Periodic Reporting for period 2 - NEON (Next-Generation Integrated Energy Services fOr Citizen Energy CommuNities)
Periodo di rendicontazione: 2022-12-01 al 2024-05-31
We are all witnesses of increased energy consumption and power grid operation vulnerability as contemporary problems worldwide. The large intermittent power flows from renewables put a strain on the power grid, thus making it more challenging to ensure that electricity supply matches demand. For solving such problems, we are in a need for effective energy service concepts, capable of enabling the energy efficiency and flexibility resources at the demand side, which is still largely untapped. To fully exploit the energy efficiency concepts already available at the market, and unlock the flexibility potential under demand response services, it is necessary to ensure cutting-edge control capabilities across building systems and energy assets in an integrative manner. For improved viability of the service offer, it is necessary to enable the cross-sectoral business models that deliver benefits along the energy value chain. The centralised approach traditionally followed in energy systems becomes impractical in this regard, due to lack of scalability, privacy and capability of dealing with the multi-actor aspect of the problem. This calls for new energy services and business concepts to ensure effective integration of this locked efficiency and flexibility at demand-side into the power system. While building on results of recently (or soon to be) concluded EU projects, NEON aims to undertake coordination and support activities to advance the leveraging technologies and concepts in order to deliver the next-generation integrated energy services for communities, either as single or multiple buildings, targeted to enhance the quality of life of European citizens, while improving the performance of energy system at the same time. In this endeavour, NEON will exploit building energy efficiency, renewable energy generation and storage, and demand flexibility to increase energy savings, reduce CO2 emissions, and provide cost savings across sectors. For such services to become a reality, NEON intends to engage grid stakeholders, service providers and final consumers to establish, in a co-creation process, the cross-sectoral arrangements and underlying service concepts. Under the context introduced by Directive (EU) 2019/944, the concept of Citizen Energy Communities (CECs) will be leveraged to set the legal and business foundations to enable faster uptake of the proposed services, and facilitate European communities, both residential and non-residential, in becoming energy-efficient.
During NEON’s inaugural year, the consortium analyzed available components and services, aligning them with SGAM’s interoperability layers: Business (applications/dashboards), Function (components and services), Information (data exchange), Communication (information exchange protocols), and Component (physical components distribution).
The partners assessed the regulatory, legal, and financial landscape at European and national levels, influencing NEON’s core activities. They evaluated financing and contracting mechanisms for integrated energy services in Citizen Energy Communities (CECs), leading to viable instruments and KPIs to assess future energy community success.
A thorough review of the European and national (Italy, France, Spain) regulatory frameworks concerning energy efficiency and integrated services was conducted. Post an in-depth analysis request by the Project Officer, the team evaluated financing schemes, financial and technical barriers, and existing Energy Performance Contracting (EPC) and Pay for Performance (P4P) schemes. Discrepancies have been identified between energy community needs and standard contracting models, devising a methodology with guidelines for community-level contracting scheme implementation. Additionally, the workflow included desk analysis and shared experiences to identify financial structures minimizing business risk and promoting the economic viability of renewable energy communities, focusing on financial strategies supporting energy efficiency, renewable sources, and digital innovation.
NEON’s project development included using key services like load and PV production forecasts, forming the project’s backbone. A digital control algorithm was then created to cut energy use while maintaining comfort in buildings. An optimized energy dispatch for community-level to enhance asset scheduling and a demand response (DR) flexibility service were also developed. CECs were shown to provide not just energy services but also comfort, well-being, and security.
An open marketplace platform using blockchain technology was set up to enable decentralized energy or flexibility exchange amon CECs members and stakeholders (Such as DSOs), ensuring data security and transparency. It features performance measurement and verification via smart contracts for automated settlement and service remuneration. An incentivized ranking system rewards community members for energy saving incentives.
Social and economic impacts and expectations of CECs were assessed through surveys, interviews, and workshops, with relevant KPIs used to quantify energetic and economic impacts from pilot data. Challenges and best practices for CECs were identified, covering legal, regulatory, administrative, and financial aspects.
