An important output of the ADDRESS project is the provision of a series of recommendations towards the main key players of the demand response game: aggregation functions, consumers, system operators, deregulated players, standard committees and regulators, technology manufacturers.
The AD potential in any given area must be appraised based on the geographical characteristics of the area (e.g. weather conditions, etc.), the customer characteristics and the load density, as well as the features of electricity sector (generation mix
should have balancing
responsibilities associated to the activation of AD services.
The Aggregator should formulate and maintain a diversified portfolio of active customers to account for the ever changing requirements of AD buyers, as well as uncertainties associated with customer flexibility and availability.
Minor adaptations of existing market mechanisms may enable AD services, with a focus on reducing the minimum requirements (e.g. MW) for products to be traded on electricity markets.
Data formats and interfaces used by AD solutions must be standardized so as to allow customers’ switching, and thus ensuring a fair competition between deregulated players.
AD data should belong to the customers (data privacy concerns
), whereas different parts of the aggregated data could be freely exchanged or sold to different players through separated data channels.
Energy based AD business models could be implemented successfully in scenarios where the costs of AD enabling technologies and the burden for AD consumers become negligible.
New promising trading mechanisms of demand response services must be investigated.
Consumer engagement for AD requires to increase the usability of the demand technology and of the contracts: contracts need to be understandable, transparent and setting the potential financial benefits and implications of different actions (i.e. (contract simplicity);
User interfaces must be easy to understand, allowing users to input settings and to access the different functionalities that energy boxes
(EBoxes) can provide.
Accessing electricity consumption data, possibly with environmental messages, appears critically important to consumers: the privacy and ownership of the consumers’ data must be ensured whatever the concerned party and the infrastructure used for their collection and exchanges. Financial savings are important to consumers, although other factors such as environmental benefits are important in their decision to adopt AD technology. The full range of benefits must be clearly communicated to consumers to ensure as wide a take-up as possible.
Consumer support to install AD technology is a prerequisite to minimize technical problems and to facilitate the setting of load control parameters.
The ability to over-ride the system when needed is central to acceptance.
Contracts between Aggregation entities and consumers should balance transparency to protect consumers, and flexibility to allow for different business models.
System Operators (SOs) must always ensure a reliable operation of their networks without prejudice of the quality of supply, with or without AD.
AD can be used by SOs to solve their own network operation problems. But SOs, who are also in charge of balancing the system in real time, must be totally confident with the tools they use: energy services / products delivered by AD must offer a sufficient level of reliability involving possible additional contractual clauses to guarantee specific reliability expectations.
Extra coordination is necessary among TSOs and DSOs taking into account their own responsibilities and different needs and constraints of regional and local networks.
SOs control systems have to be upgraded introducing new functions to enable and exploit AD.
The services provided by SOs to AD markets must guarantee transparency and nondiscriminatory access to all the involved players. This includes location information, technical validation, metering information (depending on the regulation).
SOs, as well as Aggregation functions, also have to ensure the consumers’ privacy dealing with their data/information.
SO’s regulation remuneration has to include the fixed costs associated with the services provided to enable AD.
DSO/TSO must be able to purchase AD products in order to maximize the existing network usage factor, thereby allowing renewable energy integration
in a sustainable way.
SOs should have a role in the verification and measurement of AD product delivery.
Wholesale markets are prepared enough to incorporate AD products without large changes. But AD products should be standardized to facilitate the trading within such markets.
A proper way to manage the impacts of AD on the retailer
business has to be found.
A fair method for the measurement and verification of the delivery of AD products has to be defined.
Regulators and standard committees
Rules and market structures ensuring a large diffusion of smart devices for appliances are needed based on the interoperability between standard protocols
in order to support the communication between the smart devices and the EBox.
Interoperable standards for the integration of the smart devices should be open, flexible, secure and global, covering the information to the customer, the control signals and the user needs.
Cost reduction of the enabling infrastructure for AD services and increased availability of smart appliances requires further R&D.