Leveraging IoT and Edge Computing Infrastructures to foster Energy Flexibilities through next energy sectorial integration

AIOTI WG Energy finalised paper on Leveraging IoT and Edge Computing Infrastructures to foster Energy Flexibilities through next energy sectorial integration.

The full document can be found here.

In conclusions and recommendations:

1      Policy Makers and Regulators

1. The deployment of flexibility mechanisms requires agreements not only at technical level but also on economic and legal frameworks. It is therefore key to involve member states in the definition of such frameworks and consider to scale up national best practices through progressive alignment steps towards a “European energy market design”. Particularly, use cases focusing on the integration of flexibility across grid, building and mobility sectors are noteworthy and require attention from various Ministries across different policy streams; the follow-up alignment of national and European levels is then fundamental to scale up.
2. Current baselining methods need to be revisited to consider all new flexibility data made available through the new IoT – edge computing platformed embedded in new distributed energy resource deployments. Baselining methods should be proposed by aggregators on the basis of the IoT device certification. When possible baselining methods should be avoided considering new approaches such as DER self-nominating their planned schedule on the basis of their edge computing capability.
3. Advanced smart metering Infrastructure is the cornerstone for linking consumer data with grid operators. An accelerated smart meter roll-out throughout all EU countries is the basis for the uptake of grid edge solutions.
4. Data interoperability should be defined down to submetering levels taking into account the on-going work performed by the Expert Group 1 of Smart Grids taskforce as well as revisiting DER connection codes, i.e. the Requirements for Generators (RfG) and Demand Connections (DCC) codes. Connectivity to new European dataspaces for energy should be mandated for any IoT device wishing to provide flexibility to the system (agreeing on different service level agreements depending on the type of flexibility to be offered to the system).
5. The current regulatory framework should be enhanced to confirm and enforce the central role of DSOs in terms of data collection, management, and validation also under the light of new market entrants with the upcoming new behind-the-meter applications. DSOs have to implement adequate cyber-security measures to avoid system breaches, ensuring the data sovereignty and safety of the power system.
6. Regulatory incentives for grid operators are necessary to increase the utilisation of flexibility services, which could delay infrastructure reinforcements. Remuneration schemes should consider the need for investment for the procurement of flexibility for optimal grid operation and planning.
7. EU-wide dynamic tariff models are no viable solution. However, new tariff schemes must account for the impact of decentralised generation on management and operation of distribution grids. Subscription-based tariffs with an allocated power range could ensure that benefits for prosumers are created without unintended consequences.
8. Policymakers, regulators and system integrators should invest in introducing digital tools into their operations. DSO would need to “virtualize” the grid (ideally aiming for an end-to-end visibility and control as widespread as possible down to the grid edge) using software platforms. Such platforms should be able to work with standards and protocols that support interoperability, visibility and hierarchical control over the grid. Instructions to such tools should be easily available and understandable for DSOs.

 1.1 Policy and Regulations for Consumers

1. The role of consumer engagement in accelerating energy transition will become more prominent; without convincing and involving them, energy digitalisation as well as flexibility mechanisms and data economy cannot be effectively achieved. Policymakers, regulators and energy utility enterprises need to take this into consideration when forming policies and energy offerings to their customers. While technology will offer the tools to proceed to a desired energy transition, technology alone cannot and will not bring a behavioural change which is essential what is required. Investments have to target the people’s trust in data exchange and to raise the people’s confidence and expertise towards their digital devices and energy services.

2      Researchers

1. Digitalisation could support local data exchange and decision-making to carry out local flexibility, keeping data at the source. Decentralised and local flexibility services can rely on sub-metering data from third parties for grid operations. Such deployments require innovative governance schemes (centralised or decentralised) to trustfully access sub-meter data. In developing such infrastructure, interoperability needs to link the static electricity system with the dynamics and physical behaviours of the field components behind the meter.
2. Large-scale deployments are fundamental to test the prototype research, under Horizon Europe programme, and they shall be accompanied by new regulatory sandboxes for energy. These projects should foster deployments of, at least, several thousand of devices as well as the test and validation of associated business model (to de-risk necessary regulatory evolution).
3. Accelerate the harmonization of key data models and ontologies such as the CIM and SAREF4Ener to progressively evolve towards semantic base interoperability, enable cross sectorial IoT self-discovery on flexibility as well as deployment of new generation knowledge and AI engines.

3      Industry, Utilities and Energy Distributors

1. Foster the use of open-source components (in combination with the related repositories) have been proved to foster innovation and developments, enhanced by the employment of open standards that guarantee the agreement and implementation by all stakeholders. Additionally, forums to exploit the momentum of communities can play key roles in building reference architectures and interoperability-by-design.
2. As Distributed Energy resources (DER) extend their foothold in the energy supply mix, by replacing conventional, fossil fuelled power plants, a promise for a cleaner, cheaper and more resilient power grid emerges. However, the aggregation of DERs has to be deployed by means of VPPs, in order to exploit their full potential. Offerings by all stakeholders in the energy value chain need to be thought of and communicated to the consumer in a simple, transparent and reliable way in order to attract and incentivize the consumer / customer as a willing participant in making use of energy services ranging from home energy management to every aspect of daily life.
3. Stakeholders need to think in terms of introducing a customer energy framework rather that “once off” or fragmented “customer opportunities” when presenting their policies or offerings. This framework will need to be applied along the above-mentioned axes of simplicity and clarity but also with consistency and honesty, since the ultimate target is earning the trust of the consumers and their confidence to change behaviour in utilizing energy in their daily life.

4 Consumers

1. As mentioned earlier in this document, as DER installations increase exponentially and prosumers become involved with new and innovative two-way grid services, so will their interactions with network businesses.
2. Offerings by all stakeholders in the energy value chain need to be thought of and communicated to the consumer in a simple, transparent and reliable way in order to attract and incentivize the consumer / customer as a willing participant in making use of energy services ranging from home energy management to every aspect of daily life.
3. Stakeholders need to think in terms of introducing a customer energy framework rather that “once off” or fragmented “customer opportunities” when presenting their policies or offerings. This framework will need to be applied along the above-mentioned axes of simplicity and clarity but also with consistency and honesty, since the ultimate target is earning the trust of the consumers and their confidence to change behaviour in utilizing energy in their daily life.