NODES unveils innovative market design for energy flexibility trading
Independent power market operator NODES has revealed details of its new market design, enabling local flexibility to be used by grid operators to operate and manage power grid congestion.
“By running detailed trials in the last year we have proven that the NODES flexibility market can help manage congestion in the power grid and provide a solution for a more sustainable future, by enabling more renewable production,” says Rune Hogga, CEO of NODES.
At the European Utility Week power industry event in Vienna this week, NODES revealed details of its future market design, giving both energy producers and consumers with flexible assets a value for their flexibility and a place to sell or buy it. As an independent market operator, NODES will facilitate open and transparent power price formation and flexibility.
“The main shortcoming with current power market design is that it is not made to manage local congestion. Existing markets do not contain the necessary location information for the grid operator to solve local congestions and other grid management issues,” adds Rune Hogga.
NODES market design
“Our solution helps identify and give value to localised flexibility. Today the Distribution Grid Operator (DSO) has no tools to manage congestion in the grid. The market doesn’t give any alternatives besides shutting down energy production. Trading local flexibility through NODES changes that,” explains Rune Hogga.
The objective of the NODES market is to facilitate trade in flexibility. A focus on the localisation of available resources is key. Through NODES, grid companies can acquire flexibility to operate their grid more efficiency when managing congestion.
Proving the concept
Prior to unveiling details of the NODES market a trial was undertaken at Engene substation, in the south of Norway, where NODES identified available assets and enabled Agder Energi Nett DSO to defer grid investment to a value of 4.5m EUR by buying local flexibility.
Currently NODES is undertaking a test installation with German DSO Mitnetz Strom. In this project Mitnetz will manage the congestion in their high voltage grid by accessing local flexibility as one alternative in the redispatch process by using flexibility that is currently being offered to existing markets.
If you want to learn more about the NODES future energy market, you can download the white paper here: White Paper NODES market design
The white paper gives insights into the new market design which is the foundation for the NODES marketplace.
NODES, as an independent market operator, is addressing key trends and challenges in the energy system such as increased share of renewable power production, decentralised generation and the rapid change of the customer behaviour.
NODES vision is to create the marketplace of the future, supporting the drive to an emission free society.
Nord Pool, Europe’s leading power market, and the energy company Agder Energi are equal owners.