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MARKET ENABLING INTERFACE TO UNLOCK FLEXIBILITY SOLUTIONS FOR COST-EFFECTIVE MANAGEMENT OF SMARTER DISTRIBUTION GRIDS

Periodic Reporting for period 1 - EUniversal (MARKET ENABLING INTERFACE TO UNLOCK FLEXIBILITY SOLUTIONS FOR COST-EFFECTIVE MANAGEMENT OF SMARTER DISTRIBUTION GRIDS)

Reporting period: 2020-02-01 to 2021-07-31

1. SUMMARY
The project consortium will develop “EUniversal Project”. The primary goal is to implement the Universal Market Enabling Interface (UMEI) concept by bringing forward a universal, open, adaptable and modular approach to interlink active system management with electricity markets and foster the provision of flexibility services. A set of market-oriented flexibility services from DERs will be implemented to answer DSOs’ needs in a cost-effectively way, supporting the energy transition. Three different DEMO sites, located in Portugal, Germany and Poland, will be run to validate the project solutions to show the universality of the concept and to support the roadmap for their further deployment and dissemination.
The project started on February 2020 and will last 42 months.

2. PROJECT SCOPE
OBJECTIVES
a) Create and demonstrate the UMEI to link smart grids to flexibility markets and to coordinate the actions with commercial parties; b) Increase grid flexibility through the development of new flexibility services and tools in a multi-energy system scenario; c) Incentivise market flexibility by defining the appropriate market mechanisms to optimise the procurement and activation of new flexibility services for grid operation; d) Optimise network planning and operation based on available flexibility both from the grid and market-based services; e) Reduce technical restrictions in the operation of the grid by improving control and observability of the distribution system and further reliance on flexibility services; f) Increase the resilience of the grids by implementing adaptive/self-healing schemes for distribution grids, notably in the advent of extreme climate events; g) Establish new criteria for network investment and for operational planning both in normal and emergency operation; h) Establish the main pillars of business model archetypes for smart grid solutions and for the market-driven flexibility activation considering potential users, value proposition, value chain and profit model; i) Reduce the gap between future scenarios in which the EUniversal context is expected to operate and current situation by defining a long-term vision able to clarify the future operating context; j) Enable collaborative engagement of the EUniversal ecosystem assessing the interaction between market agents, DSOs and TSOs; k) Guarantee replicability and scalability of EUniversal solutions by analysing technical and non-technical boundaries, including regulation, and to adapt to the use cases, KPIs and the future scenarios.

METHODOLOGY
WP1 will set a common framework in terms of policy, regulation, markets, product /services, technologies and future vision under DEMOs. WP2-5 will be part of the development phase of the project. Demonstrating WP7-8-9 will implement and validate the different services and tools in 3 DEMOs (PT, DE, PL). WP6 will be coordinate the different DEMOs carrying out the Demo Harmonisation, Monitoring, and Results Assessment. WP10 will provide the basis to ensure the project results exploitation. As cross-cutting WPs, WP11 will ensure dissemination and communication including BRIDGE initiative interaction.

INNOVATION
UMEI: EUniversal key innovation relates to the synergies between system operators and the market actors supported by the integration of system operation with flexibility market platforms through a common modular, adaptable and future-proof interface (UMEI) which will facilitate the flexibility procurement and activation, and notably the consumer engagement.
Smart grid solutions: Focus on i) novel operation and planning strategies, ii) observability and control, and iii) resilience.
3. PROJECT TECHNICAL DESCRIPTION & IMPLEMENTATION

MAIN MILESTONES
WP
3 Flexibility enabling technologies DSO toolbox M9
1 Future vision for flexible grids and well-functioning seamless electricity markets M18
NEXT
3 System-level assessment framework for the quantification of available flexibility for enabling new grid services M24
2 UMEI interface development M27
5 Identification and assessment of innovative market mechanisms for DSO grid services M30
4 Smart grid solutions for a flexible and resilient distribution system M32
6-9 Demonstration of UMEI concept in the management of market driven flexibility services in a LV and MV grid M42
10 CBA, regulatory analysis, replicability and business model M42
4. EXPECTED RESULTS
a) Flexibility Toolbox (M9), b) Business Use Cases to unlock flexibility service provision (M15), c) Challenges and opportunities for electricity grids and markets (M18), d) UMEI API functional specification of DSO Interface for standardized market platforms Interaction (M18), e) Tools to improve observability, control and operation of distribution networks in real‐time (M24), f) Regulatory recommendations (M24), g) Evaluation of market mechanisms from a multi-stakeholder perspective (M30), h)Scalability and Replicability analysis of the EUniversal solutions (M36), i) Demonstration results assessment and conclusions (M42), j) Roadmap – strategy for the further deployment of the EUniversal solutions (M42)


5. IMPACT
Replicability: standardised flexibility services for distribution grids and interaction with transmission grids through UMEI, in different regulatory/ grid contexts
KPI: 1) Increased RES / DER hosting capacity > 50%; 2) Increase storage solutions penetration; 3) 60% of SAIDI / SAIFI improvement using novel methodology for including grid resilience metric in planning and operation of the distribution grid; 4) >6 standardised flexibility services for distribution grids provided by DER, storage, microgrids or energy communities, through UMEI, with different regulatory/ grid contexts; 5) Distribution grid investment avoidance or deferral by the use of flexibility (>30%); 6) Power of flexibility activated by energy players; 7) Reinforcement of Distribution Grid Resilience, including in Extreme Events (40%).
Market Transformation: Enabling technologies; Coordination between DSOs and market players; agnostic integration of market platforms.
System planning and operation: distribution grid investment avoidance/deferral due to the use of flexibility; new data-driven tools to pre-identify technical problems and define the most adequate control actions to accommodate DERs and EVs; Resilience-driven planning tools to allow for the reinforcement of Distribution grid Resilience and flexibility to Extreme Events; SAIDI / SAIFI improvement using novel methodology including predictive grid management tools for LV/MV networks.
Socio-economics: Empowering energy consumers through flexibility, contribution for the future design of dynamic network tariffs, peer-to peer enablement;
Environment: Contribuition for the transition to a low-carbon society
Policy impacts: Clean Energy Package goals

• Consumers active participation
o through consumers’ access to the energy markets
o active participation in the energy transition

• Evolving roles of DSOs
o As Active System Managers
o As Market facilitators

• Contribution to the design of incentives (dynamic tariffs et. Al.) for DSOs to procure flexibility from network users.

The development of the UMEI will allow for a future standardization of an interface capable of easily integrating, in an open and safe environment, DSOs, market agents as well as TSOs platforms. This will allow for an effective market enablement, resulting in a futureproof interoperable ecosystem
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