ThisprojecthasreceivedfundingfromtheEuropeanUnion’sSeventhProgrammeforresearch,

technologicaldevelopmentanddemonstrationundergrantagreementNo608702.

WP2 - Project Initiation

Key Innovation

Form

V I R T U A L P O W E R P L A N T

DELIVERABLE INFORMATION

Number D2.1 Reviewers BenjaminGiron(HESP)

Title KeyInnovationForms Nature R–Report

Leadorganization Hespul Disseminationlevel PU–Public;

Mainauthor(s) JanWillemEising, Jan

Scheepers

DeliveryDate 26/08/2016

Contributors CelinaKroon Reviewers CelinaKroon

VERSION HISTORY

Version Date Author/Reviewer Description1.0 20/06/2014 B.Giron/A.vanderStoep 1

stdraft

2.0 22/08/2015 B.Giron/A.vanderStoep,

I.VandeVyver,S.Broesma

2ndversion

3.0 18/12/2015 B.Giron/S.Broesma 3rdversion

4.0 05/04/2016 B.Giron 4thversion

5.0 13/06/2016 B.Giron/S.Broesma 5thversion

Smart-Grids

Cityzen-KIF-GREE-VirtualPowerPlant.docx p.2/3

VirtualPowerPlantNON-TECHNICALSUMMARY

MAIN INFORMATION

• Principle:Objectiveinthisprojectistodemonstrateavirtualpowerplant (VPP)basedonbatteriesthatare installedbymultiplehome-ownersor SMEs inAmsterdam Nieuw West. This VPP makes amultipurposeuseofthebatteriespossible.Therebythe participants can use their battery for storingtheir renewableenergy, tradingonenergymarketsand supporting the grid operator. Therebyshowcasing the possible increase of the return ofinvestment.

• Location:Amsterdam

• District:AmsterdamNieuw-West

• Work Progress? Starting of the operation-phase.With focus on recruitment of participants andfurther development of the virtual power plantsoftware.

• Tobevisited?AmsterdamNieuw-West. Inthisarea

50 energy storage systems will be installed atresidentialconsumersandsmallenterprises.

OPPORTUNITIES, BARRIERS AND SOLUTIONS

Opportunities Barriers/Challenges Solutions

Technical(/Geographical)

• VirtualPowerPlantisnothardwaredependent

• Forenergymarketsthegeographicallocationisnotarequirement

• ForsoutherncountriesthepotentialcouldbeevenhigherduetohigherrateofreturnofPV.

• Mostbatterysystemarenotyetabletocommunicateorlinktothevirtualpowerplantduetodefaultsettingsandchosenprotocols.

• Geographicallocationandlocalpenetrationrateisessentialforgridoperators

• Simultaneityofenergyuseandgenerationdifferspergeographicallocation.

• PromotingOpenprotocolsforbatterysystem

Political/Legal

• Marketregulationsneedtohavevariableenergypricesavailableforconsumers.

• Netmeteringhasanegativeeffectonthebusinesscaseofthevirtualpowerplant

• DSOisnotallowedtorewardflexibilityofdemandandsupply

• Virtualsolutionsofmeteringcouldsolvetheproblemofnovariablepricing

Financial/Economic

• Increaseofimbalanceoftheenergymarketduetorenewableenergy

• MultipleenergymarketscanbeservedbytheVirtualPowerPlant

• Opportunitytousetothevirtualpowerplantforgridpurposes

Social*• Theneedofcustomerstohavedirectinfluenceonthevirtualpowerplant.

Environmental • Increaseofself-consumptionofrenewableenergy

• Energylossesbythesystemneedtobeaccountedforintheloadstrategy

*Willbeassessedinthedemonstration.

NEWS & LINKS

• http://www.parool.nl/amsterdam/woningen-in-nieuw-west-vormen-samen-virtuele-elektriciteitscentrale~a4338354/

• http://energeia.nl/nieuws/354249-1607/amsterdams-accuproject-pv-sims-nieuw-leven-in-city-zen• http://www.greenspread.nl/nieuws/deelnemerscityzen• http://www.cityzen-smartcity.eu/virtual-power-plant/

Cityzen-KIF-GREE-VirtualPowerPlant.docx p.3/3

VirtualPowerPlantTECHNICALSUMMARY

DESCRIPTION OF THE INNOVATION AND RATIONALE FOR THE SELECTION

Thisprojectdemonstratesavirtualpowerplant(VPP)ofresidentialconsumersandsmallenterprises.TheVPPaccountsfortheenergyusageandproductionoftheindividualsandcontrolsthebatteriesdependingonthecollectiveenergyprofile.SeveralstudiesdemonstratedthepotentialofaVPPbutdidnotimplementthisintherealworld.IntheCity-ZenVPPprojectallfacetsofreallifeimplementationofaVPPwillbeencountered.Theinnovationwilldemonstratetechnologyintegrationofhard-andsoftwareincombinationwiththesocialinteractionswithcitizens.

