Enabling a flexible future: new roles, market mechanisms and regulatory frameworks for the energy sector

Article authored by Matteo Troncia, Miguel Ángel Ruiz Hernández, Eliana Carolina Ormeño Mejía, José Pablo Chaves Ávila and Tomás Gomez San Román, from Universidad de Comillas

The power sector must evolve more efficiently and rapidly to meet current challenges, such as the uncertainty and variability in generation and demand due to the paradigm shift towards decentralized, decarbonized, and digitalized energy systems. A significant approach is to leverage the flexibility from connected resources like distributed generation, energy storage, and controllable loads, which can provide cost-effective and operational viable alternatives to traditional network reinforcement.

In this context, the BeFlexible project’s Deliverable 1.1 (D1.1) focuses on regulatory frameworks for the energy sector and market mechanisms to enable flexibility-centric services. It sets the groundwork for the project by proposing regulatory and market designs to foster flexibility deployment. The document outlines roles and responsibilities for emerging agents (e.g., aggregators, energy communities) and tools (e.g., baselining, submetering) to overcome current regulatory barriers. It also presents strategies for establishing remuneration schemes for flexibility usage and regulatory experimentation, as well as the efficient design of acquisition mechanisms for flexibility procurement.

New roles and responsibilities to enhance the overall system flexibility

In D1.1, a comprehensive analysis of regulatory frameworks for the energy sector contributes to the deployment of flexibility in the electricity sector. Among others, D1.1 analyses both European and some target countries regulations pertinent to energy communities, aggregators, and submetering. This examination and the resulting insights are pivotal for policymakers and stakeholders aiming to mitigate existing barriers for the integration of energy communities, unlock the potential of aggregation and enhance electricity market participation.

The analysis of the European legal framework for energy communities sheds light on the legal definitions, characteristics, and requirements of energy communities, identifying five legal entities that currently coexist. The analysis highlights the diversity of regulatory approaches in the European countries underscoring common challenges and gaps. The report emphasizes the necessity for specific, measurable requirements and suggests considering a broader spectrum of energy carriers. Furthermore, dynamic allocation coefficients are proposed to foster innovative business models. Local factors like population density and network characteristics are crucial for implementing energy communities in different contexts.

The analysis of the aggregators’ role underscores the importance of their integration for grid resilience, sustainability, and efficiency. D1.1 delineates existing regulatory landscapes across Europe, identifying synergies and disparities, and proposes a series of regulatory recommendations aimed to enable aggregators. Key suggestions include the need for defining mechanisms for imbalances responsibilities, rebound effects, and ensuring transparency.

The D1.1 exploration of baselining methodologies and submetering technologies highlight their potential to facilitate market participation. Submetering may enable participation from smaller-scale energy resources supporting numerous market phases, from prequalification to activation and monitoring. Their adoption, in contexts lacking widespread smart meter infrastructure, can capture granular energy data essential for efficient market operation and participant engagement.

Incentivizing the flexibility use: DSO remuneration schemes

The core infrastructure of the ongoing energy transition is the electric distribution system. The electricity distribution network operation is considered a natural monopoly; therefore, is key to ensure the provision of this essential service at an efficient price while maintaining an attractive business for the regulated company by defining well-functioning remuneration schemes.

The cost-of-service approach is a traditional remuneration scheme for distribution companies. This approach fails to incentivize cost-efficiency and may hinder the potential of flexibility solutions. However, this approach is still present in some European countries.

The multi-year revenue trajectory with profit sharing is a regulatory approach for defining the allowed revenue of distribution companies that incentivizes cost-efficiency while sharing the benefits of achieved cost-efficiencies with customers. This is the approach taken by Portugal and the UK.

Portugal presents a case that may serve as a transition model for countries with traditional remuneration schemes to help foster flexibility solutions. However, the Portuguese approach still maintains a bias towards capital expenditures that hinders the potential of flexibility for some use cases.

The UK presents a more complex approach (i.e. the TOTEX approach) with equal treatment of capital and operational expenditures, eliminating barriers for flexibility in the remuneration scheme. The example of the UK may serve as a model for other countries after transitioning through the Portuguese model.

Enabling flexibility use: regulatory experimentation

Enabling innovation may result in new products and services (e.g. flexibility solutions), facilitating the integration of new technologies, driving down system cost and achieving emission targets. D1.1 analyses past experiences and previous research to give recommendations for the design of regulatory experimentation frameworks.

The advisory role of the regulator is key for a well-functioning experimentation framework as it allows innovators to correctly identify regulatory barriers, if any, and helps regulators keep pace with innovators’ needs.

Regulators may implement a top-down (the regulator designs the regulatory changes that market participants can test) and/or a bottom-up (the innovators/applicants identify and apply for exemptions for new business ideas) approach for regulatory experimentation. The top-down approach favours regulatory learning, while the bottom-up approach allows the regulator to be aware of innovators’ needs.

International collaboration between regulators is another  key aspect that helps avoiding duplication efforts and errors, speeding up innovation.

As a final consideration, regulatory framework design is dynamic and should adapt to the current needs and objectives identified by the regulators.

Novel approaches to efficient design acquisition mechanisms for flexibility use

The flexibility potential available from service providers needs to be procured by means of acquisition mechanisms like network tariffs, flexible connection agreements, and local flexibility markets. D1.1 addresses the critical need for innovative flexibility acquisition mechanisms  for distribution system operator (DSO) services, such as congestion management and voltage control. The existing design of acquisition mechanisms presents some limitations as they are traditionally designed and operated independently without considering their potential for integration.

The D1.1 examines these acquisition mechanisms to exploit their collective synergies and identify their inherent restrictions. It includes a detailed exploration considering their constitutive characteristics as design dimensions and options, which describe the nature and functionality of each acquisition mechanism. Therefore, in D1.1, a methodological framework is proposed to systematically assess the interaction between these mechanisms to increase their collective benefits while addressing any potential inefficiencies that might arise from their interplay . The insights provided by D1.1 guides future research and practical implementations, where integrated acquisition mechanisms can effectively support the efficient deployment of flexibility use.

This article summarizes key takeaways from Deliverable 1.1, titled “Regulatory framework for fostering flexibility deployment: roles, responsibility of agents & flexibility mechanism designs” developed within the framework of the BeFlexible project. To access the complete document, please click here.

Stay tuned with BeFlexible by following us on LinkedIn and X!

Article authored by Matteo Troncia, Miguel Ángel Ruiz Hernández, Eliana Carolina Ormeño Mejía, José Pablo Chaves Ávila and Tomás Gomez San Román, from Universidad de Comillas

The power sector must evolve more efficiently and rapidly to meet current challenges, such as the uncertainty and variability in generation and demand due to the paradigm shift towards decentralized, decarbonized, and digitalized energy systems. A significant approach is to leverage the flexibility from connected resources like distributed generation, energy storage, and controllable loads, which can provide cost-effective and operational viable alternatives to traditional network reinforcement.

In this context, the BeFlexible project’s Deliverable 1.1 (D1.1) focuses on regulatory frameworks for the energy sector and market mechanisms to enable flexibility-centric services. It sets the groundwork for the project by proposing regulatory and market designs to foster flexibility deployment. The document outlines roles and responsibilities for emerging agents (e.g., aggregators, energy communities) and tools (e.g., baselining, submetering) to overcome current regulatory barriers. It also presents strategies for establishing remuneration schemes for flexibility usage and regulatory experimentation, as well as the efficient design of acquisition mechanisms for flexibility procurement.

New roles and responsibilities to enhance the overall system flexibility

In D1.1, a comprehensive analysis of regulatory frameworks for the energy sector contributes to the deployment of flexibility in the electricity sector. Among others, D1.1 analyses both European and some target countries regulations pertinent to energy communities, aggregators, and submetering. This examination and the resulting insights are pivotal for policymakers and stakeholders aiming to mitigate existing barriers for the integration of energy communities, unlock the potential of aggregation and enhance electricity market participation.

The analysis of the European legal framework for energy communities sheds light on the legal definitions, characteristics, and requirements of energy communities, identifying five legal entities that currently coexist. The analysis highlights the diversity of regulatory approaches in the European countries underscoring common challenges and gaps. The report emphasizes the necessity for specific, measurable requirements and suggests considering a broader spectrum of energy carriers. Furthermore, dynamic allocation coefficients are proposed to foster innovative business models. Local factors like population density and network characteristics are crucial for implementing energy communities in different contexts.