For exploitation and dissemination, NEON was featured at 9 conferences and 7 workshops, providing opportunities to present project outcomes and promote the concept of CECs. Five scientific papers were published and disseminated through social networks or conferences. and project findings were shared at a CINEA-organized building clustering meeting, fostering exchange with related projects.
The partners assessed the regulatory, legal, and financial landscape at European and national levels, influencing NEON’s core activities. They evaluated financing and contracting mechanisms for integrated energy services in Citizen Energy Communities (CECs), leading to viable instruments and KPIs to assess future energy community success.
A thorough review of the European and national (Italy, France, Spain) regulatory frameworks concerning energy efficiency and integrated services was conducted. Post an in-depth analysis request by the Project Officer, the team evaluated financing schemes, financial and technical barriers, and existing Energy Performance Contracting (EPC) and Pay for Performance (P4P) schemes. Discrepancies have been identified between energy community needs and standard contracting models, devising a methodology with guidelines for community-level contracting scheme implementation. Additionally, the workflow included desk analysis and shared experiences to identify financial structures minimizing business risk and promoting the economic viability of renewable energy communities, focusing on financial strategies supporting energy efficiency, renewable sources, and digital innovation.
NEON’s project development included using key services like load and PV production forecasts, forming the project’s backbone. A digital control algorithm was then created to cut energy use while maintaining comfort in buildings. An optimized energy dispatch for community-level to enhance asset scheduling and a demand response (DR) flexibility service were also developed. CECs were shown to provide not just energy services but also comfort, well-being, and security.
An open marketplace platform using blockchain technology was set up to enable decentralized energy or flexibility exchange amon CECs members and stakeholders (Such as DSOs), ensuring data security and transparency. It features performance measurement and verification via smart contracts for automated settlement and service remuneration. An incentivized ranking system rewards community members for energy saving incentives.
Social and economic impacts and expectations of CECs were assessed through surveys, interviews, and workshops, with relevant KPIs used to quantify energetic and economic impacts from pilot data. Challenges and best practices for CECs were identified, covering legal, regulatory, administrative, and financial aspects.
For exploitation and dissemination, NEON was featured at 9 conferences and 7 workshops, providing opportunities to present project outcomes and promote the concept of CECs. Five scientific papers were published and disseminated through social networks or conferences. and project findings were shared at a CINEA-organized building clustering meeting, fostering exchange with related projects.
Deliverable 2.2 of the NEON project outlines optimal contracting models for CECs, suitable for complex multi-actor scenarios. It includes contracts between service providers and consumers, and integrates performance schemes for both parties, enhancing EPC and P4P models. Tailored to each CEC’s needs, these models aim to boost energy efficiency across NEON’s pilot sites. Innovative strategies like combining asset dispatch optimization and electric vehicle storage management with Demand Response have been tested and approved in pilot implementations.
NEON integrates services that offer energy and non-energy benefits, focusing on user engagement and maintaining comfort, health and safety standards for building occupants. Automated systems like thermal valves and HVAC, along with user-driven adjustments, contribute to these benefits. NEON’s open marketplace platform, adhering to the ‘user in the loop’ philosophy, enables secure energy transactions, providing transparency in CECs.
For CEC members, these services mean reduced costs and contribute to broader goals like energy conservation and greenhouse gas emission reduction. The project’s pilot sites saved 0.49 GWh of energy in a year, cutting 135 tonnes of CO2 emissions, and spurred €1.3 million in investments. Engaging citizens boosts energy literacy and sustainable practices. Promoting flexibility in CECs aids TSOs towards smoother energy transition.
NEON integrates services that offer energy and non-energy benefits, focusing on user engagement and maintaining comfort, health and safety standards for building occupants. Automated systems like thermal valves and HVAC, along with user-driven adjustments, contribute to these benefits. NEON’s open marketplace platform, adhering to the ‘user in the loop’ philosophy, enables secure energy transactions, providing transparency in CECs.
For CEC members, these services mean reduced costs and contribute to broader goals like energy conservation and greenhouse gas emission reduction. The project’s pilot sites saved 0.49 GWh of energy in a year, cutting 135 tonnes of CO2 emissions, and spurred €1.3 million in investments. Engaging citizens boosts energy literacy and sustainable practices. Promoting flexibility in CECs aids TSOs towards smoother energy transition.