Energy Systems Integration for Multi-Energy Systems

Table of Contents

1. Frontmatter

2. Energy Systems Integration—The Concept

   1. Frontmatter

   2. From Concept to Paradigm: A Book Introduction

      Nicanor Quijano, Carlos Ocampo-Martinez

      Abstract

      Economic, technological, and environmental concerns are driving a substantial transition in the energy landscape. This paradigm, traditionally dependent on fossil fuels, has contributed to climate change via greenhouse gas emissions. In response, there is an increasing focus on shifting to sustainable energy systems that incorporate decentralized and renewable sources such as wind, solar, and hydroelectric power. This entails the integration of various energy vectors to enhance resource efficiency and diminish carbon emissions. Energy Systems Integration (ESI) is pivotal in this change by improving the flexibility of multi-energy systems, enabling the incorporation of renewable energy, and diminishing carbon emissions. ESI solutions are designed for particular systems and affect stakeholders variably based on the MES. The future of ESI is influenced by trends such as digitalization, decentralization, and electrification, which are driving advancements in technology and business models.

   3. Integrated Energy Systems: An Overview from a Multi-layer Architecture

      David Erazo-Caicedo, Nicanor Quijano, Carlos Ocampo-Martinez, Guillermo Jiménez-Estévez

      Abstract

      Incorporating distributed energy resources in current energy systems is essential for improving energy management, reducing consumption and waste, increasing renewable participation, and mitigating environmental impact. Within this framework, integrated energy systems (IESs) are designed to holistically manage entire energy systems by leveraging potential resources across multiple vectors and sectors, including electricity, gas, heat, cooling, fuels, energy storage, hydrogen, and transport, while considering technical, economic, or environmental criteria. This chapter provides a review of the infrastructure, operation methodologies, and market approaches of IESs, utilizing a multi-layer architectural model. A significant focus of this review lies in the role of communities, serving as the foundation for two introduced concepts: BCoMuns (buildings, communities, and municipalities), representing elemental components of the lower layer, and integrated prosumers (IPs), key constituents of the upper layer. This innovative perspective enriches the understanding of IES, highlighting the interconnectedness of community-centric energy systems within the broader energy landscape.

   4. Complex Network Analysis of Multi-energy Systems

      Antonio Pepiciello, José Luis Domínguez-García, Carmela Bernardo

      Abstract

      The design and operation of integrated energy systems requires considering the interaction between multiple infrastructures, each with its distinctive features. For instance, the network topology and the physical phenomena involved in the transmission of different energy vectors hugely affect the energy flows, impacting the efficiency and vulnerability of the energy grid as a whole. Graph-theoretical complex network analysis, and specifically multilayer networks, provide a powerful modelling technique to assess the interdependence between different energy infrastructures. The relevance of this integrated approach becomes evident as the number of installed energy converters, such as cogenerators, fuel cells and electric heat pumps, increases and affects the energy flows across these infrastructures. In this chapter, complex network analysis, commonly employed for individual energy networks, is extended to multi-energy systems, modelled as multilayer networks interacting through energy hubs. The case study, based on a benchmark power grid coupled with a gas network, demonstrates the capabilities of multilayer networks to model multi-energy systems and detect hidden features arising from the interdependence between multiple energy carriers.

3. Energy Communities

   1. Frontmatter

   2. A Stochastic Model Predictive Control Approach in a Hierarchical and Distributed Framework for Energy Communities Using Blockchain Technologies

      Manuel Sivianes, Pablo Velarde, Ascensión Zafra-Cabeza, José María Maestre, Carlos Bordons

      Abstract

      This work formulates a hierarchical and distributed optimization framework for energy communities operating under uncertainties. This framework aims to eliminate the need for a centralized coordinator by utilizing a smart contract deployed on a blockchain network. This scheme consists of two levels. At the higher level, households employ stochastic model predictive controllers to compute hour-by-hour scheduling for an entire day independently. Concurrently, a distributed optimization process facilitated by the smart contract acting as a distributed coordinator on a blockchain platform enables households to reach a consensus. At the lower level, model predictive controllers are responsible for tracking the references imposed by the higher level and derived from the globally agreed solution achieved through consensus within the smart contract. In this level, the control variables are generated with a lower sampling time than in the higher level. Unlike existing approaches that often rely on auctions and continuous blockchain transactions for energy exchanges, our methodology takes a different approach. We compute a reliable one-hour control sequence at the higher level, considering perturbations. This is followed by a much lower sampling time low-level controller that operates independently and does not rely on blockchain. Extensive simulations validate the framework’s effectiveness in optimizing economic costs associated with energy utilization and control efforts.