The analysis of the aggregators’ role underscores the importance of their integration for grid resilience, sustainability, and efficiency. D1.1 delineates existing regulatory landscapes across Europe, identifying synergies and disparities, and proposes a series of regulatory recommendations aimed to enable aggregators. Key suggestions include the need for defining mechanisms for imbalances responsibilities, rebound effects, and ensuring transparency.

The D1.1 exploration of baselining methodologies and submetering technologies highlight their potential to facilitate market participation. Submetering may enable participation from smaller-scale energy resources supporting numerous market phases, from prequalification to activation and monitoring. Their adoption, in contexts lacking widespread smart meter infrastructure, can capture granular energy data essential for efficient market operation and participant engagement.

Incentivizing the flexibility use: DSO remuneration schemes

The core infrastructure of the ongoing energy transition is the electric distribution system. The electricity distribution network operation is considered a natural monopoly; therefore, is key to ensure the provision of this essential service at an efficient price while maintaining an attractive business for the regulated company by defining well-functioning remuneration schemes.

The cost-of-service approach is a traditional remuneration scheme for distribution companies. This approach fails to incentivize cost-efficiency and may hinder the potential of flexibility solutions. However, this approach is still present in some European countries.

The multi-year revenue trajectory with profit sharing is a regulatory approach for defining the allowed revenue of distribution companies that incentivizes cost-efficiency while sharing the benefits of achieved cost-efficiencies with customers. This is the approach taken by Portugal and the UK.

Portugal presents a case that may serve as a transition model for countries with traditional remuneration schemes to help foster flexibility solutions. However, the Portuguese approach still maintains a bias towards capital expenditures that hinders the potential of flexibility for some use cases.

The UK presents a more complex approach (i.e. the TOTEX approach) with equal treatment of capital and operational expenditures, eliminating barriers for flexibility in the remuneration scheme. The example of the UK may serve as a model for other countries after transitioning through the Portuguese model.

Enabling flexibility use: regulatory experimentation

Enabling innovation may result in new products and services (e.g. flexibility solutions), facilitating the integration of new technologies, driving down system cost and achieving emission targets. D1.1 analyses past experiences and previous research to give recommendations for the design of regulatory experimentation frameworks.

The advisory role of the regulator is key for a well-functioning experimentation framework as it allows innovators to correctly identify regulatory barriers, if any, and helps regulators keep pace with innovators’ needs.

Regulators may implement a top-down (the regulator designs the regulatory changes that market participants can test) and/or a bottom-up (the innovators/applicants identify and apply for exemptions for new business ideas) approach for regulatory experimentation. The top-down approach favours regulatory learning, while the bottom-up approach allows the regulator to be aware of innovators’ needs.

International collaboration between regulators is another  key aspect that helps avoiding duplication efforts and errors, speeding up innovation.

As a final consideration, regulatory framework design is dynamic and should adapt to the current needs and objectives identified by the regulators.

Novel approaches to efficient design acquisition mechanisms for flexibility use

The flexibility potential available from service providers needs to be procured by means of acquisition mechanisms like network tariffs, flexible connection agreements, and local flexibility markets. D1.1 addresses the critical need for innovative flexibility acquisition mechanisms  for distribution system operator (DSO) services, such as congestion management and voltage control. The existing design of acquisition mechanisms presents some limitations as they are traditionally designed and operated independently without considering their potential for integration.

The D1.1 examines these acquisition mechanisms to exploit their collective synergies and identify their inherent restrictions. It includes a detailed exploration considering their constitutive characteristics as design dimensions and options, which describe the nature and functionality of each acquisition mechanism. Therefore, in D1.1, a methodological framework is proposed to systematically assess the interaction between these mechanisms to increase their collective benefits while addressing any potential inefficiencies that might arise from their interplay . The insights provided by D1.1 guides future research and practical implementations, where integrated acquisition mechanisms can effectively support the efficient deployment of flexibility use.

This article summarizes key takeaways from Deliverable 1.1, titled “Regulatory framework for fostering flexibility deployment: roles, responsibility of agents & flexibility mechanism designs” developed within the framework of the BeFlexible project. To access the complete document, please click here.

Stay tuned with BeFlexible by following us on LinkedIn and X!

Insights from EUSEW 2024: embracing energy flexibility in Europe’s transition with customers at the core

One more year, the European Sustainable Energy Week was held in Brussels from June 11th to 13th, gathering over 2.000 participants in sessions and speaking booths. The event fostered vibrant discussions on innovative solutions, regulatory frameworks, and the latest advancements and challenges in sustainable energy.

The BeFlexible project was delighted to be part of the program, hosting the session titled “What about flexibility? How customers can improve power systems.” Across two panels, participants explored how adopting customer-centric approaches can greatly enhance Europe’s energy flexibility and support its broader transition efforts, while also discussing the potential and challenges of integrating this customer-driven flexibility.

BeFlexible extends sincere thanks to all participants for their active involvement, collaborative spirit, and commitment to innovation. Gratitude is also extended to everyone who joined the #EUSEW2024 session, both in person and online, and engaged with their questions, enriching the dialogue.

Watch the full video of the session here

Unlocking local energy flexibility potential: are customers ready to embrace innovation?

The first panel delved into the readiness of customers to adopt innovative solutions for local flexibility. It was emphasized that the energy transition requires putting customers at the center of flexibility efforts. Developing platforms that facilitate data exchange across the value chain to activate various flexibility mechanisms is essential. However, reaching and engaging the final customer remains a significant challenge.

Another key point was the need to design flexibility markets that integrate energy-related services. Engaging local authorities is crucial for connecting with customers and bringing them closer to these initiatives. The panel also highlighted the necessity to revisit the basics of how flexibility can be promoted, indicating that issues like competition and pricing need fundamental reevaluation.

  • Moderated by Ms. Tzeni Varfi, E.DSO.
  • Mr. Veli-Pekka Saajo, Council of European Energy Regulators (CEER).
  • Mr. Fernando David Martin Utrilla,  i-DE (Iberdrola) and BeFlexible project.
  • Mr. Tomi Medved, University of Ljubljana and STREAM project.
  • Ms. Katerina Drivakou, UBITECH ENERGY and ENFLATE project.
  • Mr. Josh Roberts, REScoop.eu.
  • Ms. Rose Matthews, Smart Innovation Norway.

Scaling demand response in Europe: lessons learned from field-proven solutions

The second panel focused on scaling demand response across Europe by learning from existing solutions. It was noted that while Europe has a strong framework for demand response, there are still technical barriers to overcome. Demand response is not a future concept but a present reality, and it is advocated to start with non-core processes in industries to build familiarity and confidence before scaling up.

The importance of avoiding past mistakes in new markets, such as billing issues and data protection concerns, was underscored. Raising consumer awareness and ensuring regulatory policies protect consumers are essential. Business models need to be developed to turn energy flexibility markets into profitable ventures, offering consumers a range of choices.

  • Moderated by Ms. Marion Malafosse, SmartEn.
  • Mr. Thomas Bobinger, Federation of German Consumer Organisations, VZBV.
  • Mr. Sebastien Condom, Voltalis.
  • Ms. Lindsay Sugden, NIBE.
  • Mr. Charles Verhaeghe, Compass Lexecon.
  • Ms. Olivia Sicurani, Sympower.

Flexibility in energy systems: not a futuristic goal but a reality

The session emphasized that flexibility in energy systems is not a distant vision but a present reality across various markets. It highlighted existing technologies and business models for demand response, emphasizing the need for consumer engagement, trust-building, and effective regulatory implementation. Some additional final remarks:

  • The necessity of customer engagement in the energy transition narrative was highlighted, especially in the context of changing political and regulatory landscapes.
  • Demand response is already happening and should be scaled up. There are existing business models, technical solutions, and satisfied consumers that need to be showcased.
  • There was a call for smart implementation of existing laws and the creation of a robust framework to support these initiatives.
  • It is important to look at other countries’ experiences with demand response to adopt best practices.
  • Building trust is crucial, and efforts should be made to avoid eroding consumer confidence.

Watch the full video of the session here:

 

One more year, the European Sustainable Energy Week was held in Brussels from June 11th to 13th, gathering over 2.000 participants in sessions and speaking booths. The event fostered vibrant discussions on innovative solutions, regulatory frameworks, and the latest advancements and challenges in sustainable energy.

