Realising Value from Electricity Markets with Local Smart Electric Thermal Storage Technology (Real Value)
The Project Realizing Value from Electricity Markets with Local Smart Electric Thermal Storage Technology (RealValue) is a European Union funded project that analyzes the impact of the implementation of local small-scale power-to-heat storages predominantly in domestic buildings across Ireland, Germany, and Latvia. While there are studies that focus on large power storage projects, there are hardly any that take a local and decentralized view. This gap is filled by the RealValue project.
The project revolves around local small-scale power-to-heat storages (SETS). SETS are modern and efficient electric heaters. However, information and communication features distinguish SETS from ordinary electric heaters. For example, SETS are capable to react to electricity prices, charge when electricity is cheap and save households money. Since households cannot react to cheap electricity prices at the power exchange, companies that have such access may bundle households with SETS together and share the profits with said households.
The task of bundling households with SETS together is non-trivial. Therefore, the RealValue project aims to provide 1,250 households in Ireland, Germany, and Latvia with SETS in order to test how best to aggregate the electricity demand for space heating. In addition to technical difficulties, the project also analyzes consumer behavior – with a special focus on whether SETS allow households to reduce their electricity spending. Apart from benefits to individual household, large parts of RealValue pursue the question whether local small-scale power-to-heat storage benefits the electricity system as a whole employing modelling techniques. In addition, RealValue also analyzes regulatory issues introducing electricity storage into a system as complex as the European electricity market.
For more information, please refer to the project website.
Forum on Flexibility Options in the Electricity and Heat Markets
Berlin, 21 September 2015
DIW Berlin, Mohrenstrasse 58, Schumpeter Hall
The aim of our expert forum is to explore improvement potentials and interactions in storage and renewable energy technologies, demand side management, e-mobility, and energy efficient housing stock. To this end, we have invited experts share their expertise on their respective targets regarding technological and cost potentials, drivers and risk. Each presenter will have about 12 minutes to give the audience the broad strokes of his or her area of expertise in a nutshell. The remaining session time is reserved for questions and answers as well as general discussion.
The objective of the workshop is to broaden the understanding of the technology options and to discuss future scenarios. The outcome of the workshop will also be used to guide the modelling activities of the overall project, in particular the development of an integrated energy model for electricity and space heating sectors that is intended to be set up as a free, fully disclosed, open-source model.
09.30-10.00 Registration & Coffee
10.00-10.15 Welcoming remarks: Prof. Karsten Neuhoff, Deutsches Institut für Wirtschaftsforschung
10.15-10.45 Opening Presentation: Prof. Mark O’Malley, University College Dublin
10.45-11.00 Coffee Break
11.15-12.00 Electricity storage (power-to-power)
A variety of battery types as well as hydro storage are being considered to allow for storage of power at different scale and time frames. We will provide a structured overview of the different opportunities emerging, and discuss the key drivers that will impact their relative importance as well as competitiveness with other flexibility options.
Presenter 1: Dr. Hans Auer
Presenter 2: Karlis Baltputnis
12.00-12.45 Electricity to heat conversion (power-to-heat)
Instead of conserving electricity by means of pump-storage, electricity can also be transformed into heat. These heat storages could absorb electricity when production exceeds demand, for example when renewable electricity production is high. To model the potentials for small electric thermal storage (SETS) is at the heart of this project.
Presenter 1: Dr. Martin Kleimaier (PDF, 187.46 KB)
Presenter 2: Gerard Finneran
12.45 – 13.45 Lunch Break
13.45 – 14.30 Electric-mobility
In addition to heat conversion, electro-mobility could have a potentially large impact on the electricity market. Batteries in electric vehicles could be charged at times of surplus electricity from intermittent renewable electricity production. There is also the possibility of discharging batteries at times of high electricity demand into the electricity grid. This would depend on the cost of a battery and the number of times it can be discharged before it has to be replaced.
Presenter 1: Dr. Tobias Boßmann (PDF, 1.24 MB)
Presenter 2: Dr. Wolf-Peter Schill (PDF, 0.59 MB)
14.30 – 15.15 Demand-side measures
Instead of storing and discharging electricity, there is the possibility to shift or shed parts of the electric load. For example, select consumers could be disconnected from the grid to lower peak electricity demand. To make a noticeable impact on overall electricity consumption, these electricity consumers would usually have to be bundled together.
Presenter 1: Dr. Serafin von Roon (PDF, 2.02 MB)
Presenter 2: Gerard Finneran
15.15 – 15.30 Coffee break
15.30 – 16.15 Thermal efficiency of buildings and energy conservation
In addition to technological changes in electricity and heat generation, there are also advances with respect to thermal efficiency of buildings that might have a large impact on the overall demand, but might also impact the technology choice for energy conservation.
Presenter 1: Prof. Sarah Darby (PDF, 0.88 MB)
Presenter 2: Prof. Thomas Bednar
16.15 – 17.45 Cross-cutting session
After reviewing individual flexibility options in the electricity and heat market, such as power-to-power or power-to-heat storage, the cross-cutting session will open up the discussion and take on questions regarding the expected relative costs as and potential interaction of the individual technologies. The aim is to provide a broader perspective on scenarios of future flexibility provision.
RealValue Business Models Workshop
Berlin, 24-25 January 2017
DIW Berlin, Mohrenstrasse 58, Friedensburg Room
DIW suggests subdividing the work load among all project partners contributing to work package 6. As work package leader, DIW will assume responsibility for 2 of the 4 aspects of business models indicated in the document “Business Models – the next steps.” Specifically, DIW will lead the work on ``Electricity markets and their regulation’’ and ``the financing of the business.”
Further, DIW believes that because work package 6 is led by a scientific partner, the remaining 2 aspects of business models should also be led by scientific project partners. Therefore, DIW suggests that University of Oxford contributes its experience with respect to “Actors from whom flexibility is acquired and to whom flexibility is sold.” We hope that VTT leads the work on the “Legal and technical implementation of the business model.”
We kindly ask the teams at University of Oxford and VTT to each prepare a short presentation about how they would approach to analyze the aspects of business models allocated to them. DIW will do likewise. The presentations shall be circulated 3 days before the workshop takes place to give all participating partners the opportunity to familiarize themselves with the suggestions.
The aim of the workshop is to discuss how to address aspects of business models and which of the RealValue partners are most suited to help understanding business model aspects. We are especially interested in significant contributions from our business partners and we are open to their suggestions and unique points of view.
12:00 – 13:00 Registration and lunch - DIW Berlin, Lounge, 1st floor
13:00 – 14:00 Introduction to workshop and opening comments: Rowena McCappin
14:00 – 16:00 Session 1: Electricity markets and their regulation
16:15 – 18:15 Session 2: The financing of the business mode
08:45 – 10:45 Session 3: Actors from whom flexibility is acquired and to whom flexibility is sold
11:00 – 13:00 Session 4: Legal and technical implementation of the business model
14:30 – 15:30 Session 5: Summary & Outreach
15:30 End of the Workshop