   3. An Overview on Non-centralized Control of Multi-energy Systems for the Optimal Operations of Energy Communities

      Nicola Mignoni, Paolo Scarabaggio, Raffaele Carli, Mariagrazia Dotoli

      Abstract

      In the current energy panorama, the means of energy generation, consumption, and storage are incurring a Cambrian explosion, pushed by pressing environmental concerns. One of the main drivers of change lies in the development of multi-energy systems (MESs) aimed at energy system integration, i.e., the coordinated planning and functioning of the energy system ‘as a whole’, across multiple energy carriers (e.g., thermal, electric, etc.) and consumption sectors at various levels (e.g., district, city, region, etc.). The increasing interconnection between individual energy systems requires advanced modelling and control techniques that can further enhance the overall efficiency and performance. Independently of the spatial perspective, the effective utilization of physically different generations means, as well as the optimal scheduling of power-absorbing devices becomes a challenging task. However, at a local level, the penetration of MESs would be facilitated by the introduction of the energy community (EC) paradigm (i.e., local optimal exploitation of renewable sources and widespread use of distributed storage as well as application of measures oriented to cost-effectiveness and sustainability). This chapter overviews the numerous components of a district-level MES from a modelling perspective, focusing on how they can be optimally controlled and effectively integrated into a non-centralized and non-cooperative environment, constituting the modern EC.

   4. Productive Solar Energy Solutions for Communities: The Ayllu Solar Project

      Rodrigo Palma-Behnke, Guillermo Jiménez-Estévez, Marcia Montedonico

      Abstract

      The level of participation of communities in decentralized energy solutions is a fundamental challenge for energy transition processes. The Ayllu Solar project (www.ayllusolar.cl) developed during six years has created economic opportunities for farmers in Chile’s Arica and Parinacota region, helping them deliver their own sustainable solar energy solutions. That’s turned the region into a solar-based sustainable development hub, in both urban and rural environments. This chapter summarizes both the technical challenges faced in the development of micro-grid solutions and the implementation of the co-construction methodology for community participation and engagement. Six community productive projects under a Multi Energy System (MES) approach were developed and implemented with reproducible and scalable characteristics.

4. Water-Energy-Food Nexus

   1. Frontmatter

   2. Integrated Multi-energy Systems Analysis for a Colombian Cocoa Plantation

      Andrea Cusva-García, Guillermo Jiménez-Estévez, Rocío Sierra-Ramírez, Nicanor Quijano

      Abstract

      This chapter focuses on studying the concept of Multiple Energy Systems (MES) through analyzing an applied case study, which corresponds to a cocoa plantation. A detailed analysis of a system that integrates various generation technologies is presented. The analysis aims to identify the available energy sources in the area and evaluate their feasibility for integration into the MES. The proposed study will entail an initial stage in which an assessment of the energy demand for the cocoa plantation will be conducted, followed by a corresponding projection for the year 2030. This demand profile will encompass all the processes involved in cocoa production, including irrigation, fertigation, and the post-harvest drying process. Likewise, the system will incorporate thermal energy sources, ensuring the provision of electricity and heat. The energy demand of these processes will be estimated based on the necessary energy inputs and technological requirements. Subsequently, various scenarios will be examined to facilitate the optimal integration of diverse energy sources to satisfy energy needs sustainably, including fossil fuel, solar, biomass (residues), and generation technologies such as biogas turbines, diesel engines, steam turbines, and batteries. Each alternative will be evaluated for its technical viability, based on criteria such as electricity surplus and load dissatisfaction, and its economic feasibility, assessed through metrics such as operational expenditure (OPEX), capital expenditure (CAPEX), and the levelized cost of energy (LCOE).

