Professional Documents
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Sabina
Sabina
Ares(2018)4099906 - 03/08/2018
H2020-LCE-01-2016-2017
Next generation innovative technologies enabling smart grids, storage and energy
system integration with increasing share of renewables: distribution network
SABINA
SmArt BI-directional multi eNergy gAteway
= Deliverable D1.1 =
Market-based requirements for the SABINA solution
Dissemination level
PU Public x
Restricted to other programme participants (including the Commission
PP
Services)
Restricted to a group specified by the consortium (including the Commission
RE
Services)
Confidential, only for members of the consortium (including the Commission
CO
Services)
This project has received funding from the European Union’s Horizon 2020 research and innovation
programme under grant agreement No 731211.
H2020-LCE-01-2016-2017 GA number: 731211
SABINA
AUTHOR
Author Institution Contact (e-mail, phone)
Lorraine Caldwell SMS Lorraine.caldwell@sms-plc.com
James Sharman SMS james.sharman@sms-plc.com
Yves Stauffer CSEM yst@csem.ch
Carlos Fernández Bandera UNAV cfbandera@unav.es
Eva Lucas UNAV elucas@unav.es
Frederik W. Johansen INS fwj@insero.com
Jaume Salom IREC jsalom@irec.cat
Amelia Alvarez SCHE amelia.alvarez@schneider-electric.com
Paco Ramos SCHE francisco.ramos@schneider-electric.com
Antonis Peppas NTUA peppas@metal.ntua.gr
Konstantina Papakonstantinou NTUA konstantina_papakonsta@metal.ntua.gr
Sebastiano Toffaleti DSME sebastiano.toffaletti@digitalsme.eu
Lenka Bajarová AMI bajarova@amires.eu
DOCUMENT CONTROL
Document version Date Change
V0.1 06/01/17 Advanced draft
V0.2 09/01/17 1st update to draft following full proof read
V0.3 10/01/17 2nd update of advanced draft following proof read
V1.0 11/01/17 Final version approved by the Project Manager and
the Coordinator
V2.0 03/08/2018 EU acknowledgement and disclaimer included, list
of authors extended
VALIDATION
Reviewers Validation date
Work Package Leader Lorraine Caldwell N/A
Project Manager Lenka Bajarová 11/01/2017
Exploitation Manager Lorraine Caldwell 09/01/2017
Coordinator James Sharman 10/01/2017
DOCUMENT DATA
Keywords
Point of Contact Name: Lorraine Caldwell
Partner: SMS
Address: Prennau House, Cardiff CF23 8XH
DISTRIBUTION LIST
DISCLAIMER
Any dissemination of results reflects only the authors’ view and the European Commission Horizon 2020 is
not responsible for any use that may be made of the information Deliverable D1.1 contains.
SABINA is an EU funded H2020 research and innovation project that aims to develop new technology and
financial models to connect, control and actively manage generation and storage assets to exploit synergies
between electrical flexibility and the thermal inertia of buildings.
SABINA focuses on energy storage and maximising the use of flexibility. Excess electricity from renewables
can be converted to heat or cold and stored using buildings’ thermal inertia (or other storage mechanism).
Provision for aggregation at district level will be provided to maximise the effect of SABINA.
This document describes the findings of a comprehensive but non-exhaustive literature review and a limited
market survey of aspects within a varying and rapidly changing market place. An overview of the current
market landscape is provided together with an assessment of how it could develop in future and where the
SABINA solution could fit in to address emerging market needs.
Current and future European policies regarding flexibility markets are discussed. A selection of existing
companies who offer solutions partially similar to SABINA, research projects addressing comparable
solutions and projects where SABINA could be deployed are analysed to understand where SABINA could fit
within different markets.
A summary of opinions and perspectives from relevant industry actors are also presented.
In order to ensure that SABINA has the potential to be commercially viable thus encouraging a wide market
uptake, a set of guiding principles have been developed and these are summarised in the concluding section
of this document.
1.2. Methodology
The content of this report has been delivered by findings of two methods; a literature review and a short
market survey.
1.2.1. Literature Review
An initial comprehensive but non-exhaustive desk top literature review was undertaken to understand
existing companies offering similar technologies, research projects exploring similar areas and current
incentives that could contribute to the commercialisation of SABINA.
Findings are presented in Sections 2 and 3.
1.2.2. Market Survey
A concise summary of SABINA and a template of questions were agreed by all partners, these can be found in
Appendix 1. Target groups were agreed and short interviews were carried out with individuals spanning the
target groups. Further details of this exercise are discussed in Section 4 of this document although findings
from the survey were also used to inform Sections 2 and 3.
2.2. Objectives
The main objective of SABINA is to provide a beyond state of the art technological solution that brings
services to the medium and low voltage grid and will be on the market within five to ten years. SABINA
focuses on energy storage and synergies between electric and thermal networks and is inherently
compatible with demand-response.
