Electricity Market Day 5 April 2016 Risto Lindroos, Senior Advisor, Fingrid Oyj

1. Linking wholesale and
retail market – through smart grid
Electricity Market Day 5 April 2016
Risto Lindroos, Senior Advisor, Fingrid Oyj

2. Power system change
requires harnessing
the full flexibility
potential – also that of
small consumers

3. To support security of supply, consumers have to
participate actively in the electricity market
Task involves many parties
 The energy industry and
the authorities must cooperate
Consumer does not know
what to do
 We need service providers
and efficient business
processes
Task is technically challenging
 We need an infrastructure
from consumers to
the market – a smart grid.

4. We need a swift and secure infrastructure
for load control – a smart grid
Power system real time data
gets more important for
suppliers, DSOs and TSO
The current problem:
Load control via AMR is
not suitable for real
time market needs
Maintenance of the power
balance requires quick means
to react in real time or very
close to the operating hour

5. Market value of demand response grows towards the operating hour
• Economical potential highest in the
balancing and ancillary services market
as well as in the intraday market
• Reinforcing the price signals will
improve the business case for load
control infra
• The present time-of-day tariff control of
electric storage heating do not
maximise the consumer and system
value and cannibalizes the business
case
 A move from time-of-use control to market price control necessary

6. Consumer participation in the market has been
discussed long but little has happened.
Unclear roles are partly to blame.
Infrastructure
companies should
enable commercial
activities
• DSOs: metering,
tariffs etc.
• TSOs: datahub, real
time data exchange,
market development
Commercial actors have an interest but they need
also the possibility to provide a full service package
to consumers.
Unclear roles in the market harm the flexibility business case
 Roles should be clarified which may require legislative actions

7. • New real time businesses, as
flexibility operation, develop as
market based
• Challenges:
– Distributed real time model
cannot provide with transparent
real time data
– Neutral party who develops data
exchange is lacking
– Cyber security
– Great number of interfaces, data
quality, data accessibility
X Data exchange function DMS Distribution management system
CONTROL DATA EXCHANGE
REAL TIME ACTIVITIES
DMS
DMS
DMS
DMS
DMS
Network
status
Flexibility
operation
Charging
operation
Retail
market
DATAHUB
Wholesale
market
(NBS)
MARKET TRANSACTION
DATA EXCHANGE
Vision of real time data exchange from Datahub study
must be revised

8. Controlhub – a revised vision of real time data exchange
Cyber security
Real time
market
platform
TSO
DSO
Fingrid ancillary services market
Control
device A
Control
device B
Flexibility
operators
Supervision and verification of real time reserves
Aggregated bids on ancillary services market
Real time data of distributed resources
Suppliers
BRPs
Control via real time platform
Standard interface, centralised cyber security
Customer control device interface remains in supplier changes
Consumer flexibility potential

9. Vision: From consumer to active energy citizen via smart grid
2018–2020
Consumers participate
widely in demand
responce.
2019
Access to
consumption
data
improved by
datahub.
2020–22
Datahub
facilitates 3. party
services.
Consumers may
participate in
energy
communities.
2021–25
Consumers have a
choice as regards
security of supply.
Controlhub facilitates
consumers'
voluntary load
reduction in grid and
power shortage.
2022–25
Electricity as
a service.
Consumers have
access to a larger
retail market.

10. ?
The way forward:
in cooperation and each respectively

11. • Reinforcing market price signals
• Arranging real time data exchange of the smart
grid (analysis of e.g. centralized controlhub)
• Prerequisites for the Nordic retail market
integration (e.g. NBS, datahub)
TSOs
The way forward: in cooperation and each respectively

12. • Move to power based tariffs,
harmonizing/simplifying
• Giving up the time-of-use tariffs load control
• Facilitating smart grid for the retail market
DSOs
The way forward: in cooperation and each respectively

13. • Offering flexibility products and service
packages
• Cooperation with equipment vendors/ IT-
providers
Service providers/
Suppliers
The way forward: in cooperation and each respectively

14. • Smart grid working group for directing and
coordinating industry cooperation
• Clarification of DSO and supplier roles
• Preparing the necessary legislation
Ministry/
Government
The way forward: in cooperation and each respectively

15. • Integration of Nordic retail market
(together with the TSOs et alia)
Regulators
The way forward: in cooperation and each respectively

16. Fingrid Delivers. Responsibly.