   3. Multi-resource Scheduling of the Water–Energy–Food Nexus in Agro-Industrial Environments

      Rubén A. González, Jerónimo Ramos-Teodoro, Francisco Rodríguez, Manuel Berenguel

      Abstract

      Over the past few decades, the energy hub (EH) paradigm has been widely used as a methodology to achieve sustainable energy development in integrated energy systems (IESs) under the water–energy–food (WEF) nexus, where the incorporation of green energy sources is a fundamental component. Within this framework, the inclusion of hybrid-energy storage systems is considered essential due to their ability to store and manage power from different sources in an integrated manner, thus improving system reliability, reducing costs, and optimizing overall performance. They play a crucial role in enabling the integration of green energy sources and providing the flexibility necessary to deal with fluctuations in energy supply and demand. Agroconnect, a state-of-the-art agro-industrial facility (http://agroconnect.es/), is an excellent example of an IES that can be modeled to optimize its energy use. The facility is equipped with a wide range of renewable resources, such as photovoltaic and thermal solar collectors for desalination units and a biomass-powered heating system for a greenhouse. It also has a set of storage devices for storing excess energy production and improving system performance. The authors of this chapter have experience with optimal management of heterogeneous resources using an EH methodology and including preliminary results from Agroconnect-like facilities. Using the same methodology, this chapter explores a multi-resource scheduling problem with a receding horizon within a WEF agro-industrial facility, highlighting the implementation of multiple energy carriers and renewable energy systems. Modeling of Agroconnect’s water, heat, CO₂ and electricity systems was performed and showed results of two three-day-long hourly simulations for each of these resources and associated devices.

   4. Coordinated Operation of Water- and Renewable-Based Energy Systems

      Luis Ignacio Levieux, Fernando A. Inthamoussou, Hernán De Battista

      Abstract

      This chapter presents an energy management policy aimed at increasing the integration of renewable energy into existing power and energy systems operations, ultimately moving towards carbon-neutral energy systems. The policy is based on the coordinated dispatch of multi-energy systems, exploiting the flexibility provided by energy storage assets. This complementary operation modifies the traditional role of large reservoir hydropower plants, allowing them to compensate for renewable energy variability and uncertainty during the balancing stage. Within this framework, the proposal deals with alternative schemes to enhance the allocation of renewable energy reserves. These policy-based reserves play a crucial role in ensuring power systems stability and providing frequency support. To address the operational challenges and constraints posed by non-convexities and non-linearities in the optimal power flow, a second-order cone programming problem is employed. The policy is embedded in a receding horizon control strategy. The effectiveness of this policy is evaluated in a renewable-dominated virtual power plant located in Argentina. The results demonstrate the significant benefits of adopting this approach, particularly in facilitating a gradual transition towards conic and stochastic electricity market paradigms.

5. Offshore and Wind Farms

   1. Frontmatter

   2. Advanced Control of Wave Energy Converters: An Emerging Technology in the Diversification of Multi-energy Systems

      Facundo Mosquera, Nicolás Faedo, Carolina Evangelista, Paul F. Puleston

      Abstract

      Modern multi-energy systems aim to incorporate emerging renewable energies to minimize resource variability and improve power provision. Among these, marine energy converters show great promise within integrated energy systems, due to the abundance of underutilized marine resources and their higher predictability compared to other renewable sources. Wave power, in particular, has emerged as a viable option due to its energy density and predictability. However, optimizing the energy extraction efficiency of wave energy converters is crucial to make them viable as generation modules. This requires specially designed control setups, capable of addressing this challenge. This chapter explores a hydrodynamic control approach from a tracking loop perspective, utilizing higher-order sliding mode control as a robust tracking algorithm. Experimental results demonstrate that the proposed control methods surpass traditional methods in extracting energy from waves, thereby enhancing the performance of wave energy converters and enabling their significant contribution to hybrid energy systems.

