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Regulatory framework for fostering flexibility deployment: roles, responsibility of agents & flexibility mechanism designs

M. Troncia, M.A. Ruiz, E.C. Ormeño-Mejía, J.J. Fernández García, N. Morell, L. Herding, M. Valarezo, S. Bindu, J.P. Chaves, T. Gómez, D. Davi, S. Gallego, S. Cianotti, C. Manaresi, A. Christensson, A. Malot, T. De Marco, F. Lucidi

Original summary:

Executive Summary
The BeFlexible project primary objectives are to improve collaboration between Distribution System Operators (DSOs) and Transmission System Operators (TSOs), integrate stakeholders in energy-related sectors, and foster innovative business models in line with a stable regulatory framework. The project is executed through validating cross-sectoral services, developing interoperable data exchange platforms for smart grids, and constructing a system architecture framework conducive to new business models.
Work Package 1 (WP1) of the BeFlexible project focuses on establishing a regulatory framework and market mechanisms to facilitate flexibility-centric services. This package sets the groundwork for the project by outlining regulatory proposals and market dynamics. It includes developing reference business models, business use cases, and key performance indicators for testing in demonstrators.
This document presents the outcome of Task 1.1 and Task 1.2. Task 1.1 of WP1 addresses the regulatory framework for fostering flexibility deployment. It focuses on defining roles and responsibilities emerging agents in the energy market, aiming to dissolve current regulatory barriers. The task emphasizes strategies for regulatory experimentation, establishing remuneration schemes for flexibility usage, and rules for system operator ownership of flexible resources. It also seeks to enable resource aggregation and ensure a level playing field in resource usage. Task 1.2 proposes designs for flexibility mechanisms, ranging from flexible connection agreements to local and system-wide markets. The task considers various factors like service nature, market environment specifics, and SP characteristics in designing these mechanisms. It also underscores the importance of customer engagement in developing flexibility acquisition methods.[...]


English summary:

Executive Summary
The BeFlexible project primary objectives are to improve collaboration between Distribution System Operators (DSOs) and Transmission System Operators (TSOs), integrate stakeholders in energy-related sectors, and foster innovative business models in line with a stable regulatory framework. The project is executed through validating cross-sectoral services, developing interoperable data exchange platforms for smart grids, and constructing a system architecture framework conducive to new business models.
Work Package 1 (WP1) of the BeFlexible project focuses on establishing a regulatory framework and market mechanisms to facilitate flexibility-centric services. This package sets the groundwork for the project by outlining regulatory proposals and market dynamics. It includes developing reference business models, business use cases, and key performance indicators for testing in demonstrators.
This document presents the outcome of Task 1.1 and Task 1.2. Task 1.1 of WP1 addresses the regulatory framework for fostering flexibility deployment. It focuses on defining roles and responsibilities emerging agents in the energy market, aiming to dissolve current regulatory barriers. The task emphasizes strategies for regulatory experimentation, establishing remuneration schemes for flexibility usage, and rules for system operator ownership of flexible resources. It also seeks to enable resource aggregation and ensure a level playing field in resource usage. Task 1.2 proposes designs for flexibility mechanisms, ranging from flexible connection agreements to local and system-wide markets. The task considers various factors like service nature, market environment specifics, and SP characteristics in designing these mechanisms. It also underscores the importance of customer engagement in developing flexibility acquisition methods.[...]


Spanish layman's summary:

Este documento evalúa los marcos reguladores de la remuneración de los DSO, las comunidades energéticas, los agregadores, dedicated metering, el baselining y la experimentación reguladora. Formaliza propuestas de mecanismos eficientes de adquisición de servicios del sistema.


English layman's summary:

This document evaluates the regulatory frameworks for DSO remuneration, energy communities, aggregators, dedicated metering, baselining, regulatory experimentation. It formalises proposals for efficient system service acquisition mechanisms.


Keywords: Regulation, energy communities, aggregators, submetering, baselining, regulatory experimentation, flexibility acquisition mechanisms, market design


IIT Project: BeFlexible (BeFlexible)

Funding entity: Comisión Europea. Horizon 2020 – Cooperation / Energy

Publication date: 16-04-2024

IIT-24-116I


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