This main objective, will be reached by addressing the following specific transdisciplinary (technical,
business and normative) objectives (current TRLs are indicated in brackets):
• Develop methodology for automatic identification of the thermal inertial of buildings with a
precision of 95% with a minimal set of temperature sensors and in less than 2 weeks. (TRL 3)
• Develop building consumption and production prediction algorithms (including renewables) that
automatically adjust to buildings’ specificities and predict with a precision of 95% over the horizon
of 24 hours (1hour granularity). (TRL 4)
Country Status
Portugal
Spain
Italy
Croatia
The Czech Republic
Bulgaria
Cyprus
Malta First - Member States who have yet to seriously engage with Demand
Greece Response reforms. Obligatory provisions of the relevant EU Directives
Hungary may have been transposed in name but not in fact.
Estonia
Latvia
Lithuania
Luxembourg
Poland
Romania
Slovakia
Slovenia
Austria
Denmark Second - Member States are in the process of enabling Demand Response
Germany through the retailer only. This is an important choice – due to the fact
Netherlands that the customer will not be offered a clear value for their flexibility -
Sweden rather they will receive this bundled with their electricity bill.
Finland
Belgium
UK Third - Member States that enables both Demand Response and
France independent aggregation.
Ireland
In November 2016 UK’s Government and Ofgem published A SMART, FLEXIBLE ENERGY SYSTEM - A call for
evidence setting out their thinking in a number of key areas. The full document can be found on Ofgem’s
website2. A couple of points have been extracted that are relevant to SABINA’s role within the future UK
market.
1 http://iet.jrc.ec.europa.eu/energyefficiency/node/9147
2 https://www.ofgem.gov.uk/publications-and-updates/smart-flexible-energy-system-call-evidence
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• Government and Ofgem are committed to ensuring the energy system works for people and
businesses. A smarter and more flexible system offers significant benefits for consumers and the
economy. This can help to ensure the UK has a secure, affordable and clean energy system now and
in the future, while helping to enable growth in all parts of the country.
• A smart energy system is one which uses information technology to intelligently integrate the actions
of users connected to it, in order to efficiently deliver secure, sustainable and economic electricity
supplies. Smart technologies will be an important source of future flexibility. ‘Flexibility’ refers to the
ability to modify generation and/or consumption patterns in reaction to an external signal (such as a
change in price, or a message).
• Security of supply is vital. A smart system can deliver energy security at a lower cost than would
otherwise be the case. As new smart technologies and solutions emerge, the System Operator and the
energy market will have a more diverse range of options for balancing supply and demand. This will
need innovation in technologies, business models and consumer offerings. Equally, a smart system
could face new risks, because it will be more complex and more driven by data and communication
technologies. It is essential that a smart system remains a secure system.
• For markets and competition to work effectively, smart technologies and new business models need
to be able to compete fairly with more traditional solutions.
• Aggregators have a role to play in delivering smart technology and processes. They enable
consumers to offer flexibility by providing an intermediary role.
The National Grid in the UK launched a Power Responsive campaign in June 2015 and set out how they saw
their balancing services evolving over the next five to ten Years. Existing balancing services offered are
summarized in Section 3.4.2; the National Grid believes significant participation in these markets is likely to
remain at least five years away. This timescale fits in with the commercialisation target of SABINA,
suggesting this kind of smart technology will have a high future market demand.
2.3.2. Existing technologies and solutions
Few companies were found to address all objectives that the SABINA project wishes to achieve; this is
understandable due to the low TRL of the complete solution. A relevant selection of existing companies who
offer solutions partially similar to SABINA, research projects addressing comparable solutions and projects
where SABINA could be deployed are summarised and referenced below.
Goteborg Energi - Gothenburg 3, 4, 5, 6
Goteborg Energi are western Sweden’s leading energy company and manage Gothenburg’s large district heat
network. They have collaborated with Chalmers University on a 4 year project entitled Smart energy
networks – connections between smart grids and smart district heating networks.
Integrated within the Celsius Smart Cities program the Gothenburg heating network connects the north and
south of the region and extends over 410 kilometers with a total of 1200 kilometers of pipeline. With its 19
production sites distributed throughout the region, the heating network serves 90% of Gothenburg
collective dwellings within the urban area and 20% of individual houses. It provides about 0.3 Mtoe of heat.
The heat price is modulated according to four choices. These range from the rental of the exchanger (the
choice made by most housing tenants) to purchasing it, with two intermediate options.
The Gothenburg heating network uses half the heat recovered from the incineration of waste and refineries,
as well as biofuels and heat pumps installed in wastewater. More than 80% of its energy mix comes from
renewable sources or energy recovery.