   3. Towards Control of Large-Scale Wind Farms: A Multi-rate Distributed Control Approach

      Jean Gonzalez Silva, Riccardo Ferrari, Jan-Willem van Wingerden

      Abstract

      With the increasing share of renewable energy, concerns regarding ensuring power system stability are ever more relevant and have been accompanied by discussions to address this yet unsolved issue. Nonetheless, enhancing sparsity and increasing generation capacity by overplanting wind turbines not only mitigates the stability problem but also accelerates the transition from fossil fuel to renewable energy sources. With the high penetration of wind energy, there will be a paradigm shift from maximizing energy extraction to generating energy on demand. In this panorama, a cooperative wind farm control may strengthen the stability of the wind power plant through compensation strategies. Still, large-scale farms raise relevant control issues regarding computation effort and information sharing, such as topology constraints and communication overhead. Here, we contribute by presenting a multi-rate distributed control strategy based on average consensus. This strategy involves estimating the power-tracking errors at a fast sampling rate and executing local control actions that collaboratively mitigate these errors over an extended sampling period. This approach achieves performance comparable to that of the resource-intensive centralized approach. The reliability is therefore enhanced by improving the power regulation while reaching modularity and sparsity inside the farm.

   4. Modern Floating Wind Energy Technologies

      Hector del Pozo Gonzalez, Magnus Daniel Kallinger, José I. Rapha, José Luis Domínguez-García

      Abstract

      Floating offshore wind is a relatively nascent technology which overcomes the current techno-economic depth restrictions imposed by bottom-fixed substructures. Due to this great potential, floating offshore wind will soon enter the commercial deployment phase. With a full pipeline of projects towards Final Investment Decision (FID) until 2030 and the set out goals for 2050 the reduction of its Levelized Cost of Energy (LCOE) is a key target. Increasing its energy density, always granting technology feasibility and reliability while seeking a minimal environmental impact is an important aspect which can be achieved by new component designs, upscaled wind farms, thorough and multi-disciplinary development and optimised maintenance strategies resulting in cost-efficient Floating Energy Systems Integration (FESI). This chapter introduces and assesses the latest floating wind technologies, the optimised integration of multiple turbines in FOWFs, network integration recommendations and control strategies. Additionally, the main concepts related to the development, Transport and Installation (T&I), Operation and Maintenance (O&M) and decommissioning stages necessary to achieve a favourable cost balance and a sustainable technology deployment are described. Finally, the combination of floating wind power with other energy sources such as wave energy and energy storage systems (e.g., offshore hydrogen) are introduced as modern alternatives to achieve integrated floating offshore wind energy systems. These innovations lead towards cost-efficient Offshore Multi-Energy Systems (OMES) that take advantage of shared exploitation areas and infrastructure.

6. Hydrogen-Based Systems

   1. Frontmatter

   2. Hydrogen-Based Grids: Technologies and P2H2P Integration

      Andrés Bernabeu Santisteban, Hector del Pozo Gonzalez, Lluís Trilla

      Abstract

      Hydrogen and the related technologies are seen as potential tools for the energy transition, forming modern hydrogen-based multi-energy systems (HyMES) with renewable energy sources and the electrical grid. This chapter studies the up-to-now state of the art of Fuel Cells (FC), Electrolyzers and their potential application in Hydrogen Energy Systems Integration (HESI), while having the ability to perform Power-to-Hydrogen-to-Power (P2H2P). In the P2H2P systems, the role of power converters, hydrogen storage and ancillary equipment for a grid-connected application are of importance, as well as the main controls of the system determining the power absorbed or supported by the hydrogen units in the system. In this chapter, readers will gain insights into the comprehensive design and operation of P2H2P systems, introducing FC, Hydrogen Turbines and electrolyzers as a complementary resource to the grid. The presented analysis provides insights into the role of hydrogen technologies within the context of the energy transition, emphasizing their capcaity to enhance grid stability and reliability.

   3. Hydrogen Production Through Electrolyzers as a Key Player in Multi-Energy Systems

      Omar Aguirre, Martín David, Oscar Camacho, Carlos Ocampo-Martinez

      Abstract

      This chapter is focused on hydrogen, its production methods, and how this energy vector fits into multi-energy systems (MES) when integrated with other renewable energy sources. Hydrogen will play a fundamental role in the integration of renewable energy. It will become the second energy vector that, together with electricity, will allow the integration of sustainable energy systems. Today, water electrolysis is the main method used to produce hydrogen; the widespread adoption of water electrolysis is due to the need to reduce energy consumption, cost, and maintenance and improve reliability, durability, and safety. In addition, the creation of a hydrogen energy storage system is an important milestone in the achievement of completely renewable energy systems, while guaranteeing the dependability and stability of power systems. Automatic control applied to alkaline electrolyzers is fundamental for hydrogen production, as strategies to handle internal processes of complex electrolysis-based devices are strongly needed to guarantee proper hydrogen production with specific degrees of purity.

