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Abstract—The ADDRESS European project aims to develop a

comprehensive commercial and technical framework for the development of “Active Demand” and the market-based exploitation of its benefits. In ADDRESS, “Active Demand” (AD) means the active participation of domestic and small commercial consumers in the electricity markets and in the provision of services to the other electricity system participants. This paper gives an overview of the results obtained so far in the project and more specifically the services that AD can provide to the different regulated and deregulated electricity system participants, the aggregation of demand flexibility, the technical validation performed by distribution and transmission system operators, the overall technical and commercial architecture. The paper also describes how Active Demand can be used to support the integration of Renewables and more generally Distributed Generation.

Index Terms—Active demand, Aggregation of demand flexibility, Demand side integration, Distributed generation, Electricity system markets, Integration of renewables, Load management, Smart grids.

I. INTRODUCTION DDRESS (“Active Distribution networks with full integration of Demand and distributed energy

RESourceS”) is a four-year large-scale R&D European project launched in June 2008. The aim of the project is to develop a comprehensive commercial and technical framework for the development of “Active Demand” and the market-based exploitation of its benefits [1].

In ADDRESS, “Active Demand” (AD) means the active participation of domestic and small commercial consumers (and prosumers) in the electricity markets and in the provision of services to the other electricity system participants. AD involves all types of equipment that may be installed at the consumers premises: electrical appliances (“pure” loads),

The research leading to these results has received funding from the

European Community's Seventh Framework Program (FP7/2007-2013) under grant agreement n° 207643.

R. Belhomme (e-mail: regine.belhomme@edf.fr) and Ph. Eyrolles (e-mail: philippe.eyrolles@edf.fr) are with EDF SA, R&D Division, 92140 Clamart, France.

R. Cerero is with Iberdrola Distribución Eléctrica, S.A.U., 48003 Bilbao, Spain (e-mail: ramon.cerero@iberdrola.es).

G. Valtorta is with ENEL Distribuzione S.p.A., 00198 Roma, Italy (e-mail: giovanni.valtorta@enel.com).

distributed generation (such as photovoltaic or micro-turbines) and thermal or electrical energy storage systems.

The proposed architecture relies on the concept of aggregation of demand flexibility. It is illustrated in Fig. 1 which shows a simplified representation of the ADDRESS architecture [2]. The aggregation function gathers the “flexibilities” and contributions provided by the consumers (and prosumers, i.e. both producers and consumers) to form AD-based services and offers them to the electricity system participants through various markets.

AD: Active Demand DG: Distributed Generation DMS: Distribution Management System EB: Energy management Box MV: Medium Voltage LV: Low Voltage

PV: PhotoVoltaic generation unit RES: Renewable Energy Sources Transfos: Transformers TSO: Transmission System Operator µCHP: micro Combined Heat and Power

generation unit

Electrical connection

µCHP PVStorage

AGGREGATION

Different levels of optimization and

aggregation ADDRESS adaptation

DSO

DG&RES

RetailerTrader

Balancing Responsible Party

Centralized Producer

MARKETS AND CONTRACTS

Energy supply

and provision

of services

TSO

EB

MV – LV transfos

Sub station

DMS

CONSUMERS PROVIDING AD

link to be adapted specific aspect to be developed

EB EB

Figure 1 – Simplified representation of ADDRESS architecture

The paper gives an overview of the results obtained so far regarding: - the overall technical and commercial architecture, - the services that AD can provide to the different

(regulated and deregulated) electricity system participants and the corresponding basic products supplied by the demand aggregation entity,

- the implementation of the aggregation functions, - the technical validation performed by distribution (and

transmission) system operators,

The ADDRESS Project: Developing Active Demand in

Smart Power Systems integrating Renewables Régine Belhomme, Member, IEEE, Ramon Cerero, Giovanni Valtorta and Philippe Eyrolles

AA

978-1-4577-1002-5/11/$26.00 ©2011 IEEE

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- the new tools needed by Distribution System Operators (DSOs) and Transmission System Operators (TSOs) to carry out their roles in the ADDRESS architecture;

Finally, the paper describes how Active Demand can be used to support the integration of Renewables and more generally Distributed Generation.

