Market Design for a Decentralized Integrated European Energy Transformation

Informations projet

NRGcitizens

N° de convention de subvention: 101025788

DOI

10.3030/101025788

Projet clôturé

Date de signature de la CE 26 Avril 2021

Date de début 1 Janvier 2022

Date de fin 31 Decembre 2023

Financé au titre de

• EXCELLENT SCIENCE - Marie Skłodowska-Curie Actions

Coût total

€ 207 312,00

Contribution de l’UE

€ 207 312,00

Coordonné par

COPENHAGEN BUSINESS SCHOOL
Denmark

Periodic Reporting for period 1 - NRGcitizens (Market Design for a Decentralized Integrated European Energy Transformation)

Période du rapport: 2022-01-01 au 2023-12-31

Résumé du contexte et des objectifs généraux du projet

The 'Clean Energy for all Europeans' package of the European Commission calls for higher engagement of residential electricity consumers in the energy value chain, from production and sharing to flexible and responsive demand. However, while the European legislation advances the end user of electricity as a central player in the future market, national regulations do not follow this process fast enough. The NRGcitizens project explored the engagement of consumers in the decentralised energy transformation individually via flexibility mechanisms and collectively via energy sharing communities. It had the following objectives:

• What are the advantages and disadvantages of a decentralized energy transformation from a system perspective?
• What potential does residential demand-side flexibility have for the integration of fluctuating renewable energy in an energy system?
• Which (combinations of) incentive mechanisms are suitable to coordinate communities and their different actors and technologies with the overall energy system and with the overarching policy targets?
• How can the distributional effects of proposed mechanisms be quantified using scenarios and techno-economic models?
• How can the economics of small modular reactors (SMRs) be quantified using methods from production economics and finance?

Travail effectué depuis le début du projet jusqu’à la fin de la période considérée dans le rapport et principaux résultats atteints jusqu’à présent

• Development of a qualitative framework to assess monetary and non-monetary aspects of a bottom-up and top-down deployment based on ecological, economic, and social criteria to qualitatively contrast the value of large-scale and small-scale renewable energy technologies (Exploitation: public, further R&D, internal use)
• Development of a qualitative framework to assess incentive and coordination mechanisms for energy sharing communities (Exploitation: public, further R&D, internal use)
• Development of a new methodology to include household flexibility in energy system models and implementation of this methodology in an existing modeling framework (Exploitation: public, further R&D, internal use)
• Development of a new mixed complementarity model for the simulation of energy communities (Exploitation: public, further R&D, internal use)
• Development of a new tool to create synthetic demand data for swarm grids to be used in other simulation models of energy communities like the one developed in this project (Exploitation: public, further R&D, internal use)
• Development of an energy system model (based on an existing framework) with a focus on energy sharing communities and the analysis of incentive and coordination mechanisms (Exploitation: public, further R&D, internal use)
• Development of a new production-economic model integrated with a stochastic investment simulation to forecast future costs of a technology like small modular reactors based on an established technology like conventional large-capacity nuclear reactors using scaling and learning effects and to estimate their project economics (Exploitation: public, further R&D, internal use)

Progrès au-delà de l’état des connaissances et impact potentiel prévu (y compris l’impact socio-économique et les conséquences sociétales plus larges du projet jusqu’à présent)

The NRGcitizens project provides:
• A qualitative framework to assess ecological, economic, and social aspects of a decentralized energy transformation
• A qualitative assessment of incentive and coordination mechanisms for energy sharing communities
• Quantitative methodologies and tools to estimate the potential of residential demand-side flexibility in energy systems
• Quantitative methodologies and tools to analyze the distributional effects of incentive and coordination mechanisms for energy sharing communities in an energy system
• Quantitative methodologies and tools to estimate the investment costs and project economics of small modular reactors

This progress should contribute to:
• Fostering the development of decentralized flexibility in the energy system
• Supporting the integration of fluctuating renewable energy resources into the European electricity system
• Enhancing incentive mechanisms for energy sharing communities based on their coordination with the wider system
• Ongoing policy developments in the field of the design of the European internal electricity market concerning consumer integration
• Ongoing discussions about the support and development of small modular reactors

Decentralized Energy - Symbolic Picture - Photo by Max Bender on Unsplash