Rapidly growing volumes of data with the smart grid and new entrants such as prosumers in the market are bringing new challenges to utilities to aggregate, analyze and extract value. While a lot has been written about data analytics on the transmission and distribution sides of the business, an area that has received little attention so far is energy trading.
“Market transaction processes are evolving, especially in interconnected competitive markets in Europe, such as the Nordics,” says Lars Lee-Potreck, VP of Product Marketing and Product Management at Siemens AG. “Growing numbers of endpoints including distributed generation and prosumers are able to participate in the market and data from all these players needs to be aggregated in a central hub to enable supply and demand balancing and settlement.”
In the Nordic countries Denmark and Norway have decided to adopt a central hub model, and Finland, Hungary and Sweden are soon to follow.
Central data hub
To meet this need Siemens has developed the Market Transaction Manager (MTM) solution, which sits on top of its EnergyIP grid application platform, to serve as a central data hub to perform all customer and electricity market participant transactions through a single entity.
“Metering and other data from all endpoints in the system including generators, TSOs, DSOs, distributed generation and electric vehicles is routed into the MTM,” explains Mr Lee-Potreck. “From this the settled data is delivered daily to the retailers and other relevant parties, i.e. DSOs, TSOs and other end users.”
Mr Lee-Potreck say the solution is intended as a system-of-record for all production and consumption data in the market.
“The solution is used in deregulated markets including Texas, Ontario and Australia, and has been benchmarked to over 50 million meters.”
Mr Lee-Potreck discusses the EnergyIP MTM in detail in an Engerati briefing, Customer driven central data hub market in Europe – Demystifying new opportunities and challenges for the market operations.
Benefits of a central hub
The MTM offers an off-the-shelf product for regulators, TSOs and DSOs to enable a self-functioning competitive market, with cost benefits to these parties and ultimately to their customers, Mr Lee-Potreck says.
Benefits include the ability to add applications in line with business needs or changing regulatory environment, and the use of open APIs allow for development of applications by third parties. The system can also be easily integrated with other metering systems such as gas, heating or water – “a trend we see in the market,” he says.
Siemens also has a development roadmap to add key applications over time, ensuring that the solution is future-proofed.
“We see the MTM as just the beginning, and we expect it to enable many valuable market applications,” concludes Mr Lee-Potreck. “These include DSO grid fee invoice calculations, market monitoring analysis, distribution loss monitoring and allocations, distribution capacity constraints analysis and transactive energy trading and settlement services. In this way it goes to the vision of a transactive energy market which is the upcoming energy model of the next 5-10 years.”
To learn more about the role of central data hubs in evolving energy markets and the benefits how the EnergyIP Market Transaction Manager performs central data aggregation and market settlement, register for the briefing.