II. SERVICES PROVIDED BY AD AND STANDARDIZED PRODUCTS

The electricity system participants to which AD can provide services are mainly of two types: (i) regulated participants, namely DSOs and TSOs (ii) deregulated participants or participants in competition, which can in turn be grouped into 3 main categories: - Producers: centralized producers, decentralized

electricity producers, producers with regulated tariffs and obligations (reserve, volume, curtailment, etc.), …

- Intermediaries: retailers, Balancing Responsible Parties (BRPs), production aggregators, electricity traders and brokers, etc.

- Consumers: for instance large consumers. In ADDRESS, in order to have a clear view of the services

that AD can provide, “archetypes” of players are considered or more specifically the different functions in the electricity systems are considered separately and given the names of archetype players. But in real life, several of these functions can be carried out by the same industrial player, in particular the aggregation function that can be carried out by a retailer, a BRP or another deregulated player.

A. AD services for regulated and deregulated participants The analysis of the regulated and deregulated players has

allowed to identify 31 services that AD can provide them: 7 services for DSOs and TSOs and 24 for deregulated participants. They are described in detail in [4]. These services can in turn be grouped into main categories. AD service categories for DSOs and TSOs: - Voltage regulation and power flow control on the grid - Tertiary active power reserve - “Smart” load reduction to avoid “blind” load-shedding. AD service categories for deregulated participants: - Optimisation of purchases and/or sales of electricity - Balancing of generation or consumption (to reduce

imbalance costs) - Optimisation of generation investments costs - Optimisation of generation management - Reserve capacity to minimise (price and/or volume) risks - Tertiary reserve to fulfil obligations of the participants

with respect to TSO requirements. B. Standardized AD products

From the perspective of the aggregation function, all those services can be provided through three standardized AD products. An AD product is what the aggregation function provides or sells to the other participants and which they use to meet their needs (and in this way “form” the services). An

AD product is a specific “power against time” demand modification shape to be provided during a specific time period. In the case of ADDRESS, this means changing (“re-profiling”) the consumption pattern of groups of consumers, via appropriate combined price and volume signals broadcasted to the consumers by the aggregation function.

The three basic AD-based products defined in ADDRESS are Scheduled Re-Profiling (SRP), Conditional Re-Profiling (CRP) and Bi-directional Conditional Re-Profiling (CRP-2). They are summarized in Table 1 below.

TABLE 1 - AD PRODUCTS AND THEIR MAIN CHARACTERISTICS

AD Product Conditionality Typical example

Scheduled re-profiling (SRP)

Unconditional (obligation)

The aggregation function has the obligation to provide a specified demand modification (reduction or increase) at a given time to the product buyer.

Conditional re-profiling (CRP)

Conditional (real option)

The aggregation function must have the capacity to provide a specified demand modification during a given period. The delivery is called upon by the buyer of the AD product (similar to a reserve service).

Bi-directional conditional re-profiling (CRP-2)

Conditional (real option)

The aggregation function must have the capacity to provide a specified demand modification during a given period in a bi-directional range [ -y, x ] MW, including both demand increase and decrease. The delivery is called upon by the buyer of the AD product (similar to a reserve service).

The SRP and CRP products imply single specific

unidirectional demand modification (which could possibly be a modification range). The CRP-2 can be considered as the combination of two separate CRP with the appropriate associated demand reduction and increment.

A product template has been designed as the basic format of a product description. It lists the basic set of parameters necessary to specify any product. Fig. 2 illustrates the associated standardized product delivery process. Using the product template, the 31 identified services have then been formulated in a standardized way, given in [4].

time

Power

Negotiation gate closure

Energy payback

Re-profiling volume

Re-profiling duration

Re-profiling availability interval (CRP only)

Re-profiling activation time

(CRP only)

Figure 2 – AD product standardized delivery process

III. OVERALL TECHNICAL AND COMMERCIAL ARCHITECTURE For each of the 31 services mentioned above, the

corresponding use cases have been described in the form of sequence diagrams. These diagrams show the interaction of all the participants or entities involved in the provision of the services. Fig. 3 and Table 2 give an example of such a use

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case description for a service for the BRP. More specifically, as the role of the BRP is to manage

imbalances appearing in the balancing group it is responsible for, the purpose of AD will be for mitigating imbalances. In the case described here, it is assumed that the BRP has a good forecast of upcoming imbalances. In other words, it knows with a sufficient certainty that it will be in a short (or long) position in some period. The BRP is then looking to purchase a SRP to address this shortfall (or surplus).

