WP 4 introduction and T4.1 planning

1ARTISAN 1st ARTISAN 1st plenary meetingplenary meetingMay 8th – 9th 2012

ARTISAN 1st ARTISAN 1st Plenary MeetingPlenary MeetingMay 8th – 9th 2012

WP 4 introduction and T4.1 planning

Angelo Frascella (ENEA)



WP 4 Objectives [from DoW]

The aim of WP4 will be to design and develop the services running across enterprise management systems of different supply chain partners. These services are based on energy consumption and carbon emissions information sharing and will enable the trading of energy and carbon permits either:

•among supply chain partners, •or between the set of partners viewed as a single entity and external players (including energy and carbon markets).

Such services require, also, energy forecasts for short and mid-term, concerning the energy needs and the associated emissions.

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More specifically, the aims of WP4 will be:

•To design the services that will conduct energy forecasts and energy trading across different supply chain partners or different supply chains.•To design the services that will conduct carbon trading across different supply chain partners or different supply chains.•To develop and test the respective services against the requirements and point out any necessary amendments.

WP 4 Objectives [from DoW]



WP4 Timeline

The WP 4 is divided into 3 tasks:•Task 4.1: Energy Forecasts and Energy Trading Services Design.•Leaded by ENEA. It will run in M9-12 (June-October) and then in M20-21. •Deliverable 4.1: Energy and Carbon Trading Services Design•Task 4.2 Carbon Trading Services Design

• Leaded by AUEB. It will run in M9-13 (June-November) and then in M20-22• Deliverable 4.2: Energy and Carbon Trading Services Design

•Task 4.3 Energy and Emissions trading Services Development and Testing• Leaded by ATC. It will run in M11-16 (September-February) and M22-24



• These services represent the upper layer of the ARTISAN system. This layer have to interface:– the supply chain actors for allowing carbon permits and energy

trading inside the supply chain– with external players: for example the energy market, the

carbon emission trading market, energy system actors (like the Distribution System Operator - DSO, the Transmission System Operator – TSO, etc.), enterprises external to the supply chain, etc.)

A note about these services



Scenario 7a Original Name Smart Grid (Energy and Carbon Trading)New Name Trading internal to the supply chainactual / plan / normal value plan / actualreference value /entity Carbon Permits (Auto-produced Energy only in a Microgrid perspective) physical unit (example) Carbon Emission, Produced Energy available for selling, negotiating and

requesting messages with the supply chain partners about energy/carbon permits

Energy carbon trading and data structure scenarios (related to task 1.1)

Scenario 7b Original Name Smart Grid (Energy and Carbon Trading)New Name Trading with external actors/marketsactual / plan / normal value plan / actualreference value /entity Auto-produced Energy, Energy demand time profile, Energy reduction

potentials, Price, Contracts, Chart (about forecasted consumption), Carbon Permits.

physical unit (example) Carbon Emission, Produced Energy available for selling, Chart (about forecasted consumption and time profiles of energy demand), negotiating and requesting messages with the energy system actors/market, negotiating and requesting messages with carbon permits markets/other industries



• The exploitation of future electric market scenarios (Smart Grid) would allow– to the single firm, to save money related to their

consumption– to the global system to increase the rate of

renewable sources and to reduce energy consumption peaks

How WP4 contribute to the energy consumption and CO2 reduction?



Task 4.1: Energy Forecasts and Energy Trading Services DesignGoals:

o design of services for energy forecasts per supply chain partner, taking into account demand forecasting and energy-oriented optimization of processes

o design of service for energy trading, considering the demand patterns of supply chain partners (spot energy markets and over the counter energy agreement including swaps and other derivatives…)

o Note: An over-the-counter contract is a bilateral contract in which two parties agree on how a particular trade or agreement is to be settled in the future.

