Towards a sustainable energy ecosystem with the Layered Energy System

Our energy market model has been set up top-down and centralistic, from production (via transmission and distribution) to consumption. But our current model is no longer fit-for-purpose. For example the model is not suitable for end-users with solar panels that generate a surplus of energy and feed it back into the energy network (bottom-up). This leads to questions that urgently need to be answered. 

Local energy community
A very important question regarding a (new) sustainable energy ecosystem is: what should be the role of local energy communities in our energy system? Distributed generation and flexibility are part of the cause as well as the solution of the challenges the energy system faces. Demand-response by aggregators is currently not very attractive for the owners of flexibility (the end-user) nor is it a scalable solution in the long run. At the same time, local communities of end-users are founded and are experimenting with energy sharing, flexibility and with distributed network technologies (like blockchain). We believe that this system-averse social trend is an important factor in the energy transition.

Layered Energy System Concept
In close co-operation with the Dutch distribution grid operator Stedin, Energy21 developed the Layered Energy System (LES). In an earlier phase we explored the concept of local energy communities and local markets. Now, we have described more detailed the mechanics and roles of stakeholders in a Layered Energy System. We believe that the concept of LES provides a feasible elaboration of the “Citizens Energy Community” as mentioned in the EU Clean energy package.

LES offers insights and possible solutions to stakeholders’ issues moving towards a sustainable energy ecosystem. Energy21 is proud to present the LES Whitepaper and continues to discuss the topic with all stakeholders in the energy ecosystem.

Would you like to know more about the Layered Energy System?

For more information, please contact Michiel Dorresteijn (Projectlead Market Analysis & Blockchain Technology)
via +31 6 117 169 27 or mail michiel.dorresteijn@energy21.com

RFI Development and integration ‘Market Service app’ for local energy markets

Stedin and Energy21 designed the Layered Energy System (LES) based on the USEF framework. LES is a community-based market model that offers solutions to a variety of existing and future problems resulting from the energy transition. The next step in development of the Layered Energy System is doing a proof of concept in a real life local market setting. The project is looking for technology partners. 

Proof of concept in real life local market setting

Together with technology partners ABB and Enervalis, Stedin has found a location (Hoogdalem) in its grid area where a group of households are willing to participate in the first pilot project. Advanced technology, such as Heat pumps, Batteries, PV, internet-connected appliances (e.g. Laundry machines), is present in these houses enabling a full test of all functions of the Layered Energy System.

The project is looking for a partner who is capable of developing, and integrating the necessary ‘Market Service app’ on the Energy Web Foundation Blockchain. The market-service app has 3 goals:

 It matches local demand and supply of energy (through bids) in a market program (load profile)
 It brings together national and local need of flexibility (through flex offers and orders)
 It is able to process the effect of ordered flex into the market program (load profile)

The application will be a proof of concept and must be compatible with the blockchain of the Energy Web Foundation Tobalaba test network.

Interested to become a technology partner?

For more information, check Stedin’s RFI documents or contact Michiel Dorresteijn in case of any questions. Check our dedicated expertise page The energy system – Market model design to read more about the Layered Energy System.

Our new BRP Market Access solution that matches with the innovative character of your energy business

We see new parties entering the Power Balancing market that wish to integrate BRP functionalities and data directly into their applications. Based on the size and character of their portfolio, they do not require a standard, full stack solution to handle their BRP obligations.

BRP Market Access / API-based Web Services

At Energy21, we aim to match our data management solutions with the innovative character of our clients’ energy businesses. We are proud to have recently welcomed our first customer that is accessing their BRP data and energy data management functionalities via our API-based web services.

These services cover all required market processes such as nominations, register management, allocation, settlement and reconciliation. For example, in the Netherlands these services include direct market communication with EDSN, grid operators and TenneT.

Benefits of using the Energy21 API-based web services

Market access

 Guaranteed correct fulfillment of your BRP market obligations
 Use 1 standard web technology (JSON Web API’s) that is compliant with sector releases
 Technical certification included

Software architecture

 No system upgrades or updates required
 Integrate web services with your autonomously designed applications
 Combine various 3^rd party web services

Costs

 Link costs to the size of your business
 Existing library can be used with no upfront investments
 Pay-as-you-grow

Extras

 Benefit from extras such as APX forecasts, allocation completeness check, etc.

Interested to hear more? 

Contact Michiel Kuiper via +31 6 2602 8130

The next step might prove to be the bigger challenge

Energy21’s Michiel Dorresteijn was asked to respond to the Initiate! Manifesto. Read below his findings and how he elaborates on what could be added to it:

The means to produce energy by yourself and to participate in an energy market are becoming available for anyone. Information and data can be obtained and analyzed with easy-to-use apps and increasingly (artificial) intelligent algorithms. At the same time, costs of solar panels, fuel cells and storage systems are plummeting, while the technical performance is being improved. In other words: Energy is democratized.

