Position Paper | Market Coordination to enhance value stacking

As the energy system evolves to accommodate a higher share of decentralized energy resources, and as distribution system operators (DSOs) take a more active role in managing grids through different flexibility mechanisms, the effective coordination between different electricity markets becomes increasingly critical. Furthermore, the decentralized and local aspect of the energy transition means that the market structures of the past might not always be the most efficient ones in correctly pricing the available flexibility resources and bringing their flexibility to those that need it most. Market coordination is a broad term that can cover different approaches to ensure any asset has access to all markets in a seamless way, improving system reliability, reducing operational costs and allowing value stacking for flexibility service providers, while maximizing available liquidity in all markets.