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The local flexibility market helps customers better manage network capacity by allowing them to change when and how much electricity they use or how much electricity they produce. Local flexibility markets increase the efficiency and resilience of the local electricity grid.

LFM provides an opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage in response to time-based rates or other forms of financial incentives. DR programs are currently being used by some electric system planners and operators, using mainly the flexibility provided by large industrial facilities connected to the high-voltage grid, as resource options for balancing supply and demand. Therefore, the new challenge is to unlock the very high potential of the local flexibility markets in the distribution grid where the main sources of flexibility are residential and tertiary buildings, representing 70% of the total DR potential.

Renewable energy is a type of energy that is continuously or periodically accessed and obtained from natural resources. The most prominent feature of renewable energy is that it is sustainable. It is obtained from natural sources such as sun, wind, biomass, geothermal, wave energy.

Due to the increasing population and changing consumption habits, the world is facing more and more energy needs day by day. Fossil fuels are the largest energy sources currently used. The fact that fossil fuels are non-renewable and the damage they cause to nature brings with it huge problems.