An ICT cost comparison of different market structures for distributed ancillary services

Pirkko Kuusela, Pekka Koponen, Han Xu, Ivana Kockar

    Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

    Abstract

    Future energy ecosystems need new market structures and interactions between TSO and DSOs, in order to realise distributed ancillary services. This paper estimates and compares ICT costs of several TSO-DSO coordination and market aggangements proposed in the SmartNet project.
    A hybrid cost estimation methodology, which utilizes constructive cost model methodology, expert estimates, a national DSO regulation model, and implementation of a simulator, is employed to estimate the development costs of aggregation and market clearing systems needed to realise the market schemes. ICT costs of different arrangements turn out to be at the same level and they are minor in comparison to energy-related costs.
    However, depending on the overall design of the markets for distributed flexibility, aggregators may have the largest ICT costs and investment needs.
    Original languageEnglish
    Title of host publication25th International Conference on Electricity Distribution
    Subtitle of host publicationCIRED 2019
    PublisherAIM - Association des Ingénieurs de Montefiore
    Number of pages5
    ISBN (Electronic)978-2-9602415-0-1
    Publication statusPublished - 3 Jun 2019
    MoE publication typeA4 Article in a conference publication
    Event25th International Conference on Electricity Distribution - Madrid, Spain
    Duration: 3 Jun 20196 Jun 2019
    http://www.cired2019.org/

    Publication series

    SeriesCIRED: Conference Proceedings
    ISSN2032-9644

    Conference

    Conference25th International Conference on Electricity Distribution
    Abbreviated titleCIRED 2019
    CountrySpain
    CityMadrid
    Period3/06/196/06/19
    Internet address

    Fingerprint

    Costs
    Market structure
    Ancillary services
    Cost comparison
    Methodology
    Energy
    New markets
    Ecosystem
    Cost estimation
    Market clearing
    Cost model
    Market interaction

    Keywords

    • ICT cost
    • energy markets
    • ancillary services
    • distributed generation
    • transmission system operator
    • distribution system operator

    Cite this

    Kuusela, P., Koponen, P., Xu, H., & Kockar, I. (2019). An ICT cost comparison of different market structures for distributed ancillary services. In 25th International Conference on Electricity Distribution: CIRED 2019 [827] AIM - Association des Ingénieurs de Montefiore. CIRED: Conference Proceedings
    Kuusela, Pirkko ; Koponen, Pekka ; Xu, Han ; Kockar, Ivana. / An ICT cost comparison of different market structures for distributed ancillary services. 25th International Conference on Electricity Distribution: CIRED 2019. AIM - Association des Ingénieurs de Montefiore, 2019. (CIRED: Conference Proceedings).
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    title = "An ICT cost comparison of different market structures for distributed ancillary services",
    abstract = "Future energy ecosystems need new market structures and interactions between TSO and DSOs, in order to realise distributed ancillary services. This paper estimates and compares ICT costs of several TSO-DSO coordination and market aggangements proposed in the SmartNet project. A hybrid cost estimation methodology, which utilizes constructive cost model methodology, expert estimates, a national DSO regulation model, and implementation of a simulator, is employed to estimate the development costs of aggregation and market clearing systems needed to realise the market schemes. ICT costs of different arrangements turn out to be at the same level and they are minor in comparison to energy-related costs. However, depending on the overall design of the markets for distributed flexibility, aggregators may have the largest ICT costs and investment needs.",
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    Kuusela, P, Koponen, P, Xu, H & Kockar, I 2019, An ICT cost comparison of different market structures for distributed ancillary services. in 25th International Conference on Electricity Distribution: CIRED 2019., 827, AIM - Association des Ingénieurs de Montefiore, CIRED: Conference Proceedings, 25th International Conference on Electricity Distribution, Madrid, Spain, 3/06/19.

    An ICT cost comparison of different market structures for distributed ancillary services. / Kuusela, Pirkko; Koponen, Pekka; Xu, Han; Kockar, Ivana.

    25th International Conference on Electricity Distribution: CIRED 2019. AIM - Association des Ingénieurs de Montefiore, 2019. 827 (CIRED: Conference Proceedings).

    Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

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    N2 - Future energy ecosystems need new market structures and interactions between TSO and DSOs, in order to realise distributed ancillary services. This paper estimates and compares ICT costs of several TSO-DSO coordination and market aggangements proposed in the SmartNet project. A hybrid cost estimation methodology, which utilizes constructive cost model methodology, expert estimates, a national DSO regulation model, and implementation of a simulator, is employed to estimate the development costs of aggregation and market clearing systems needed to realise the market schemes. ICT costs of different arrangements turn out to be at the same level and they are minor in comparison to energy-related costs. However, depending on the overall design of the markets for distributed flexibility, aggregators may have the largest ICT costs and investment needs.

    AB - Future energy ecosystems need new market structures and interactions between TSO and DSOs, in order to realise distributed ancillary services. This paper estimates and compares ICT costs of several TSO-DSO coordination and market aggangements proposed in the SmartNet project. A hybrid cost estimation methodology, which utilizes constructive cost model methodology, expert estimates, a national DSO regulation model, and implementation of a simulator, is employed to estimate the development costs of aggregation and market clearing systems needed to realise the market schemes. ICT costs of different arrangements turn out to be at the same level and they are minor in comparison to energy-related costs. However, depending on the overall design of the markets for distributed flexibility, aggregators may have the largest ICT costs and investment needs.

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    KW - energy markets

    KW - ancillary services

    KW - distributed generation

    KW - transmission system operator

    KW - distribution system operator

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    Kuusela P, Koponen P, Xu H, Kockar I. An ICT cost comparison of different market structures for distributed ancillary services. In 25th International Conference on Electricity Distribution: CIRED 2019. AIM - Association des Ingénieurs de Montefiore. 2019. 827. (CIRED: Conference Proceedings).