WS-5: BUSINESS VALUE OF DEMAND RESPONSE


WS-5: Workshop on “Quantifying the BUSINESS VALUE OF DEMAND RESPONSE: Initiatives for Energy Suppliers & DSOs”

DR-BOB: Demand Response in Block of Buildings [www.dr-bob.eu]

CITYOPT: Holistic simulation and optimisation of energy systems in Smart Cities [www.cityopt.eu]

E2-DISTRICT: Energy Efficient District Heating and Cooling [www.e2district.eu]

SIM4BLOCKS: Simulation Supported Real Time Energy Management in Building Blocks [project website TBD]

STORY: Added value of STORage in distribution sYstems [www.horizon2020-story.eu]



Workshop Context

“There is a lack of adequate analytical methods and data to quantify the benefits of differ-ent demand response initiatives for different players in electricity supply markets [Bird, J. (2015)]. This means it is often not possible to produce a meaningful estimate of the ben-efits of particular demand response initiatives for different types of energy companies i.e. Energy Suppliers and DSOs etc. [Bradley, P., Leach, M., & Torriti, J., (2011)]. As a result it’s very difficult for the different players in the electricity supply chain to identify business models to underpin investments in the deployment of demand response projects. The workshop will strive to provide formulae to enable the quantification of the cost/benefit of DR initiatives to reduce electricity demand for Electricity Suppliers and DSOs. These for-mulae should account for the particular regulatory and market conditions which are often missing from the current generalised approaches to quantifying demand response initia-tives.


The workshop will strive to provide formulae to enable the quantification of the cost/benefit of DR initiatives to reduce electricity demand for Electricity Suppliers and DSOs. These formulae should account for the particular regulatory and market conditions which are often missing from the current generalized approaches to quantifying demand re-sponse initiatives [Capgemini (2008)]

Workshop Agenda

The key aim of the workshop is to facilitate an understanding of the ongoing demand re-sponse innovation and research in each of the participating projects. To address this aim the workshop will begin with an introduction to each of the participating projects which address the following questions:

 How demand response is defined in the context of each project
 How the impacts of the project in terms of demand response and energy saving are to be quantified
 The key regulatory barriers and drivers of demand response at each projects demonstra-tion site

Workshop Co-Chair: SIM4BLOCKS: Simulation Supported Real Time Energy Management in Building Blocks [www.sim4blocks.eu]

The growing share of variable renewable energy necessitates flexibility in the electricity system, which flexible energy generation, demand side participation and energy storage systems can provide. SIMBLOCK will develop innovative demand response (DR) services for smaller residential and commercial cus-tomers, implement and test these services in three pilot sites and transfer suc-cessful DR models to customers of Project partners in further European coun-tries. The pilot sites are blocks of highly energy efficient buildings with a di-verse range of renewable and cogeneration supply systems and requisite ICT infrastructure that allows direct testing of DR strategies.


SIMBLOCK’s main objectives are to specify the technical characteristics of the demand flexibility that will enable dynamic DR; to study the optimal use of the DR capability in the context of market tariffs and RES supply fluctuations; and to develop and implement market access and business models for DR models offered by blocks of buildings with a focus on shifting power to heat applications and opti-mization of the available energy vectors in buildings. Actions toward achieving these objectives include: quantifying the reliability of bundled flexibility of smaller buildings via pilot site monitoring schemes; combining innovative auto-mated modelling and optimization services with big data analytics to deliver the best real time DR actions, including motivational user interfaces and acti-vation programs; and developing new DR services that take into account the role of pricing, cost effectiveness, data policies, regulations, and market barri-ers to attain the critical mass needed to effectively access electricity markets. SIMBLOCK’s approach supports the Work Program by maximizing the contri-bution of buildings and occupants and combining decentralized energy man-agement technology at the blocks of building scale to enable DR, thereby illus-trating the benefits achievable (e.g. efficiency, user engagement, cost).

