Congestion Management in Smart Grids with Flexible Demand considering the Payback Effect

Demand Side Flexibility (DSF) paved its way recently in the electricity market holding a promising future in Smart Grids. DSF has the potential to improve the overall efficiency of the energy system while maintaining high reliability standards. With the help of the existing market players, DSF could be efficiently managed to offer alternative and feasible solutions to the current grid operational congestions. In this paper, an algorithm is proposed that assesses the possible solutions for congestion management using flexibility services while considering the effect of energy payback. A real distribution network is used and new flexibility bids and payback conditions are proposed. Finally, the total cost that the DSO will be charged due to these services is calculated for the scenarios considered.