ECN publication
CRISP - Market-oriented online supply-demand matching
Kamphuis, I.G.; Carlsson, P; Kester, J.C.P.; Akkermans, H.
Published by: Publication date:
ECN Energy in the Built Environment 14-9-2007
ECN report number: Document type:
ECN-O--07-009 Other
Number of pages: Full text:
86 Download PDF  

Current power distribution systems are operated in a top-down manner. Power production control and price formation take place on a central level on the basis of relatively static data from a data collection and dispatching network with a limited scope and granularity. When incorporating a more considerable fraction of small-scale producers on the basis of, for instance, renewable energy, operation of the distribution grid requires more data to be collected from a more extensive information and data communication network. Furthermore, increased local flows, in the form of two-way communication with distributed computation techniques, enable a more dynamic adaptation in power supply and demand patternas paving the way to a flexible way of embedding of ill-predictable supply of some types of renewable energy sources. DSM-programs have been in use in the utility sector for years now. In this document, first, current Demand Side Management (DSM) and Demand Response Resource (DRR) techniques are discussed; then, supply side management especially in a DG (Distributed Generation) context is treated. A framework of novel concepts and possible technology directions is presented subsequently and some preliminary scenarios are shown to illustrate these concepts. An overview of more flexible supply and demand matching schemes is given essentially based on four distinct types of SDM clusters. It appears, that it is possible to fulfil requirements for these distributed environments in terms of needed information and communication technology, ICT, if these are paralleled with the expected future penetration of ever-smaller scale data-exchange networks at power customer sites. Agent technology using algorithms from micro-economic market theory offers a promising possibility for managing the complexity of price formation and supply<>demand matching in these fine-grained bottom-up control distribution networks. Implication of these technical developments in terms of market and business models, however, is that, possibly, different approaches for pricing and contracting will be necessary. these approaches mimic current developments in the telecom sector. Legislation, market design and business models for power delivery have to adapted as well to establish a level playing field for the integration and embedding of small scale RES in a distributed power network setting.

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