The services will support:•interoperability so that the trading could happen not only inside the boundaries of ARTISAN project, hence considering frameworks as Web Services and ebXML •compatibility with systems used at European level (data format and semantics)

Task 4.1: Goals



Some potential Electric market scenarios



Reference ARTISAN blocks

Not only Trading and Forecasting service, are involved.•Optimization of energy use could be made, contemplating time-of-use tariffs.•Monitoring and optimization allow to react to variable prices...



Energy market scenario

Present or incoming?

In ARTISAN Advantages / Disadvantages

Time of use tariffs: based on fixed time band

present The evaluation of Optimization options will act in a static way.Mono-directional information flow from forecast to scheduler

Immediately applicable. Simple.

VSLimited flexibility

Possible energy market scenarios: 1

1. On the base of fixed tariffs, Optimizer analyzes forecasted consumptions

2. Then it suggests scheduling modifications

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scenario Present or incoming?


Energy SellingNote: require internal production

present The ability to calculate future consumptions and so to know the availability of future production can enable the enterprise to take part directly to the market

Direct trading is really remunerative and profitable only for big producers able to manage its complexity and to produce systematically more than their consumptions.ARTISAN could help:•to manage this complexity •to aggregate production from other producers, in order to ensure systematic production


Energy Market: an electronic market “based on the clear and frequent communication of offers and transactions among buyers and sellers.”



ARTISAN could look at the Smart Grid domain • Definition: “an electricity network that can intelligently integrate

the actions of all users connected to it – generators, consumers and those that do both – in order to efficiently deliver sustainable, economic and secure electricity supplies.”

• It implies the conversion of the electricity consumers in active parts of the electrical grid, able to interact with the grid and with the electrical market actors as electricity producer but also in order to consume energy in more flexible way.

–At the moment there are interruptible programmes: participants (usually big consumers with auto-generation capacity) accept to reduce their load to predefined values (for example by cutting off from the grid), following an explicit request, getting back money remuneration

The future: the Smart Grid?







Variable price: the customer receive messages with energy prices in the next periods (Demand Response)

future The evaluation of Optimization options become a dynamic operation, with cycling interaction between optimizer and scheduler

This is feasible in a research perspective, but not immediately applicable.Business model has to be carefully examined



Possible energy market scenarios: 3 (transactions)

1. Trading module receives cost information from Smart Grid actor (DSO or Aggregator)2. Trading module informs Optimizer about costs3. Optimizer dialog with forecast module and with optimizer to get the best possible optimized

scheduling4. (In a demand response case) Trading module inform the Smart Grid actor about its capacity to

respond to the request5. Trading module sets the alarming thresholds in order to limit consumption 6. At the moment of price peak, Alarming module watch on the consumption in order to avoid threshold

overcoming

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ARTISAN as demand response aggregator

future ARTISAN aggregates availability to reduce their consumption from other ARTISAN partner, in order to negotiate with the Smart Grid more profitable conditions

Research perspectiveMore complex than the previousGive more capacity to negotiate.ARTISAN centralized or distributed? In the first case privacy problems could arise

Aggregator: economic/technical subject acting as mediator between Energy providers and Customers



Key Input and occurrences needed from other tasks:•Definition of carbon and energy trading services (Task 1.4)

•Monitoring and alarming services interface definition (Task 2.4 and 5.4): trading services needs to receive data from monitoring ,in order, for example, to calculate forecasted consumption.

•Optimization service interface definition (Task 3.2 and 5.4): in order, for example, to enable services like demand response…

•Collaboration Infrastructure design, in order to be able to share information with supply chain partners (Task 5.3)

Task 4.1: Needed input



• Step 1: literature review (about consumption forecasting and about energy trading)

• Step 2: definition of possible scenarios/use cases and selection of the most profitable for ARTISAN

• Step 3: definition of data exchange sequence (processes), and formats

• Step 4: design of modules, services and tools for energy trading (logical view and process view)

Task 4.1: a first planning



Thank you For

your attention

Documents

WP 4 introduction and T4.1 planning