NODES is excited to be operating the new marketplace – sthlmflex
NODES is excited to be operating the new marketplace in the Stockholm region, under the sthlmflex project. As an independent market operator, NODES is able to provide a route to market for the TSO, Svenska kraftnät and regional DSOs Ellevio and Vattenfall Eldistribution to buy flexibility from distributed energy resources, EV charging units, local industry as well as any other form of flexibility which can be commercialised to help manage congestion in the local grid during times of increased stress.
This ground-breaking project is key to unlocking the value of the flexibility in the Stockholm area. By using a market place to allow different types of flexibility to compete on a level playing field the DSOs can buy flexibility at the right time, in the right area and at the right price, allowing the owners of the flexibility to be compensated during the DSOs time of need. This will allow investment decisions to be deferred or delayed in the local grid, keeping costs down for the consumer, whilst also providing new revenue streams for different assets which can offer flexibility.
“A key objective within this project is not just enabling the DSOs to isolate and resolve stress events locally, by using a market place to buy flexibility as and when they need it, but the project is unique in that the two DSOs buy flexibility in each other’s network regions. Cross regional purchases are enabled by increases and decreases in transmission connection capacity, so that flexibility can be used through all levels of the grid infrastructure, from distribution to transmission.
As society starts to take more control over how and when we use energy, along with the wider electrification of industry, the need to create a more efficient energy ecosystem is going to be of paramount importance, if we are to keep costs to a minimum as we transition towards a more sustainable future. Using market-based signals will be a key component of the future market design, providing greater transparency around where grid investment is needed” Says Richard Sarti, Marketing and Sales Director at NODES.
The background to the initiative is the strained situation due to the lack of capacity in the Greater Stockholm electricity network. More homes, industries, electric vehicles, and ambitious targets for reduced climate emissions means that electricity consumption is constantly increasing in Greater Stockholm. Electricity network companies are investing heavily in reinforcing and upgrading cables, switchgear and other equipment, but before this investment is completed, cold winter days can cause the demand for electricity to suddenly increase dramatically. This can have a significant impact on the available capacity within the electricity network.
The first phase is an R&D project run by Svenska kraftnät together with the regional network companies Ellevio and Vattenfall Eldistribution, where NODES has been selected to help establish the market design and provide and operate the market place which will facilitate the trading and settlement. The initial test period will run between 1st December 2020 and 31st March, 2021.
For further information (in Swedish) please visit the SVK project website, and press release from Ellevio and Vattenfall Eldistribution