On the cost side, the following items have been identified:
On the benefit side, the ADDRESS project covers the following items :
at system level, it shows
- the reduced energy costs related for reserves, ancillary services and start-ups since better adjusting in real time supply and demand. The ADDRESS concept is able to reduce the cost per consumer from €5.8/year to €32.3/year .
- improved system performance since reducing balancing costs, price volatility and higher use of renewable generator. The ADDRESS concept is able to reduce the cost per consumer from €0.7/year to €3.8/year.
- reduced network losses by reducing congestions and adapting better the network capacity. The ADDRESS concept is able to reduce the cost per consumer by €0.5/year to €3.3/year.
- reduced network investments since reducing peak load and therefore network reinforcements. The ADDRESS concept is able to reduce the cost per consumer by €0.15/year to €9.4/year.
- reductions of emissions since inducing lower energy use. The ADDRESS concept is able to reduce the cost per consumer by €0.15/year to €9.4/year.
- the possibility of providing capacity-based services using smart load reduction for DSOs, together with voltage regulation and power flow control.
at aggregation function level: current demand response market mechanisms require minor changes and adaptation to handle the aggregation business. The major obstacle is the minimum size of the products required to participate in the market, which can be too large for the aggregation entities to provide. This obstacle could be circumvented, for instance either by allowing active demand product groupings or by reducing the minimum requirements for active demand-based services to participate in the market. Yet, the latter would result in increased communications and data storage requirements. Based on the assessments performed as part of the ADDRESS project, aggregation functions can accrue from about €2.6/consumer/year to €6.0/consumer/year from the implementation of the ADDRESS architecture.
at network operator level: the technical validation of the aggregation function’s active demand program, whether sold to regulated or unregulated players, is to be performed by grid operators who also define the flexibility margins in the distribution (in load areas) and transmission networks (in macro load areas). This validation involves CAPEX and OPEX which will results into fast, efficient and coordinated communications between TSOs and DSOs. Active demand can be a tool for energy boxes the system in real time. They can also request aggregation functions to provide an active demand product as a “best effort” attempt to resolve network problems (e.g. before shedding load). Aggregation functions should also be penalized when there is a deviation between the active product sold and the one that is delivered.
at consumer level: the contract defining the relationships between an aggregation function and flexible consumers must be transparent and clear enough to guarantee the protection of the consumers, whilst having sufficient flexibility to allow for the development of different business models by aggregation functions. Yet, the calculated economic benefits remain low enough to discourage consumers about providing active demand, since the implementation of the ADDRESS architecture is expected to result in benefits for consumers of around €1.2/year to €2./year. Additional incentive payments should therefore be offered to consumers, like environmental benefit (e.g. increased use of renewables), a service for the system (e.g. higher quality of supply), or a social service (e.g. higher security of supply at distribution level for critical facilities like hospitals).
 The overall benefit analysis is provided in deliverable D5.3, whereas detailed cost/benefit analysis is available for each stakeholder in deliverable D5.4 (confidential, for use only by the consortium members).
 See the ADDRESS final report