This paper presents a general description of local flexibility markets as a market-based management mechanism for aggregators. The high penetration of distributed energy resources introduces new flexibility services like prosumer or community self-balancing, congestion management and time-of-use optimization. This work is focused on the flexibility framework to enable multiple participants to compete for selling or buying flexibility. In this framework, the aggregator acts as a local market operator and supervises flexibility transactions of the local energy community. Local market participation is voluntary. Potential flexibility stakeholders are the distribution system operator, the balance responsible party and end-users themselves. Flexibility is sold by means of loads, generators, storage units and electric vehicles. Finally, this paper presents needed interactions between all local market stakeholders, the corresponding inputs and outputs of local market operation algorithms from participants and a case study to highlight the application of the local flexibility market in three scenarios. The local market framework could postpone grid upgrades, reduce energy costs and increase distribution grids’ hosting capacity.

This article proposes a multiobjective hybrid energy management system that minimizes both the electricity expenses and the household greenhouse gas emissions released due to consumption, considering the entire life cycle of the generation assets used to provide energy. The global warming potential indicator is used to decide if it is more sustainable to purchase electricity from the grid or use the household's flexible generation sources like photovoltaic panels and the energy storage system. Results prove that it is possible to reduce greenhouse gas emissions without incurring expensive electricity bill costs thanks to the hybrid-based home energy management system approach. This method gives the end-users a more influential role in the climate change solution, allowing them to give more or less importance to the economic or environmental component, according to their preferences.

On the path towards the decarbonization of the electricity supply, flexibility and demand response have become key factors to enhance the integration of distributed energy resources, shifting the consumption from peak hours to off-peak hours, optimizing the grid usage and maximizing the share of renewables. Despite the technical viability of flexible services, the reduction of greenhouse gas emissions has not been proven. Traditionally, emissions are calculated on a yearly average timescale, not providing any information about peak hours’ environmental impact. Furthermore, peak-hours’ environmental impacts are not always greater than on the base load, depending on the resources used for those time periods. This paper formulates a general methodology to assess the potential environmental impact of peak-hourly generation profiles, through attributional life cycle assessment. This methodology was applied to five different countries under the INVADE H2020 Project. Evaluation results demonstrate that countries like Spain and Bulgaria could benefit from implementing demand response activities considering environmental aspects, enhancing potential greenhouse gas reductions by up to 21% in peak hours.