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With an increasing share of volatile renewables, more flexibility is neededto balance the electricity system. In order to enable local flexibility, wesuggest a three-stage stochastic market clearing model using community-basedpeer-to-peer (P2P) trading with participation in the short term reservemarkets. With this approach, internal intraday (IID) and real-time (IRT)markets are cleared where peers can trade to balance their day-ahead marketposition under uncertainty in load and activation of reserves. Results showincreased participation of 19 and 44 % in reserve markets when P2P IID and IRTis introduced. We illustrate the application of the model and give advice forthe future reserve market design highlighting necessary changes in order tounlock end-user flexibility to the reserve market.

A Three-Stage Stochastic Peer-to-Peer Market Clearing Model with Real-Time Reserve Activation