# Towards Flexible Distribution Systems: Future Adaptive Management Schemes
## 4 Market Schemes for Adaptive Control and Management Methods Collaborative TSO-DSO Use
### Local Trading and Markets in Distribution Networks  
In the future, the more detailed definition and study of transition paths between the evolution stages, e.g., regarding simultaneous development of local energy communities and market structures as well as related regulation, will also need to be focused on. It might also be worth considering that bilateral contracts between the flexibility providers (household customer, microgrid, local energy community, etc.) in some cases could be the first ANM business model at the DSO level (for DSO needs) before applying full-scale DSO level local flexibility markets. In typically proposed peer-to-peer (P2P) markets, the cost has been the only considered parameter in order to minimize the customer energy costs. However, in more developed and transparent future P2P markets, other values and customer choice preferences could also be considered. These could be related, for example, to energy resource type, location, supplier, etc. This kind of customer preferences management needs also applies to future local/system-wide flexibility markets and customers participating in different markets simultaneously. However, privacy and security aspects should also be carefully considered when increasing transparency and customer choices. Potentially, different kinds of preferences could be integrated and managed blockchain-based P2P energy and/or future flexibility market structures. Different potential future market architectures have also been presented, for example, in [93; 94; 95; 96; 97; 98; 99; 100]. Paper [93] proposes a blockchain-based platform for local energy trading within a regional market as well as grid services for the observance of grid restrictions; the next aim is to demonstrate the platform in field tests [93]. In [101], a blockchain-based authorization system for resource monitoring and trading in smart communities is also presented. Blockchain and multi-agent or P2P-based controls for energy communities and local marketplaces have also been presented in [94; 95; 102; 103; 104]. In the future market designs, the coordination with other energy vectors (heat, hydrogen, natural gas, industrial, and so on), BESSs/other energy storages as well as with transportation (such as EVs), must also increasingly be considered simultaneously in order to achieve maximum whole system and societal benefits [83]. However, the applicability of P2P control, e.g., for frequency control purposes, may be challenging and therefore, e.g., broadcast-based [105] approaches have been proposed. In [106], the need for a radical change in the future electricity market design for a mainly renewables-based power system is highlighted. It illustrates how current, mainly energy market-focused, the market structure needs to evolve between 2020-2030 toward a more diverse market structure with a greater focus on ancillary/flexibility service and capacity markets. As stated in [106], the market design focus in the future will also shift from the operation timescale and the short-run marginal cost of the system toward the investment timescale and the related capital investments to support the future carbon-neutral energy system. In addition, flexibility service types should be considered as a key factor in flexibility market design. In other words, it is necessary to consider the types of flexibility services and accordingly use the resources which are able to provide each specific service. For example, some flexibility services for the TSO need to be symmetric, i.e., suitable resources must be able to provide bi-directional flexibility. In addition to new market-based schemes for flexibilities use, new types of distribution system (DSO) tariff structures could also be introduced in the future to support the use of renewables and flexibilities, coupling between different energy vectors, and to take into account the network state in real-time.