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Intelligent Trading Interface

Periodic Reporting for period 1 - ITI (Intelligent Trading Interface)

Reporting period: 2015-09-01 to 2016-02-29

The challenges of modernizing the electricity grids in Europe lie in enabling an increased flexibility of the European power system, efficiently providing increased transfer capacity and enabling an active participation of users and new market actors.

Demand response enables end users to participate actively in energy markets and profit from optimal price conditions, making the grid (heat, cold, electricity) more efficient and contributing to the integration of renewable energy sources. At the same time the Energy Efficiency Directive adopted in 2012 (Directive 2012/27/EU of the European parliament and of the council of 25 October 2012 on Energy Efficiency) contains provisions to encourage market actors to facilitate demand response.

Based on INEA’s KIBERnet Virtual Power Plant solution, market response and market analyses, the decision was made to develop a standalone interface module communicating between prosumer and Virtual Power Plant (VPP) control center. Intelligent Trading Interface (ITI) is a core solution that enables every prosumer to become a part of Demand Side Management programe and take advantage of its available flexibility in electrical energy consumption and production. This compact HW&SW solution, based on integrated advanced electricity trading algorithms shall be a part of larger Virtual Power Plant system and installed on top of existing prosumer’s Energy Management System.

General objectives for feasibility study were:
- to evaluate technical analyses of existing VPP and EMS solutions in the context of emerging new electricity market and its new stakeholders roles
- to investigate the market potential for ITI and
- to identify and evaluate relevant DSM demonstration projects intended to promote DSM solutions on the market
Regarding the predefined scopes of the feasibility study we managed to go beyond only the evaluation of the business innovation for the ITI product itself.

Due to the fact that our product is to be delivered on emerging smart grid (Explicit Demand) market, the critical issue discussed in this feasibility study is where the market is actually going and what kind of products and services it needs (consider the ITI present and potential new role and functionalities) to take advantage of the benefits of production and consumption flexibility on the side of prosumers.

In this frame we positioned ITI on the Smart Grid Architecture Model map (SGAM) what enabled us not only to define value propositions for the customers, considering a user involvement strategy, but also to develop a concrete business strategy, business plan and market potential for ITI.

The report covers as well patent survey on DSM technologies development and aspects of ITI technology implemented to enable ITI acting as an active and autonomous component, optimizing the costs of energy consumption, participating in the energy trade offers and stabilizing the energy systems.

SWOT analyses performed revealed critical further steps for bringing ITI to the market.

In this frame, with cooperation of potential stakeholders, a detailed ITI demonstration plan was developed.
Based on SWOT analyses performed for bringing ITI to the market on one side and analysing prosumers flexibility potential on European market on the other side, the expected potential impact of implementation of ITI in the smart grid architecture concept was identified.

In the first place ITI, as interface between prosumers flexibility potential and direct DSM beneficiary (DSO, BRP for example), empowers end users to become “DSM ready prosumers”. This functionality directly enables end users to participate in DSM electricity market.

ITI, when used as part of smart grid system architecture with its automated trading process and ability to be integrated with existing prosumer energy management infrastructure, will also explicitly increase the share of available flexibility to be transferred to the electricity market.

Assuming an appropriate marketing strategy that will in the first place target only the prosumers with the sufficient value of flexibility the major potential for ITI implementation is planned to be in the small and medium industries sector. On the other hand ITI implementation increases actual usage of available flexibility potential on prosumer site.