The analysis of all the use cases for the identified AD services has allowed to derive the technical and commercial conceptual architectures proposed by ADDRESS. They are described in detail in [3]-[4] and represented in a condensed way on the diagram of Fig. 4, which shows the Active Demand process a chronological order, with the process progressing from the left to the right. The top half of the diagram shows the individual internal processes of system participants or functions while the bottom half shows the interaction between the participants or functions themselves.

Roughly, the following distinction can be made between the commercial and technical parts of the proposed architecture:

The commercial architecture (“contract negotiation” and “settlement” stages) deals with all the interactions, structures, processes involved in the “negotiation” phase of the AD services (including the preparation of requests and offers) until the market clearance or signature of the contracts (depending on the case). It also deals with the settlement stage after the end of the service.

TABLE 2 – EXAMPLE OF DESCRIPTION OF A USE CASE FOR THE BRP

Use case description 1. BRP performs its imbalance forecasting process and defines its needs. 2. BRP goes to the market in order to seek offers to meet its needs. It

can also make a call for tenders to establish bilateral contracts. 3. Aggregation entities prepare their offers for the market. 4. Aggregation entities send their offers to the market. 5. Other market participants prepare their offers for the market. 6. Other market participants send their offers to the market. 7. At the gate closure, the market launches the matching process. 8. The market sends the results of the matching process to BRP. 9. The market sends the results of the matching process to other market

participants. 10. The market sends the results of the matching process to aggregation

entities. 11. Aggregation entity provides DSO with the relevant information of its

offer (e.g. MW amount, duration and period of the offer and the load areas involved).

12. DSO verifies the technical feasibility of the AD program on the distribution grid (see Section V).

13. DSO aggregates the distribution network situation at the connection point with the TSO.

14. DSO sends this situation to the TSO for verification. 15. TSO verifies the technical feasibility of the AD program on the

transmission grid. 16. If everything is okay, TSO sends an acceptance signal to DSO. 17. The offer is validated and DSO notifies aggregation entity of its

acceptance. 18. Aggregation entity informs TSO with the MW amount during what

period and to which actor it sold the AD (if an imbalance settlement mechanism exists).

19. Aggregation entity sends activation signal to involved consumers through the Energy Management Box (see Section IV).

20. The Energy Management Box controls the consumer appliances.

NB: Depending on the market structure and rules, different, less or additional exchanges may be needed between the participants and entities involved in the service

18. sends AD product information for imbalance

19. requests AD activationSRP-MEI-BRP The BRP has a good forecast of the imbalances in the short term (low uncertainty). It has expected a given amount of shortfall (or surplus) and is looking to purchase a SRP to address this shortfall (surplus).

1. imbalance forecast process 2. requests offers to meet

its need 3.prepares offers

4. sends offers (submission) 5.prepare offers6. send offers (submission)

7.matching process 8. sends matching process

results 9. sends matching process results

10. sends matching process results 11. sends relevant information on AD actions

12. checkstechnical feasibility

13. aggregates DSO network at thTSO level

14.sends aggregated results

15.checks technical feasibility

16.sends acceptance

17.sends acceptance

20. requests AD activation

BRP Aggregation function

Market participants DSO TSO ConsumerMarket Energy

Management Box

Figure 3 - SRP-MEI-BRP (Management of energy imbalance in the case of low uncertainty)

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The technical architecture (“operational” stage) deals with all the interactions, structures, processes involved in the activation and actual delivery of the AD services, after the market clearance or signature of the contracts until the end of the service. This also includes the management of the energy payback effect and the possibly related monitoring actions.

IV. AGGREGATION OF DEMAND FLEXIBILITY Within the ADDRESS framework, aggregation is a new

function able to offer energy flexibility on markets. It obtains this flexibility by interacting with small consumers and engaging them to modify their energy consumption. The “small” pieces of flexibility collected from consumers are then grouped (aggregated) to meet agreed market product size while reducing both technical and economic risks.

