Demo Project 10: Flexibility Market

Enable the future: Unlock the value of energy flexibility.

Vision (DP10) in a nutshell

DP10 investigates which type of actor could be in a position to sublicense Prosumer Groups (regulated by contract) and provide a continuous and competitive energy flexibility auction, which controls and frees-up congestion and energy flows and reduces the need for infrastructural reinforcement. This enables increased Demand Response (DR) penetration through strictly enforced power-matching rules and other standard operating procedures. It also enables a fairer energy market, where all prosumers can take advantage of DR and not just the large industrial organisations.

Problem addressed & specific objective

Without new smart solutions, local grids could face costly grid reinforcements in coming years. The introduction of solar production and high power demanding loads, such as charging systems for electric vehicles, will in many areas represent a challenge for the existing grid, causing damage to grid components through high power peaks and/or voltage instability and unstable energy supply. This is a typical challenge in areas where local energy production is occurring at the same time as the demand for flexibility in the grid is increasing e.g. the introduction of e-mobility hubs, real estate development etc. 

The +CityxChange project developed an integrated local microgrid balancing market, to secure power distribution and grid balance. This enabled a Local Flexibility Market allowing all prosumers and consumers, from residential building owners to retail, hotel, commercial office etc., to take part in Demand Response actions. To be successful, the implementation of the local flexibility market not only includes the installation of the technological infrastructure but also includes the adoption of new proposed regulatory rules and licences for operation. Opening this market for small scale participants lifts the current restrictions that limits these market operations to large industrial energy consumers. 

Related +CityxChange solutions

Local Flexibility Market: 

The Local Flexibility Market opens the existing flexibility market to small-scale local consumers and citizens/owners. The Local Flexibility market integrates both physical and digital infrastructure which operate as a master of the local energy system, integrating and automating the regulation of the different energy production units (positive energy blocks) and load balancing the local grid. This includes designing and installing the flexibility market operating system, integration between control system and trading platform together with the integration of the DPEB physical installations, and connecting flexibility providers. Market operations are enabled through development of a market operation system. The market operation system will balance and control the local flexibility market by applying a peer-to-peer trading platform.