H2020 FLEXGRID project: Promo Video
H2020 FLEXGRID’s vision (https://flexgrid-project.eu/) is to bridge the gap between reliable grid operation and flexibility market efficiency by developing advanced mathematical models and algorithms that enable a two-way cooperation: Market-aware distribution grid operation and Network-aware market operation.
The idea is simple: to build an online flexibility marketplace where flexibility buyers can easily buy services from flexibility suppliers!
So who needs this flexibility? Who are the buyers?
FlexBuyers include:
i) Distribution System Operators (DSO), who can use flexibility to deal with their local network problems,
ii) The Transmission System Operator (TSO), who can procure ancillary services from flexibility assets at the distribution level,
iii) And Balance Responsible Parties (BRP) who are looking to balance their portfolio
And who can supply the flexibility?
FlexSuppliers can be:
i) energy retailers that can leverage flexibility from flexible energy assets
ii) Renewable energy suppliers who own storage and dispatchable assets
iii) Independent aggregator companies that have contracts with a portfolio of energy prosumers
OK, so how do these flexibility buyers and suppliers participate in the online marketplace?
At the FlexDemand side, FlexBuyers must formulate FlexRequests, while at the FlexSupply side, FlexSuppliers must formulate FlexOffers. Then, both sides submit their bids in the automated trading platform which finds the optimal FlexDemand and FlexSupply matches.
That sounds nice, but is it easy to dynamically and automatically create FlexRequests and FlexOffers?
No, but for this we propose advanced mathematical models and algorithms integrated in 3 dedicated software toolkits tailored to the different stakeholder needs.
First, a Flexibility Market Clearing Toolkit allows the Flexibility Market Operator to clear the flexibility market while considering the distribution network’s constraints. This toolkit also gives a DSO the ability to identify needs for flexibility at a node level in order to submit a FlexRequest.
Second a FlexSupplier toolkit is provided to FlexSuppliers for them to help them optimize their flexible assets’ operation to reduce their operational costs and benefit from participation in different energy markets. It also improves investment decision making by optimizing the siting of new storage assets.
Finally, for FlexSuppliers that aggregate a portfolio of prosumer assets with flex contracts, we develop an Automated Flexibility Aggregation Toolkit. This enables these aggregators to optimally manage a FlexRequest from a buyer or dynamically propose a real-time FlexOffer to the marketplace. It also helps identify more beneficial Flex contracts for prosumers.
That seems helpful, but one may wonder: Aren’t there conflicting interests among all these market stakeholders? Who may decide about the exact policy and regulatory aspects of the flexibility marketplace?
There is “no one-size-fits-all solution”. FLEXGRID evaluates several energy market architectures and ways that the proposed online flexibility marketplace can align with current and future energy markets. Optimal trade-off analysis will take place to find a balance between grid- and market-related performance improvements.