ERA-NET: Holistic flexibility market integration of cross-sectoral energy sources

The research project HONOR scopes developing a holistic flexibility market architecture for the cross-sectoral energy exchange. The project and its results are decoupled into various technical submodules focusing on the system architecture, market modelling, control systems, cyber-physical system monitoring, cyber-security modelling and system integration. Each submodule generated valuable research and innovation output considering the practical implementation of a local flexibility market. For the system architecture, use cases for local and regional flexibility exchange were developed before the architecture was conceptualized through the relevant SGAM layers and information exchanges. The complexity and lacking regulatory definitions on detailed flexibility market design components combined with varying national regulations resulted in limitations to the architecture generation. The proposed architecture hence targeted a technically feasible and regulatory reasonable construct, which considers its positioning in the larger energy system scope. This covers existing energy markets, congestion management, balancing responsibilities, flexibility verifications and extensive limitations to the concept, such as gaming and temporal requirements. The subsequent market modelling further specified the flexibility demand and potential market options. Based on that, a hybrid AC/DC optimal power flow flexibility market model was developed. The approach incorporates scenario-based and multi-period modelling, optimizing flexibility usage for a predefined period. The optimization is based on power demand, grid constraints, cost minimization, and operational criteria for distributed energy resources. Furthermore, the model was extended to coordination amongst a TSO and multiple DSOs through the Alternating Direction Method of Multipliers. The market model realized the provision of flexibility services and sustainable exchange in a coordinated TSO-DSO mechanism. Part of the holistic system in HONOR targeting the coordinated flexibility utilization from distribution systems was further the continuous development of control systems for system operators. Due to the increasing system utilization and threat of violation of grid restrictions, a flexibility service mechanism was developed, which in case of unforeseen events, can mitigate congestion during operation. The algorithm uses optimal power flows to generate a feasible operating region at a grid connection point, which a system operator can use to monitor the flexibility provision options and activate requested power flows at the grid connection point. For detecting and verifying flexibility activations, cyber-physical system monitoring, verification and validation data-driven models were developed. Starting with a specification of threat scenarios and monitoring requirements for cyber-physical systems of energy flexibility markets was generated. This was used to develop an unsupervised detection and open-set classification of fast-ramped flexibility activation events. The work was extended through uncertainty quantification in low voltage state estimation under high shares of flexible resources and assessing cyber-physical intrusion detection and classification for industrial control systems. The cyber-security assessment in the project's scope is based on a threat modelling approach using attack simulations on a system model in securiCAD. The model can discover and reveal how attackers can target different parts of the market, how long it will take to reach their targets, and what weaknesses they can exploit. The results were used to configure protection strategies and suggestions for a secure flexibility market design. Finally, a geographically distributed remote power hardware in the loop setup was generated for the system integration. The setup consists of three remote instances being coupled through the open-source gateway VILLASnode, with the three instances being a physical low-voltage grid with flexible assets at the PowerLabDK Syslab facility at DTU, a simulated medium voltage grid on a real-time simulator at the Smart Grid Technology Lab at TUD and a virtual control centre at PSI. Both grids were coupled through an interface algorithm to monitor the system and apply the developed flexibility service mechanism on a physical power system. Furthermore, the field infrastructure at SWW was used to determine live flexibility exchange potentials during operation and the potential to assess these in a full flexibility market adaption.

Demonstrate the combined business and operational chain of cross-sectoral coupling and operation of flexibility market and dispatch with local community stakeholders in Wunsiedel 2. Validate the full technical solution in a relevant transnational environment, employing state-of-the-art experimental techniques 3. Assimilate experience from partners and anchor project results by means of workshops with expert end-users (Germany and Denmark) to ensure relevance of the project developments in the local context 4. Mature existing market platforms for local flexibility services and develop further the concept of a regional and transregional exchange 5. Develop industrial-grade interoperable decision support, supervision and collaboration platforms and state-of-the-art dispatch and control solutions 6. Development of innovative data-driven monitoring, detection and verification solutions for the supervision of the flexibility market operation and ICT infrastructure 7. Development and application of Cyber-security assessment models for the complete trading and operational ICT infrastructure 8. Provide an overall economic evaluation and risk assessment accounting for market development opportunities and cost of cyber vulnerabilities *

The project aims at development and evaluation of a trans-regional flexibility market mechanism, integrating cross-sectoral energy flexibility at a community-wide level. The specific developments include a market mechanism for grid flexibility, industrial-grade supervision solutions, data-driven state monitoring applications and cyber-security assessments. In order to develop a tailor-made as well as the replicable solution, community stakeholders will be involved through co-creation activities as well as stakeholder networks from Norway, Germany and Denmark. Complementing the economic and risk evaluation, simulation studies of flexibility operations and cyber-security assessments, the operation of control systems algorithms and the online monitoring and detection solutions will be implemented as a demonstration in a relevant environment (TRL 6). The sector-coupling market mechanism will be implemented and demonstrated in an operational environment in Wunsiedel (Germany) (TRL 7).