Integration of Flexibility from Distributed Energy Resources: Mapping the Innovative Italian Pilot Project UVAM

Abstract

In light of the advancing energy transition and an increasing amount of intermittent renewable energy to be integrated, flexibility from distributed energy resources will be key. In this paper, the Italian UVAM (Unità Virtuali Abilitate Miste, i.e., virtually aggregated mixed units) project, one of the biggest pilots in Europe to serve this purpose, is critically reviewed and mapped after two years of operation. The pilot is analyzed on a global level as well as the individual participant level. Based on the extensive analysis of actual market data, different strategies of participating companies to obtain capacity in accordance with the pilot project’s design are identified. Furthermore, the specific bidding strategies of individual participating units on the balancing market are outlined. Alongside this, the overall pilot project’s market integration, in terms of offered and accepted bids, is depicted. The thorough data analysis, therefore, serves as an input and fundamental building block for future electricity market modeling. Comprehending specific data from the coronavirus disease 2019 (COVID-19) pandemic, provides insights for future high renewable-energy scenarios. Based on the analysis findings, valuable deliverables are devised for both policy-makers and decision-makers who aim to leverage the flexibility potential of distributed resources.

Distribution Grid Energy Flexibility: The Ebalance-Plus Technologies Developed for the University of Calabria Demo Site

“…They are characterized by the presence of production units, storage systems, and consumption units. Currently in Italy, the UVAMs are enabled to provide services such as congestion resolution, balancing, tertiary reserve, but the intention of Terna (the Italian TSO) and of the ARERA (Authority of Energy and Environment) is to experiment with the participation of UVAMs in other types of services, such as secondary regulation, and to gradually involve consumers in the tertiary one [6,7].…”

Integrating Distributed Energy: Value Stacking for PV with Power-to-Gas

“…Either in the direct sense of opening further market segments to DERs by lowering entry barriers or in the indirect sense of allowing individual units to (virtually) aggregate with other units to a so-called Virtual Power Plant (VPP) and enter further market segments as such. However, only the combination of both concepts will leverage the full potential of DERs and generate a win-win situation at the macro-and microeconomic level for both system and individual plant operators [1]. Therefore, this analysis investigates the business case of a VPP, creating local synergies by aggregating one programmable and one non-programmable DER, i.e., a Photovoltaic (PV) unit and a Power-To-Gas (P2G) unit.…”

How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects

“…However, the deployment of decentralised generation and the transition from passive to active consumers, encourage the participation of new market players in the provision of flexibility services to the grid. Regulation and appropriate auction market designs can also increase the participation of decentralised flexibility such as DER, especially if aggregation of multiple small units is allowed and key roles in the electricity supply chain are extended [8,9]. DSOs are expanding their options for contracting flexibility services from DER and active consumers connected to their networks.…”

“…Here we observe a combination of country-level and regional analysis mainly limited to Europe, with pilots and business case initiatives, mainly concentrated on independent market platforms. A different group focuses on market design for flexibility from DER [19,20], and reviews the opportunities for DER across different electricity markets (ancillary services, system balancing and spot market) while others focus on the local market clearing methods used by distribution utilities [21] and stress the value of flexibility aggregation and optimal bidding [8,22,23]. Some others relate to P2P energy trading and blockchain [24][25][26][27][28][29].…”