LEVEL OF DEVELOPMENT

TRL 1: Basic principles observed x

TRL 2: Technology concept formulated x

TRL 3: Experimental proof of concept x

TRL 4 Technology validated in lab x

TRL 5 Technology validated in relevant environment x

TRL 6 Technology demonstrated in relevant environment

TRL 7 System prototype demonstration in operational environment

TRL 8 System complete and qualified

TRL 9 Actual system proven in operational environment

TheTechnologyReadinessislevel5.TheconceptofaVPPisoftendemonstratedinlabenvironmentsandsimulations.Batterystorageiswidelydemonstratedandisoperationalinseveralprojectsandoperationalenvironments.Thefocusofthisinnovationistocouplethebatteriescharginganddischargingprofilestotheenergymarkets.Thisisarelativelynewconceptandrequiresadditionalsoft-andhardwarewhichisshowninseveralcontrolledenvironments.

WHAT ARE THE MOST RELEVANT DEMONSTRATION PROJECTS?

Zonneaansluiting–Researchprojectthatinvestigatedriversandtechnologyadoptionofhomestoragebyconsumersandthetechnologicalimpactofstorageforgridoperators.Heinsberg(EXE)–Developmentofacontrolsystemforflexibility,whichmakesitpossibleforuserstotradetheirflexibilityonenergymarkets.PV-Sims–Developmentofnewbusinessmodelswiththecombinationofenergystorageanddistributedrenewableenergy.(http://www.pvsims.nl/)

EXPECTED IMPACTS OF THE INNOVATION

¨ ImpactonEnergy(supplyorsavings)&greenhousegasreductionexpected

Withoutbatteriestheownuseofaresidentialsolar-PV-system(withequalyearlyproductionandconsumption)is approximately 30%. In the VPP project sustainable energy will be stored.With a battery it is possible toupgradethe30%ownusetoapotential60%.

¨ Widerpotentialbenefitsforcities

Using battery systems in combinationwith rooftop-PV enables possibilities for additional renewable energyproductionwithoutadditionalinvestmentsingridandproductioninfrastructure.Withcontrollableflexibilityamorerobustenergysystemswillbecreated.

¨ Otherimpacts

The current energy regime is a top-down system. Energy suppliers ownproductionunits and thereby are inpossessionofpowerandbenefits. Inabottom-upenergysystem,asapplied in thisproject, thepowershiftsfromenergysuppliers toprosumers.Creatingrevenuesandpossibilities forend-usersona levelplaying fieldwithenergysuppliers.

TECHNICAL FEASIBILITY AND SOCIO-ECONOMIC VIABILITY

The implementation of a VPP requires several technical adaptions. Smart meters need to be installed tomonitor the production and consumption, batteries need to be installed, communicationwill be set up andsoft-andhardwareneedtobeintegrated.Additionally,thisprojectwillinvestigatethesocio-economicviability.Decidecustomerstoinstallabatterybasedonfinancialincentivesorasustainablemindset?

INTEGRATED MEASURES

¨ Integratedmeasurescombiningmultipleofthedomains:buildings,smartgridsanddistrictheatingandcooling

AVPPisatypicalsmartgridsolution,enablingpossibilitiesfordistributionandtransmissionsystemoperators,prosumersandenergysuppliers.InthisprojecttheVPPcontrolsbatteries.Moreover,aVPPisabletocontrolallsortsofassets.InotherprojectsaVPPisusedtocontrolheatpumpsanddistrictheatingsystems.

¨ Whichotherstakeholderswouldneedtobeinvolvedintheimplementationofthekeyinnovation?

Withoutconsumersthevirtualpowerplantisnotviable.Therefore,participantsneedtoberecruited.Thesecitizensneedtobemotivatedbasedontwokeyaspects:comfort, financial incentives and sustainability. To control the batteries and inverters, software needs to bedevelopedbythemanufacturerofinvertersandaggregators.

CHALLENGES TO BE ADDRESSED BY CITY- ZEN

ThecurrentbusinesscaseforPVstorageintheNetherlandsisnotyetviableduetocostissuesofthehardwareand lack of financial incentives. The investment costs of batteries are expected to go down as fast as solarsystemsover het last decade. In this project the grid impact of a VPPwill be determined, thiswill be inputwhether or not a DSO should account for additional financial incentives for flexibility instead of gridreinforcement.Additionally,net-meteringwillberetrenchedwhichisanopportunityforinnovationslikeaVPP.