Local Energy and Flexibility Markets and Local Energy Communities research proposal

1. Local Energy and Flexibility
Markets and Local Energy
Communities
11th September 2023
by
Dr. Fareed Ahmad

2. Outline
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What is the research vision on local energy and flexibility markets
considering EVs?
What are the key research questions in this field?
How will you approach those research questions during your
work at NTU-GridLab?
Which areas of your knowledge, skills, and experience will be used
there?
Who are the active institutions/teams worldwide working on this topic?

3. Introduction
• To achieve the European climate targets and the Paris Agreements, at least 65% of the
electricity needs to be generated from renewable energy sources by 2030.
• This requires a significant increase of distributed energy resources, posing a challenge
for distribution system operators to integrate them into existing grid.
• The concept of Local Flexibility Markets has recently gained attention as a market-
based tool to tackle this challenge, making use of demand side flexibility.
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4. Research Vision on Local Energy and Flexibility Markets
• Our research vision centers on the transformation of Local Energy and Flexibility
Markets (LEFMs) through the seamless integration of Electric Vehicles (EVs).
• We imagine a future where EVs serve as dynamic contributors to local energy
ecosystems, driving sustainability, grid resilience, and community empowerment.
• This vision is built on the belief that by leveraging the full potential of EVs, we can
unlock a multitude of benefits that reshape energy landscapes at the local level.
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5. Research Vision on Local Energy and Flexibility Markets
1. EVs as Mobile Energy Assets
 EVs are not just modes of transportation but also mobile energy assets.
 They are equipped with bidirectional capabilities, allowing them to store surplus
energy from the grid and discharge it when needed.
 This transforms EVs into flexible energy storage units, enhancing grid stability
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6. Research Vision on Local Energy and Flexibility Markets
2. Smart Charging Infrastructure
 Widespread deployment of smart charging infrastructure is crucial.
 Smart charging of EV intelligently optimize charging cost, grid demand, and
renewable energy availability.
 Smart charging is also reduce the peak load demand with more efficient use of
resources.
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7. Research Vision on Local Energy and Flexibility Markets
3. Dynamic Energy Trading
 EV owners participate actively in LEFMs by trading surplus energy from their
vehicles.
 Real-time market data and blockchain technology facilitate secure, transparent, and
automated energy transactions, enabling individuals to monetize their EV batteries.
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8. Research Vision on Local Energy and Flexibility Markets
4. Grid Integration and Resilience
 EVs, collectively, provide grid support during peak demand and outages.
 Our vision emphasizes grid resilience through vehicle-to-grid (V2G) technologies,
allowing EVs to supply power to homes, businesses, and even the broader grid during
emergencies
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9. Research Vision on Local Energy and Flexibility Markets
5. Community-Centric Approach
 Local communities play a central role in our vision.
 They collaborate to form energy-sharing communities, where surplus energy from one
EV can benefit neighbors.
 This fosters a sense of community and promotes sustainable practices
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10. Research Vision on Local Energy and Flexibility Markets
6. Environmental Sustainability
 By electrifying transportation and maximizing the use of renewable energy sources,
our research vision contributes significantly to reducing greenhouse gas emissions and
air pollution.
 EVs become instrumental in achieving local and regional sustainability goals.
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11. Research Vision on Local Energy and Flexibility Markets
7. Education and Community Engagement
 Effective communication and community engagement are essential.
 Public awareness campaigns and educational initiatives ensure that communities
understand the benefits of EV integration and actively participate in LEFMs
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12. Research Vision on Local Energy and Flexibility Markets
8. Transition to Decentralized Energy
 Ultimately, our research vision aims to accelerate the transition to decentralized
energy systems.
 Communities become self-sufficient in energy generation and distribution, reducing
dependence on centralized power sources.
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Key Research questions and their Answers
Q.1. What is the optimal market structure for local energy and flexibility
market?
Answer: We can collaborate with regulatory bodies, utilities, and stakeholders to design
a market framework that encourages competition, transparency, and fairness.

