Market solutions for the integration of Active Demand-based services in the ADDRESS project

Research output: Contribution to conferenceConference articleScientific

Abstract

The European ADDRESS project aims at a market based integration of Active Demand (AD) into the power system in order to the provide services to the different power system participants, especially the distribution and transmission system operators. The ADDRESS project focuses mainly on the technical aspects of such AD integration, but additional research was carried out to analyse the existing market mechanisms and the required adaptations and evolutions. The results of this market mechanisms analysis is presented in this paper. The paper browses the existing markets that are relevant for the AD solutions proposed by ADDRESS and addresses the barriers to the integration of AD, mainly the minimum size of a bid or offer and the costs for participating. The actor who gathers AD in order to form products to offer them to the other actors, referred to as the aggregator, would need to collect a large number of consumers' flexibility in order to overcome those obstacles. Two possibilities are presented to facilitate the participation of AD. One is a regulatory change allowing smaller resources to participate. The other one is the creation of a flexibility market pooling the capacities from various flexible resources. The "pay-back" effect, which occurs at the moment that the flexible resources return to their normal state, is an additional risk for the resource operator. The paper proposes a new bid type including both the flexibility and its "pay-back" effect. The paper presents existing mechanisms to deal with grid constraints at the transmission level, such as capacity auctions and the re-dispatching in case of other network problems. Possibilities for the distribution system operator (DSO) to adapt them to the distribution level are proposed. The DSO could set up bilateral contracts, calls for tenders or an open market to deal with local constraints. Bilateral contracts would be the first option; other potential solutions could become available as the amount of local resources increases. In cases where these market based mechanisms are not sufficient, the DSO may need to curtail the use of some resources, particularly the flexible ones. The paper proposes a simple curtailment, without any form of compensation for the owners of resources and a redispatching option inspired from the transmission system level.
Original languageEnglish
Publication statusPublished - 2012
MoE publication typeNot Eligible
Event44th International Conference on large high voltage electric systems 2012 - Paris, France
Duration: 26 Aug 201231 Aug 2012

Conference

Conference44th International Conference on large high voltage electric systems 2012
CountryFrance
CityParis
Period26/08/1231/08/12

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Mathematical operators
Costs
Compensation and Redress

Keywords

  • active demand
  • ADDRESS
  • congestion
  • demand response
  • energy market

Cite this

Evens, C., & Six, D. (2012). Market solutions for the integration of Active Demand-based services in the ADDRESS project. Paper presented at 44th International Conference on large high voltage electric systems 2012, Paris, France.
Evens, Corentin ; Six, D. / Market solutions for the integration of Active Demand-based services in the ADDRESS project. Paper presented at 44th International Conference on large high voltage electric systems 2012, Paris, France.
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author = "Corentin Evens and D. Six",
year = "2012",
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note = "44th International Conference on large high voltage electric systems 2012 ; Conference date: 26-08-2012 Through 31-08-2012",

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Evens, C & Six, D 2012, 'Market solutions for the integration of Active Demand-based services in the ADDRESS project', Paper presented at 44th International Conference on large high voltage electric systems 2012, Paris, France, 26/08/12 - 31/08/12.

Market solutions for the integration of Active Demand-based services in the ADDRESS project. / Evens, Corentin; Six, D.

2012. Paper presented at 44th International Conference on large high voltage electric systems 2012, Paris, France.

Research output: Contribution to conferenceConference articleScientific

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AU - Evens, Corentin

AU - Six, D.

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AB - The European ADDRESS project aims at a market based integration of Active Demand (AD) into the power system in order to the provide services to the different power system participants, especially the distribution and transmission system operators. The ADDRESS project focuses mainly on the technical aspects of such AD integration, but additional research was carried out to analyse the existing market mechanisms and the required adaptations and evolutions. The results of this market mechanisms analysis is presented in this paper. The paper browses the existing markets that are relevant for the AD solutions proposed by ADDRESS and addresses the barriers to the integration of AD, mainly the minimum size of a bid or offer and the costs for participating. The actor who gathers AD in order to form products to offer them to the other actors, referred to as the aggregator, would need to collect a large number of consumers' flexibility in order to overcome those obstacles. Two possibilities are presented to facilitate the participation of AD. One is a regulatory change allowing smaller resources to participate. The other one is the creation of a flexibility market pooling the capacities from various flexible resources. The "pay-back" effect, which occurs at the moment that the flexible resources return to their normal state, is an additional risk for the resource operator. The paper proposes a new bid type including both the flexibility and its "pay-back" effect. The paper presents existing mechanisms to deal with grid constraints at the transmission level, such as capacity auctions and the re-dispatching in case of other network problems. Possibilities for the distribution system operator (DSO) to adapt them to the distribution level are proposed. The DSO could set up bilateral contracts, calls for tenders or an open market to deal with local constraints. Bilateral contracts would be the first option; other potential solutions could become available as the amount of local resources increases. In cases where these market based mechanisms are not sufficient, the DSO may need to curtail the use of some resources, particularly the flexible ones. The paper proposes a simple curtailment, without any form of compensation for the owners of resources and a redispatching option inspired from the transmission system level.

KW - active demand

KW - ADDRESS

KW - congestion

KW - demand response

KW - energy market

M3 - Conference article

ER -

Evens C, Six D. Market solutions for the integration of Active Demand-based services in the ADDRESS project. 2012. Paper presented at 44th International Conference on large high voltage electric systems 2012, Paris, France.