CITIES has conducted research on the topic of markets to ease the large scale integration of renewable energies into power systems and electrical markets. The findings are mainly related to the application of mathematical modelling and decision-making methods to the energy sector, based on stochastic process modelling, forecasting, optimization and decision-making under conditions of uncertainty.

The CITIES partners have defined five recommendations for this topic:
Coordination of energy markets (heat, gas and electricity) should be further rethought, so they harness flexibility and reward those providing it; Market designs should be thought of in a more flexible manner to allow for a wealth of alternative business models; Future markets should readily accommodate the uncertainty and variability of renewable energy generation, storage, flexibility and decentralization – this requires new advances in the theory of markets; New methods for describing the flexibility can be implemented in control solutions as an operational alternative to low-level markets; The role of technical aggregators in energy markets should be considered and investigated.

Learn more in the list below and see the videos.

Future Electricity Markets

At CITIES final conference November 9, 2020, talked Pierre Pinson, Professor, DTU Elektro and Work Package Manager at CITIES, about markets for integrated energy systems and consumers-centric and community-driven electricity markets with energy communities. Flexibility and uncertainty components need to be better modelled and accommodated in coupling of markets for electricity, gas and heat. An increased decentralization of our energy system may require rethinking electricity markets based on energy communities and peer-to-peer concepts.

Suggestions for new energy taxes and net tariffs

At CITIES final conference November 9, 2020, CITIEs Task Force group represented by Nina Detlefsen, Chief Analyst at Green Energy – Danish District Heating Association and Jan Hvidbjerg, Lead Analyst at Ørsted talked about the work with energy taxes and net tariffs. A well-designed price signal for end users will make them change their behavior, just as energy taxes should be linked to the current local load in the electricity grid.

Market-Based Mechanisms for Mobilizing Electric Demand Flexibility

At CITIES final conference Shmuel Oren, Professor, University of Berkeley, California, US talked about market-based mechanisms for mobilizing electric demand flexibility​and with slides from Niclas Brok, PhD student, DTU Compute.

Simulation and planning for the smart energy system

At CITIES final conference Karl Sperling, Associate Professor and Work Package Manager on CITIES, Jakob Zinck and Louise Krog Elmegaard Mouritsen, Post Doc, Department for Development and Planning at Aalborg University talked about the research in developing long term simulation platform for system planning. Louise has also looked at barriers and recommendation for innovative models for wind power.



Demo projects

Dynamic prices for heat delivered to district heating systems

This demo project has studied the dynamic value of heat supplied to the district heating system. Many of the methods used and the obtained results could also be used in a study on the demand side.

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Qualitative investigation of the impact of energy communities on distribution grids

The demo project has made a simple analysis of the impact of energy communities on three different grid layouts: urban, suburban and rural areas of Denmark to estimate consequences of different setups of energy communities on distribution grids.

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