A. Aggregation: the main internal processes As mentioned in Section I, the aggregation function gathers

flexibility from consumers and sells it to other electricity system participants. This function therefore actively interacts with consumers. For this purpose a number of internal processes are required. They are summarized below.

Consumer consumption and flexibility forecasting: The aggregation function should be able to forecast in the short and long term the behavior of the aggregated consumption of the consumers in its portfolio.

Market price forecasting: This module provides the aggregation function with information on prices that AD buyers will be willing to pay in the different markets where AD products can be exchanged. This module should forecast

prices over time, as an input for the modules carrying out the operational optimization (short term) and the management of the portfolio of consumers (long term).

Management of the market offers and the portfolio of consumers: this process defines the long term strategy on the basis on the information coming the long term forecasting of consumer flexibility and market prices (see above). A key aspect in this process is the management of the risks both in volume (e.g. uncertainty of consumers responsiveness) and in price (e.g. uncertainty of the market).

Operational optimization: this internal process is used by the aggregation function on one side to determine the bids to offer in short term markets and on the other side to create the combined price and volume signals sent to the consumers in its portfolio (see Subsection IV.C below). This short term optimization is subordinated to the long term strategy selected in the previous module.

Settlement and billing: This module groups settlement, billing (or remuneration) and other back office related tasks. The aggregation function pays incentives to consumers and receives agreed amounts from AD buyers according to the contracts agreed on and the corresponding services.

B. Interactions with other electricity system participants or functions

The aggregation function needs to maintain relationships with different participants and/or functions of the electricity system:

Relationships with organized markets: in order to offer and sell AD products on these markets. It is foreseen that

Individual Internal Sub -

Processes

Interaction between

players or functions

Bids Submission/Bilateral Negotiation

Gate Closure Market

ClearanceTSO/DSO Validation

Service Activation

Service Start Service

EndBilateral

Negotiation End

Bilateral Contracts

Signe

// Demand/Supply Preparation Service Delivery

Aggregation function “Active Demand” supply Strategy Operative Risk

Regulated and Deregulated Players “Active Demand” request preparation: Required service(s)

Performance Consumer response monitoring and Monitoring of AD product delivery

Commercial interaction between players Technical interaction between players

Market bids selection and settlement rice determination

Billing/Settlement// // // // //

ADDRESS Active Demand Process Architecture

Communication of clearance

Communication of invalid transactions

TSO/DSO validates where the accepted transactions will violate network

Market Settlement//

Trader & Brokers

BRP

Decentr alised_Pr oducer_& Produc tion_Aggregato

TSO DSO Consumer

Retaile

Centralised Poduce Mar ke

Aggregato

Large Consumer

Producer_wi th Regulated_Tarif f

1..* 1..*

1..* 1..*

1..* 1..*

1..* 1..*

1..* 1..*

1..* 1..* 1..*

1..*

1 1..*

1

1..*

1..* 1..*

1..* 1..*

1..* 1..*

Trader & Brokers

BRP

Decentr alised_Pr oducer_& Produc tion_Aggregato

TSO

DSOConsumer

Retaile

Centralised Poduce

Aggregato

Large Consumer

Producer_wi th Regulated_Tarif f

Energy

Mete«flow»

1

1..*

1..*

1..*

1

1..*

1

1..*

1..*

1..*

1..*

1..*

«flow»

1..*

1..*

1..*

1..*

1..*

1..*

1..*

1..*

1..*

1..*

1..*

1..*

«flow»

Energy Management

box

Aggregation function

Aggregation function

Figure 4 - ADDRESS process architecture diagram

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initially, AD products will be traded in existing markets. Limits on the size (or volume) of AD product and location of load flexibility might affect the viability of the participation to some markets and of some AD services. In a second step the project is now studying possible new markets, along with the corresponding interactions and defined message exchanges. Depending on the country, some market rules might need to be modified for allowing AD participation.

Relationships with deregulated electricity system participants: in the context of the provision of AD products to meet their needs. These relationships might exist in different contexts: through organized markets (like above), call for tenders or bilateral negotiations. The use case given in Section II is an example of such relationship.

Relationship with DSOs and TSOs: DSOs and TSOs play a double role in the ADDRESS architecture. They can act as AD buyers procuring AD to meet their needs and they are in charge of technically verifying that the delivery of the AD products contracted in the market or AD buyers do not cause any violation in network operation limits. This technical feasibility verification and the messages exchanged periodically for this purpose are described in Section V.

