Title: Demo – TSO-DSO flexibility market platform, block chain based with smart

contract and smart billing

 
Rational/ concept:
(Please refer to the problem/ service envisioned to be solved/ added respectively)

Texts from the call LC-SC3-ES-5-2018-2020:

- TSOs and DSOs will use the same pool of resources: actions by both can mutually affect each
other. In cooperation with market participants, they have to define the services they want to
procure, and have to set up ways to procure them in a coordinated manner.
- The focus is on projects that demonstrate at a large-scale how markets and platforms enable
electricity TSOs and DSOs to connect (in particular through data communications and common
architectures) and procure energy services from large-scale and small-scale assets connected to
the electricity network through a combination of local markets (in particular for congestion
management), with wholesale & balancing markets, in a way that will increase cost-efficiency in
(future) network operations and that creates consumer benefits.
- The markets and platforms should enable the integration of relevant digital technologies like
Internet-ofThings, Artificial Intelligence, cloud and big data services. The projects selected will
define and test in real-life demonstrations of integrated system-based markets and platforms for (a
set of) grid services that can be used and procured by DSOs and TSOs in a coordinated manner,
in markets that they jointly set up (but don't necessarily need to operate themselves)
- allows procurement based on the specific location and grid conditions
- Test innovative ways to promote consumer participation, engagement and perception, such as
peer-to-peer trading, and innovative ways to reduce transaction costs, such as via distributed
ledgers (blockchain)

With RES development, TSO and DSO are facing different difficulties to hold system security and
both need flexibility services for their network operation. However, when procuring flexibility
services from DSO connected resources, some potential conflict may arise, e.g. transparent in data
exchange and transactions, who should have right to control what or use resources. A traffic light
system for DSO was introduced, but it is not evident in reality. On the other hand, in order to have a
business case, the service providers must have right to sell to where they can maximize gaining.

This is an issue that the call wants to address, the European TSO-DSO platform wants to realize, and
is heavily stressed in the Clean Energy Package.

Thanks to powerful development of block-chain technology, bidding and switching flexibility services
among providers and procurers can be realized in a transparent way.

Objectives

- To demonstrate a flexibility market platform with block chain based, smart contract
and smart billing
- To provide facility for system operators (TSOs, DSOs) and flexibility service providers
to procure and trade for balancing and congestion management

Description of work

This demo is trying to test a prototype, developed by EMAX-EFLEX, for the TSO-DSO flexibility market
with block chain based, smart contract and smart billing. (The prototype will be ready for the
proposal by the submission time, end of April).
Tx.1. Setting-up technical requirements and flexibility market arrangements for each test case

Although a vision to have overarching market design principles at the EU level, the market settings
and conditions will be different at the country level.

Basing on a common structure of market coupling and rules which are stipulated in the Balancing
network code, the Capacity Allocation and Congestion Management guideline, specific requirements
and settings are defined in this task for each demo site.

Tx.2. Enhancing a prototype for flexibility market with block chain based, smart contract and
smart billing

A prototype developed by EMAX-EFLEX will be further enhanced in this task.

Tx.3. Demonstrating TSO-DSO procurement for flexibility at different demo sites

Potential demo sites:

Tx.4. Validation of the demonstration

- To check how transparent in data and control

- To validate correctness of transactions
- To validate transaction capacity, automatic level and speeds of procurement process

Scenario:

Estimated man-month (indicative only)

Task Title Man-month Comments

Tx.1 Setting-up technical requirements 30
and flexibility market
arrangements for each test case
Tx.2 Enhancing a prototype for 50
flexibility market with block chain
based, smart contract and smart
billing
Tx.3 Demonstrating TSO-DSO 80
procurement for flexibility at
different demo sites
Tx.4 Validation of the demonstration 30
Total (mm) 190

Expected outcome:
(Please refer to the benefits expected in relation to the operation)

- A reliable platform, where TSOs, DSOs and market players come together and trade flexibility
services in a transparent and cost-effective manner
- The platform is scalable to be applicable in whole Europe

Location/ countries-regions involved:

Every TSO-DSO pair are encouraged to participate and test. Even, TSO or DSO without pair
can also be involved.
The server is located in Belgium. Partners carry out the test anywhere.
- REN-EDP in Portugal: under discussion
- ESO and DSOs (possible IBEX) in Bulgaria: under discussion
- Elerling-DSO: already contacted
- RTE: already contacted
- ELES-DSO: to be contacted
- Other TSO-DSO pairs

Assets/ existing tools and systems:

(It is important to define the systems and assets that will be employed, to help the technical
design and implementation)

- The server is located in Belgium

- A prototype is under development and will be ready for the proposal by mid-April. A
link to access the prototype will be given in the proposal. Also a short description as
well
Actors/ participants:
(please note down confirmed partners and their contribution, as well as partners needed
from the consortium/network or which have been contacted)

Essential partners for this demo:

- EMAX-EFLEX: develop platform
- TSOs: testing
- DSOs: testing
- ESCOs or Prosumers: testing
Strong interests are shown from Portugal and Bulgaria.