Market design and regulation

How can the efficiency of the smart energy system be measured? Which market mechanisms have an impact on its design – and what could the corresponding regulatory framework look like? WindNODE assumes a higher-level economic perspective in this workstream. Using systematic research and based on economically founded assumptions, an adequate parameter system is developed, legal and regulatory matters are considered and development paths are drawn for the overall system.

Assessment of the overall system efficiency

To be able to determine the economically optimised combination of power storage units, flexible loads and flexible producers as well as appropriate market models, we have to make it possible to measure the performance and efficiency of the smart energy system. The underlying question is which classification and which parameters can be used to characterise the system. In this project, TU Berlin (EnSys) and Siemens are developing a parameterisable model of the energy system and expanding it with aspects of the ecological and economic life cycle assessment. Based on this model, we compare alternative development paths and derive market models for the operation of flexibility to support the grid while paying special attention to aspects of economic participation and acceptance. Furthermore, we use appropriately defined parameters to assess the effectiveness of the WindNODE demonstrates for the smart energy system.

New market design and design of the ‘amber light phase’

In the ‘grid traffic light model’ which was proposed by the German Association of Energy and Water Industries (BDEW), the ‘amber light phase’ signifies the transition between the safe function of the electricity grid without market restrictions (green) and the critical phase (red), during which the system operators have to intervene directly with control and regulating measures to maintain system stability. IKEM and the University of Leipzig intend to design this phase in compliance with the law and the Federal Ministry’s white paper. We are analysing regional flexibility and its provision with regard to costs and the effect on the grid, as well as the role market-based instruments play in the integration. In cooperation with the GridLab control room simulator, we dynamically visualise critical grid states and the influence of modified regulatory conditions. The analysis provides recommended legal-political actions and implementation proposals as a total concept for the assignment of tasks in the energy system of the future.

WindNODE – value proposition and business models

As an innovative showcase project, WindNODE should make a specific contribution to the development of the energy system. The project’s own target system – internally referred to as the ‘WindNODE value proposition’ – should be permanently evaluated and developed further. To this end, TU Berlin (EnSys) determines critical success factors and derives recommended actions for their successful implementation. Furthermore, we assess possible systemic effects of a successful and complete realisation of the value proposition. At the same time, we permanently deliver scientifically founded ad hoc estimates of new evolutions in the energy industry and forward these to the WindNODE workstreams and the coordination of the consortium. Special focus lies on the identification of possible new business models and ‘blueprints’, for instance under the mottoes ‘regionalised electricity market products’ and ‘blockchain applications’.

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