One of the assignments of the project was to investigate the use of buildings as thermal energy stores. Back-
up boiler plants that use fossil fuels are often used in order to satisfy peaks in power demand. These plants
3http://www.chalmers.se/en/projects/Pages/Smarta-energin%C3%A4t-%E2%80%93-koppling-mellan-smarta-eln%C3%A4t-och-smarta-
fj%C3%A4rrv%C3%A4rmen%C3%A4t.aspx
4 http://www.goteborgenergi.se/English/Products/District_heating
5 https://eu-smartcities.eu/content/celsius-smart-district-heating-and-cooling-solutions
6 Evaluation of buildings’ suitability as thermal energy storage in a district heating system - J Elebo, D Petersson 2013
7 http://www.linear-smartgrid.be/en/research-smart-grids
8 http://qcoefficient.com/
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Taken from their website: By integrating building operations with energy markets, QCo’s proprietary
software leverages a building’s thermal mass, environmental data, carbon emissions and electric market
prices to:
• Reduce HVAC energy use and expense up to 30 percent;
• Improve electric generation efficiency and environmental performance; and
• Introduce demand elasticity into grid markets.
For building owners and managers – QCo executes a strategy designed to maximise efficiency and tenant
comfort while also reducing costs, extending equipment life, and supporting corporate sustainability goals.
QCo proprietary modeling utilises both building structure and infrastructure data and building operations
information to provide site-specific performance predictions. QCo proprietary software then applies
optimisation techniques to the model to help determine the most economical operation for each day, as a
function of hourly local weather, carbon emissions at the source, fan and chiller efficiencies and real-time
electric market prices.
QCo’s proprietary modeling captures the performance and electric demand of building HVAC systems, and
then evaluates temperature-setting strategies that shift HVAC electric consumption to take advantage of
lower night-time/early morning temperatures and electric prices. By eliminating the need for buildings to
purchase energy during daytime peak hours at higher peak-rate prices, QCo’s proprietary HVAC
optimisation software on average achieves 10% energy savings, 20% energy expense savings and up to 30%
peak demand reduction.
BuildingIQ 9
BuildingIQ is an American based company that offers the solution, Predictive Energy Optimization™ (PEO).
Taken from their website PEO is designed to improve the energy efficiency of large, complex buildings,
whether commercial, public, or academic. Running as a software-as-service (SaaS), PEO optimises around
system efficiency, occupancy comfort, and lowest cost. Energy reductions in HVAC consumption in the range
of 10-25% are typical, with reductions climbing to as high as 40% during operational peaks. The service
utilises the full capabilities of the 5i platform, learning from and adapting to the building and BMS over time.
At the core of the solution are sophisticated algorithms, which automatically learn and model the building’s
thermal characteristics and usage patterns. The system then adapts to changes in internal or external
conditions. As a result, there is no need for engineers to laboriously document or update the technical details
of every component of a building’s HVAC system, which is usually required to implement a sophisticated
energy optimisation solution.
BuildingIQ uses advanced artificial intelligence algorithms to learn about a building’s energy characteristics.
This capability is referred to as Learning by Listening and it significantly reduces the time needed to deploy
a solution. After the initial system is deployed and operational, the solution continues to listen and learn and
continues to improve the building’s performance.
Noda Smart Heat Grid 10 11
Noda Intelligent Systems is a Swedish company founded in 2005 to develop intelligent systems for energy
efficiency and system-wide energy optimisation for both energy companies and property owners.
Noda Smart Heat Grid is a platform for linking customers and district heating suppliers. By combining
traditional engineering with modern IT technology, Noda technology optimises production strategies,
energy efficiency and reduces emissions throughout the entire energy chain for district heating customers.
The system coordinates substation power output and links this with operational production conditions.
Normally, district heating is entirely controlled by demand and energy companies can only affect the supply
temperature and pressure holding facilities. Noda Smart Heat Grid creates a third level of freedom by
enabling the operational control of demand in real-time.
9 https://buildingiq.com/products/predictive-control/buildingiq-platform/
10 http://www.noda.se/en/main
11 http://www.noda.se/en/smart-heat-building
12 http://www.depsys.ch/products/
13 http://www.neatpumps.com/about-us.aspx
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2.4. Future Market Demand
The Commission wants the EU to lead the clean energy transition, not only adapt to it. For this reason, the EU
has committed to cut CO2 emissions by at least 40% by 2030. EU’s proposals have three main goals: putting
energy efficiency first, achieving global leadership in renewable energies and providing a fair deal for
consumers.
In order to better accommodate the rising share of renewables, wholesale markets have to further develop
and in particular provide adequate rules allowing shorter term trading to reflect the necessities of variable
generation. Renewables producers will be able to earn revenues from the market, including system service
markets that are required to maintain grid stability and security. By introducing trading closer to the time of
delivery well-integrated short-term electricity markets will also reward flexibility in the market for
generation, demand or storage. 14
Consumers are the drivers of energy transition. New technologies like smart grids, smart homes,
increasingly competitive roof-top solar panels and battery storage solutions make it possible for energy
consumers to become active players on the market. The Renewables Directive will enable consumers to self-
consume renewable energy without facing undue restrictions, and ensure that they are remunerated for the
energy they sell into the grid. 15
Flexibility needs to be added to Europe’s power system to accommodate an increasing share of variable
power generation from renewable sources. Indeed, service quality issues start to arise on the grid when this
share in electricity consumption reaches 10%. To meet the EU’s targets for reduction of greenhouse gas
emissions this share should rise to 30% by 2030 and up to 50% by 2050. The cost of this transition and the
necessary measures to guarantee stable and continuous supply are a major political concern.