Relationship with the metering responsible party: The metering equipment is the certified device to provide information on consumer behavior. The aggregation function should receive this type of information for assessment of consumers’ response and settlement.

NB: when the aggregation function is not carried out by a retailer, the relationship between the aggregation entity and the retailer, the BRP and TSO might be very complex. In the same way the assessment of the AD product delivery and the settlement become a tricky issue.

C. Interactions with consumers: the energy management box as a gateway to consumers

In the ADDRESS architecture (see Fig. 1 or Fig. 3), the aggregation function interacts with consumers through signals sent to an Energy management Box (EB) installed in their premises. More specifically the aggregation function sends to the energy management boxes of the consumers a combined price and volume signal, composed of incentives (€) associated with power ranges for the average consumption of the consumer over the specified time period. In other words, taking the example given on Fig. 5, if for the time period considered, the average power consumption of the consumer is in the red range (Power < 0.6 kW) the consumer receives an incentive of X €, if it is in the blue range (0.6 kW ≤ Power < 0.95 kW), the consumer receives an incentive of Y € and so on. The choice of the number of ranges and the values of the incentives will be done by the optimization module based on the response expected from the consumer. The value of the incentives may therefore be zero in certain power ranges. The minimum duration of a request from the aggregation function has been chosen as 15 minutes.

The EB is a device assumed to be under deregulated rules. It has 4 types of links with:

- home equipment (through Home Area Network - HAN) - the aggregation function - the meter or an alternative equipment which provides

measurement of consumer total consumption (see below) - the consumer itself through a number of user interfaces.

Average power consumed over time period

Price

Less than 0,6 kW Incentive of X (€)

0,6 kW ≤ Power < 0,95 kW Incentive of Y (€)

0,95 kW ≤ Power < 1,05 kW Incentive of Z (€)

More than 1,05 kW Incentive of W (€)

TimePow

er c

onsu

mpt

ion

Figure 5 – Example of combined price and volume signals received by Energy management box for triggering consumer response These interactions should be based on open standards, some of which are not yet fully deployed nowadays.

Regarding the interactions between the meter, the EB and the aggregation function, the following have been specified so far in the project: - the EB will receive 5 minutes aggregated measurement

information either from the meter itself (where possible) or from an alternative device,

- the EB will send this information to the aggregation function at the end of (or after) the AD action as a report on AD delivery (not for billing).

- registered consumer profile or consumption curve with 15 min steps used for consumer assessment and settlement, will be sent by the metering responsible (at least monthly) to the aggregation function.

Regarding the interactions between the aggregation function and the EB: - As discussed previously the aggregation function will

send activation signals to the EB, the main signal being a combined price & volume signals as shown on Fig. 5.

- The EB don’t send any confirmation message to the aggregation function except the override status. This is set by the consumer when he wants to disable completely the delivery of flexibility.

- However the aggregation function can send to the EB other types of information such as weather forecast or environmental signals.

The Energy management Box covers the following functionalities: - It uses its internal algorithms for continuously managing

home controllable equipment and coordinating home consumption to fulfil its objectives: economy, environment and comfort.

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- It processes the signals received from the aggregation function, the metering information and the HAN equipment.

- It provides a user interface for interaction with the consumer.

Regarding the specific interactions between the EB and the home DER devices (which include loads, generation and storage devices), a bidirectional communication is needed. The relationships will depend on each type of pieces of equipment, which might have different coordination capabilities. In this respect, the project has performed a classification of DER equipment and their capabilities on the basis of the following functionalities: - Registering (Plug and Play, etc..). - Monitoring and reporting. - Operation and power profile adaptation.

An example of the interaction between DER equipment (a washing machine) and the EB can be seen on Fig. 6 below.

Energy manageme

nt Box

Start request (time, duration, profile, etc.)

Start at 15:00

Periodical consumption report (time, W)

Figure 6 – Example of interaction between the EB and an appliance

V. TECHNICAL VALIDATION BY SYSTEM OPERATORS One of the role of system operators (DSOs and TSOs) is to

enable the provision of AD products (or services) on the distribution and transmission grids while ensuring an efficient reliable and safe operation of the networks. Therefore when AD products are provided to deregulated or regulated players, the verification of the AD technical feasibility on the grids is necessary to give the DSO (and the TSO, if involved) reassurance that the network is operated safely.