The BeFlexible project was delighted to be part of the program, hosting the session titled “What about flexibility? How customers can improve power systems.” Across two panels, participants explored how adopting customer-centric approaches can greatly enhance Europe’s energy flexibility and support its broader transition efforts, while also discussing the potential and challenges of integrating this customer-driven flexibility.

BeFlexible extends sincere thanks to all participants for their active involvement, collaborative spirit, and commitment to innovation. Gratitude is also extended to everyone who joined the #EUSEW2024 session, both in person and online, and engaged with their questions, enriching the dialogue.

Watch the full video of the session here

Unlocking local energy flexibility potential: are customers ready to embrace innovation?

The first panel delved into the readiness of customers to adopt innovative solutions for local flexibility. It was emphasized that the energy transition requires putting customers at the center of flexibility efforts. Developing platforms that facilitate data exchange across the value chain to activate various flexibility mechanisms is essential. However, reaching and engaging the final customer remains a significant challenge.

Another key point was the need to design flexibility markets that integrate energy-related services. Engaging local authorities is crucial for connecting with customers and bringing them closer to these initiatives. The panel also highlighted the necessity to revisit the basics of how flexibility can be promoted, indicating that issues like competition and pricing need fundamental reevaluation.

  • Moderated by Ms. Tzeni Varfi, E.DSO.
  • Mr. Veli-Pekka Saajo, Council of European Energy Regulators (CEER).
  • Mr. Fernando David Martin Utrilla,  i-DE (Iberdrola) and BeFlexible project.
  • Mr. Tomi Medved, University of Ljubljana and STREAM project.
  • Ms. Katerina Drivakou, UBITECH ENERGY and ENFLATE project.
  • Mr. Josh Roberts, REScoop.eu.
  • Ms. Rose Matthews, Smart Innovation Norway.

Scaling demand response in Europe: lessons learned from field-proven solutions

The second panel focused on scaling demand response across Europe by learning from existing solutions. It was noted that while Europe has a strong framework for demand response, there are still technical barriers to overcome. Demand response is not a future concept but a present reality, and it is advocated to start with non-core processes in industries to build familiarity and confidence before scaling up.

The importance of avoiding past mistakes in new markets, such as billing issues and data protection concerns, was underscored. Raising consumer awareness and ensuring regulatory policies protect consumers are essential. Business models need to be developed to turn energy flexibility markets into profitable ventures, offering consumers a range of choices.

  • Moderated by Ms. Marion Malafosse, SmartEn.
  • Mr. Thomas Bobinger, Federation of German Consumer Organisations, VZBV.
  • Mr. Sebastien Condom, Voltalis.
  • Ms. Lindsay Sugden, NIBE.
  • Mr. Charles Verhaeghe, Compass Lexecon.
  • Ms. Olivia Sicurani, Sympower.

Flexibility in energy systems: not a futuristic goal but a reality

The session emphasized that flexibility in energy systems is not a distant vision but a present reality across various markets. It highlighted existing technologies and business models for demand response, emphasizing the need for consumer engagement, trust-building, and effective regulatory implementation. Some additional final remarks:

  • The necessity of customer engagement in the energy transition narrative was highlighted, especially in the context of changing political and regulatory landscapes.
  • Demand response is already happening and should be scaled up. There are existing business models, technical solutions, and satisfied consumers that need to be showcased.
  • There was a call for smart implementation of existing laws and the creation of a robust framework to support these initiatives.
  • It is important to look at other countries’ experiences with demand response to adopt best practices.
  • Building trust is crucial, and efforts should be made to avoid eroding consumer confidence.

Watch the full video of the session here:

 

BeFlexible use cases and requirements

Article authored by Ricardo Bessa, from INESC TEC

Over the last 15 years, the energy sector has undertaken a structural transformation summarized by the 3Ds: decarbonization, decentralization, and digitalization.

Pushing for Decarbonization: Achievements and Obstacles

The drive towards decarbonization has seen notable progress through intensified integration of renewable energy sources (RES). This involves strategic actions, such as replacing carbon-intensive technologies like coal power plants with large-scale RES power plants, increasing RES self-consumption rates among industrial, domestic, and transportation users, and electrifying vehicle fleets. Additionally, efforts extend to new energy vectors like green hydrogen and energy storage technologies, providing enhanced system flexibility, including seasonal storage, and at least keeping the security of energy supply. However, the substantial increase in RES introduces significant challenges in all energy system elements: generation, transmission, distribution, and consumers.

Decentralization: Empowering Local Energy Solutions

Decentralization is being realized through various actions. This includes distributed generation technologies such as cogeneration power plants, collective photovoltaic installations, and waste reuse, offering local consumers and communities electricity at a costs below retail prices. The emergence of the prosumer, a citizen capable of producing and consuming electric energy, further contributes to decentralization. Prosumers can buy and sell electricity to the primary grid individually or as part of a local energy community. The evolution of new business models focusing on shared asset ownership, renting, and robust financial and regulatory frameworks is crucial in ensuring energy equity and resilience, especially for vulnerable consumers facing variations (and significant increases) in electricity prices.

Digitalization: The Smart Energy Revolution

Digitalization, a driving force behind these transformations, was initially driven by deploying smart meters. However, recent advancements in Internet-of-Things and cloud technology are expanding digitalization beyond the electrical infrastructure to encompass grid users and service providers, including those from related sectors like mobility. Concepts like digital twins, energy data spaces, and the Internet of Energy are emerging, with several pilot projects currently in progress, meaning a shift towards a more connected and intelligent energy landscape.

BeFlexible Project Business Use Cases

In this context, the BeFlexible project drafted 13 business use cases (BUCs), which enabled the identification of business requirements for flexibility-centric services covering Distribution and Transmission System Operators (DSOs and TSOs), aggregators, energy services providers, and other sectors such as mobility and water distribution. These BUCs were divided into four groups:

  • Consumer/community-centric flexibility: planning and operating renewable energy communities and citizen energy communities, as well as the optimal control of domestic thermal loads to enhance flexibility provision.
  • Grid-centric flexibility: long-term and short-term congestion and voltage constraints management in the distribution grids, considering aggregating flexibility from household thermal assets, battery energy systems, and building energy management systems.
  • TSO-DSO flexibility coordination: integrating distribution grid-connected resources into global flexibility procurement, avoiding indirect contingencies on DSOs, and coordinating TSO and DSO procuring DER system services through local and global markets.
  • Cross-sector flexibility boosters: operation of a flexibility-centric value chain enabler, whose objectives include unlocking consumer flexibility, simplifying customer identification for demand side flexibility services, establishing renewable energy communities, and creating business opportunities by connecting prosumers, aggregators, and system operators. Cross-sector use cases consider functions to enhance cross-sector flexibility between water and electricity distribution systems and incentivising electric vehicle drivers for cost-effective and carbon-friendly charging.

The essential business requirements from the BeFlexible use cases were categorized into market and regulatory, social sciences and consumer engagement, and other requirements, including data privacy and security.

The analysis focuses on DSO remuneration, regulatory experimentation, energy communities, aggregation, submetering, baseline, acquisition mechanisms, and market structure in the market and regulatory domain. It emphasizes aligning BUC processes with existing regulations, addressing challenges in DSO remuneration, promoting regulatory experimentation, steering energy community regulations, ensuring compliance in aggregation activities, addressing submetering challenges, defining baselines for flexibility provision, handling acquisition mechanisms, and considering new market structures.

The social science and consumer engagement domain highlight requirements for local energy communities, emphasizing the need to clarify shared resource benefits, address data sharing concerns, establish contractual agreements, ensure effortless device/software installation for thermal loads, provide user control in automated processes, and prioritize non-energy services to drive user participation.

This analysis also highlighted the significance of General Data Protection Regulation (GDPR) compliance across all BUCs involving customers, emphasizing the commitment to legal and ethical standards in handling personal information and data.

This article summarizes key takeaways from Deliverable 3.1, titled “Services, use cases and requirements” developed within the framework of the BeFlexible project. To access the complete document, please click here.

Stay tuned with BeFlexible by following us on LinkedIn and X!

Article authored by Ricardo Bessa, from INESC TEC

Over the last 15 years, the energy sector has undertaken a structural transformation summarized by the 3Ds: decarbonization, decentralization, and digitalization.

Pushing for Decarbonization: Achievements and Obstacles

The drive towards decarbonization has seen notable progress through intensified integration of renewable energy sources (RES). This involves strategic actions, such as replacing carbon-intensive technologies like coal power plants with large-scale RES power plants, increasing RES self-consumption rates among industrial, domestic, and transportation users, and electrifying vehicle fleets. Additionally, efforts extend to new energy vectors like green hydrogen and energy storage technologies, providing enhanced system flexibility, including seasonal storage, and at least keeping the security of energy supply. However, the substantial increase in RES introduces significant challenges in all energy system elements: generation, transmission, distribution, and consumers.

