Periodic Reporting for period 3 - DOMINOES (Smart Distribution Grid: a Market Driven Approach for the Next Generation of Advanced Operation Models and Services)
Reporting period: 2020-04-01 to 2021-06-30
As a conclusion from the DOMINOES project, the project main idea of the scalable local energy market solution is relevant for the future. The developed ICT architecture and market design, tools, services were validated in simulation environment and in three validation sites and support the local market concept. The regulation environment is driving in the direction of involvement and engagement of end-customers and an increased role of DSOs in enabling flexibility provision. Regulation of the energy communities might be a key step for the local markets.
DOMINOES proposed six business models for demand response and virtual power plant (VPP) operations, tools and technology validation for demand response services, services based on smart metering, methods to utilize VPPs and microgrids as active balancing assets and secure data handling procedures in local markets. Business models were evaluated from the cost and benefit perspectives and with SWOT-analysis and validated in the demonstration activities.
The third reporting period focused on the validation activities of the project use cases and business models. These results were validated besides virtual validation in three validation sites in Portugal and Finland: A DSO environment in Évora (Portugal), a VPP site distributed across bank branches in Portugal and a LVDC microgrid site and microgrid research environment in Lappeenranta (Finland). Based on the validation and evaluation of the business models, the proposed local market concept is relevant for the future but there are many uncertainties. Regulation, end-customer-acceptance and capabilities in large scale, and future market prices are some uncertainty issues regarding the pace of the change.
Key aspects of the local market concept:
1. Market model
DOMINOES developed a local market model which is compatible, enables sharing of bottom-up flexibility, incentivises the end-customer engagement and promotes active prosumer role, considers accountability for flexibility (local balance settlement) and supports emerging energy market roles
2. Services
DOMINOES developed models and services for forecasting, aggregation, clustering and consumer segmentation
3. IT architecture
DOMINOES developed a modular IT reference architecture with modules for wholesale market, local market, simulation & optimization and analysis & forecasting.
Cyber security challenges in the local market framework were identified and new solutions developed for assessing threats and detecting anomalies
4. Information exchange
DOMINOES developed information exchange content used in local markets and for connecting towards overarching markets, defined stakeholder information needs and interfaces to DSOs & retailers
5. End-customer tools
DOMINOES developed a mobile app which enables end-customers to interact with the local market
6. Regulation
DOMINOES has evaluated the regulatory framework around local markets, including aggregation, role of energy communities, DSO regulation and the role in the procurement of flexibility and impacts of Clean Energy Package.
The results have been disseminated in various scientific publications (journals, conferences, thesis) and scientific and industrial events and in social media channels. DOMINOES project has itself organized public events.
The use of project results will continue in research and teaching. Project results will be further developed in on-going and new R&D projects. Industrial partners have plans to develop validated tools and services after the project for commercial operation. All the partners identified key exploitable results and how to exploit them after the project. Services and products regarding local market trading have a high exploitation potential.
The local energy market architecture and combined tools and services will help achieving the European Commission’s key energy-related targets by increasing the participation of consumers with self-consumption of PV and DR on energy markets thus reducing the need for carbon emitting controllable generation and by enabling the decrease of peak loads in distribution grids. Furthermore, the DOMINOES project contributed to the ongoing policy development in the field the design of the internal electricity market, retail market and ongoing discussions on self-consumption.
During the DOMINOES project European Commission published the Clean Energy Package which has many reflections to the scope of DOMINOES project. Energy communities are in a key role for the local markets. Renumeration mechanisms and regulation of DSOs should consider the use of flexibility for congestion management and for reliability and quality purposes. DOMINOES has created models and services for this future energy market environment.
The impact of the DOMINOES project solutions and interconnected local market concept can be significant for the energy system. By enabling active participation of the distributed energy resources, they become a valuable asset in the whole energy system, not just locally. DSO’s will have improved tools to host an increasing number of distributed energy resources.