Periodic Reporting for period 3 - PARITY (Pro-sumer AwaRe, Transactive Markets for Valorization of Distributed flexibilITY enabled by Smart Energy Contracts)
Reporting period: 2022-04-01 to 2023-06-30
The PARITY project addresses the “structural inertia” of Distribution Grids (DGs) by delivering a transactive flexibility framework that will increase durability and efficiency of the electrical grid, while simultaneously enabling the adoption of more Renewable Energy Sources (RES), through enhanced real time control of Distributed Energy Resources (DER) flexibility combined with novel Active Network Management functionalities. PARITY will deliver a local flexibility management platform through the seamless integration of Internet of Things (IoT) and Blockchain technologies. By delivering a smart-contract enabled market platform based on blockchain technology, PARITY will facilitate the efficient deployment of local micro-transactions and reward flexibility in a cost-reflective and symmetric manner, through price signals of higher spatio-temporal granularity based on real-time grid operational conditions. Moreover, by deploying advanced IoT technology, PARITY will offer distributed intelligence (DER profiling) and self-learning/self-organization capabilities (automated real-time distributed control), orchestrated by cost reflective flexibility market signals generated by the blockchain Local Flexibility Market platform (LFM platform). Within PARITY, DER will form dynamic clusters that essentially comprise self-organized networks of active DER nodes, engaging in real-time aggregated & P2P energy/flexibility transactions. The PARITY project aims to enable the set-up and operation of local flexibility markets at the distribution network level via the use of the following technology solutions: (1) A smart contract enabled, blockchain-based LFM platform, (2) IoT enabled DER Flexibility management tools - both in a peer-to-peer distributed fashion, but also through a centralized aggregator, and (3) Smart Grid monitoring and management tools for the Distribution System Operator. Additional objectives of the project are the investigation of market coupling mechanisms, the definition of LFM actors and the associate business models, the development of innovative retail energy commercial arrangements and contracts, and policy reform recommendations to shape the regulatory frameworks that will enable LFM creation in a financially sustainable manner.
The integrated PARITY system was delivered by the end of the project, implementing automated transactive energy/flexibility management, opening opportunities for various stakeholders (prosumer, DSO, Aggregator, ESCo). The system is composed of several tools that have been developed, including software tools performing background operations and user interfaces, as well as the D-STATCOM hardware device. The roll-out of the PARITY system was performed in 4 pilot sites of different characteristics. A holistic impact assessment of the PARITY system was conducted based on the collected data from the pilot sites.
The final versions of the PARITY system components were delivered and deployed, after making refinements to the initial versions during a pre-validation phase. The results demonstrated the feasibility of the proposed approaches with regard to the operation of the local energy/flexibility market platform and the operation of the flexibility management tools. Flexibility forecasting and management at the prosumer level, as well as the management of aggregated flexibility through the Aggregator Toolset to enable participation in external markets or cover the needs of the Distribution System Operator, have been demonstrated successfully with very satisfactory results. On the grid level, the toolset for the DSO that provides Smart Grid Monitoring and Active Network Management functionalities has been developed and can be accessed through a web-based user interface. In addition, the D-STATCOM device has been assembled and deployed at the pilot site in Spain. Integration and data exchange among the components was very important and performed according to the use cases and the system architecture. Moreover, activities for informing and engaging the pilot users were performed.
In terms of communication and dissemination, activities and achievements have been communicated via the social media and other communication channels of the project. PARITY partners have participated in several conferences and events, and produced scientific publications in order to disseminate the achievements of the project. Furthermore, PARITY project provided contributions to the working groups and task forces of the BRIDGE initiative, such as in data management, process flows, and user engagement.
Regarding exploitation and business innovation activities, the project exploitation and business innovation plan was realized, including the individual exploitation plans per partner. In addition, a market adoption roadmap for the PARITY offerings has been developed. An in-depth evaluation of the business models based on two selected case studies was made, and conclusions on the profitability for end-users were provided. Categorized and prioritized recommendations were provided with respect to policy reform (European and National level), in addition to recommendations for the replication and deployment of the PARITY solution in the future.
