smart griD IN DENmARK 2.0 - Energinet.dk

Fig. kap3_RollerPRIVATE PLAYERSCOMMERCIAL PLAYERSsmart grid IN DENMARK 2.0 | 15SYSTEM OPERATORSMM M4 // FOCUS ON MARKET ACCESSCUSTOMERSHEAT PUMPSELECTRIC VEHICLESELECTRICITYSUPPLIERSAGGREGATORSNEW PLAYERSToday, markets have already been established whereBALANCE-RESPONSIBLE Energinet.dk procures flexibility products, for examplethe common Nordic GRID COMPANIES regulating power CONGESTION marketPARTIES(NOIS). However, there is no similar trading platformwhich allows the grid companies to utilise flexibilityproducts as an alternative to grid reinforcements.BALANCE-RESPONSIBLEPARTIESGRID COMPANIESBALANCECONGESTIONIt is central to the concept that mobilising and activating flexibility must be marketbased.This means that the private players must be free to decide to whom and to whatOFFERHANDLEREQUESTextent they offer their flexibility, and it must be ensured that the flexibility is priced andsold transparentlyTWO DIFFERENT MECHANISMS – PRICE SIGNALS AND FLEXIBILITY PRODUCTSFig. kap5_informationsmodelThe concept basically distinguishes between two different mechanisms for activating flexibility:¼ PRICE SIGNALS (variable grid tariffs and electricity prices), providing a general incentive for customersCOMPONENT-ORIENTEDto shift their electricity consumption and production SYSTEM-ORIENTEDto times which are less inconvenient for the powerIEC 61850 system. ETC. (LOGICAL NODES)IEC 61970 ETC. (CIM)¼ FLEXIBILITY PRODUCTS, where a service which has been clearly agreed and defined in advance – forexample reducing the load in a specified grid area – can be activated as and when needed by grid companiesPLAYERS and/or Energinet.dk at an agreed COMMERCIAL price. PLAYERSSYSTEM PRIVATE OPERATORSMM MThe use of price signals is central to releasing theELECTRICITYvalue CUSTOMERS of flexible electricity HEAT PUMPSconsumption and SUPPLIERS production.However, price signals are not sufficient on theirELECTRIC VEHICLESAGGREGATORSNEW PLAYERSown as the response to the price signals cannot beguaranteed in advance. Trading in flexibility productsis the supplementary measure which ensures thatspecific needs for flexibility can be met at all times.The aim of the concept is therefore, in the long term,to establish an efficient market for trading in standardisedflexibility products.BALANCEFig. MARKETS kap3_Marked FOR FLEXIBILITYCOMMERCIAL PLAYERSEXISTINGMARKETSSYSTEM OPERATORSBALANCECOORDINATIONELECTRICITYSUPPLIERSAGGREGATORSNEW PLAYERSBALANCE-RESPONSIBLEPARTIESNEW MARKETFOR FLEXIBILITYGRID COMPANIESCONGESTIONA NEW MARKET for flexibility makes it possible for the grid companies to purchase flexibility products as an alternative to grid reinforcements. The newmarket will be coordinated with the existing markets for flexibility, for example the regulating power market.