1. HOCHSCHULE FUR TECHNIK STUTTGART
2. CENTRE INTERNACIONAL DE METODES NUMERICS EN ENGINY-ERIA
3. ENERGEA INGENIERIA EN EFI-CIENCIA ENERGETICA SL
4. S.P.M. PROMOCIONS MUNICIPALS DE SANT CUGAT DEL VALLÈS S.A.
5. GEMEINDE WUESTENROT
6. STADTWERKE SCHWABISCH HALL GMBH
7. ENISYST GMBH
8. HAUTE ECOLE SPECIALISEE DE SUISSE OCCIDENTALE
9. NEUROBAT AG
10. ELIMES AG
11. UNIVERSITY COLLEGE DUBLIN, NATIONAL UNIVERSITY OF IRE-LAND, DUBLIN
12. AIT Austrian Institute of Technology GmbH
13. RESTORE NV, Belgium
14. WATTGO, France
15. EIFER EUROPAISCHES INSTITUT FUR ENERGIEFORSCHUNG EDF-KIT EWIV, Germany
16. EIFER EUROPAISCHES INSTITUT FUR ENERGIEFORSCHUNG EDF-KIT EWIV, UK
17. INSIGHT PUBLISHERS LIMITED, UK


Workshop Co-Chair: DR-BOB: “Demand Response in Block of Build-ings” [www.dr-bob.eu]

The problem

Utility companies have to generate enough energy to meet large peaks in demand, caused by lots of people using energy at the same time. Energy networks must also have the capacity to meet this demand. Energy systems are inefficient and expensive as most of the time, de-mand runs far below capacity.


As electric energy cannot be easily stored the problem is most acute in the electricity sec-tor. Utilities have traditionally matched electricity demand and supply by controlling the rate of electricity generation. Therefore things are further complicated when we connect renewa-bles to energy networks which produce energy when the sun shines or the wind blows, rather than when we need it.


The increasing popularity of electric cars may also increase peak demand as commuters plug them into electricity networks at the same time.Blocks of buildings offer more flexibility in the timing of energy use, local energy generation and energy storage than single buildings. But a lack of suitable products and technologies make this problematic.

The solution

Demand response programmes which encourage consumers to change when they use elec-tricity or reduce their total energy use can help keep energy bills low and help integrate re-newables into our existing energy networks.


 Peak electricity demand can be reduced by;
 shifting when some electrical equipment is used,
 using electrical equipment more efficiently,
 using other types of energy;
 storing locally generated renewable electricity and using it during times of peak de-mand.


DR-BoB Impact

If we can reduce peak electricity demand we can reduce the investments required in electrici-ty production and electricity networks. These savings can then be passed onto consumers in the form of lower energy bills. The DR-BOB project will pilot the tools and techniques required for demand response in blocks of buildings with differing patterns of ownership, use and oc-cupation at;


 Teesside University campus in Middlesbrough in the UK,
 A business and technology park in Anglet in France,
 A hospital complex in Brescia in Italy,
 The campus of the Technical University of Cluj Napoca in Romania.

The DRBOB Demand Response Energy Management Solution

The DR-BOB solution will be implemented by integrating the following tools and technologies to provide an innovative scalable cloud based central management system, supported by a local real-time energy management solution which communicates with individual building manage-ment systems and generation / storage solutions within a block-of-buildings.


 Virtual Energy Plant (VEP) – Siemens DEMS® & Siemens DRMS
 Local Energy Manager (LEM) –Teesside University IDEAS project Product
 Consumer Portal – GridPocket EcoTroks™


The configuration of the DR-BOB energy management solution will allow energy management companies to provide varying levels of control from the centralised macro-view, through to local-ised complete control of the energy systems at the building level, the micro-view.


DR-BoB Standards & Functionality

The solution will utilise existing standards such as IEC60870-5-104 and OpenADR, and an architecture that will enable new adaptors to be added to support new standards in the future. These standards allow access to most generation, storage and load assets. It is expected that any new interfac-es between the platform and the ESCO could form the basis for new standards. In combination, DR-BOB solution will provide open connectivity to both SCADA/utility communications and cus-tomer side AMIs. The decentralised approach – allowing both supply side and demand re-sponse to be hierarchically optimised between blocks of buildings and other infrastructures, with automatic distribution of results via building management systems – removes some of the bur-den and alleviates the complexities involved in individual customer or resident participation.

The key functionality of the DR-BOB Demand Response energy management solution is based on the real-time optimisation of the local energy production, consumption and storage. The opti-misation will be adjusted to either maximise economic profit or to minimise CO2 emissions ac-cording to user requirements. The solution will be intelligent in the sense that it is automated and can adapt to fluctuations in the energy demand or production, subject to dynamic price tar-iffs and changing weather conditions.

