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Dynamic Pricing Mechanism for GridFlex in Heeten

Master's assignment

Student: Rémon Elshof
Supervisors: Marco Gerards and Victor Reijnders
Programme: Sustainable Energy Technology - University of Twente  
Finished: April 2019

At the end of 2017 a pilot was started in Heeten (Overijssel) to set up a local and sustainable energy market. This pilot, 'GridFlex', is aimed at using the energy where it is generated, so in the home itself, at the neighbor or in the rest of the neighborhood. The costs for energy are settled in the district itself. In order to gain insight into the amount of energy generated and the energy consumption, an Energy Management System (EMS) has been installed. Through an app, the resident can follow his own home so that he/she becomes aware and gains insight into their energy consumption. With GridFlex Heeten, the consortium partners want to develop an inventive business case for the local energy market. By searching for and experimenting with price mechanisms, incentives and flexibility, a reproducible market model will emerge with important benefits for society and the environment. A total of 47 households participate in the GridFlex pilot. Solar panels are already present in the district and sea salt batteries will be installed in the coming months to store locally generated electricity. GridFlex has an exception to the Electricity Act, which means that for example offering dynamic prices is possible for the neighborhood.

The aim of this research is to develop a price mechanism for GridFlex in Heeten. This price mechanism will be tested by simulation. During the simulation/pilot, households should not suffer a financial disadvantage from the dynamic price system. GridFlex wants to become a forerunner in the field of smart grids, and hopefully, after a successful simulation/pilot, the construction can be extended to other neighborhoods/cities. In addition, the University of Twente wants to use the opportunity to expand their knowledge in the field of smart grids, both for dynamic price mechanisms and for smart management of devices and the total energy management of the neighborhood.