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Q.2. Who can participate in the local energy and flexibility market?
Answer: Energy producers, consumers, aggregators, and grid operators can participate
by eligibility criteria and registration processes and ensure that market integrity should
be maintain.
Key Research questions and their Answers

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Q.3. How should energy and flexibility prices be determined?
Answer: Develop pricing mechanisms considering supply-demand dynamics, grid
conditions, and real-time data. Fixed tariffs, dynamic pricing can be options for
determining the flexibility prices.
Key Research questions and their Answers

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Q.4. What data is required for efficient market operation, and how can it be
collected and shared securely?
Answer: Advanced metering and IoT devices are used for data collection.
By establish data standards, secure data sharing protocols, and data privacy measures can
secure the data.
Key Research questions and their Answers

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Q.5. How can distributed energy resources (DERs) and flexibility services be
integrated into the market effectively?
Answer: Develop interfaces and protocols for DERs to communicate with the market.
Encourage the adoption of smart grid technologies to enhance flexibility.
Key Research questions and their Answers

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Q.6. What processes and tools are needed for real-time market operations and
dispatch of energy and flexibility services?
Answer: Implement advanced forecasting, control, and optimization systems to manage
energy flows, balance supply and demand, and ensure grid stability.
Key Research questions and their Answers

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Q.7. How can the market be monitored to prevent market manipulation and
ensure compliance with regulations?
Answer: Establish monitoring mechanisms, audits, and penalties for non-compliance.
Use blockchain or other tamper-proof technologies for transaction records.
Key Research questions and their Answers

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Q.8. How can consumers be educated about the benefits of participating in the
local energy and flexibility market?
Answer: We can conduct outreach campaigns, provide user-friendly interfaces, and offer
incentives to encourage consumer participation and understanding
Key Research questions and their Answers

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Q.9. What are the environmental impacts of the local energy market, and how
can they be minimized ?
Answer: We will integrate renewable energy sources and promote energy efficiency to
reduce carbon emissions. Monitor and report on the market's environmental
performance.
We also promote the EVs in local energy and flexibility market, which can further
improve the environment quality.
Key Research questions and their Answers

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Q.10. How can you ensure collaboration and alignment among various
stakeholders, including utilities, regulators, and consumers?
Answer: Establish regular forums, working groups, and feedback mechanisms to foster
cooperation and address concerns.
Key Research questions and their Answers

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Q.11. How can the local energy and flexibility market evolve to meet changing
energy needs and technologies?
Answer: Continuously review and update market rules, regulations, and technologies to
adapt to emerging trends and innovations in the energy sector.
Key Research questions and their Answers

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Q.12. How can you assess the availability of renewable energy sources and
flexibility resources locally? Are there potential constraints or limitations ?
Answer: Conduct resource assessments (e.g., solar, wind, battery storage) and feasibility
studies to identify viable energy sources and potential constraints. Consider diversified
energy sources for resilience.
Key Research questions and their Answers

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My work related to this project
Power flow Analysis
I have work with IEEE 33, 34, 69 buses and some real distributions network to get the
optimal results of charging stations using power flow analysis.
In local energy communities to monitor the power flow between energy sources,
consumers and prosumers by power flow analysis of the system

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Renewable Energy Sources Integration
I have integrated Photovoltaic energy sources at different distribution networks by
minimizing power loss, voltage deviation and installation cost
The main source of energy in the local energy and flexibility markets are renewable
energy source which generate sufficient energy for the consumer demand, and its also
crucial where and how many energy should be generated in local energy communities.
My work related to this project

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Integration of EV load
I have worked for integrating electric vehicles load at different electrical distribution
networks by considering power loss, voltage deviation, and reliability of the system.
Furthermore, modeling of EV load is also considered
The EV load is very unpredictable in nature due to the behavior of EV driver, therefore
proper mathematical modeling is necessary for analyzing the EV load and it is also
important where to place the charging piles to charge EV.
My work related to this project

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Vehicle to Grid Integration
Due to the advancement in power electronics converter, bidirectional flow of electricity
is possible with high efficiency. By considering V2G technology, EVs are not only for
transportation but it also work as energy storage for peak shaving and valley filling in
local energy communities
In my work, I have created some factors which decide vehicle work in V2G or G2V
mode, including arrival and departure SOC of EV battery, arrival and departure time etc.
My work related to this project

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Optimization Approaches
To determine the optimal locations and size of charging station, I have formulated
different optimization problem and solved by metaheuristic algorithms in MATLAB. In
the given project, optimization techniques will be used for analyzing the reliability of the
system and many more.
My work related to this project

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1. Center for Electric Power and Energy (CEE), Technical University of Denmark, Denmark.
2. Key Laboratory of Smart Grid of Ministry of Education, Tianjin University, China
3. e7 energy innovation & engineering, Austria (Industry)
4. Information Technologies Institute​ (ITI), Greece
5. University Of Nicosia, Cyprus
6. CheckWatt, Sweden
Some projects on developing flexibility markets in Europe
a. sthlmflex (Sweden) ongoing from Dec 2020
b. IntraFlex (United Kingdom), completed in Nov 2021
c. NorFlex (Norway), completed 2022
d. the Grid Operators Platform for Congestion Solutions (GOPACS) (the Netherlands), ongoing
e. enera Flexmarkt (Germany), completed 2020
Ongoing/completed project

31. Thank you !
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