Decentralization: Empowering Local Energy Solutions

Decentralization is being realized through various actions. This includes distributed generation technologies such as cogeneration power plants, collective photovoltaic installations, and waste reuse, offering local consumers and communities electricity at a costs below retail prices. The emergence of the prosumer, a citizen capable of producing and consuming electric energy, further contributes to decentralization. Prosumers can buy and sell electricity to the primary grid individually or as part of a local energy community. The evolution of new business models focusing on shared asset ownership, renting, and robust financial and regulatory frameworks is crucial in ensuring energy equity and resilience, especially for vulnerable consumers facing variations (and significant increases) in electricity prices.

Digitalization: The Smart Energy Revolution

Digitalization, a driving force behind these transformations, was initially driven by deploying smart meters. However, recent advancements in Internet-of-Things and cloud technology are expanding digitalization beyond the electrical infrastructure to encompass grid users and service providers, including those from related sectors like mobility. Concepts like digital twins, energy data spaces, and the Internet of Energy are emerging, with several pilot projects currently in progress, meaning a shift towards a more connected and intelligent energy landscape.

BeFlexible Project Business Use Cases

In this context, the BeFlexible project drafted 13 business use cases (BUCs), which enabled the identification of business requirements for flexibility-centric services covering Distribution and Transmission System Operators (DSOs and TSOs), aggregators, energy services providers, and other sectors such as mobility and water distribution. These BUCs were divided into four groups:

  • Consumer/community-centric flexibility: planning and operating renewable energy communities and citizen energy communities, as well as the optimal control of domestic thermal loads to enhance flexibility provision.
  • Grid-centric flexibility: long-term and short-term congestion and voltage constraints management in the distribution grids, considering aggregating flexibility from household thermal assets, battery energy systems, and building energy management systems.
  • TSO-DSO flexibility coordination: integrating distribution grid-connected resources into global flexibility procurement, avoiding indirect contingencies on DSOs, and coordinating TSO and DSO procuring DER system services through local and global markets.
  • Cross-sector flexibility boosters: operation of a flexibility-centric value chain enabler, whose objectives include unlocking consumer flexibility, simplifying customer identification for demand side flexibility services, establishing renewable energy communities, and creating business opportunities by connecting prosumers, aggregators, and system operators. Cross-sector use cases consider functions to enhance cross-sector flexibility between water and electricity distribution systems and incentivising electric vehicle drivers for cost-effective and carbon-friendly charging.

The essential business requirements from the BeFlexible use cases were categorized into market and regulatory, social sciences and consumer engagement, and other requirements, including data privacy and security.

The analysis focuses on DSO remuneration, regulatory experimentation, energy communities, aggregation, submetering, baseline, acquisition mechanisms, and market structure in the market and regulatory domain. It emphasizes aligning BUC processes with existing regulations, addressing challenges in DSO remuneration, promoting regulatory experimentation, steering energy community regulations, ensuring compliance in aggregation activities, addressing submetering challenges, defining baselines for flexibility provision, handling acquisition mechanisms, and considering new market structures.

The social science and consumer engagement domain highlight requirements for local energy communities, emphasizing the need to clarify shared resource benefits, address data sharing concerns, establish contractual agreements, ensure effortless device/software installation for thermal loads, provide user control in automated processes, and prioritize non-energy services to drive user participation.

This analysis also highlighted the significance of General Data Protection Regulation (GDPR) compliance across all BUCs involving customers, emphasizing the commitment to legal and ethical standards in handling personal information and data.

This article summarizes key takeaways from Deliverable 3.1, titled “Services, use cases and requirements” developed within the framework of the BeFlexible project. To access the complete document, please click here.

Stay tuned with BeFlexible by following us on LinkedIn and X!

BeFlexible at EUSEW 2024 | Understanding Customer Roles in Power Systems

Join us for the policy session at EUSEW on June 13th, from 11:30 to 13:00 CEST

BeFlexible is organizing and participating in policy sessions at the European Sustainable Energy Week (EUSEW 2024), alongside esteemed partners. This 18th edition of the Policy Conference will occur in a hybrid format in Brussels and online from June 11th to 13th, 2024. EUSEW, organized by the European Commission’s Directorate-General for Energy, stands as a pivotal annual event promoting sustainable energy policies and practices at the European level. As the largest conference dedicated to renewables and efficient energy use in Europe, it gathers industry experts to explore this year’s theme, “Net-zero competitiveness driving EU energy transition,” fostering dialogue and collaboration among stakeholders driving sustainable energy initiatives across Europe.

“What about flexibility? How customers can improve power systems”

Mark your calendars for June 13, 2024, from 11:30 to 13:00 CEST.

EUSEW 2024

Panel 1: Unlocking Local Flexibility Potential: Are Customers Ready to Embrace Innovation?

The panel aims to create a discussion by focusing on several interconnected objectives. Firstly, it will emphasize the pivotal role of local flexibility platforms, which serve as crucial infrastructures for enabling efficient energy management. Secondly, it will explore the opportunities presented by EU-funded cluster projects, demonstrating how collaboration and resource allocation can drive innovation in sustainable energy solutions.

Additionally, the panel will address regulatory challenges that may hinder progress in achieving decarbonization goals, particularly concerning low voltage grid bottlenecks. By tackling these obstacles, the panel seeks to pave the way for smoother transitions towards cleaner energy systems. Moreover, discussions will revolve around the importance of fostering long-term customer engagement and incentivizing flexibility in energy consumption behaviors. This involves providing consumers with adequate information and promoting energy literacy to empower them to make informed choices.

Agenda

Moderated by Ms. Tzeni Varfi, Deputy to Secretary General, E.DSO.

  • Mr. Veli-Pekka Saajo, Chair of Distribution Systems working group, Council of European Energy Regulators (CEER).
  • Mr. Fernando David Martin Utrilla, DSO role in Spain i-DE (Iberdrola group), Project coordinator BeFlexible project.
  • Mr. Tomi Medved, Head of the Laboratory of Energy Policy (UL) University of Ljubljana, Project coordinator STREAM project.
  • Ms. Katerina Drivakou, Energy Systems Researcher, UBITECH ENERGY, Project technical coordinator ENFLATE project.
  • Mr. Josh Roberts, Senior Policy Advisor REScoop.eu.
  • Ms. Rose Matthews, Behavioral Scientist for community engagement, Smart Innovation Norway.

Panel 2: Scaling Demand Response in Europe: Lessons Learned from Field-Proven Solutions

The panel aims to provide a coherent and comprehensive discussion centered on several key objectives. Firstly, it will describe the significant role that Demand Response (DR) plays in actively contributing to the attainment of EU net-zero objectives. Through illustrative examples and case studies, the panel will highlight best practices gleaned from DR pilots, innovative initiatives, and successful local deployments. These insights will underscore the readiness of these solutions to be extended at scale, benefiting both European consumers and power systems alike.

Furthermore, the panel will address the critical obstacles that still impede the widespread roll-out of DR initiatives in the Residential and Commercial & Industrial sectors across Europe. By acknowledging and understanding these challenges, the discussion aims to foster strategies for overcoming them effectively.

Lastly, the panel will emphasize the key enablers necessary to facilitate investment and encourage widespread consumer adoption of DR solutions at scale. Drawing from the success stories of previous pilots, the panel will identify actionable insights and strategies to promote consumer engagement and streamline the integration of DR into energy systems across Europe. Through this multifaceted approach, the panel endeavors to provide valuable lessons learned and actionable recommendations for scaling Demand Response initiatives effectively throughout Europe.

Agenda

Moderated by Ms. Marion Malafosse, Head of Policy, SmartEn.

  • Mr. Thomas Bobinger, Policy Officer EU Internal Market, Federation of German Consumer Organisations, VZBV.
  • Mr. Sebastien Condom, Head of International business, Voltalis.
  • Ms. Lindsay Sugden, Regional Manager, International Affairs, NIBE.
  • Mr. Charles Verhaeghe, Vice President Energy, Compass Lexecon.
  • Ms. Olivia Sicurani, Strategy & Innovation Director, Sympower.

Keen to participate in the dialogue shaping the future of power systems? Register for EUSEW 2024 here.