This verification is based on the assessment of the impact of the proposed AD product exchanges combined with the expected behaviour of customers and producers not participating to AD actions. As shown previously in Fig. 3 and Table 2, it is performed: - “ex ante”, i.e. before the activation of the consumers

response by the aggregation function, and - in “real time”, i.e. as fast as possible after the market

closure (whatever the types of markets - organized market or bilateral negotiations – and their timeframe – day ahead or intra-day) and after the reception of the appropriate data from the aggregation entities.

The assessment is basically made by means of a load-flow calculation, carried out taking into account both the AD actions and the scheduled/forecasted operation of the grid. If the assessment results in the violation of some constraints in the network, the system operator (SO), i.e. either the DSO or the TSO depending on the case, will first look for a possible solution that it has at its hand. If the SO cannot find such solution, then it will determine “curtailment” factors for the

AD actions that cause the violations, together with updated flexibility tables (see sub-section B below): - the curtailment factors are determined so as to minimize

the curtailment of the traded AD products, - the flexibility tables give guidance to interested parties for

either possibly arranging additional flexibility or AD exchanges (for instance, in a second market round) or for preparing future offers for the market.

At the end of the technical verification process the DSO sends to the aggregation function: - either an acceptance signal if the foreseen AD actions can

be fully carried out - or curtailment factors, along with updated flexibility

tables, so that the aggregation function can take the appropriate measures regarding its AD program.

A. Loads areas In order to carry out the technical verification some sort of

“location” information has to be associated to the AD actions performed by the aggregation function. Additionally location information is also needed to be able to provide “local” services by means of AD (e.g. grid overload or congestion relief). Therefore the mechanisms described below have been developed.

The network is separated into Macro Load Areas at the transmission level and Load Areas at the distribution level for both MV and LV networks. This is illustrated on Fig. 7.

Figure 7 – Load Areas and Macro Load Areas mechanism

These Load Areas and Macro Load Areas are defined respectively by the DSO and the TSO. They allow to identify each consumer by means of the unique areas (Load Area and Macro load Area) to which it belongs and therefore provide a way to localize AD products in the validation process interactions between the DSOs/TSOs, aggregation entities and other market players. Indeed for the technical verification purpose the aggregation function then has to provide information about the AD actions (or AD programme) in each Load Area containing involved consumers. In the same way a local service requested by an AD buyer will be expressed in terms of the Load Areas or Macro Load Areas where it has to be delivered.

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B. Flexibility Tables The Flexibility Tables are calculated and published before

the market opening in order to provide some guidance to the market participants for the preparation of their offers. The objective is to reduce as much as possible the amount of curtailments that will have to be done following the technical verification phase. The Flexibility Tables reflect the AD allowance or AD capacity both at “Load area” and “Macro Load Area” level. Examples of such tables are given in Fig. 8. They periodically updated by DSO/TSO based on their network constraints and in particular when a curtailment has to be achieved. In that case, the updated Flexibility Tables may be sent to the aggregation entities along with the curtailment factors.

TSO Flexibility Table AREA CODE Maximum

flexibility up Maximum

flexibility down Payback allowed

Macro Load Area i 500 kW 100 kW n.d. Macro Load Area j … … 200 kW Macro Load Area k … … …

DSO Flexibility Table AREA CODE Maximum

flexibility up Maximum

flexibility down Payback allowed

Load Area i 10 kW 50 kW … Load Area j … … … Load Area k … … …

Figure 8 – Example of Flexibility Tables for DSOs and TSOs

VI. NEW TOOLS FOR THE SYSTEM OPERATORS As already mentioned, system operators have two main

roles in the ADDRESS architecture: - they are commercial players that can buy AD products on

the markets in order to exploit AD for their own purposes, - they are involved as technical actors, who receive the

program of AD actions foreseen by aggregation entities and provide the results from the technical validation.

For these purposes they need new advanced tools for network analysis, optimization and control, especially the DSO.

