The Horizon 2020 projects CoordiNet and FlexiGrid, both studying new market solutions for trading in effect and energy in local marketplaces for flexibility, have identified barriers or obstacles to increased use of flex markets. Some obstacles and how they can be solved were discussed in this webinar.
There is uncertainty among those who could provide flexibility because it is not possible to say how much will be allowed to deliver, which means a financial risk for the supplier.
“If you can split the financial risk with the DSO and get paid to be available, even if you are not called off, the incentives to join increase”, says Linnéa Glemne who is a development manager at Uppsala Municipality, one of the partners in CoordiNet. She continues:
“Increased flexibility contributes to Uppsala being able to continue to grow, enabling the city to have more effect and at the same time reduce its costs for energy. This means value for the municipality in the future!”
“It is expensive to invest in control equipment and to recoup the costs. But helping to reduce the climate impact will be an addition to the value of flexibility. I believe that there are also other incentives”, says David Steen who is a researcher at Chalmers, partner of FlexiGrid.
Other incentives
An obstacle to increased flexibility is the need for knowledge. What flexibility is and what it means to be a flexibility provider, for example.
“It is a strong driving force when someone other than the DSO, for example, your municipality, says that flexibility is important. Someone who talks about the soft values”, says Yvonne Ruwaida, business strategist at Vattenfall Eldistribution who leads the Swedish demo site in CoordiNet.
“The need for flexibility will increase in the future with increased intermittent force. It is important to show that there is an economic upside as well. That you do a good deed, and that you as a supplier can get an overview of what is happening, for example via an application”, says Henrik Forsgren who is a senior project manager within R&D at Göteborg Energi, partner of FlexiGrid.
“Not everyone needs to know everything, but the aggregators have an important role as a bridge. Thanks to them, customers do not have to know everything. It is important that we as a municipality support the aggregators”, says Linnéa Glemne.
“There are a lot of flexibility resources in a municipality that can be used and that are not so sensitive, such as properties. But you may need an ambassador who can show what you can do to contribute”, David Steen points out.