   4. Fuel Cell Electric Vehicles for Integration of Hydrogen and Electricity Systems

      Farid Alavi, Nathan van de Wouw, Bart De Schutter

      Abstract

      In this chapter, we explore model predictive control of fuel cell electric vehicles (FCEVs), a type of vehicle that utilizes the chemical energy of hydrogen to generate electricity for their power train. Since vehicles are typically utilized for mobility purposes only for a fraction of the time, the energy stored in the onboard hydrogen tanks of these vehicles also can be used to supply power when they are parked. Our focus is on examining how to control the operation of FCEVs, ensuring the fulfilment of constraints imposed by both electrical and transportation networks while minimizing operational costs.

   5. Advanced Sliding Mode Control Techniques for Fuel-Cell-Based Hybrid Energy Systems

      Jorge L. Anderson, Jerónimo J. Moré, Paul F. Puleston

      Abstract

      Fuel Cells (FCs) have emerged as an important alternative to traditional power sources due to their efficiency, reliability, high-power density, and clean energy. Given these attributes, FCs can enhance the performance of multi-energy systems involving intermittent renewable energy sources, providing stable power output when other renewable sources are not available. However, the integration of these electrochemical devices into hybrid systems presents several challenges that need to be addressed. Particularly, in scenarios where the system must deal with variable power demand, fuel cells alone may not effectively respond to abrupt fluctuations. So, FCs must be integrated with an energy storage system, involving supercapacitors or lithium batteries, to assist in handling peak load demands. This configuration gives rise to various multi-energy topologies, where the control system schemes play a crucial role. In this context, Sliding Mode Control (SMC) has proven to be a robust technique for nonlinear systems, particularly suitable for power systems involving fuel cells. Therefore, this chapter addresses the application of advanced SMC techniques to fuel cell-based hybrid energy systems. The design and implementation of SMC for different types of multi energy systems are discussed, including those incorporating batteries, supercapacitors, and renewable energy sources. The effectiveness of the attained controllers is demonstrated through validation tests, which show improved performance and stability compared to traditional control methods.

   6. Energy Management for a Hydrogen-Based Distribution Network Using Economic Model Predictive Control

      Ionela Prodan, Dina Irofti, Damien Faille, Luis Corona Mesa Moles, Florin Stoican

      Abstract

      Optimization of hydrogen consumption and production by electrolysers in energy systems is of great interest to the community. In this work, hydrogen-based systems have been modeled with the Modelica open-source language and simulated with Dymola, a dedicated software that also allows users to export complex models using the FMI (Functional Mock-up Interface) standard towards Matlab/Python. This allows to capture with various degrees of fidelity the plant’s dynamics and to expose its behavior at different time scales and for different flows (of hydrogen, load and energy demand). We use this framework to provide advances in the analysis, control and management of the hydrogen-based distribution network. The technical novelties reside in the use of economic MPC (Model Predictive Control) to schedule hydrogen flows towards the storage units and the vehicles intermittently-attached to it, while guaranteeing robustness against uncertainties (in demand). This novel implementation allows maximizing economic output and simultaneously fulfilling the demand (here, vehicle refueling). The results are validated over a hydrogen-based microgrid benchmark provided (together with data profiles) by EDF.