The SABINA project responds to this by targeting the cheapest possible source of flexibility: the existing
thermal inertia in buildings and the coupling between heat and electricity networks it enables. This coupling
requires accurately estimating the thermal inertia of many buildings. SABINA’s partner the University of
Navarra has created a breakthrough, automatic method for this estimation, which shall be scaled up,
validated and integrated in a complete management system through this project.
This system will operate on two complementary time horizons:
• One day: aggregation and management at the district level of the electric and thermal flexibilities,
and conversion and storage of the excess electrical energy to thermal energy in the freely available
building inertia.
• Seconds to minutes: local control of inverters feeding renewable electricity to the grid, with optimal
parameters automatically determined at the district level. Research partners will develop novel
control and optimisation algorithms, and integrate and evaluate the system in lab and operational
settings.
The SABINA solution is compatible with both new and existing buildings; it is planned to be deployed within
five years of the end of the project.
14 http://europa.eu/rapid/press-release_MEMO-16-3987_en.htm
15 http://europa.eu/rapid/press-release_IP-16-4009_en.htm
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3. SABINA System Components
3.1. Thermal Inertia Model
In order to incorporate a larger portion of energy derived from variable Renewable technologies, SABINA
aims to use the thermal inertia of buildings to allow excess electrical energy to be converted to thermal
energy. The ability to accurately determine the thermal inertia of a building or the building behavior in free
oscillation will allow the maximum utilisation of flexibility within the whole system by exploiting the ability
to predict the amount of energy required to keep the building within its comfort zone under all
circumstances.
3.1.1. Objectives
The main objective of this component of SABINA is to develop the methodology to automatically obtain a
calibrated simulation model (that will at a later stage be used as a prediction model by the management
algorithm) that matches the building’s actual thermal behavior and energy consumption.
This main objective will be achieved by the following activities:
• Development of a high quality thermal model to allow the controller to benefit from the thermal
inertia of the building.
• Automate the calibration of the model based on a few sensors and short measurement time.
• Preparation of a common simulation environment for all partners based on standard tools.
• Development and improvement of automatic building thermal identification method.
• Development of a full simulation model based on calibrated building models.
The simulation tool used will be EnergyPlus which will be adapted for the specific needs of SABINA.
3.1.2. Current Technology and Market Landscape
As described in Section 2.3 the following are currently offering / researching the synergies between thermal
and power networks using smart algorithms to understand buildings’ characteristics:
• Goteborg Energi
• QCoefficient
• NODA Smart Heat Building
• Linear project
Further projects such as the EU project Energy IN TIME (EiT)16 project go beyond existing building control
techniques, developing an integrated control and operation approach that will combine state of the art
modelling techniques with the development of an innovative simulation-based control technique. This will
have the overarching objective of automating the generation of optimal operational plans tailored to the
actual building and users requirements. This approach will reduce system inefficiencies and contribute to
improving building energy efficiency and comfort.
The target for Energy IN TIME will be existing non-residential buildings which present the greatest scope for
improvement due to the variety and quantity of facilities and equipment covered and the operational
management models used in them. A control tool will be implemented in the building energy management
systems to be automatically and remotely operated. The methodology will be defined for existing buildings
and for its implementation in new buildings since its initial commissioning.
The building calibration approach used by the Energy IN TIME project is described in the research paper
Development of Calibrated Operational Models of Existing Buildings for Real-Time Decision Support and
Performance Optimisation D Coakley et al. and followed a three-tier calibration approach, which aimed to
eliminate noise and discrepancies at the lowest levels (i.e. zone and system component level), before
16 https://www.energyintime.eu/
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attempting to tackle whole building model performance evaluation (i.e. at plant level). The approach built on
existing best practices for model calibration, using evidence-based model updates combined with sensitivity
analysis to guide the entire process.
Other research undertaken at the University of Warsaw by W Bujalski et al. 17 looked at using a simplified
model for simulation of buildings’ behavior for the operational optimisation of district heating systems.
Evolution of energy markets and developments in IT have resulted in new challenges for operational
optimisation in modern district heating networks. Among the solutions which can help in such optimisation,
thermal load shifting through the use of inertia of buildings has been identified as one which requires
additional research. Two mathematical models for simulation of transient behavior of buildings connected to
DH systems were described, and the more simplified model was validated by comparing results. Bujalski
stated that some innovative ideas, for example utilising the thermal inertia of buildings, had not been
explored due to legal regulations for example controlled tariffs for end users in Poland, which do not allow
setting variable prices of heat depending on time of the day.
