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Development of the common European electricity flexibility market

Development of the common European electricity flexibility marketMore information about the project:

  • Challenge. As a new generation of renewable resources continues to develop at a fast pace in electricity networks, operators have to react more swiftly and flexibly when managing electricity flows. Because of this, cooperation between transmission and distribution network operators of different countries is extremely important when developing a common system. Solutions that can help different systems work together are needed in order to exploit the possibilities provided by a smart network.
  • Aim. In participating in the project “One Network for Europe” (“OneNet”), to enable all European electricity systems to work together and to use the existing flexibility platforms in order to merge uniform market products and to ensure smooth processes between the operators of a transmission system and a distribution system.
  • Solution. Operators from different countries have signed an agreement regarding the project “OneNet” funded by the EU, in which flexible network solutions that will help to implement the vision of a united network will be tested. The created system would aid flexibility markets, their monitoring and optimisation, and would create a level playing field for all market participants.
  • Period of implementation. 2020-2023.

More information about the innovation:

“Litgrid”, together with other European network operators, is participating in a project, the aim of which is to enable all European electricity systems to work smartly together and to create a level playing field for all market participants. The project seeks to turn even the smallest producers-users into full-fledged market participants, while greater flexibility would allow producing even more electricity from renewable resources.

Recently, “Litgrid”, together with a few dozen other participants from different European countries, has signed an agreement regarding the project “One Network for Europe” (“OneNet”) funded by the EU, in which flexible network solutions that will help to implement the vision of a united network will be tested.

“As production from renewable resources continues to grow at a fast pace in electricity networks, operators have to react more swiftly and flexibly when managing electricity flows. For this purpose, cooperation between transmission and distribution network operators of different countries is also important. Although the creation of a single system for the whole of Europe is fraught with challenges, solutions that can help different systems work together are necessary when seeking to exploit the possibilities provided by a smart network. The aim of the “OneNet“ project is to try and transfer such solutions from plans to everyday activities of electricity network operators,” says Liutauras Varanavičius, head of Strategy Department at “Litgrid”.

The project aims for the created system to aid flexibility markets, their monitoring and optimisation, and to develop a level playing field for all market participants – from small users to large producers, regardless of their physical location in Europe.

This means that, for example, a small Lithuanian producer of solar electricity would have the opportunity to sell their electricity on the market rather than to a distribution operator – this would apply not only to Lithuania but also to any other country of the European Union. Another example: having united with other small producers, such a person could contribute to the provision of balancing services. This would be beneficial not only to market participants of this kind but also to operators, who would gain additional flexibility in seeking to integrate the growing production from renewable resources.

In the project, which has been divided into 4 testing clusters, there are 70 participants – electricity transmission and distribution operators, their organisations, electricity exchanges, IT companies and research institutions.

“Litgrid”, together with the Lithuanian distribution network operator AB “ESO”, belongs to the Northern Testing Cluster, whose aim is to use flexibility platforms when merging various market products and ensuring smooth processes between the resources of transmission and distribution system operators.

The project will last for 3 years, it is funded by the European Commission’s innovation programme “Horizon 2020”. The total budget of the project amounts to 27.9 million EUR, the amount of funds allocated to “Litgrid” is 106.8 thousand EUR.