Local Flexibility Markets in Spain: Current Developments and Future Prospects

Authors

  • J. Jimeno Department of Electrical Engineering UPV/EHU University of the Basque Country School of Engineering Bilbao. Plaza Ingeniero Torres Quevedo, 1, 48013-Bilbao, Spain; TECNALIA, Basque Research and Technology Alliance (BRTA). Parque Tecnológico de Bizkaia, Astondo Bidea, Ed.700, 48160, Derio, Spain Author
  • I. Aranzabal Department of Electrical Engineering UPV/EHU University of the Basque Country School of Engineering Bilbao. Plaza Ingeniero Torres Quevedo, 1, 48013-Bilbao, Spain Author
  • E. Fernandez Department of Electrical Engineering UPV/EHU University of the Basque Country School of Engineering Bilbao. Plaza Ingeniero Torres Quevedo, 1, 48013-Bilbao, Spain Author
  • C. Madina TECNALIA, Basque Research and Technology Alliance (BRTA). Parque Tecnológico de Bizkaia, Astondo Bidea, Ed.700, 48160, Derio, Spain Author
  • P. Castillo Department of Electrical Engineering UPV/EHU University of the Basque Country School of Engineering Bilbao. Plaza Ingeniero Torres Quevedo, 1, 48013-Bilbao, Spain Author

DOI:

https://doi.org/10.52152/4593

Keywords:

Local Flexibility Markets, distributed energy resources, renewable integration, demand-side participation, power system stability

Abstract

The increasing penetration of renewable generationin transmission and distribution networks, along with the electrification of end-use sectors, such as transportation and heating, is reshaping the power system. This transition, aligned with the European Union’s climate neutrality goals for 2050, requires new flexibility mechanisms to ensure grid stability.

Local Flexibility Markets (LFMs) have emerged as a solution, enabling demand-side participation and optimizing the use of flexible assets in distribution networks. Several European countries have successfully implemented LFMs, while Spain is in an advanced stage of development. This paper analyzes the current state of LFMs in Spain, identifying key regulatory challenges, ongoing pilot projects, and future prospects.

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Published

2025-07-25

Issue

Vol. 23 No. 5 (2025)

Section

Articles

License

Copyright (c) 2025 J. Jimeno, I. Aranzabal, E. Fernandez, C. Madina, P. Castillo (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.