Older (2011) 18 literature states simulation of an existing building is a difficult task, as older buildings are
often poorly documented and the condition and efficiency of the plant may be unknown. Metering is usually
scarce and a breakdown of significant energy users can be impossible to attain. Attempting to accurately
model such a building can be an expensive and often futile exercise. However, the act of modelling can
identify many areas within the building’s operation where improvements can be made. The fully refurbished
building can be modelled to predict its final expected energy performance; however, this is most useful
where a replacement of significant mechanical and electrical systems is planned. Computer simulation of
existing buildings can assist the refurbishment to achieve a desired energy performance. It can be useful in
assessing the merit of various pieces of equipment and can identify the most effective upgrades.
3.1.3. SABINA and Future Market Demand
In order to fully benefit from the freely available thermal capacity of buildings, a high quality thermal model
needs to be developed. In order for it to be easily usable within the SABINA package, the model shall be
automatically identified based on a minimal set of sensors and require minimal user input.
It will be based on the two following points:
1. An algorithm for preserving thermal history has been developed to solve the initial thermal energy of the
model. The thermal history of the building is preserved with information from the building automation
system (BAS otherwise known as Building management system BMS) system or the external sensors if
needed. A recent publication from the University of Navarra has proved the effectiveness of this new
algorithm 19. In this article the algorithm has to deal with problems linked to the standard implementation
shown in Figure 2 and because of that and despite the good results (40% of improvement from a good base
model), the algorithm is not working at full capacity. In SABINA the algorithm will take full advantage of the
new implementation that is proposed also shown in Figure 2.
2. A new calibration environment has been developed called Modular Artificial Neural Networks (MANN)
that has been proved at experimental level to reduce the time taken to find calibrated parameters (more
than 95% time saving 20). Within SABINA, this concept will be improved and made more robust to reach
TRL6.
These two novel methodologies will be at the basis of the SABINA project. Finally, the methodology will
result in a high-quality model based on temperature information that is easy to capture and cheap from the
point of view of installation. Indeed, information from BMS, if available, can be easily be incorporated into
the calibration process. The models can be generated through two or three weeks of monitoring. Using the
free oscillation advantage reduces the number of parameters needed and use of temperature sensors
reduces the investment as these are cheap and easy to install making this process suitable for large scale
deployment.
17 OPERATIONAL OPTIMIZATION IN DISTRICT HEATING SYSTEMS USING THERMAL INERTIA OF BUILDINGS Authors: Michał Leśko, Wojciech
Bujalski
18 http://www.sustainabilityhouse.com.au/uploads/web/ExistingBuildings_Ecolibrium_Oct2011.pdf
19 Ruiz, G. R., Bandera, C. F., Temes, T. G. A., & Gutierrez, A. S. O. (2016). Genetic algorithm for building envelope calibration. Applied Energy, 168,
691705.
20 Carlos Fernández Bandera. Artificial Intelligence as an inspiration for Building Energy Models. Phd-thesis. University of Navarre; 2016.
The developed high quality methodology of producing accurate calibrated building energy models could be
used for a variety of future applications such as the following:
• Demand for the integration of electric and thermal networks as more electrification of heating
becomes predominant. Electrical heating allows higher integration of Renewables.
• Predicting thermal inertia would lead to being able to predict the amount of heat or cooling required
along with the prediction of renewable supply, enabling the exploitation of demand response
requirements.
• Building performance optimisation – lowest energy use, lowest energy cost whilst maintaining
acceptable indoor environments.
• Model based control, model utilised as a guide to operation of the building.
• Model used in building automation system for real time control.
• Ongoing commissioning of new buildings.
• Diagnostic aid to understand where the building would benefit from further commissioning.
• Compare cost effectiveness of future energy conservation measures or renewable energy generation
installations.
• Predicting the thermal inertia of a building simply and cost effectively by using a few temperature
sensors could lead to an uptake of the use of the IPMVP Option D.
21 http://www.neurobat.net/en/technology/
22 https://www.gridsense.ch/en/home.html
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home. Through intelligent switching of loads, GridSense also contributes to the development of a smart grid,
thus helping to level out network load and supporting achievement of energy transition goals.
Demand Logic 23
Demand logic a UK based company who install a small device in buildings which collect data from the
existing building management system (BMS). In a typical building, boilers and chillers can be triggered into
running by any one of many hundreds of smaller devices which ask for hot or cold water or air. Finding
which device is behaving badly can be difficult yet this is how a vast amount of energy is typically wasted.
The Demand Logic system is able to sort and search all the devices and find the ones that are making
excessive demands on the plant.
Larger companies such as Siemans and Schneider also offer solutions to monitor measure and optimise
assets at a building management level 25 26:
23 https://www.demandlogic.co.uk/learn-more
24 http://www.smartcarboncontrol.com/energy-management/modules
25 http://www.buildingtechnologies.siemens.com/bt/global/en/campaigns/desigo/pages/default.aspx
26 http://www.schneider-electric.com/b2b/en/solutions/system/s4/building-systems-smartstruxure/
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The simpler existing commercial products currently available suggest there is a market demand for the
smart building management technology that SABINA aims to develop.
