WP3: Commercial framework for operation and control of power systems with LSVPPs
WP Leader: ECN

Work Package objective

Develop a commercial framework that enables and supports a system operation of LSVPP with a large DER share under the fully decentralised network architecture based on concept of LSVPP and to quantify the cost and benefits of such an electricity market compared with a ?business as usual reference? type of electricity market in the future. This will be achieved through:
  • Defining different economically viable LSVPP concepts,
  • Development of three different scenarios that characterise concretely the future electricity markets with high DER share and ancillary services markets in the EU in the long term,
  • Define and assess the commercial environment for relationship of LSVPP and TSO& DSO?s,
  • Develop economically viable business models for LSVPP?s, TSO?s and DSO?s, including incentive mechanisms and regulatory framework
  • Assessment of overall economic and environmental benefits and cost of future electricity markets with LSVPP operators with high DER shares

Work Package Description

The FENIX future based on the concept of LSVPP will require a sophisticated commercial structure to enable each generator and demand consumer or their agent to trade in markets with purchasers of not only energy but also ancillary services. A market with hundreds of thousands of active participants is clearly a major challenge. The primary aim of this objective will be to develop alternative commercial arrangements, market structures and TSO and DSO regulatory incentives framework for the future highly decentralised energy supply system and to carry out an impact assessment of the economic and environmental benefits and costs of FENIX future.