Siemens Smart Infrastructure: Local Flexibility Markets
Thomas Kiessling, CTO at Siemens Smart Infrastructure, believes local flexibility markets can transform grid management and speed up the shift to cleaner energy.
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As renewable energy sources, such as solar and wind, continue to grow globally, the infrastructure supporting them is under increasing pressure. The challenge lies in integrating these renewable sources into the grid without causing expensive grid expansion or congestion.
Local flexibility markets present a solution by utilizing underused energy capacity to alleviate grid strain. These markets allow Distribution System Operators (DSOs) to procure flexibility services from nearby resources, helping balance energy supply and demand. This approach not only reduces emissions but also introduces new revenue streams for both energy providers and consumers.
As traditional grids struggle with the increasing imbalance caused by the geographical distance between energy generation and consumption, flexibility markets are emerging as a vital component for a resilient, decentralized energy system. For instance, in Italy’s RomeFlex pilot, flexibility markets helped reduce grid modernization costs by 50 %, using available resources to efficiently manage demand.
Despite their benefits, flexibility markets face obstacles such as the need for advanced data tracking and better coordination between grid operators. Policy support and regulatory harmonization will also play a key role in scaling these markets.
Local flexibility markets offer energy companies, consumers, and businesses a transformative model that supports grid stability, economic growth, and decarbonization goals. They represent the future of smart, decentralized energy systems.
Source: Energy Digital
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