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Smart Distribution Grid: a Market Driven Approach for the Next Generation of Advanced Operation Models and Services

Periodic Reporting for period 2 - DOMINOES (Smart Distribution Grid: a Market Driven Approach for the Next Generation of Advanced Operation Models and Services)

Reporting period: 2019-04-01 to 2020-03-31

The DOMINOES project aims to enable the discovery and development of new demand response, aggregation, grid management and peer-to-peer trading services by designing, developing and validating a transparent and scalable local energy market solution. The market can be leveraged to share local value, increase renewable energy accessibility and make better use of local grids by Distribution System Operators (DSO), Prosumers/Consumers, Energy Retailers and other key stakeholders. The project will show how DSOs can dynamically and actively manage grid balance in the emerging future where microgrids, ultra-distributed generation and energy independent communities will be prevalent. Best value will only emerge if these resources and stakeholders can be connected to both DSO activities and the centralized market mechanism. The architecture and services combined will help contribute to achieving the European Commission’s key energy-related targets. The project begun in October 2017.
Currently, the project has been running for 2,5 years and has one more year. Project has started in October of 2017.
The plan for the project is to develop a reference architecture for a scalable local energy market, where solutions are created for DSOs, aggregators, forecasting parties, other service companies, prosumers and consumers. The local market will be able to interface with other local markets set up by other operating entities, as well as the larger wholesale markets. More specifically, the project will deliver new 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. These results will be validated 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 in Lappeenranta (Finland).

Project has defined five use cases of the local market action. Namely Use case 1 Local market flexibility and energy asset management for grid value, Use case 2 Local Market Data Hub Manager and technical validation and flexibility tool, Use case 3 Local community market with flexibility and energy asset management for energy community value, Use case 4 Local community flexibility and energy asset management for retailer value ans Use case 5 Local community flexibility and energy asset management for wholesale and energy system market value.

Project has during the second reporting period focused on defining the local market model and creating tools and services towards the validation of the use cases. The second version of the local market model was delivered. DOMINOES ICT architecture has been enriched with information exchange perspectives, web and mobile interfaces for the system end-user’s and cybersecurity framework were developed.

From the demand response perspective new methods were developed and tested for load forecast, DR actual response, forecast, load and consumer profiling, consumers’ segmentation, and definition of base line. Work considered the demand response from the DSO and energy provider perspective, an also at TSO and local level.

The proposed six business models are being evaluated from the cost and benefit perspectives. Together with the local market development work it has been analysed on what kind of changes are going to be needed in the future.
The key technologies that are going to be considered range from standards in modelling smart grid use cases (SGAM, IEC 62559) and information modelling (IEC 61970, IEC 61968) to information exchange and interoperability standards (IEC 62325). In addition, technologies related to smart contracts and secure communication, such as blockchain and onion routing will be evaluated.

The key results will include a reference architecture for the local market, its validation three distinct test sites and the definition of a roadmap to market. The developed local market concept will empower prosumers to decide on the distribution of value of their energy resources while providing benefits also for the DSOs utilizing the concept. The enabling ICT component architecture, interfaces and components are going to be developed. In addition, requirements and architectures for balancing and demand response services are developed and validated. Business models enabled by a local market are defined, analysed and validated. Furthermore, requirements and procedures for secure data handling are developed, validated and integrated to the overall concept.

The research activities will include at first technical analysis and implementation of local market tools and services, and studies regarding business/market models. The first milestone of the project comes with the release of the initial reference architecture. Next, the local market architecture tools and validation framework will be set up. Then business model cost and benefit analysis will be prepared and demand response methods presented. The developed local market concept will maintain compatibility with policy development and attempt to contribute in the ongoing discussions.

The local energy market architecture and combined will help contribute in 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 aims to contribute in the ongoing policy development in the field the design of the internal electricity market, retail market and ongoing discussions on self-consumption.
Local market interaction diagram