3.2.3. SABINA and Future Market Demand
SABINA will develop a management algorithm that will find the optimal operating point of the electric to
heat/cold appliances (for instance heat pump or chiller) as well as the set-point of the thermal sub-station (if
available). The management algorithmic development will be carried out in a Matlab environment coupled
to the thermal inertia model developed within SABINA (see 3.1.3).
The building management algorithm will be in charge of controlling the electricity used to produce heat (or
cold) at building level. If additional storage elements for thermal energy (water tank) or electric energy
(batteries) are present, these will also be controlled by this algorithm. The algorithm will use predicted
thermal consumption/production and predicted electric consumption/production. It is important to note
that the grid constraint input corresponds to limitations sent by the district level aggregators. These can for
instance favour the use of the thermal grid or limit the injection of electricity on the electric grid.
The algorithm will take into account historical information from the data platform regarding the optimal
operation of a portfolio of heat pumps. The management algorithm will find the best technical system
operating model based on grid constraints and building status (production and consumption). During this
optimisation process, the building flexibility (i.e. how much more or how much less electricity or district
heating the building can accept) without penalising user comfort is also computed. The forecasted
information over a 24-hour period will be sent to the aggregator tool to enable flexibility models to be
utilised.
Figure 5 presents an overview of the anticipated building management tool.
27 UL, China Electricity Council, and China Electric Power Research Institute, ‘Comparative study of standards for grid-connected PV system in China,
the U.S. and European countries’, US China Energy Cooperation Program, Beijing, China, Jul. 2013.
28 M. Brenna, E. D. Berardinis, L. D. Carpini, F. Foiadelli, P. Paulon, P. Petroni, G. Sapienza, G. Scrosati, and D. Zaninelli, ‘Automatic Distributed Voltage
Control Algorithm in Smart Grids Applications’, IEEE Transactions on Smart Grid, vol. 4, no. 2, pp. 877–885, Jun. 2013
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This will minimise communication requirements and distribute computation. The computing platform of the
aggregator is a backup solution for implementation at least in the first pilot phases.
The European Commission fact sheet - Achieving global leadership in renewable energies published in
November 2016 as part of the EU’s package of clean energy measures states 29:
“Renewables producers will be able to earn revenues from the market, including system service markets that
are required to maintain grid stability and security. By introducing trading closer to the time of delivery well-
integrated short-term electricity markets will also reward flexibility in the market both for generation, demand
or storage.”
Gridsense 30 also suggest integrating renewable energy and other distributed energy sources into smart
grids, often via power inverters, is arguably the largest “new frontier” for smart grid advancements.
Inverters should be controlled properly so that their integration does not jeopardize the stability and
performance of power systems and a solid technical backbone is formed to facilitate other functions and
services of smart grids.
The above statements indicate future market demand for the developed SABINA technology in the area of
grid stability will be high.
29 http://europa.eu/rapid/press-release_MEMO-16-3987_en.htm
30 https://www.gridsense.ch/en/about-us.html
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3.4. District Level Aggregation and Management
The increased renewable generation leading to the wide spread integration of distributed generation
requires flexibility within any electrical system. One way to increase this flexibility is to use the potential of
demand response services. In order to activate the full range of customers in demand response services, a
new market intermediary actor is needed to aggregate the resources in an adequate technical and
economical format. These actors, so called “aggregators”, can act as flexibility providers to support security
of supply considering network, generation and consumer constraints.
3.4.1. Objectives
The main objectives of this work package within SABINA are:
• Promote the usage of aggregators for small scale buildings.
• Increase potential of renewable integration by taking into account building flexibility.
• Exploit synergies between electric and thermal networks.
31 Mapping Demand Response in Europe Today 2015 - Smart Energy Demand Coalition (SEDC)
32 http://www.mas2tering.eu/papers-documents-tools/
33 http://www.energinet.dk/SiteCollectionDocuments/Engelske%20dokumenter/El/Market%20model%202%200_Energinet%20dk.pdf
36 http://www.openenergi.com/
37 http://www.origamienergy.com/
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interaction when fulfilling contractual obligations to the power system. Information about flexibility
from the heat pump interaction level will be combined with the forecasted electrical consumption in
order to maximise the flexibility availability.
Currently, aggregator tools for large scale aggregation of flexibility from small scale buildings are not
widespread and lack maturity. This is reflected by the absence of interaction between electric and thermal
networks. In order to bring aggregators to the next level, two types of algorithms will be targeted in SABINA:
• Technical aggregator algorithm, which primarily focuses on the aggregation and control of the
flexibility from electric boilers installed at combined heat and power plants. However, as renewable
energy plays an increasing role in both power production and district heating, and as power and
heating produced from coal, oil and natural gas become less dominant in the energy system,
aggregation of flexibility from the consumption side will be increasingly more important in order to
balance the power consumption to the power production. This aggregator will be tested on the
Danish test sites and the NTUA test site.
