Envisioning Low-carbon Indian Power Grid Using Demand-side Flexibility

The liberalization of the electricity market world-wide has allowed new entities and innovative contemporary business models to emerge. It also enabled economically sus-tainable investment in flexible energy assets. A synergy between energy markets and grid management systems must introduce new services to support a high renewable energy penetration. In this regard, the local flexibility assets have a vast potential to help the distribution system operator efficiently manage active distribution networks and regional load despatch centre deploy system-wide reserves. Thus, there is a need to re-design the existing electricity market framework and introduce new products. This paper intends to propose a higher-level model of reliable grid operation utilizing the local flexibility resources for the Indian power system. The distribution system operator and regional load despatch centre are considered as the potential buyers for demand-side flexibility. The sequential local flexibility market clearing and settlement mechanism have been discussed in the Indian context.