D5.6: Trondheim Flexibility Market Deployment Report

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The deliverable D5.6: Trondheim Flexibility Market Deployment Report was submitted by ANEO and TK in September 2023 with contributions from NTNU. The executive summary of the deliverable is available below and the full deliverable is at the end for download:

“Smart energy solutions and systems deployed and demonstrated through the +CityxChange project in the European Lighthouse City (LHC) of Trondheim have proven that even extensive Renewable Energy Source (RES) inclusion is not sufficient to a) establish Positive Energy Blocks (PEBs), b) ensure an optimal local energy resource utilisation and coordination. An optimal, even efficient, coordination of “global” and local energy supply and consumption on a neighbourhood level is highly complex to perform, applicable to many cities/areas. In addition one has – also in Trondheim – experienced a too low degree of utilisation of locally available energy. Energy flexibility (user flexibility) has proven – in Trondheim – to increase the efficiency of local energy resource utilisation and stimulate a more efficient local energy coordination. Even on a European level, energy flexibility will play an important role and constituent in shaping the future of the energy sector, as it is closely aligned with the European vision of clean, affordable, and secure energy for all Europeans (the EU Energy Union, Clean Energy for all Europeans Package – CEP, and REPowerEU).

Aneo (formerly Trønderenergi, TE) has developed, deployed, and demonstrated a solution for local energy and flexibility markets in two areas in Trondheim, Sluppen and Brattøra. The market solution demonstrated is by 2023 a one-of-a-kind innovation that includes all steps and actions as in a global power market (bids, transactions, settlements, measuring, and invoicing). The local energy and flexibility market functions as a downscaled power market, where the individual assets trade energy (local production and storage) and user flexibility with each other, plus that the market trades system services with the DSO.

The two local markets involve totally 16 buildings/installations involved in energy trade, 6 at Sluppen and 10 at Brattøra. 29 individual assets are participating in the markets, 18 at Brattøra and 11 at Sluppen, where 15 (Brattøra) and 7 (Sluppen) of the assets are involved in the flexibility trading. Assets include V2G and EV chargers, E-Bus chargers, ventilation systems, heat pumps, freezing aggregates, battery storage, and snow melting systems. The market solution and local markets comprise trade of local production (PV, heat pumps, etc.), sector coupling electric-thermal sector, and user flexibility1.

The market solution is developed to perform trades at a 15 minute time resolution, but works today for practical reasons on a 60 minute time resolution. Trading is based on a set of predefined trading rules, for instance how much capacity can be pulled from a certain flexible asset or local PV system at a certain time of the day/week/year. The trading rules are included and embedded in a large series of advanced AI trading algorithms that are able to improve themselves through machine learning. The market and trading solution is based on an advanced demand – response system, including detailed weather forecasts, and it responds to price signals (spot prices and grid tax prices) in the global power market.

The market solution includes two main trading modules, called the DSO-round and the Asset-round.

DSO-round: Exclusively for DSO services, and includes all available user flexibility. This is important since the local market user flexibility is thoroughly mapped, and is highly predictable. Local PV production and possibly other unregulated power/energy is excluded from this part of the market and trades. Availability and volumes (both for bids and bid offers) are reported into the local marketplace two hours before performing the trade.

Asset-round: Comprises and involves all energy bids and bid offers to the local marketplace from buildings/assets being part of the local market. Availability and volumes (both for bids and bid offers) during the asset-round are reported into the local marketplace at least every hour, before performing the trade. Bids and bid offers can be submitted to the market and trading solution as close as 15 minutes before each hour (trade) starts.

The Asset round of +CxC LFM Brattøra has been operated for 423 days. During this time, 292 MWh of locally produced energy has been traded through 12,934 transactions, corresponding to around 52% (561 MWh) of the locally surplus energy and accounting for 39% (753 MWh) of the total energy produced within the system. Additionally, since December 2022, +CxC LFM has been incorporating flexibility participants’ capabilities, resulting in the shifting of 0.77 MW of power, which is factored into the energy trading during the Asset round. At +CxC LFM Sluppen, the LFM Asset round has been operated for 33 days. During this time, 12 MWh of energy has been produced, but no energy trades have been executed due to insufficient surplus energy available for sale.

The LFM Brattøra DSO round has been active for a total of 73 days and will continue its operation. This round has ensured the trading of 0.357 MW through 54 transactions, with the most significant reduction offered as a DSO service, amounting to 0.1 MW. This reduction represents 3.3 % of the highest theoretical peak demand of 2.95 MWh. During the coming autumn, the plan is to offer more DSO services through the LFM DSO round, aiming to achieve a minimum reduction of 0.3 MW, equivalent to a minimum 10% reduction in the highest theoretical peak demand.

The local energy market approach and solutions demonstrated in Trondheim are highly viable, even important for succeeding with the energy transition. An upscaled +CityxChange LFM may, based on experiences and outcomes from the prevailing project, contribute to increase electricity grid utilisation, and reduce tension and bottlenecks in both the distribution grid, the regional grid, and even the transmission grid; when combined with extensive local RES, and smart and efficient local (and regional) energy coordination.

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