• Market participation aggregator algorithm, where the operation of the aggregator will be based on
electricity markets participation, benefits from the aggregation of flexibility from the consumption
side will be exploited by participating not only to balance the power consumption but also to offer
prosumers the possibility to participate in the electricity markets. Prosumers will receive incentives
to offer their flexibility to the aggregator depending on market behavior and the system’s needs.
Different market rules will be tested on the IREC laboratory test site.
Tools for aggregation of flexibility from the combined power and heating system across several small scale
buildings are needed in order to enable the consumption side to offer flexibility (electric and thermal) to the
existing markets for flexibility and ancillary services, and to optimise operation of heat pumps, ventilation
and cooling in buildings, DERs and RTUs. The intended interaction with the aggregator tool and its
environment is presented in Figure 6.
The SABINA solution will be designed to be compatible with existing systems and shall not impose new
restrictions. All necessary elements will be provided to the district manager / utility in order to generate the
necessary demand response signals.
A similar approach could be applied to district heating38, 39, 40. However, given the low penetration of
renewable production (electric) at district heating level and the lack of bidirectional thermal sub-stations (at
building level) that would allow building produced heating into the grid, this will not be tested in SABINA
38 Enso Ikonen et al., Short term optimization of district heating network supply temperatures, ENERGYCON 2014 May 13-16, 2014 Dubrovnik,
Croatia
39 Maria Pia Fanti, A District Energy Management Based on Thermal Comfort Satisfaction and Real-Time Power Balancing, IEEE TRANSACTIONS ON
The aggregator toolsets that will be developed in the SABINA project could potentially exploit the emerging
market for flexibility services as the role of aggregators develops in countries across Europe.
41 https://www.ofgem.gov.uk/publications-and-updates/smart-flexible-energy-system-call-evidence
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3.5. Novel Remote Terminal Unit
3.5.1. Objectives
Development of a RTU that is compliant with the new functionalities of electric networks (monitoring,
decentralisation, aggregation).
3.5.2. Current Technology and Market Landscape
Numerous manufacturers supply remote terminal units for use in grid application and this is not a new
technology. Schneider Electric has been providing remote terminal units (RTUs) for a wide range of Smart
Grid applications since the late 1990s. Their equipment is specifically designed for utility applications and
with the idea that, as we migrate into the future, the biggest changes will be in the ability of the equipment to
perform faster and smarter.42
3.5.3. SABINA and Future Market Demand
In order to promote the usage of a novel generation of Remote Terminal Unit (RTU) and its functionalities in
the distribution network new functionalities will be developed. The complexity of smart grids and by
extension the distribution network is continuously increasing due to the arrival to the market of new actors
such as Distributed Energy Resources (DER), the electric vehicle, microgrids, etc.
Different control approaches have been proposed, from the classical centralised strategy, initially designed
for the radial distribution systems, to the decentralised strategy. Nowadays, an important trend in the
context of the decentralised approach is the distributed intelligence concept and the development of
intelligent and autonomous control strategies. On the other hand, the role and functions of the aggregator as
new entities in the electricity market and as intermediaries between the utility operator and the home users
are still under discussion in different countries. At the same time, aggregators do not have direct information
in their area of influence in the distribution network which prevents them from making agile decisions
relating to the control of Low Voltage flexibility.
In order to overcome these limitations, SABINA will take advantage of the privileged position of the RTU as
the main brick of the ICS (Industrial Control System) of an electrical substation. The RTU will play an
important role as the first intelligent device after sensors and actuators in the distribution network. SABINA
will develop new functionalities at this level providing new measurements useful for the new scenarios
where direct communication with the aggregator will be tested.
SABINA RTU based sub-station architecture will be defined according with the system defined during the
early stages of the project and taken as a reference for an ICS (Industrial Control System) of an electrical sub-
station where the following levels are present:
• Front End: concentrate data from the field and carry out communication interface between field and
embedded HMI
• Field site: a sub-system that hosts the acquisition system
• Supervision of PV inverters for optimal control
The RTU will be adapted in order to communicate with the aggregator by using the most suitable
mechanisms depending on the type of messages and their characteristics (events, alarm, etc). In addition, a
database and signals will be built into the RTU in order to provide a high level of information from the
perspective of the sub-station i.e. Power quality (THD, sag, swell), MV network monitoring & control
(voltage, current, frequency, Power, Power factors and Energy counters). This modification will be carried
out by Schneider Electric.
42 http://www.schneider-electric.com/en/product-subcategory/6040-smart-rtu--rpac-and-data-logger/?parent-category-id=6000
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3.6. Business Model
Aim of this section is to develop a new business model in order to facilitate the commercialisation of the
SABINA project.
3.6.1. Objectives
The objective of SABINA is to propose a new business model that breaks current barriers (Heat Pump (HP)
costs, distrust in HP efficiency, and complexity of HP seen from an end user perspective). Develop, design
and describe a new business model for sale of heat from heat pumps and the ability for heat pumps to
interact with the power system.
