Markets and platforms to coordinate the procurement of system services from large-scale and small-scale assets connected to the electricity network

This paper describes the work performed to define the characteristics, functionalities and potential
algorithms in order to ensure the interoperability of the different markets and platforms developed
by TSOs and DSOs across Europe:
1- Specification: Definition of the overall system architecture to be implemented in each
demonstration site.
2- Market block: Definition of the relation between central, regional and local markets, as well as
the structure (bidding times, market horizon, clearing frequency, etc.) and clearing algorithms
for them.
3- Network block: Description of network monitoring and operation tools to determine the needs
of system operators. Identification, upon existing tools for monitoring and operating
distribution and transmission grid, of the generic requirements and functionalities of these tools. The purpose of these tools is the identification of grid issues which are then used to
quantify the flexibility requirements for the local and/or wholesale markets for system
services.
4- Aggregation block: Analysis and definition of types of algorithms and mathematical models to
be used by aggregators to:
a. estimate the flexibility available from the different large-scale and small-scale units
included in their portfolios,
b. translate those flexibilities into offers to be sent to the local, regional and/or wholesale
markets for system services, and
c. allocate the flexibility to the different units once the market clearing result is received from
DSOs and TSOs.
5- Standardisation: Definition of the information exchange requirements between the different
blocks by means of the Smart Grid Architecture Model (SGAM) methodology. The definition of
these standard interfaces is done in terms of information models, timing requirements and
interaction sequences.
6- Innovative enabling technologies: Activities which allow to determine, how, to what extent
and under which conditions innovative enabling technologies may incentivize consumers’
participation to energy marketplace.