Congestion Management in European Electricity Systems through Aggregators and Local Flexibility Markets: A Systematic Literature Review

In the face of increasing renewable energy integration and limitations in existing infrastructure; power grid congestion management is undergoing a critical shift demanding innovative solutions to maintain system reliability. To address this issue, the power sector is shifting towards solutions such as flexibility provision by different market participants, namely aggregators and local flexibility markets. These solutions emerge as congestion management services without heavy infrastructure investments. After undergoing a systematic literature review, we identified the lack of common understanding about the interlink between congestion management services, local flexibility markets, and aggregators. Our paper aims to establish a clear structured overview that highlights these interlinks. This contribution can help clarify the conceptual differences and similarities and to assist in the development of future market designs.