An ICT cost comparison of different market structures for distributed ancillary services

Pirkko Kuusela, Pekka Koponen, Ivana Kockar, Han Xu

Research output: Contribution to conferencePaper

Abstract

Future energy ecosystems need new market structures and interactions between TSO and DSOs, in order to realise distributed ancillary services. This paper estimates and compares ICT costs of several TSO-DSO coordination and market aggangements proposed in the SmartNet project. A hybrid cost estimation methodology, which utilises constructive cost model methodology, expert estimates, a national DSO regulation model, and implementation of a simulator, is employed to estimate the development costs of aggregation and market clearing systems needed to realise the market schemes. ICT costs of different arrangements turn out to be at the same level and they are minor in comparison to energy-related costs. However, depending on the overall design of the markets for distributed flexibility, aggregators may have the largest ICT costs and investment needs.

Conference

Conference25th International Conference and Exhibition on Electricity Distribution
Abbreviated titleCIRED
CountrySpain
CityMadrid
Period3/06/196/06/19

Fingerprint

Ancillary services
Cost comparison
Costs
Market structure
Energy
Methodology
Cost model
Market clearing
Market interaction
Ecosystem
Cost estimation
New markets

Keywords

  • DSO transition
  • DSO market platform
  • ggregator market platform
  • ICT infrastructure
  • cost estimation

Cite this

Kuusela, P., Koponen, P., Kockar, I., & Xu, H. (2019). An ICT cost comparison of different market structures for distributed ancillary services. Paper presented at 25th International Conference and Exhibition on Electricity Distribution, Madrid, Spain.
Kuusela, Pirkko ; Koponen, Pekka ; Kockar, Ivana ; Xu, Han. / An ICT cost comparison of different market structures for distributed ancillary services. Paper presented at 25th International Conference and Exhibition on Electricity Distribution, Madrid, Spain.5 p.
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Kuusela, P, Koponen, P, Kockar, I & Xu, H 2019, 'An ICT cost comparison of different market structures for distributed ancillary services' Paper presented at 25th International Conference and Exhibition on Electricity Distribution, Madrid, Spain, 3/06/19 - 6/06/19, .

An ICT cost comparison of different market structures for distributed ancillary services. / Kuusela, Pirkko; Koponen, Pekka; Kockar, Ivana; Xu, Han.

2019. Paper presented at 25th International Conference and Exhibition on Electricity Distribution, Madrid, Spain.

Research output: Contribution to conferencePaper

TY - CONF

T1 - An ICT cost comparison of different market structures for distributed ancillary services

AU - Kuusela, Pirkko

AU - Koponen, Pekka

AU - Kockar, Ivana

AU - Xu, Han

PY - 2019/6/3

Y1 - 2019/6/3

N2 - Future energy ecosystems need new market structures and interactions between TSO and DSOs, in order to realise distributed ancillary services. This paper estimates and compares ICT costs of several TSO-DSO coordination and market aggangements proposed in the SmartNet project. A hybrid cost estimation methodology, which utilises constructive cost model methodology, expert estimates, a national DSO regulation model, and implementation of a simulator, is employed to estimate the development costs of aggregation and market clearing systems needed to realise the market schemes. ICT costs of different arrangements turn out to be at the same level and they are minor in comparison to energy-related costs. However, depending on the overall design of the markets for distributed flexibility, aggregators may have the largest ICT costs and investment needs.

AB - Future energy ecosystems need new market structures and interactions between TSO and DSOs, in order to realise distributed ancillary services. This paper estimates and compares ICT costs of several TSO-DSO coordination and market aggangements proposed in the SmartNet project. A hybrid cost estimation methodology, which utilises constructive cost model methodology, expert estimates, a national DSO regulation model, and implementation of a simulator, is employed to estimate the development costs of aggregation and market clearing systems needed to realise the market schemes. ICT costs of different arrangements turn out to be at the same level and they are minor in comparison to energy-related costs. However, depending on the overall design of the markets for distributed flexibility, aggregators may have the largest ICT costs and investment needs.

KW - DSO transition

KW - DSO market platform

KW - ggregator market platform

KW - ICT infrastructure

KW - cost estimation

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M3 - Paper

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Kuusela P, Koponen P, Kockar I, Xu H. An ICT cost comparison of different market structures for distributed ancillary services. 2019. Paper presented at 25th International Conference and Exhibition on Electricity Distribution, Madrid, Spain.