7. Energy Storage

   1. Frontmatter

   2. A Perspective on the Integration of Energy Storage Technologies in Multi-energy Systems

      Pedro Fornaro, Paul F. Puleston

      Abstract

      Energy storage is a key component to obtaining cost-effective energy systems. Likewise, highly reliable storage systems are essential for guaranteeing safety and confidence in renewable energy systems across multiple geographical scales. In particular, energy storage systems (ESS) provide energy-integrated systems (ESI) with greater flexibility, simplifying coupling and interfacing Multiple Agents. Subsequently, to address some of the technological limitations of ESS in ESI, in this chapter, a thorough analysis of state-of-the-art electrochemical ESSs is presented. Firstly, some of the commonly used energy storage technologies are introduced. Lithium-ion batteries, supercapacitors, and redox flow batteries are some revisited technologies. Then, constructive details and required operating conditions to guarantee maximum efficiency and reliability standards are detailed. In the second place, practical aspects, bonded with the existing limitations of ESSs in multi-energy systems (MES) are described. To that end, some of the required energetic constraints and associated states are defined and briefly analyzed. For instance, the safe operating area, state of charge, state of health, and remaining-useful-life amongst other key energetic indicators are briefly described. Thirdly, considering the latter-mentioned constructive and functioning limitations of ESS, novel approaches designed to guarantee efficiency, security, and reliability, minimizing the impact of ESS in ESI and maximizing their useful life and economic profitability, are presented.

   3. Zinc-Air Battery Modeling for Control: A Review

      Juan Diego Pineda-Rodriguez, Woranunt Lao-atiman, Cristina Vlad, Pedro Rodriguez-Ayerbe, Sorin Olaru, Soorathep Kheawhom

      Abstract

      In the era of increasing industrial reliance on energy storage, the concerns for safety and environmental compatibility are reinforcing the research interest towards advanced materials and battery architectures. This momentum is particularly evident in the realm of rechargeable batteries and the daily usage of electric devices, where the integrity of Battery Management Systems (BMSs) is paramount. Against this background, the present chapter analyzes model-based control approaches, which depend on rigorous battery models for state estimation, a key element for conceiving reliable BMSs. It commences by revisiting crucial battery operational concepts such as State-of-Charge (SoC), State-of-Health (SoH), Depth-of-Discharge (DoD), and rated capacity. Thenceforth, it scrutinizes the spectrum of methodologies for determining battery model parameters and state estimations, underlining their significance in enhancing battery performance analytics. Concurrently, the analysis recalls the constraints of existing approaches, delineating critical directions for future exploration. The discourse culminates by emphasizing zinc-air batteries, showcasing them not only as a case study for the reviewed modeling methods but also as a vanguard technology in the current quest for sustainable energy solutions. This focus underlines the criticality of continued innovation in zinc-air battery technologies, illuminating their potential to meet the escalating demands of sustainable energy systems.

   4. Role of Vanadium Redox Flow Batteries in the Integration of Multi-energy Systems

      Alejandro Clemente, Lluís Trilla, José Luis Domínguez-García

      Abstract

      This chapter is devoted to presenting vanadium redox flow battery technology and its integration in multi-energy systems. As starting point, the concept, characteristics and advantages of this type of electrochemical energy system are presented, highlighting the main typologies that currently exist and are used for large scale energy storage purposes. The most important challenges related to control and monitoring are described, presenting the most relevant theoretical and application-based contributions, summarizing a state of the art. A case study is presented in which a vanadium redox flow battery is used in a microgrid to analyze its performance and the role that this type of system can play in multi-energy systems. The last part of this chapter is dedicated to discussing the integration of the redox flow battery device within the paradigm of multi-energy systems, presenting the main benefits, advantages, drawbacks and resources required to implement the proposed solutions.

   5. Optimization-Based Control of Renewable Hydrogen Production, Storage and Dispatchment Systems for the Transport Sector

      Pol Cardona, Maria Serra, Carlos Ocampo-Martinez

      Abstract

      The fuel supply chain for hydrogen fuel cell technology-based mobility holds substantial potential for improvement. It has recently garnered significant interest from both the private and public sectors, in terms of investment and research.

8. Demand Response

   1. Frontmatter

   2. Distributed Model Predictive Control Strategies for Modern Energy Systems: A Passivity-Based Approach

      Pol Jané-Soneira, Ionela Prodan, Albertus J. Malan, Sören Hohmann

      Abstract

      Energy systems are experiencing rapid change, exemplified by the increasing use of power electronics and distributed generation units along with their fast and potentially unstable dynamics. To ensure the optimal coordination of these components, we propose a distributed secondary control based on MPC strategies which exploits the flexibility provided by underlying passivity-based primary controllers. Using DC microgrids as an example, we derive a separable and topology-independent Lyapunov function together with independent terminal constraints for ensuring stability of the MPC controller. We also contrast classical tracking and economic MPC implementations, and demonstrate the improved performance achieved by the latter when disturbances occur. Lastly, we argue that the proposed methodology is readily applicable to other energy system domains equipped with passivity-based controllers.