The central SCADA/DMS has to extend the control field to the LV network, since the AD products are delivered by LV consumers. Therefore the definition of load areas, the network state estimation, the load flow computation and all the functionalities/tools to manage AD products/services shall be extended to the LV network.

Procedures for the assessment/settlement of the AD products delivery, in the case the DSO is also the metering company (as it happens in a lot of countries) involve metering data provision, possible data storage and others tools to extend the network observability (e.g. to the LV side).

Since the DSO can be an AD buyer, the DSO Control Centre should also include new DSO Market tools, which encompass the technical support to market decision-making and the interactions of the DSO with other market players.

New tools are needed to carry out the technical validation and in particular to compute the curtailment factors and the flexibility table.

The interactions between the DSO and the aggregation entities, the market players and the TSO (e.g. for coordination purposes) requires, at DSO Control Centre Level, the development of dedicated tools, grouped into the so-called ADMS (Active Demand Management System)

Finally, the new structure of the Medium voltage Control Centre requires a revision of the interfaces with other DSO/TSO management systems, in particular GIS and AMR of the DSO and EMS of the TSO. The integration of DSO Market tools into the DMS is deemed to be a possible solution to the strict requirements of information exchange and functional cooperation among the various technical DMS tools and the Market tools.

From the TSO point of view, most of the functionalities needed to fulfill the AD requirements are already available. However it is necessary to add the proper functionalities to allow the Macro Load Area definition, the computation of the curtailment factors and relevant flexibility table, and to ensure coordination between with DSOs.

VII. ACTIVE DEMAND FOR THE INTEGRATION OF RENEWABLES Considering the ADDRESS architecture, Active Demand

can be used mainly at two levels to help the integration of DG and Renewable Energy Sources (RES): at the consumer premises and at the electricity system level.

A. At the consumer premises Embedded generation installed at the consumer premises

becomes part of Active Demand. Namely it can be monitored, and depending on the case even controlled, by the Energy management Box, like the other controllable pieces of equipment present in the consumer’s facilities. The EB can then carry out the overall optimization of the consumer demand taking both the consumption and the generation into account. The EB can thus create the best conditions for the use of the energy produced and, at the same time, contribute to limit the possible adverse effect that small embedded generation may cause on the grid. Depending on the type (and controllability) of the embedded generating unit, the EB may also take advantage of its flexibility to answer requests received from the aggregation function.

If additionally an energy storage system is present at the consumer premises, this latter device can be used to further improve the efficient use the generated energy and the flexibility of the overall consumer demand.

B. At the electricity system level Active Demand can be considered in some way as

“negative” power or energy and therefore can be used to compensate surplus of generation and/or variation of generation. Therefore, through the services it can provide, Active Demand can be used to compensate the variability of RES and solve some of the constraints that DG or RES can cause on the grids. For instance, AD can be used:

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- by the BRP to mitigate imbalances caused by the RES present in the balancing group it is responsible for. Depending on the level of certainty of the forecast of RES production, different types of AD products will be used: a SRP for a high level of certainty (this corresponds to the example given in Section III), a CRP for a medium level of certainty and a CRP-2 for a low level of certainty.

- By the TSO to compensate RES intermittency through the use of offers from aggregation entities made on the balancing mechanism or the use of AD products for tertiary power reserve.

- By the DSO or the TSO to carry out voltage regulation and power flow control in order to allow higher DG and RES penetration level and solve possible congestions.

- By the RES producer itself that can use AD products to balance its production and guarantee in some way its offers on the market or to avoid possible curtailments by requesting local load increase.

- By the centralized producer in replacement of expensive and CO2-emitting fossil-fueled generating plants to provide tertiary active power reserve and compensate for the variability of RES.

VIII. CONCLUSIONS The active participation of small consumers in the

electricity system is one of the features of the smart power systems of the future. The development of this participation and the market-based exploitation of its benefits are the main topics of the ADDRESS European project. This paper has presented the results obtained so far in the project regarding: - the overall technical and commercial architecture, - the services that AD can provide to the regulated and

deregulated electricity system participants, - the implementation of the aggregation function, - the role of the DSO and TSO in particular in the technical

verification of the AD actions. The paper has also discussed how AD can help the

integration of DG and RES both at the consumer premises and at the electricity system level.