Workshop Co-Chair: STORY: “Added value of STORage in distribution sYstems“ [www.horizon2020-story.eu]

STORY Introduction

STORY is a European project demonstrating new energy storage technologies and their benefits in distribution systems, involving 18 Partner Institutions in 8 different Eu-ropean countries.
With the development of our society, the demand for energy, in particular electricity, is ever-increasing. To be able to produce electricity when the renewable sources are available and to use electricity when we need it, improved energy storage solutions are needed.


Our challenge is to demonstrate and evaluate innovative approaches for thermal and electrical energy storage systems and to find affordable and reliable solutions that lead to an increased electricity self-supply. STORY consists of eight demonstration cases each with different local / small-scale storage concepts and technologies, cover-ing industrial and residential environments. These demonstrations feed into a large-scale impact assessment, with the central question being:
“What could be the added value of storage in the electricity distribution grid?“


We, the STORY team, apply the state-of-the-art storage and ICT technologies and demonstrate them on a number of field trial sites. We use the data from the field trials to calibrate the simulation models of the small-scale storage technologies.
Using simulation models, we analyse the large-scale rollout of these storage technolo-gies and evaluate the impact of large storage penetration.
Additionally we establish various business model archetypes, and determine the re-quired policy and regulatory frameworks supporting them.
In order to continue the dialogue with the growing number of other ‘Low Carbon Ener-gy’ (LCE) Horizon2020 projects, we maintain an overarching LCE 6-10 website, where we are able to envision and share recommendations relevant to storage and smart grid technologies.

STORY Impact

STORY is about showing the added value storage can bring for a flexible, se-cure and sustainable energy system. The demonstrations therefore compose the key activity on which all further analysis builds. Each of the demonstrations brings a different technology, context or business case. Together they provide a profound basis to feed into the large scale impact analysis. In order to research and demonstrate the impact of introducing more storage capacity into the grid, 18 institutions from 8 countries have teamed up to create STORY, which is funded by the Horizon 2020 Framework Programme for Research and Innova-tion of the European Union.

Among multiple STORY demonstrations, EG will provide two demo sites. Demonstration of flexi-ble and robust use of medium scale storage unit connected to low voltage residential grid and industrial grid is the main purpose of EG project activities. A variety of project goals will be tested as follows:


 Demonstration of the flexibility and robustness of the large scale storage unit
 Ease of integration in existing infrastructure (including interoperability)
 Control and battery management system and its cooperation with the devices in the system
 A high degree of transformer station self sufficiency
 Ensuring maximum efficiency in decentralised energy production
 Potential in supporting the regime of the PV production
 Impact on efficiency (and thus return of investment) of complete system
 High degree of self-sufficiency of battery combination and PV production could deliver
 Reliability in the event of blackouts
 Peak demand control within the daily load diagram
 Reduction of line congestion
 Voltage control


Besides above mentioned activities, EG will additionally take an active part in different WP, con-tributing mostly in improvement of flexibility and robustness of large scale battery, ICT definitions and others.

STORY Consortium

STORY is a joint project of 18 international partners involved in 8 demonstrations in 6 Euro-pean countries and is funded under the Horizon 2020 program of the European Commission.
STORY shows the added value of storage in the distribution grid. STORY demonstrates and evaluates innovative approaches for energy storage systems in residential and industrial en-vironments. Through a large scale impact analysis and in an open dialogue with all stake-holders, STORY formulates the policy and regulatory changes that are required to create a promising future for energy storage.

1. Teknologian tutki-muskeskus VTT Oy, Fin-land
2. TH!NK E BVBA, Belgium
3. VLAAMSE INSTELLING VOOR TECHNOLOGISCH ONDERZOEK N.V., Bel-gium
4. VLERICK BUSINESS SCHOOL, Belgium
5. BASEN OY, Finland
6. UNIVERZA V LJUBLJANI, Slovenia
7. BENEENS JOZEF EN ZONEN BVBA, Belgium
8. ELEKTRO GORENJSKA PODJETJE ZA DIS-TRIBUCIJO ELEKTRICNE ENERGIJE DD, Slovenia
9. VIESSMANN-BELGIUM, Belgium
10. HAWKER GMBH, Germa-ny
11. B9 ENERGY STORAGE LTD, UK
12. LOPTA FILM GMBH, Ger-many
13. JOANNEUM RESEARCH FORSCHUNGSGESELL-SCHAFT MBH, Austria
14. ACTILITY SAS, France
15. PROSPEX INSTITUTE VZW, Belgium
16. FUNDACION CENER-CIEMAT, Spain
17. EXPOSICION Y CON-SERVACION DE ALIMEN-TOS Sa, Spain
18. UC Leuven, Belgium