The Manifesto of Initiate! describes that process spot on.The world of energy is changing rapidly and this new order requires a new economy with new roles and responsibilities. That being said, the next step might prove to be the bigger challenge.

The Manifesto describes the need for something new, but has not yet reached the point of offering an approach on how to solve that. And the initiative is far too valuable and needed (!) if it would restrict itself to formulating the problem.

Customer empowerment needs a market design that enables it

If I would leave it with that I would be doing the same: describing a need without offering a way of how to deal with it. In that regard, it may be worthwhile to mention the attempt Energy21 has made on this issue last year together with the Dutch grid operator Stedin. Starting off with the basic assumption that there is a need for a new energy system that can accommodate the democratization of energy production and information, we explored a possible market design that could meet four main prerequisites: the system has to:

 lower overall system costs
 empower customers
 stimulate renewable energy
 be scalable

Accommodating both the existing and the new energy economy

Especially the fourth prerequisite is very important. Scalable means that a system can start on a small scale, but can grow without needing a complete ‘bing bang’ replacement of the existing system. A revolution will only lead to resistance and struggle with vested interests. With the Layered Energy System, we have designed and described a system that can accommodate both the existing and the new energy economy.

In my opinion, the strength of Initiate!’s message will be defined by the remedy for the sore spot that is offered, not only by putting the finger on it. Otherwise, very true observations may become hollow statements. Based on what can be read in the Manifesto so far, I am eagerly and expectantly looking forward to what this initiative will bring.

Interested to hear more?

Check our dedicated expertise page on energy system and market model design or contact Michiel Dorresteijn.

Reaching CDS compliancy standards while optimizing multi-utility interconnectedness

Together with BASF we were invited to present the experiences and insights gained at their chemical plant in Antwerp (Belgium) with a group of Dutch industrial energy users. In a mutual operation with BASF, we are working on the orchestration of the optimisation processes that are at the core of their Verbund thinking.

The BASF Verbund

The BASF Verbund is a one-source system, helping to control production, respond flexibly and act independently. It forms a starting point for multiple value chains and entails reducing raw material use, energy consumption and costs by a closely interlinked production system. On a global scale, BASF realizes annual savings of more than €1 billion through its Verbund concept.

Starting from a compliancy perspective, heading towards multi-utility connectedness

During the co-presentation, Lode Geerts (Head Utility Management , BASF) and Michiel Kuiper (CCO, Energy21) explained the different steps that led towards an optimisation of the connected BASF energy processes.

This journey once started with setting compliancy goals. By data-mapping their required energy numbers and linking these to production information, BASF was able to reach the standards that are required for a CDS (Closed Distribution System). It turned out that organizing the data according to site topology resulted in new insights triggering new ways to improve the Verbund:

Reduced imbalances
Optimised short term demand planning by using realization data (up to 1 minute intervals).

Aligned maintenance planning and production planning
Increased insight in the mid-term planning (window of weeks and months) enables BASF to steer towards less imbalances and peaks. This methodology helps to substantiate the impact of short-term changes in the maintenance planning.

Improved portfolio overview
Insight in BASF’s total portfolio and feedback to each individual customer (or asset) has resulted in understanding how to improve individual planning and operations in order to optimise the total Verbund.

Dutch CDS challenges

During the presentation, it became clear that the Dutch audience could link the BASF case to their CDS compliancy challenges. They also acknowledged the growing importance of optimising planning, monitoring and steering as well as ISO 50.001 compliancy.

How would Energy21’s approach work out in the Netherlands? In a few weeks we will publish an article that especially addresses Dutch ‘CDS’ challenges.

Eager to hear more?

Contact Alex Trijselaar, our Lead Consultant Industrial Energy Users, via +31 6 3167 3035.

Consequences of the recent decree of the Netherlands Authority for Consumers and Markets (ACM)

The Netherlands Authority for Consumers and Markets (ACM, the Dutch regulator) ensures fair competition between businesses, and protects consumer interests. This agency recently specified the criteria for Closed Distribution System (CDS) operators regarding the transparency of network tariffs. What does this mean for (future) CDS operators?

In order to make your life easier, we have studied the criteria and summarized the most important consequences when it comes to compliancy. Also, we identify the optimization opportunities that arise when industrial energy users re-organize their energy data following these regulatory transparency criteria.

Interested to hear about how this effects your (future) CDS? Contact us so we can help you take the necessary steps. Or check our dedicated web page for (industrial) energy users.

PDF Summary (Dutch)