The study explores the dynamics of flexibility contribution to system adequacy in the context of a pan-European electricity market, focusing on the “National Trend” scenario. The study compares the impacts of two key participants, Battery Energy Storage Systems (BESS) and Demand Side Response (DSR), on the objective function, which target is costs minimization, and specifically addressing Energy Not Provided (ENP) and Overgeneration (OG) under varying compensation prices.

Additionally, the analysis assesses the contribution of each participant to system adequacy in market areas experiencing a scarcity of generation. The main findings indicate that flexibility reduces the system costs by 4%, ENP by 87%, and overgeneration by 35%, with a 2% reduction in the average price.

In a broader market area, BESS outperforms DR in average price reduction, overgeneration, and ENP reduction. A sensitivity case underscores the crucial impact of flexibility, particularly in market areas facing system adequacy risks, where DSR and BESS significantly affects price, OG, and ENP reduction.