Workshop Co-Chair: CITYOPT: “Holistic simulation and optimisation of energy systems in Smart Cities” [www.cityopt.eu]

CITYOPT mission is to improve sustainability by enabling more energy-efficient built environments. The specific target is to engage users with the new CITYOPT applications, create new partnerships connecting city leaders and stakeholders and create new business models for decision support systems for energy efficient neighbourhoods.The project will create a set of applications and related guide-lines that support planning, detailed design and operation of energy systems in urban districts. The project will address energy system optimization in different life cycle phases considering specific optimization potentials and user & stakeholder involvement characteristics. The building of CITYOPT applications will rely on many re-usable component models that are available from existing simulation software libraries.The expected results are applications that bring together infor-mation and guidelines for designing scenarios of energy systems or parts of them. These will be supported by a user-centred design approach and analysis of people’s attitudes, behaviours and mental models. Simulation results of scenarios used in the projects case studies will be presented, as well as operational results from field tests in real-life environments. These outputs will show how to prioritise alternative energy solution scenarios based on social, economic and environmen-tal criteria


CITYOPT will create a set of applications and guidelines supporting efficient planning, detailed design and operation of energy systems in urban districts. It will consider appropriate service business models, privacy and trust and will involve users in all pro-ject phases.

Helsinki, Finland

The Helsinki case study evalu-ates electricity storage solu-tions and business models in the new residential districts of Kalasatama and Östersundom. In the planning phase of the new districts, CITYOPT applica-tions will examine technolo-gies, sizing, placement and steering of electric and heat storage solutions, to find the optimal storage solutions.

Vienna, Austria

CITYOPT investigates the optimal de-sign and possible implementation (including cost assessment and busi-ness model development) of inte-grating the buildings, their existing energy supply and storage systems, and the cooling system of RTA’s cli-matic tunnel into a site-wide energy system that uses the waste heat to heat office buildings. The expected impact will be to maximise the utilisa-tion of waste heat to increase the en-ergy performance and reduce CO2 emissions of the overall urban area modelled in the study case.

Nice Côte d’Azur, France

PACA – Provence Alpes Côte d’Azur – is one of France’s most fragile regions for electricity sup-ply. CITYOPT will develop and demonstrate innovative demand-response services in Nice Côte d’Azur, to reinforce the continuity of service of the electricity supply network. Families will be recruited to participate in the experiment. CITYOPT will analyse the condi-tions for which the customers will agree to modify their behaviours, within a CITYOPT energy commu-nity.



CityOpt consortium

1. TEKNOLOGIAN TUTKIMUSKESKUS VTT, Finland
2. AIT Austrian Institute of Technology GmbH, Austria
3. HELSINGIN KAUPUNKI, Finland
4. METROPOLE NICE COTE D’AZUR, France
5. CENTRE SCIENTIFIQUE ET TECHNIQUE DU BATIMENT, France
6. ELECTRICITE DE FRANCE, France
7. EXPERIENTIA SRL, Italy

Workshop Co-Chair: E2DISTRICT: “Energy Efficient District Heating and Cooling” [www.e2district.eu]

E2DISTRICT Introduction

Intelligent Energy Europe expects district heating to double its share of the Euro-pean heat market by 2020 while district cooling will grow to 25%. While this ex-pansion will translate into 2.6% reduction in the European primary energy need and 9.3% of all carbon emissions, it will not be achieved through modernization and expansion alone but requires fundamental technological innovation to make the next generation of district heating and cooling (DHC) systems highly efficient and cost effective to design, operate and maintain.


