Design and Operational Characteristics of Local
Energy and Flexibility Markets in the
Distribution Grid
Pol Olivella-Rosell, Jayaprakash Rajasekharan, Bernt Bremdal
Smart Innovation Østfold, Halden, Norway
•Energy Market - SESP acts as retailer and incentivizes consumption of local energy
INTRODUCTION
•Proliferation of distributed/renewable energy sources and batteries
•Energy cooperatives and local markets
•New market operator role – Smart energy service provider (SESP)
•Manages neighborhood community and local market for
energy, flexibility and services
•Participates in wholesale energy markets to supplement local
operations
•Operates integrated ICT trading platform
LOCAL MARKET DESIGN
Market agent
(power plant)
LOCAL
MARKET
SESP coordinates the local
Local market
participant
(producer)
Bid
Ask
Market agent
(power plant)
Retailer
Bid
Ask/bid
Local market
participant
(consumer)
Market agent
(retailer)
market
Ask/bid
Other
services
market
Ask
Market agent
(retailer)
•Local energy market algorithm results in the formation of
daily Energy Plan
•Flexibility Market – SESP acts as an aggregator with the aim of:
- Catering to DSO requests
- Compensating local deviations
- Bidding in balancing markets
Bid
WHOLESALE
MARKET
Ask
Local market participant
(other service provider)
Bid
Ask/bid
Ask/bid
Local market
participant
(prosumer)
Ask/bid
•Complex interactions between SESP and market players (prosumers, consumers, DSO, TSO) enforced by means of contracts
Attribute
Max load per activation
Devices controlled
Specification
Example
number
1,5kW
{boiler|heated floor|heat
Heated floor, boiler
•Local flexibility market algorithm results in the formation of
daily and hourly Flexibility Plan and Flexibility Reserve
pump|lights|heaters|battery}
Min or max temperature
Max ramp-­up temperature
{temp in C room or boiler}
15C
Max temperature if room needs to be 22C
thermally charged prior to disconnection
Days of activations
Calendar days
Weekdays
Permitted interval
{hours | DSO signal}
6:00 – 8:00
Number of hours
2,5 Percentage deviation of requested load +/-­ 0,5%
Max allowed activation time
Tolerance
shedding per activation
Strike price
NOK exempt VAT per hour activated
100
Activation fee
NOK exempt VAT per hour activated
45
LOCAL MARKET OPERATIONS
•Guiding principle for SESP operations
•SESP aims for optimal market operations
CONCLUSION
•Design and operational development of local energy and flexibility markets
•Technical and functional specifications for market and control
cloud for ICT platform
The EMPOWER project has received funding from the European Union’s Horizon 2020 Research and Innovation programme under
Grant Agreement No 646476.
SET PLAN 2016 poster session