Join us for the policy session at EUSEW on June 13th, from 11:30 to 13:00 CEST

BeFlexible is organizing and participating in policy sessions at the European Sustainable Energy Week (EUSEW 2024), alongside esteemed partners. This 18th edition of the Policy Conference will occur in a hybrid format in Brussels and online from June 11th to 13th, 2024. EUSEW, organized by the European Commission’s Directorate-General for Energy, stands as a pivotal annual event promoting sustainable energy policies and practices at the European level. As the largest conference dedicated to renewables and efficient energy use in Europe, it gathers industry experts to explore this year’s theme, “Net-zero competitiveness driving EU energy transition,” fostering dialogue and collaboration among stakeholders driving sustainable energy initiatives across Europe.

“What about flexibility? How customers can improve power systems”

Mark your calendars for June 13, 2024, from 11:30 to 13:00 CEST.

EUSEW 2024

Panel 1: Unlocking Local Flexibility Potential: Are Customers Ready to Embrace Innovation?

The panel aims to create a discussion by focusing on several interconnected objectives. Firstly, it will emphasize the pivotal role of local flexibility platforms, which serve as crucial infrastructures for enabling efficient energy management. Secondly, it will explore the opportunities presented by EU-funded cluster projects, demonstrating how collaboration and resource allocation can drive innovation in sustainable energy solutions.

Additionally, the panel will address regulatory challenges that may hinder progress in achieving decarbonization goals, particularly concerning low voltage grid bottlenecks. By tackling these obstacles, the panel seeks to pave the way for smoother transitions towards cleaner energy systems. Moreover, discussions will revolve around the importance of fostering long-term customer engagement and incentivizing flexibility in energy consumption behaviors. This involves providing consumers with adequate information and promoting energy literacy to empower them to make informed choices.

Agenda

Moderated by Ms. Tzeni Varfi, Deputy to Secretary General, E.DSO.

  • Mr. Veli-Pekka Saajo, Chair of Distribution Systems working group, Council of European Energy Regulators (CEER).
  • Mr. Fernando David Martin Utrilla, DSO role in Spain i-DE (Iberdrola group), Project coordinator BeFlexible project.
  • Mr. Tomi Medved, Head of the Laboratory of Energy Policy (UL) University of Ljubljana, Project coordinator STREAM project.
  • Ms. Katerina Drivakou, Energy Systems Researcher, UBITECH ENERGY, Project technical coordinator ENFLATE project.
  • Mr. Josh Roberts, Senior Policy Advisor REScoop.eu.
  • Ms. Rose Matthews, Behavioral Scientist for community engagement, Smart Innovation Norway.

Panel 2: Scaling Demand Response in Europe: Lessons Learned from Field-Proven Solutions

The panel aims to provide a coherent and comprehensive discussion centered on several key objectives. Firstly, it will describe the significant role that Demand Response (DR) plays in actively contributing to the attainment of EU net-zero objectives. Through illustrative examples and case studies, the panel will highlight best practices gleaned from DR pilots, innovative initiatives, and successful local deployments. These insights will underscore the readiness of these solutions to be extended at scale, benefiting both European consumers and power systems alike.

Furthermore, the panel will address the critical obstacles that still impede the widespread roll-out of DR initiatives in the Residential and Commercial & Industrial sectors across Europe. By acknowledging and understanding these challenges, the discussion aims to foster strategies for overcoming them effectively.

Lastly, the panel will emphasize the key enablers necessary to facilitate investment and encourage widespread consumer adoption of DR solutions at scale. Drawing from the success stories of previous pilots, the panel will identify actionable insights and strategies to promote consumer engagement and streamline the integration of DR into energy systems across Europe. Through this multifaceted approach, the panel endeavors to provide valuable lessons learned and actionable recommendations for scaling Demand Response initiatives effectively throughout Europe.

Agenda

Moderated by Ms. Marion Malafosse, Head of Policy, SmartEn.

  • Mr. Thomas Bobinger, Policy Officer EU Internal Market, Federation of German Consumer Organisations, VZBV.
  • Mr. Sebastien Condom, Head of International business, Voltalis.
  • Ms. Lindsay Sugden, Regional Manager, International Affairs, NIBE.
  • Mr. Charles Verhaeghe, Vice President Energy, Compass Lexecon.
  • Ms. Olivia Sicurani, Strategy & Innovation Director, Sympower.

Keen to participate in the dialogue shaping the future of power systems? Register for EUSEW 2024 here.

BRIDGE General Assembly 2024: A convergence of energy innovation

The annual BRIDGE General Assembly, held both in Brussels and virtually on March 9th and 10th, 2024, brought together a diverse group of stakeholders, including researchers, industry representatives and policymakers. With a total of 190 projects (174 ongoing), the assembly served as a pivotal platform for discussing the latest developments in the energy landscape and fostering the creation of a sustainable, secure, affordable, and efficient energy system.

The BeFlexible project actively participated as part of the BRIDGE Initiative. Onsite representation included Santiago Gallego from Iberdrola (Working Group on Regulation) and Minna Kuivalainen from Smart Innovation Norway (Working Group on Consumer and Citizen Engagement). Additionally, online participation extended to the Business Models and Data Management working groups.

BRIDGE aims to provide a structured approach to address cross-cutting issues encountered in demonstration projects, which may impede innovation. The BRIDGE process facilitates continuous knowledge sharing among projects, enabling them to collectively deliver conclusions and recommendations for the future exploitation of project results.

Bridge General Assembly 2024

Key Outcomes from the BRIDGE General Assembly

The BRIDGE General Assembly featured informative sessions and engaging discussions.

During the first day, attendees convened for a plenary session, where the European Commission’s Directorate-General for Energy (DG Energy) covered various topics, including policy updates on the EU Action Plan for Grids, Network Code on Demand Response, and Net Zero Industry Act. Participants also learned about completed BRIDGE projects (Platone, OneNet, Trinity, X-Flex, EUniversal, ebalance-plus) and other relevant initiatives like ETIP SNET, ISGAN, and European Commission international engagements.

The second day focused on policy updates shared by the European Commission’s Directorate-General for Communications Networks, Content and Technology (DG Connect) on the Data Act and AI Innovation Package, with DG Energy providing insights on the SET Plan. The day predominantly centered on collaborative work within the different working groups.

BRIDGE Working Groups Progress

During the BRIDGE General Assembly, significant progress was made across various working groups:

Working Group on Regulation:

Discussions surrounding energy storage underscored the need for a regulatory framework that delineates clear rules and responsibilities concerning ownership, competition, technical modalities, and financial conditions, applicable to both island and mainland contexts. Similarly, deliberations on smart grids highlighted regulatory challenges pertaining to incentives for demand-side response, commercial arrangements, collaboration with Transmission System Operators (TSO) and Distribution System Operators (DSO), smart meter data, and more.

Working Group on Business Models:

This group concentrated on establishing common language and frameworks for describing and evaluating business models. They also focused on identifying and assessing existing as well as innovative business models demonstrated within projects or use cases. Notably, efforts are underway to develop and test a simulation tool that facilitates the comparison of the profitability of various business models applicable to smart grids and energy storage solutions.

Working Group on Data Management:

Encompassing both technical and non-technical aspects, discussions within this group revolved around communication infrastructure necessary for data exchange, cybersecurity, data privacy, data handling frameworks, and related roles and responsibilities. Emphasis was placed on ensuring secure and interoperable data exchange, alongside the utilization of data analytics techniques for processing.

Working Group on Consumer and Citizen Engagement:

This group delved into various aspects of consumer and citizen engagement, including segmentation analysis considering cultural, geographical, and social dimensions, understanding customer value systems, drivers for engagement, effectiveness of engagement activities, and identification of triggers for behavioral changes, such as incentives. Furthermore, discussions centered on regulatory innovations aimed at empowering consumers.

Bridge General Assembly 2024- Working Groups achievements

Overall, the BRIDGE General Assembly provided an exceptional opportunity for stakeholders to converge, exchange ideas and best practices, and collaborate towards the common goal of creating a sustainable and efficient energy system. The assembly underscored the significance of collaboration and cross-sectoral engagement in achieving this collective objective.

The annual BRIDGE General Assembly, held both in Brussels and virtually on March 9th and 10th, 2024, brought together a diverse group of stakeholders, including researchers, industry representatives and policymakers. With a total of 190 projects (174 ongoing), the assembly served as a pivotal platform for discussing the latest developments in the energy landscape and fostering the creation of a sustainable, secure, affordable, and efficient energy system.

