As power systems decarbonize and decentralize, the role of flexibility is becoming increasingly critical — not just for balancing supply and demand, but for ensuring the efficient and secure operation of the grid across all voltage levels. Local flexibility — provided by DERs such as batteries, electric vehicles, flexible loads, and distributed generation — can now play a vital role in addressing both local and system-wide challenges. Without coordination, the activation of distributed flexibility by a TSO or DSO in isolation can create conflicts, leading to inefficient outcomes or even operational risks. A coordinated approach to flexibility procurement — where TSOs and DSOs operate within a shared or interoperable market framework — can resolve these issues. This paper provides a comprehensive summary on NODES™ market and coordination approaches by highlighting real-world implementations and pilots of market-based flexibility procurement with TSO–DSO coordination in Norway, Sweden, Finland, Greece and Canada; and a forward-looking perspective on key enablers needed to scale coordinated flexibility markets across Europe, Canada. It demonstrates how well-designed flexibility markets can align local and system-level goals, reduce the need for costly grid reinforcements, and unlock new value streams for consumers and DERs. The real-world implementation of flexibility markets and projects from Norway, Sweden, Canada, Finland, and Greece show tangible pathways to integrate local and system-wide flexibility services, benefiting both the grid and market participants. By aligning procurement processes and creating transparent, interoperable market structures, system operators can ensure that flexibility is deployed where and when it delivers the greatest value.
Farrukh et al. (Sun,) studied this question.