What lies behind the (proposed) Flexibility Needs Assessment methodology?

Energy system flexibility still tops the European regulatory and policy agenda. The Flexibility Needs Assessment (FNA) is one of those topics that is carefully watched by stakeholders across Europe. With an upcoming decision by ACER (the European Agency for Energy Regulators) on accepting or amending the FNA methodology proposed by ENTSO-E and EU DSO, now is a good time to deep-dive into this far-reaching topic.

Implementation challenges for Flexibility Needs Assessments

In this study, our experts analyse the Flexibility Needs Assessment methodology as submitted by ENTSO-E and EU DSO for decision and implement its relevant provisions for assessing system needs to shed light on potential challenges and implications for national FNA implementations.

Choosing the most appropriate approach

The methodology does not prescribe a specific approach to conduct national FNAs. Both post-processing and full-scale simulations can be used to conduct them, each with its limitations and advantages. Selecting the most appropriate approach for the national circumstances and keeping in mind the implications when translating the outcomes into the final indicators, per flexibility need, is key. Irrespective of the chosen approach, the outcomes will strongly depend on the underlying assumptions.

Quantitative study

In the study, our experts guide you across the possible implementation approaches, but also share a quantitative study focused on one of the approaches – the Flex Proxy (post-processing) approach. To better understand the actual limitations and challenges of conducting an FNA, irrespective of the chosen approach.

Also, they share their conclusions and implications for a wide range of stakeholders, from TSOs/DSOs to policymakers and flexibility services providers.

“Whatever your role is in the European energy landscape, it is essential to become aware of the implications of national Flexibility Needs Assessments. It’s a complicated, but essential exercise. Importantly, this is just the first step. Once flexibility needs are defined, it is crucial to ensure appropriate market measures and incentives are in place to make sure this flexibility is in fact available.” – Dr. Ksenia Tolstrup