The BeFlexible project actively participated as part of the BRIDGE Initiative. Onsite representation included Santiago Gallego from Iberdrola (Working Group on Regulation) and Minna Kuivalainen from Smart Innovation Norway (Working Group on Consumer and Citizen Engagement). Additionally, online participation extended to the Business Models and Data Management working groups.

BRIDGE aims to provide a structured approach to address cross-cutting issues encountered in demonstration projects, which may impede innovation. The BRIDGE process facilitates continuous knowledge sharing among projects, enabling them to collectively deliver conclusions and recommendations for the future exploitation of project results.

Bridge General Assembly 2024

Key Outcomes from the BRIDGE General Assembly

The BRIDGE General Assembly featured informative sessions and engaging discussions.

During the first day, attendees convened for a plenary session, where the European Commission’s Directorate-General for Energy (DG Energy) covered various topics, including policy updates on the EU Action Plan for Grids, Network Code on Demand Response, and Net Zero Industry Act. Participants also learned about completed BRIDGE projects (Platone, OneNet, Trinity, X-Flex, EUniversal, ebalance-plus) and other relevant initiatives like ETIP SNET, ISGAN, and European Commission international engagements.

The second day focused on policy updates shared by the European Commission’s Directorate-General for Communications Networks, Content and Technology (DG Connect) on the Data Act and AI Innovation Package, with DG Energy providing insights on the SET Plan. The day predominantly centered on collaborative work within the different working groups.

BRIDGE Working Groups Progress

During the BRIDGE General Assembly, significant progress was made across various working groups:

Working Group on Regulation:

Discussions surrounding energy storage underscored the need for a regulatory framework that delineates clear rules and responsibilities concerning ownership, competition, technical modalities, and financial conditions, applicable to both island and mainland contexts. Similarly, deliberations on smart grids highlighted regulatory challenges pertaining to incentives for demand-side response, commercial arrangements, collaboration with Transmission System Operators (TSO) and Distribution System Operators (DSO), smart meter data, and more.

Working Group on Business Models:

This group concentrated on establishing common language and frameworks for describing and evaluating business models. They also focused on identifying and assessing existing as well as innovative business models demonstrated within projects or use cases. Notably, efforts are underway to develop and test a simulation tool that facilitates the comparison of the profitability of various business models applicable to smart grids and energy storage solutions.

Working Group on Data Management:

Encompassing both technical and non-technical aspects, discussions within this group revolved around communication infrastructure necessary for data exchange, cybersecurity, data privacy, data handling frameworks, and related roles and responsibilities. Emphasis was placed on ensuring secure and interoperable data exchange, alongside the utilization of data analytics techniques for processing.

Working Group on Consumer and Citizen Engagement:

This group delved into various aspects of consumer and citizen engagement, including segmentation analysis considering cultural, geographical, and social dimensions, understanding customer value systems, drivers for engagement, effectiveness of engagement activities, and identification of triggers for behavioral changes, such as incentives. Furthermore, discussions centered on regulatory innovations aimed at empowering consumers.

Bridge General Assembly 2024- Working Groups achievements

Overall, the BRIDGE General Assembly provided an exceptional opportunity for stakeholders to converge, exchange ideas and best practices, and collaborate towards the common goal of creating a sustainable and efficient energy system. The assembly underscored the significance of collaboration and cross-sectoral engagement in achieving this collective objective.

Enhancing customer engagement in energy flexibility programs

Article authored by Rose Matthews, from Smart Innovation Norway

The BeFlexible project adopts a social sciences approach to customer engagement in energy flexibility programs. By leveraging Actor-Network Theory (ANT) to map and understand the relationships between various actors involved in flexibility pilots, the project aims to create a customer-centric engagement strategy that seamlessly integrates customers into pilot programs. This article delves into the key components of the BeFlexible project, focusing on recruitment, onboarding, continuous engagement, tailored pilots, strategic engagement processes, and the translation of strategy into action.

Recruitment, Onboarding, and Continuous Engagement

Central to the BeFlexible engagement strategy is the seamless integration of customers into pilot programs. The journey begins with recruitment, where customers are identified and invited to participate. Meticulous onboarding processes follow, ensuring that customers understand their roles and responsibilities within the program. Continuous engagement is maintained throughout the pilot programs, fostering sustained contact and interaction between customers and industry players. This customer-centric approach aims to actively involve end consumers and industry stakeholders in utilizing flexibility resources, thereby contributing to the overarching goals of the project.

Tailored Pilots: Addressing Diverse Objectives

The BeFlexible project employs a tailored approach to address specific objectives across diverse geographical regions:

  • In the Northern EU pilot, based in Sweden, the focus is on engaging Flexibility Service Providers at the industry and municipality level.
  • In contrast, the Southern EU and South-Western EU pilots target end consumers and householders directly.

These pilots operate on different timescales, necessitating a date-agnostic engagement strategy structured around key stages: recruitment, onboarding, usage, and continuance. By customizing the pilot demonstration framework to suit the unique characteristics of each region, the project maximizes its impact and effectiveness.

Strategic Engagement Process

A critical aspect highlighted in the BeFlexible project is the importance of targeted engagement activities. By tailoring efforts to customer archetypes identified earlier in the project, the engagement process becomes more effective and relevant. Local cultural nuances are taken into account, and customers’ past interactions with pilot partners are considered to enhance engagement strategies. The project adopts an experimental evaluation approach, testing various communication methods to gauge effectiveness and using these insights to refine strategies iteratively. This strategic engagement process ensures that customer engagement remains dynamic and responsive to evolving needs and preferences.

Turning the Strategy into Action

As the BeFlexible project progresses, the insights and methodologies outlined in the comprehensive report serve as a foundation for pilot partners to develop their individual engagement plans. By translating the engagement strategy into actionable plans, pilot partners can effectively implement customer-centric approaches in their respective regions. The project envisions a sustainable and flexible energy future where customers play an active role in shaping a resilient and adaptive energy ecosystem. By empowering customers to become active contributors rather than passive consumers, the BeFlexible project aims to drive positive change in the energy sector.

This article summarizes key takeaways from Deliverable 2.2, titled “Customer Engagement Strategies” developed within the framework of the BeFlexible project. To access the complete document, please click here.

Stay tuned about BeFlexible by following us on LinkedIn and Twitter!

Article authored by Rose Matthews, from Smart Innovation Norway

The BeFlexible project adopts a social sciences approach to customer engagement in energy flexibility programs. By leveraging Actor-Network Theory (ANT) to map and understand the relationships between various actors involved in flexibility pilots, the project aims to create a customer-centric engagement strategy that seamlessly integrates customers into pilot programs. This article delves into the key components of the BeFlexible project, focusing on recruitment, onboarding, continuous engagement, tailored pilots, strategic engagement processes, and the translation of strategy into action.

Recruitment, Onboarding, and Continuous Engagement

Central to the BeFlexible engagement strategy is the seamless integration of customers into pilot programs. The journey begins with recruitment, where customers are identified and invited to participate. Meticulous onboarding processes follow, ensuring that customers understand their roles and responsibilities within the program. Continuous engagement is maintained throughout the pilot programs, fostering sustained contact and interaction between customers and industry players. This customer-centric approach aims to actively involve end consumers and industry stakeholders in utilizing flexibility resources, thereby contributing to the overarching goals of the project.

Tailored Pilots: Addressing Diverse Objectives

The BeFlexible project employs a tailored approach to address specific objectives across diverse geographical regions:

  • In the Northern EU pilot, based in Sweden, the focus is on engaging Flexibility Service Providers at the industry and municipality level.
  • In contrast, the Southern EU and South-Western EU pilots target end consumers and householders directly.

These pilots operate on different timescales, necessitating a date-agnostic engagement strategy structured around key stages: recruitment, onboarding, usage, and continuance. By customizing the pilot demonstration framework to suit the unique characteristics of each region, the project maximizes its impact and effectiveness.

Strategic Engagement Process

A critical aspect highlighted in the BeFlexible project is the importance of targeted engagement activities. By tailoring efforts to customer archetypes identified earlier in the project, the engagement process becomes more effective and relevant. Local cultural nuances are taken into account, and customers’ past interactions with pilot partners are considered to enhance engagement strategies. The project adopts an experimental evaluation approach, testing various communication methods to gauge effectiveness and using these insights to refine strategies iteratively. This strategic engagement process ensures that customer engagement remains dynamic and responsive to evolving needs and preferences.