The next steps in the project now concern: - the development of the appropriate tools, algorithms

technologies and prototypes needed at the levels of the consumer, the aggregation, the DSO and more generally the electricity system to implement the ADDRESS architecture. These activities are presently on-going.

- The performance of tests in laboratory environment. - The validation of the ADDRESS solutions through field

tests carried out in different complementary sites.

IX. REFERENCES [1] R. Belhomme, R. Cerero Real de Asua, G. Valtorta, A. Paice, F.

Bouffard, R. Rooth, A. Losi, “ADDRESS – Active demand for the smart grids of the future”, Proceedings CIRED Seminar 2008: Smart Grids for Distribution, Paper No. 0080, Frankfurt, Germany, June 2008.

[2] E. Peeters, R. Belhomme, C. Battle, F. Bouffard, S. Karkkainen, D. Six, M. Hommelberg, “ADDRESS: Scenarios and Architecture for the Active

Demand Development in the Smart Grids of the Future”, CIRED 20th International Conference on Electricity Distribution, Prague, June 2009.

[3] F. Bouffard, R. Belhomme, A. Diop, M. Sebastian, C. Yuen, R. Cerero, G. Valtorta, “ADDRESS: A Commercial Architecture for the Aggregation and the Trade of Active Demand Services”, Proceedings of CIGRE Session 2010, Paper No. C5-204, Paris, France, August 2010.

[4] R. Belhomme, M. Sebastian, A. Diop, M. Entem, F. Bouffard, G. Valtorta, et al. “ADDRESS technical and commercial architecture” Deliverable ADDRESS D1.1, April 2010, http://www.addressfp7.org/.

X. BIOGRAPHIES

Régine Belhomme (S’83, M’91) received the Electrical Engineering degree in 1986 and the PhD degree in 1990, both from the University of Liège, Belgium. She is Project Manager and Senior Engineer in the Department of Economic and Technical Analysis of Energy Systems, in the R&D Division of EDF SA. Before joining EDF, she was with the Research Institute of Hydro-Quebec (IREQ), Canada, where she carried out studies on the integration of Distributed Generation (DG) into the

Hydro-Quebec distribution network. She joined EDF R&D in 1998 and her main activities first concerned the integration of DG and Renewables into transmission and distribution power systems. She is now involved in activities on demand side integration and the development of active demand. She is the Technical Manager of the ADDRESS European Project. She is a member of IEEE, CIGRE and SEE. She was a member of former CIGRE WG C6.09 on “Demand Side Response” and she is a member of CIGRE WG C6.20 on the "Integration of electric vehicles into power systems".

Ramon Cerero is Electrical Engineer. He has been working at Iberdrola for last 13 years. He is now responsible for the DMS and Quality of Service information in the Control Systems Department in the Distribution Division. He is involved in the Iberdrola Smart Grid project, specifically as leader of the AMI system and in the Control systems adaptation. He has been responsible for Iberdrola for a number of R&D projects on control systems and substation automation.

Giovanni Valtorta received his M.Sc. degree in Electrical Engineering (Power Systems) from the University "La Sapienza" of Rome in 1987. In the first part of his career he worked for Prof. Luigi Paris Consulting firm, the Italian TSO and ABB power systems. In 1996, he joined ENEL Distribuzione where, since 2007, he is head of Network Operation and Maintenance of the Electrical Network Engineering and Standardisation department. His main expertise are network

operation criteria, network automation, control and protection systems, connection criteria of load and generators to the electrical networks, EMC and power quality. He is also involved in international standardization activities being former secretary of IEC TC8 and Cenelec TC8X “System aspects of electrical energy supply” and member of various IEC and Cenelec WGs relevant to EMC and Power Quality.

Philippe Eyrolles received the Electrical Engineering degree in 1983, from INP Grenoble, France. He is Research Engineer in the Department of Economic and Technical Analysis of Energy Systems, in the R&D Division of EDF SA. Before joining the R&D Division, he worked in EDF from 1984 to 1992 on the automation of Non Destructive Testings on nuclear power plants. From 1992, in EDF R&D, his main activities were power system control and power quality and he was a member of

IEC SC77A WG8 and WG9, IEC TC85 WG20 and CIGRE - CIRED JWG C4.107. He has been contributing to the ADDRESS project from 2010.