3.6.2. Review of Current Market Models Applicable to SABINA
The basic principle of the business model is based on the fact that building owners are reluctant to replace
oil and gas burners with heat pumps. In short, the ownership of heat pumps is associated with a perception
of a large investment, uncertain operating expenses and technical barriers. To overcome this hurdle the
asset and maintenance responsibility would lie with the supplier with heat being sold to the building owner
at an agreed contract tariff.
The asset owners would then look to optimise the consumption of the operation of the heat pumps and
where possible take advantage of aggregated flexibility in order to benefit from any demand response
service incentives available.
When analyzing current business models, one needs to review the role of Energy Performance Contracting
(EPC) alongside prosumer flexibility market models and in conjunction with any available demand side
response service incentives.
As stated previously the EU project MAS2TERING presents a literature review of prosumer flexibility market
models within its D6.143, covering models developed by USEF 44, ENTSO-E 45(Association of European
Transmission System Operators for Electricity), EURELECTRIC 46 and The Smart Grid Task Force 47
Examples of existing financial mechanisms open to demand-side response flexibility services have been
presented in Section 3.4.2.
Below are examples of EPC models generally associated with energy saving / renewable generating projects
presented by the European Commission Joint Research Centre48:
In recent years there has been an increased interest in the provision of energy services to achieve energy
and environmental goals. In particular, some new companies providing energy services to final energy users,
including the supply and installations of energy efficient equipment, and/or the building refurbishment,
have started to operate on the European market.
What characterises these companies, defined as Energy Service Companies (ESCOs), from the traditional
energy consultants or equipment suppliers is the fact that they can also finance or arrange financing for the
operation and their remuneration is directly tied to the energy savings achieved.
Energy Performance Contracting (EPC) is a form of ‘creative financing’ for capital improvement which allows
funding of energy upgrades from cost reductions. Under an EPC arrangement an external organisation
(ESCO) implements a project to deliver energy efficiency, or a renewable energy project, and uses the stream
of income from the cost savings, or the renewable energy produced, to repay the costs of the project,
including the costs of the investment. Essentially the ESCO will not receive its payment unless the project
delivers energy savings as expected.
The approach is based on the transfer of technical risks from the client to the ESCO based on performance
guarantees given by the ESCO. In EPC ESCO remuneration is based on demonstrated performance; a measure
of performance is the level of energy savings or energy service. EPC is a means to deliver infrastructure
improvements to facilities that lack energy engineering skills, manpower or management time, capital
43 http://www.mas2tering.eu/papers-documents-tools/
44 https://usef.energy/Home.aspx
45 https://www.entsoe.eu/Pages/default.aspx
46 http://www.eurelectric.org/
47 https://ec.europa.eu/energy/en/topics/markets-and-consumers/smart-grids-and-meters/smart-grids-task-force
48 http://iet.jrc.ec.europa.eu/energyefficiency/european-energy-service-companies/energy-performance-contracting
Figure 9: SABINA high level concept as part of the existing energy market
Throughout this document references have been made by varying governing bodies that flexibility within
the electricity market is necessary for the integration of large scale renewable energy technologies. The need
for the exploitation of the synergies of building’s thermal and electric systems has been expressed. The
SABINA business model proposed addresses these requirements. It should be noted that when exploring
business models it is essential to take note of differing European energy markets and development of a
commercial framework that can be adjusted to these varying needs must be considered. This will be
considered in more detail in Task 7.4.
4.2. Methodology
A concise summary of the SABINA project and a template of questions were agreed by all partners (See
Appendix 1). The questions acted as a guide to ensure consistent feedback to this qualitative market survey.
Figure 10 presents the actors within the target market that SABINA could exploit.
SABINA is an EU funded H2020 research and innovation programme that aims to develop new technology along with financial models that will connect, control and actively manage
thermal and electric networks using generation and storage assets in order to exploit synergies between electrical requirements and the thermal inertia of buildings, whilst
allowing aggregators to provide flexibility and balancing services to the grid.
SABINA will aim to maximise the usage of variable renewable energy sources by converting excess electrical energy to heat or cold and storing it using buildings’ thermal inertia (the
system will be compatible with other storage mechanisms). Provision for aggregation at district level will be provided to maximise the effect of SABINA.
SABINA will guarantee the quality of supply at all times in distribution networks with high penetration of distributed generation with optimal control of grid-feeding invertors and
promote a novel business model that favours deployment at a wide scale with reduced CAPEX and OPEX costs and thus facilitate more renewable energy integration. The proposed
system will be compliant with current norms and standards whilst identifying gaps and preparing recommendations for standardisation bodies.
Name:
Contact Details:
Company:
Sector:
Category (Supplier / Aggregator / End User etc.):
Q1 What is your opinion of the market potential of the SABINA concept as a whole?
Notes: SABINA aims to reach the market in 5 to 10
years
Q4 Are you aware of any gaps in regulation and / or standards that may limit the application of the SABINA solution?
Notes
Q6 Please describe what you believe to be the key market opportunities for Sabina
Notes:
Further Comments
Notes