The final versions of the PARITY system components were delivered and deployed, after making refinements to the initial versions during a pre-validation phase. The results demonstrated the feasibility of the proposed approaches with regard to the operation of the local energy/flexibility market platform and the operation of the flexibility management tools. Flexibility forecasting and management at the prosumer level, as well as the management of aggregated flexibility through the Aggregator Toolset to enable participation in external markets or cover the needs of the Distribution System Operator, have been demonstrated successfully with very satisfactory results. On the grid level, the toolset for the DSO that provides Smart Grid Monitoring and Active Network Management functionalities has been developed and can be accessed through a web-based user interface. In addition, the D-STATCOM device has been assembled and deployed at the pilot site in Spain. Integration and data exchange among the components was very important and performed according to the use cases and the system architecture. Moreover, activities for informing and engaging the pilot users were performed.
In terms of communication and dissemination, activities and achievements have been communicated via the social media and other communication channels of the project. PARITY partners have participated in several conferences and events, and produced scientific publications in order to disseminate the achievements of the project. Furthermore, PARITY project provided contributions to the working groups and task forces of the BRIDGE initiative, such as in data management, process flows, and user engagement.
Regarding exploitation and business innovation activities, the project exploitation and business innovation plan was realized, including the individual exploitation plans per partner. In addition, a market adoption roadmap for the PARITY offerings has been developed. An in-depth evaluation of the business models based on two selected case studies was made, and conclusions on the profitability for end-users were provided. Categorized and prioritized recommendations were provided with respect to policy reform (European and National level), in addition to recommendations for the replication and deployment of the PARITY solution in the future.
The aim of PARITY was to go beyond state of the art on multiple aspects and introduce innovative functionalities. Firstly, a smart contract-enabled energy and flexibility market platform has been designed and implemented, allowing both peer-to-peer energy trading among prosumers within the Local Energy Market, and flexibility trading by involving the DSO and the Aggregator actors. Two key points are the application of automated control actions and the automated validation of energy/flexibility scheduling. Another important aspect is the automated discovery and provision of flexibility from various sources using the IoT platform and models, such as the human-centric Power-to-Heat model and the Electric Vehicle load and flexibility forecasting model. Especially for the DSO, Smart Grid Monitoring and Active Network Management functionalities have been developed within the DSO Toolset PARITY component, and along with the DER dispatch module and D-STATCOM device, contribution to improved grid stability is provided.
With regard to potential impact, added value can be provided by the PARITY platform to prosumers, local aggregators and DSOs, enhancing the PARITY unique selling propositions. In particular, the PARITY solution offers financial benefits to participating prosumers depending on their assets and agreements, services to the DSO towards a more stable grid network, and services to external actors, such as the TSO, through the participation to the Ancillary Services market. Results showed that PARITY optimisation has significant effects in the increase of self-consumption and self-sufficiency. As far as the potential revenues is concerned, the participation in the FCR-D market and the day ahead market through the aggregator seem to be the most profitable options. By optimizing energy consumption and incorporating renewable energy sources more efficiently, PARITY has the potential to help mitigate local greenhouse gas emissions as well. Regarding the social aspect, it was estimated through an analysis that PARITY has the potential to create 1832 jobs by 2033. Based on the results of the online survey conducted, a high level of end-user acceptance and participant retention were observed.
With regard to potential impact, added value can be provided by the PARITY platform to prosumers, local aggregators and DSOs, enhancing the PARITY unique selling propositions. In particular, the PARITY solution offers financial benefits to participating prosumers depending on their assets and agreements, services to the DSO towards a more stable grid network, and services to external actors, such as the TSO, through the participation to the Ancillary Services market. Results showed that PARITY optimisation has significant effects in the increase of self-consumption and self-sufficiency. As far as the potential revenues is concerned, the participation in the FCR-D market and the day ahead market through the aggregator seem to be the most profitable options. By optimizing energy consumption and incorporating renewable energy sources more efficiently, PARITY has the potential to help mitigate local greenhouse gas emissions as well. Regarding the social aspect, it was estimated through an analysis that PARITY has the potential to create 1832 jobs by 2033. Based on the results of the online survey conducted, a high level of end-user acceptance and participant retention were observed.