Effective market integration of decentralized flexibility in the

Effective market integration of decentralized flexibility in the electricity system Energydays 28 -03 -2019 1

From commodity to differentiated value • Temporal value differentiation • Locational value differentiation • Diverse supply and demand curves from actors and technologies • Socialized cost of infrastructure more complex Energydays 28 -03 -2019 2

Cost-reflective markets Energydays 28 -03 -2019 3

Inclusivity determines market models Energydays 28 -03 -2019 4

Platform functions Energydays 28 -03 -2019 5

Perfect competition in fair markets Energydays 28 -03 -2019 6

Micro-economic characterization Energydays 28 -03 -2019 7

Economies of scope Energydays 28 -03 -2019 8

Flexibility aggregator (single explicit) • Centralized renewables • Capacity market mechanisms • Supra-national suppliers • Portfolio dispatch management • Flexibility aggregator Energydays 28 -03 -2019 9

Energy as a service (locational - explicit) • Energy vector integration • Unbundling • Energy management platform • Sustainable area developer Energydays 28 -03 -2019 10

Internet of energy (single implicit) • Load defection • Infrastructure reinforcement • Retail subsidies • Digital infrastructure • System market platform Energydays 28 -03 -2019 11

Collective power (locational – implicit) • Electrification • Supra-national market • Load opportunism • Congestion management • Local utility Energydays 28 -03 -2019 12

Conclusion • The electricity system and market models are changing over time • The electricity system and market models are changing different per location • Market models are path dependent • Market models are both an optimization problem as well as a societal choice Energydays 28 -03 -2019 13