   3. Dynamic Spot Markets for Flexible Demand and Energy Communities via Distributed Optimization

      Sebastien Gros, Dirk Reinhardt, Jayaprakash Rajasekharan, Pedro Crespo del Granado

      Abstract

      The Nord Pool system runs the process fixing the day-ahead hourly electricity spot prices in Northern Europe. Market mechanisms adjusts these spot prices to ensure the alignment of the power production schedule to the forecasted power demand. This price adjustment can be cast as a dual minimization problem, corresponding to maximizing the societal welfare of the market participants. However, this process is intrinsically static, in the sense that the spot prices are computed for each hourly bidding interval independently of the others. While valid today, this approach could be invalidated if the power demand becomes significantly price-responsive. EV charging, flexible consumers, prosumers, storage and Energy Communities will create such a price-responsiveness as they become wide-spread. In this chapter, we describe how a dynamic spot market could address the problem, while retaining the core properties of the current spot market, i.e., economically optimal energy exchanges, fair and transparent trading rules. We then show how Distributed Optimization can be used to tackle that dynamic spot market, in principle allowing for a large scale participation of flexible consumers and prosumers. We detail the process for Energy Communities, where novel spot market approaches can arguably be validated first.

   4. Management Model for a Demand Response Aggregator and Dispatchable Loads

      Pedro Nel Ovalle, José Vuelvas, Carlos Adrián Correa, Cesar Diaz-Londono, Diego Patino

      Abstract

      The coordinated participation of Demand Response (DR) allows the improvement of the economic efficiency of the Electricity Market. This increase in economic efficiency is due to the fact that DR reduces peak demand and price volatility. Additionally, in a scenario with high penetration of stochastic renewable sources, DR promises to be a better alternative than the use of polluting and costly reserves to balance the variability of renewable generation. Countries such as the United States have prescribed that DR resource owners can offer this service as a resource supply for greater market transparency. Therefore, shaping the demand to reduce the peak and smooth its variation will improve the efficiency in the operation of the power system, generating large savings. There is a general consensus in the world on the favorable impact of DR in generating efficiency and greater flexibility in the operation of electricity systems. The challenge is to design the appropriate mechanisms to put its implementation into practice so that the full potential of DR is effectively exploited. The research work presented here is the design of an optimization model to determine the optimal operation of a DR aggregator that manages a portfolio of DR resources based on bilateral contracts of different characteristics to participate in the electricity market in the Day Ahead (DA) and Real Time (RT) instances.

   5. Data-Driven Domestic Flexible Demand: Observations from Experiments in Cold Climate

      Dirk Reinhardt, Wenqi Cai, Sebastien Gros

      Abstract

      In this chapter, we report on our experience with domestic flexible electric energy demand based on a regular commercial (HVAC)-based heating system in a house. Our focus is on investigating the predictability of the energy demand of the heating system and of the thermal response when varying the heating system settings. Being able to form such predictions is crucial for most flexible demand algorithms. We will compare several methods for predicting the thermal and energy response, which either gave good results or which are currently promoted in the literature for controlling buildings. We will report that the stochasticity of a house response is–in our experience–the main difficulty in providing domestic flexible demand from heating. The experiments were carried out on a regular house in Norway, equipped with four air-to-air Mitsubishi heat pumps and a high-efficiency balanced ventilation system. The house was equipped with multiple IoT-based climate sensors, real-time power measurement, and the possibility to drive the HVAC system via the IoT. The house is operating on the spot market (Nord Pool NO3) and is exposed to a peak energy demand penalty. Over a period of three years, we have collected data on the house (temperatures, humidity, air quality), real-time power and hourly energy consumption, while applying various flexible demand algorithms responding to the local energy costs. This has produced large variations in the settings of the heating system and energy demand, resulting in rich data for investigating the house response. This chapter aims at providing important insights on providing flexible demand from houses in cold climates.