Decentralized Energy and Flexibility Markets for Integrated Electricity and Heat Networks: Optimal Allocation, Trading, and Leasing

This study investigates the integration of electricity and heat systems using local peer‐to‐peer energy and flexibility markets to enhance multi‐energy system efficiency. In the day‐ahead market, prosumers actively trade energy, while system operators manage operational flexibility by dividing it into upward and downward components. Through collaboration, operators and prosumers establish nodal marginal flexibility coefficients, which quantify each prosumer's contribution to system flexibility. These coefficients help operators allocate flexibility more effectively across the network. To address uncertainties and ensure reliability, an hour‐ahead flexibility market is introduced. This market allows prosumers to trade flexibility and lease it to network operators via shared multi‐energy storage systems, improving real‐time adaptability. The alternating direction method of multipliers algorithm facilitates these transactions while preserving prosumer autonomy in decision‐making. The framework is validated through three case studies: a 5‐bus power grid with a 5‐node heating system, a 33‐bus grid with a 23‐node heating system, and a 289‐bus grid linked to a 67‐node heating system involving 30 prosumers. Results show reduced operational costs for prosumers and increased profits for those offering flexibility services, demonstrating the framework's effectiveness in enabling decentralized energy exchanges and improving overall market performance.