Turning the Strategy into Action

As the BeFlexible project progresses, the insights and methodologies outlined in the comprehensive report serve as a foundation for pilot partners to develop their individual engagement plans. By translating the engagement strategy into actionable plans, pilot partners can effectively implement customer-centric approaches in their respective regions. The project envisions a sustainable and flexible energy future where customers play an active role in shaping a resilient and adaptive energy ecosystem. By empowering customers to become active contributors rather than passive consumers, the BeFlexible project aims to drive positive change in the energy sector.

This article summarizes key takeaways from Deliverable 2.2, titled “Customer Engagement Strategies” developed within the framework of the BeFlexible project. To access the complete document, please click here.

Stay tuned about BeFlexible by following us on LinkedIn and Twitter!

Flexibility characterization, customer engagement strategy and implementation for power flexibility users

Article authored by Ione López González, from Iberdrola

Characterizing power flexibility is crucial in today’s dynamic energy landscape. As we delve into understanding the diverse aspects of power flexibility, it is essential to explore customer engagement strategies and their effective implementation for power flexibility users.

Characterizing Power Flexibility

Power flexibility refers to the ability of a power system to respond to changes in power demand and supply. This can involve adjusting generation, consumption, or storage in reaction to market signals, grid conditions, congestions or other factors. The characterization of power flexibility involves understanding its dimensions in terms of time, energy volumes, resources, buffers, and energy needs.

Flexibility in power markets and systems requires a comprehensive assessment of constraints, barriers, and time scales. This includes gate closure and physical delivery considerations. Characterization, research, and analysis are essential to identify the potential resources for flexibility and the technical and economic aspects of utilizing them effectively.

Furthermore, the characterization of flexibility providers plays a significant role in understanding demand-side flexibility. Methodologies for quantifying energy flexibility available all service providers are critical for leveraging this resource optimally.

Customer Engagement Strategy

Engaging customers in the realm of power flexibility involves creating awareness of social benefits, providing incentives, and facilitating their participation in demand response programs, energy efficiency initiatives, and distributed energy resource management with hardware and software tools. An effective customer engagement strategy aims to empower users to make informed decisions about their energy usage while contributing to grid stability and sustainability.

Personalized communication, user-friendly interfaces, and transparent information on the benefits of flexible energy usage are key components of customer engagement strategies. By involving customers in the dialogue about power flexibility, utilities and energy service providers can foster a sense of ownership and responsibility among users.

Implementation for Power Flexibility Users

Implementing power flexibility strategies requires collaboration among stakeholders including utilities, regulatory bodies, technology providers, and end-users. It involves deploying advanced metering infrastructure, smart grid technologies, and IoT-enabled devices for real-time monitoring and control.

For power flexibility users, implementation involves access to user-friendly platforms that provide insights into their energy consumption patterns, real-time pricing signals, and options for load shifting or curtailing during peak periods. Incentive programs such as time-of-use pricing or demand response incentives can encourage active participation from users.

Moreover, integrating renewable energy sources with storage technologies enables users to capitalize on clean energy generation while contributing to grid stability through flexible usage patterns.

In conclusion, understanding the characterization of power flexibility is essential for shaping customer engagement strategies and their successful implementation for power flexibility users. By fostering collaboration between stakeholders and empowering end-users with knowledge and tools, we can harness the full potential of power flexibility while driving sustainable energy practices.

This article summarizes key takeaways from Deliverable 6.2, titled “Flexibility Characterization and Customer Engagement Strategy implementation report” developed within the framework of the BeFlexible project. To access the complete document, please click here.

 

Stay tuned about BeFlexible by following us on LinkedIn and Twitter!

Article authored by Ione López González, from Iberdrola

Characterizing power flexibility is crucial in today’s dynamic energy landscape. As we delve into understanding the diverse aspects of power flexibility, it is essential to explore customer engagement strategies and their effective implementation for power flexibility users.

Characterizing Power Flexibility

Power flexibility refers to the ability of a power system to respond to changes in power demand and supply. This can involve adjusting generation, consumption, or storage in reaction to market signals, grid conditions, congestions or other factors. The characterization of power flexibility involves understanding its dimensions in terms of time, energy volumes, resources, buffers, and energy needs.

Flexibility in power markets and systems requires a comprehensive assessment of constraints, barriers, and time scales. This includes gate closure and physical delivery considerations. Characterization, research, and analysis are essential to identify the potential resources for flexibility and the technical and economic aspects of utilizing them effectively.

Furthermore, the characterization of flexibility providers plays a significant role in understanding demand-side flexibility. Methodologies for quantifying energy flexibility available all service providers are critical for leveraging this resource optimally.

Customer Engagement Strategy

Engaging customers in the realm of power flexibility involves creating awareness of social benefits, providing incentives, and facilitating their participation in demand response programs, energy efficiency initiatives, and distributed energy resource management with hardware and software tools. An effective customer engagement strategy aims to empower users to make informed decisions about their energy usage while contributing to grid stability and sustainability.

Personalized communication, user-friendly interfaces, and transparent information on the benefits of flexible energy usage are key components of customer engagement strategies. By involving customers in the dialogue about power flexibility, utilities and energy service providers can foster a sense of ownership and responsibility among users.

Implementation for Power Flexibility Users

Implementing power flexibility strategies requires collaboration among stakeholders including utilities, regulatory bodies, technology providers, and end-users. It involves deploying advanced metering infrastructure, smart grid technologies, and IoT-enabled devices for real-time monitoring and control.

For power flexibility users, implementation involves access to user-friendly platforms that provide insights into their energy consumption patterns, real-time pricing signals, and options for load shifting or curtailing during peak periods. Incentive programs such as time-of-use pricing or demand response incentives can encourage active participation from users.

Moreover, integrating renewable energy sources with storage technologies enables users to capitalize on clean energy generation while contributing to grid stability through flexible usage patterns.

In conclusion, understanding the characterization of power flexibility is essential for shaping customer engagement strategies and their successful implementation for power flexibility users. By fostering collaboration between stakeholders and empowering end-users with knowledge and tools, we can harness the full potential of power flexibility while driving sustainable energy practices.

This article summarizes key takeaways from Deliverable 6.2, titled “Flexibility Characterization and Customer Engagement Strategy implementation report” developed within the framework of the BeFlexible project. To access the complete document, please click here.

 

Stay tuned about BeFlexible by following us on LinkedIn and Twitter!

Improving flexibility markets and prosumers engagement

Article by Giorgia Lattanzio and Marco Rossi, from Ricerca sul Sistema Energetico (RSE S.p.A)

The objective of a carbon neutral Europe in 2050 has unleashed a steep increase of renewable energy production, a kind of energy characterized by volatility and unpredictability. To comply with these characteristics, the energy system is becoming more flexible exploiting a coordinated exercise between production and consumption. Those units able to provide flexibility to manage loading/voltage congestions are mostly connected to distribution grid, thus the new electric system leverages on the possibility, not only for DSO, but also for TSO to rely on distribution resources. Therefore, DSO are assuming two different new roles: buyers of flexibility services and neutral facilitators to allow TSO the procurement of global services. Here the necessity of a coordination between TSO and DSO arises: how to efficiently use flexible and shared resources?

BeFlexible’s pilot in Italy

In Italy, pilot projects have been launched to introduce the procurement of flexibility services for DSO. BeFlexible collects the experience from two of them: EDGE by E-Distribuzione and RomeFlex by Areti. Different procurement approaches have been defined and will be tested in 2024:

  • EDGE considers the use of long-term contracts to procure flexibility and a real-time activation when services are needed.
  • RomeFlex considers long-term contracts and short-term markets, where qualified service providers can offer flexibility services.

In the meantime, the Italian TSO Terna developed the Dynamic Traffic Light Mechanism: a coordination architecture that allow DSO to update grid constraints relatively to the maximum allowed flexibility volume on a certain grid portion. DSO can specify the network status by means of the traffic light concept:  when the DSO observes that the modulation of a flexible unit could produce critical conditions, DSO will associate a colour and the capability to each pre-defined grid portion.