E2District aims to develop, deploy, and demonstrate a novel cloud enabled management framework for DHC systems, which will deliver compound energy cost savings of 30% through devel-opment of a District Simulation Platform to optimise DHC asset configuration tar-geting >5% energy reduction, development of intelligent adaptive DHC control and optimisation methods targeting an energy cost reduction between 10 and 20%, including flexible production, storage and demand assets, and system-level fault detection and diagnostics, development of behaviour analytics and prosumer engagement tools to keep the end user in the loop, targeting overall energy sav-ings of 5%.

Development of a flexible District Operation System for the efficient, replicable and scalable deployment of DHC monitoring, intelligent control, FDD and prosumer engagement, development of novel business models for DHC Op-erators, Integrators and Designers, validation, evaluation, and demonstration of the E2District platform, and development of strong and rigorous dissemination, exploitation and path-to-market strategies to ensure project outcomes are com-municated to all DHC stakeholders. E2District addresses specifically the call’s ob-jective related to the development of optimisation, control, metering, planning and modelling tools including consumer engagement and behaviour analytics and supports the integration of multiple generation sources, including renewable ener-gy and storage.

E2District Objectives

E2District aims to develop, deploy, validate, and demonstrate a novel cloud enabled Dis-trict Management and Decision Support framework for DHC systems, which will deliver compound energy cost savings of 30%


1) Development of District Simulation Platform, which will be used as an Asset Portfolio Decision Support tool to optimise DHC asset configuration and utilisation targeting >5% energy reduction.
2) Development of intelligent adaptive DHC control and optimisation methods targeting an energy cost reduction between 10 and 20%, including flexible production, storage and demand (prosumer) assets, and system-level fault detection and diagnostics algorithms for physical and operational fault root cause identification and analysis supporting cost-effective DHC maintenance.
3) Development of a behaviour analytics tool for learning and continuously refining the de-mand behaviour models, and to develop prosumer engagement tools and user interfac-es that keep the human end user in the loop, targeting overall energy savings of 5%.
4) Development of a flexible District Operation System for the efficient, replicable and scalable deployment of DHC monitoring, intelligent control, FDD and prosumer engage-ment & analytics tool.
5) Development of novel business models for district heating and cooling Operators, Inte-grators and Designers, including lessons learned and guidelines for achieving energy efficient districts.
6) Validation, evaluation, and demonstration of E2District platform benefits based on se-lected key performance indicators in 3 different demonstration sites.
7) Development of strong and rigorous dissemination, exploitation and path-to-market strategies to ensure project outcomes are communicated to all DHC stakeholders and the scientific community as well as all of the relevant DHC associations (such as E2BA and DHC+).

E2District Demos

In order to assess whether the research outputs of E2District are replicable be-yond the CIT campus district, Veolia have identified possible district heating sys-tem sites from their portfolio that the project can utilise to assess transferability of results and approaches.


The selected Demonstration District is part of the CIT Bishopstown campus dis-trict in Cork, Ireland. The district is a third level institute, hosting about 800 full-time staff, 650 part-time staff, 7800 full time students and 3200 part time stu-dents. As such, it is primarily used for education (main building block) and re-search (CREATE). This makes the district research friendly and ready, facilitating a living lab environment in which research experiments and demonstrations can be carried out across the whole operating envelope of the DHC system, which would typically not be possible in a commercial DHC system.


Occupancy is most-ly during office hours and varies with the academic year. It dips in Dec-Jan (60, 20% occu-pancy), April (60% occupancy), and July-Sept (20, 20, 30% occupan-cy). The research strategy for CIT is to create a campus wide research infra-structure for energy research.

E2District Consortium

In order to achieve the objectives of the E2District project, a well-balanced consortium has been assembled representing key stakeholders within the DHC value chain from equip-ment manufacturers (UTC/UTRC), DHC operators (VEOLIA/VERI) to building systems inte-grators (ACCIONA), as well as centres of excellence in the area of building modelling and simulation (CSTB), and information and communication technologies (CIT). At an industrial level, the partners represent the whole value chain from construction to operation to end user of district heating and cooling systems.


To maximize the project impact, the consortium will engage regularly with the Stakeholder Advisory Board to ensure the successful deployment of all technical activities and the proper validation and demonstration of the project outcomes. The E2District project will build on a number of related on-going projects such as FP7 COOPERATE, Energy-in-Time, RESILIENT and Tribute, where the partners CIT, UTRC, ACC and CSTB are already involved and collaborating.