO)
  • Investor Community

1. Executive Summary

1.1   Introduction

1.2   Market Drivers and Barriers

1.3   Market Forecasts

2. Market Issues

2.1   Definitions

2.2   Market Drivers

2.2.1   Grid Services for Renewable Balancing

2.2.1.1   Case Study: UKPN

2.2.1.2   Case Study: Western Power Distribution and NODES – IntraFlex Project

2.2.2   Deferring Capital Costs

2.2.3   Regulatory Mandates

2.2.4   Stakeholder Buy-In

2.2.5   Deregulated Energy Suppliers and Service Providers

2.2.6   Costs Reductions

2.2.6.1   Case Study: Electron – TraDER

2.3   Market Barriers

2.3.1   Regulatory

2.3.2   Technical

2.3.1   Vendor Incompatibility

2.3.2   Market Creators

2.3.2.1   Understanding Flexibility Needs

2.3.2.2   Creating Liquidity

2.3.3   Customer

2.3.3.1   Complexity

2.3.3.2   iDER Participation Dictated by Gatekeepers

2.3.3.3   Different Vendors for Different DER

2.3.3.4   Legacy Support Mechanism for DER

2.3.3.5   Customer Apathy

2.4   Enabling Technologies

2.4.1   Connected DER

2.4.2   DER Management Technology

2.4.3   Advanced Distribution Management Systems

2.4.4   Flexibility Market Platforms

2.4.4.1   Case Study: EnergieKoplopers - Universal Smart Energy Framework Residential Demonstration Project

3. Market Forecasts

3.1   Forecast Introduction

3.2   Assumptions Guiding this Forecast

3.3   Report Scope and Market Sizing

3.4   Global Local Flexibility Markets Revenue

3.5   Conclusions and Recommendations

3.5.1   Grid Operators

3.5.2   Vendors

3.5.3   Energy Suppliers and Aggregators

4. Acronym and Abbreviation List

5. Table of Contents

6. Table of Charts and Figures

7. Scope of Study, Sources and Methodology, Notes

  • Local Flexibility Markets Participating Capacity and Revenue by Region, World Markets: 2020-2029
  • Local Flexibility Markets Participating Capacity by Region, World Markets: 2020-2029
  • Local Flexibility Markets Transaction Revenue by Region, World Markets: 2020-2029
  • Local Flexibility Markets Platform Provider Revenue by Region, World Markets: 2020-2029
  • Local Flexibility Markets Participating Capacity by Technology, World Markets: 2020-2029
  • Piclo’s Platform Showing UKPN Constraint Areas
  • IntraFlex Scope of Project
  • TraDER Consortia and Timeline
  • Universal Smart Energy Framework Market Principles
  • Revenue Range Per Area by UKPN vs. Volume of Advertised Need by Piclo Flex Trial: 2019
  • Local Flexibility Markets Participating Capacity by Region, World Markets: 2020-2029
  • Local Flexibility Markets Participating Capacity by Technology, World Markets: 2020-2029
  • Local Flexibility Markets Participating Capacity by Technology, North America: 2020-2029
  • Local Flexibility Markets Participating Capacity by Technology, Europe: 2020-2029
  • Local Flexibility Markets Participating Capacity by Technology, Asia Pacific: 2020-2029
  • Local Flexibility Markets Participating Capacity by Technology, Latin America: 2020-2029
  • Local Flexibility Markets Participating Capacity by Technology, Middle East & Africa: 2020-2029
  • Local Flexibility Markets Transaction Revenue by Region, World Markets: 2020-2029
  • Local Flexibility Markets Platform Provider Revenue by Region, World Markets: 2020-2029
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News Mention Oct 08, 2019
Non-Wires Alternatives for grid expansion: what the U.S. can teach Europe
By Energy Post