To optimize the overall system costs, the possibility of service providers to participate to the provision of both global and local services (to TSO and DSO respectively) is fundamental because market liquidity would increase and so does competitivity. However, the definition of a market coordination is necessary in such context. For this reason, in the BeFlexible South-Mid demo a possible coordination scheme concerning how to select shared resources is defined and tested. A well-functioning scheme should be able to give valuable economic benefits reducing grid reinforcement costs which then pass on consumers bills, assuring distribution and transmission network stability and contributing to reach the objective of the energy transition (environmental values). To promote a smart use of the energy system means to reduce network issues at small costs; a target which can be achieved more likely when consumer engagement and energy awareness of final users (social values) are empowered. Furthermore, comfort and convenience values for users are fundamental to allow the overall system to sustain itself: for example, if enabling processes for the provision of services are facilitated and unified/standardized, the effort required to service providers is reduced, thus comfort increases, and a greater number of flexibility markets participants is expected. This would contribute to further increase competitivity with the consequence of minimizing costs.

Conclusive remarks

The first task of the South-Mid demo analyses the concept of a coordination mechanism looking at market and technical aspects. The Crowd Balancing Platform is presented as a single-entry point to facilitate access to the service provision, and a coordination mechanism is defined looking at the different procurement phases: registration, prequalification, market and monitoring and activation phases. Expected benefits are pointed out looking at all the previously delineated values.

This article summarizes key takeaways from Deliverable 4.1, titled “DEMO 1 Methodological report.” To access the complete document, please click here.

Stay tuned about BeFlexible by following us on LinkedIn and Twitter!

Article by Giorgia Lattanzio and Marco Rossi, from Ricerca sul Sistema Energetico (RSE S.p.A)

The objective of a carbon neutral Europe in 2050 has unleashed a steep increase of renewable energy production, a kind of energy characterized by volatility and unpredictability. To comply with these characteristics, the energy system is becoming more flexible exploiting a coordinated exercise between production and consumption. Those units able to provide flexibility to manage loading/voltage congestions are mostly connected to distribution grid, thus the new electric system leverages on the possibility, not only for DSO, but also for TSO to rely on distribution resources. Therefore, DSO are assuming two different new roles: buyers of flexibility services and neutral facilitators to allow TSO the procurement of global services. Here the necessity of a coordination between TSO and DSO arises: how to efficiently use flexible and shared resources?

BeFlexible’s pilot in Italy

In Italy, pilot projects have been launched to introduce the procurement of flexibility services for DSO. BeFlexible collects the experience from two of them: EDGE by E-Distribuzione and RomeFlex by Areti. Different procurement approaches have been defined and will be tested in 2024:

  • EDGE considers the use of long-term contracts to procure flexibility and a real-time activation when services are needed.
  • RomeFlex considers long-term contracts and short-term markets, where qualified service providers can offer flexibility services.

In the meantime, the Italian TSO Terna developed the Dynamic Traffic Light Mechanism: a coordination architecture that allow DSO to update grid constraints relatively to the maximum allowed flexibility volume on a certain grid portion. DSO can specify the network status by means of the traffic light concept:  when the DSO observes that the modulation of a flexible unit could produce critical conditions, DSO will associate a colour and the capability to each pre-defined grid portion.

To optimize the overall system costs, the possibility of service providers to participate to the provision of both global and local services (to TSO and DSO respectively) is fundamental because market liquidity would increase and so does competitivity. However, the definition of a market coordination is necessary in such context. For this reason, in the BeFlexible South-Mid demo a possible coordination scheme concerning how to select shared resources is defined and tested. A well-functioning scheme should be able to give valuable economic benefits reducing grid reinforcement costs which then pass on consumers bills, assuring distribution and transmission network stability and contributing to reach the objective of the energy transition (environmental values). To promote a smart use of the energy system means to reduce network issues at small costs; a target which can be achieved more likely when consumer engagement and energy awareness of final users (social values) are empowered. Furthermore, comfort and convenience values for users are fundamental to allow the overall system to sustain itself: for example, if enabling processes for the provision of services are facilitated and unified/standardized, the effort required to service providers is reduced, thus comfort increases, and a greater number of flexibility markets participants is expected. This would contribute to further increase competitivity with the consequence of minimizing costs.

Conclusive remarks

The first task of the South-Mid demo analyses the concept of a coordination mechanism looking at market and technical aspects. The Crowd Balancing Platform is presented as a single-entry point to facilitate access to the service provision, and a coordination mechanism is defined looking at the different procurement phases: registration, prequalification, market and monitoring and activation phases. Expected benefits are pointed out looking at all the previously delineated values.

This article summarizes key takeaways from Deliverable 4.1, titled “DEMO 1 Methodological report.” To access the complete document, please click here.

Stay tuned about BeFlexible by following us on LinkedIn and Twitter!

BeFlexible in short: how is our project working towards a more flexible energy system?

Watch our new project video summarizing our goals, action points and pilots

 

Exciting news is on the horizon at BeFlexible as we proudly unveil our latest project video, a comprehensive guide to understanding how we are driving change towards a more flexible energy system. This video encapsulates our mission, goals, action points, and ongoing pilot programs.

At BeFlexible, our commitment lies in the intersection of innovation and sustainability, as we work towards reshaping the energy landscape with a focus on adaptability and resilience.

Our mission revolves around redefining the conventional energy system, moving from a rigid structure to one that seamlessly adapts to the evolving needs of our planet. For a clearer understanding of our endeavors, we encourage you to explore our latest project video:

 

Stay tuned for updates!

You can follow us on Twitter and LinkedIn.

Watch our new project video summarizing our goals, action points and pilots

 

Exciting news is on the horizon at BeFlexible as we proudly unveil our latest project video, a comprehensive guide to understanding how we are driving change towards a more flexible energy system. This video encapsulates our mission, goals, action points, and ongoing pilot programs.

At BeFlexible, our commitment lies in the intersection of innovation and sustainability, as we work towards reshaping the energy landscape with a focus on adaptability and resilience.

Our mission revolves around redefining the conventional energy system, moving from a rigid structure to one that seamlessly adapts to the evolving needs of our planet. For a clearer understanding of our endeavors, we encourage you to explore our latest project video:

 

Stay tuned for updates!

You can follow us on Twitter and LinkedIn.

BeFlexible’s collaborative session at ENLIT Europe sparks insightful dialogues

ENLIT Europe unfolded its dynamic energy landscape from November 28 to 30 in Paris, featuring a session organized by BeFlexible in collaboration with ENFLATE and STREAM projects. Held on November 28 from 13:30 to 14:30, the session, titled “Unlocking Flexibility Markets: Are Customers Ready to Embrace Innovation?” provided attendees with a platform for thoughtful discussions.

The event, which attracted over 150 enthusiasts eager to explore the intricacies of the evolving energy sector, featured speakers whose expertise elevated the discussions:

  • Fernando David Martin Utrilla: i-DE (Iberdrola group), BEFLEXIBLE Project Coordinator.
  • Jan Jeriha: University of Ljubljana, Stream_HE Project Coordinator.
  • Katerina Drivakou: UBITECH, ENFLATE Project Coordinator.
  • Ricardo Bessa: INESC TEC, Keynote Speaker, BeFlexible Project.
  • Susana Garayoa: Moderator and Institutional Relations at Zabala Innovation Europe, and part of BeFlexible EU.

Unlocking flexibility markets

The panel delved into critical topics surrounding flexibility markets, offering valuable insights into the energy sector’s future possibilities. Discussion points included barriers and motivations driving consumer engagement, platform interoperability, and evolving regulatory frameworks. The session emphasized a paradigm shift towards intelligent grid connectivity for consumers, recognizing the demand for incentives, education, feedback, and support in active participation.

Highlighting the pivotal role of platforms, the panel explored possibilities within various EU-funded cluster projects. Regulatory challenges and proposed flexible service solutions were also discussed.

Key takeaways from the keynote speaker, Ricardo Bessa, included the challenge of long-term customer engagement in flexibility markets, the potential of a combination of monetary and non-monetary incentives to unlock flexibility, the need for increased consumer information and energy literacy, and the bottleneck of low voltage grids for decarbonization, requiring new planning and operational paradigms.

Moreover, he explained that interoperability between platforms, systems, and services is fundamental for fast and cost-effective flexibility exploitation.

Addressing regulatory complexities, Bessa highlighted the growing challenge of accommodating new Distributed Energy Resources (DER), roles, and business models, with a specific focus on cross-border harmonization, the explicit integration of flexibility in security of supply assessments, and the implementation of cost-reflective network charges.

The event not only facilitated knowledge exchange but underscored the collaborative efforts necessary to shape the future of the energy landscape.

BeFlexible extends sincere thanks to all participants for their active involvement. The collaborative spirit and commitment to innovation have set the stage for continued exploration in the ever-evolving energy landscape.