{"id":1486,"date":"2021-08-05T08:26:00","date_gmt":"2021-08-05T08:26:00","guid":{"rendered":"https:\/\/www.enerbrain.com\/?p=1486"},"modified":"2023-09-26T09:47:22","modified_gmt":"2023-09-26T09:47:22","slug":"decentralisation-of-the-electrical-energy-market-and-the-role-of-prosumers","status":"publish","type":"post","link":"https:\/\/www.enerbrain.com\/en\/decentralisation-of-the-electrical-energy-market-and-the-role-of-prosumers\/","title":{"rendered":"Decentralisation of the electrical energy market and the role of prosumers\u200b"},"content":{"rendered":"\t\t
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Decentralisation of the electrical energy market and the role of prosumers<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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By Attilio Di Sabato<\/h6>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\r\n\r\nThe current electricity market is divided into four basic sectors:\r\n\r\n<\/div>\r\n<\/div>\r\n
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Production\u00a0<\/strong><\/p>

\u00a0<\/p>

Every country has\u00a0large power plants<\/strong>\u00a0that produce energy, most of which are privately owned and use\u00a0non-renewable sources<\/strong>. The share of electricity that is not produced domestically is purchased and imported from abroad through international grid connections. For example,\u00a0in 2019 domestic electricity production supplied 88.1% of demand,<\/strong> of which 60% comes from non-renewable thermoelectricity.1<\/p><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Transmission\u00a0<\/strong><\/p>

\u00a0<\/p>

The Transmission System Operator\u00a0(TSO) manages energy flows within the national grid\u00a0by constantly balancing energy supply and demand<\/strong>, avoiding grid problems. The energy produced is fed into the grid via high voltage and then managed and dispatched by the TSO via storage systems and transformer stations.\u00a0In Italy, Terna Group is the TSO and manages approximately 74,669 km of the grid.<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Distribution\u00a0\u00a0<\/strong><\/p>

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Unlike the TSO, which often has a public monopoly,\u00a0Distribution System Operators (DSOs) can be private and more than one<\/strong>. In fact, there are currently around 127 in Italy. DSOs\u00a0are responsible for distributing energy and operate the primary<\/strong>\u00a0(HV\/MV) and secondary (MV\/LV) substations,\u00a0as well as the final low voltage (LV)<\/strong>\u00a0portion of the electricity grid<\/strong>\u00a0under concession. In this way, energy from the other transmission is converted to other voltages to better suit the different types of users.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Utilities<\/strong><\/p>\n

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Finally, the electricity arrives at the consumers and therefore at the different sectors, for example: residential, industrial.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Typically\u00a0the electricity value chain is following a linear and highly centralised motion<\/strong>, moving vertically from the large production plants to the individual consumers; on the other hand, data flows are following the energy chain to provide the TSO with the information needed to balance the network together with the data provided by production.<\/p>

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However, this scheme is undergoing a major paradigm shift.\u00a0The electricity system is increasingly pervaded by distributed generation<\/strong>, i.e. that part of small-scale electricity generation is dispersed throughout the territory and connected directly to the distribution network. This distributed generation is\u00a0characterised by increasing percentages of renewable sources<\/strong>. The high rate of investment in renewables has brought these technologies within the reach of a much wider public than before, who are increasingly concerned about their energy independence.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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This is how the figure of the\u00a0\u201cprosumer\u201d\u00a0<\/strong>was born, a term that combines the two words producer and consumer, able to actively communicate with the energy system within a two-way exchange not only of data but also of energy.<\/p>

\u00a0<\/p>

The public push to\u00a0decarbonise<\/strong>\u00a0and\u00a0electrify<\/strong>\u00a0the energy system has opened up the electricity system to prosumers. The linear model of energy is changing towards a circular model, where the prosumer is at the centre of the system and the grid, large producers, and distributors dialogue horizontally with it.<\/p>

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The deployment of storage systems as a dowry to each prosumer will allow the latter to carve out an\u00a0important role in balancing the grid<\/strong>, where intelligent management of energy demand will have equal weight to the availability of energy production itself.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Typically\u00a0the electricity value chain is following a linear and highly centralised motion<\/strong>, moving vertically from the large production plants to the individual consumers; on the other hand, data flows are following the energy chain to provide the TSO with the information needed to balance the network together with the data provided by production.<\/p>

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However, this scheme is undergoing a major paradigm shift.\u00a0The electricity system is increasingly pervaded by distributed generation<\/strong>, i.e. that part of small-scale electricity generation is dispersed throughout the territory and connected directly to the distribution network. This distributed generation is\u00a0characterised by increasing percentages of renewable sources<\/strong>. The high rate of investment in renewables has brought these technologies within the reach of a much wider public than before, who are increasingly concerned about their energy independence.<\/p>

This is how the figure of the\u00a0\u201cprosumer\u201d\u00a0<\/strong>was born, a term that combines the two words producer and consumer, able to actively communicate with the energy system within a two-way exchange not only of data but also of energy.<\/p>

\u00a0<\/p>

As a result of the increased exchange of energy on the grid between prosumers, it is expected that the electricity grid will become more and more like an energy\u00a0\u201dmarketplace\u201d<\/strong>, rather than a mere technical transmission and distribution infrastructure.<\/p>

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In the future, the total installed capacity of prosumers is expected to gain in importance. The European Commission, in its package of measures to innovate electricity markets called \u201cClean Energy for all Europeans\u201d,\u00a0estimates that by 2050 half of European households will be producing some of their energy.<\/strong><\/p>

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The electricity system will therefore have to use new technologies such as the\u00a0Smart Grid and IoT<\/strong>\u00a0to deal with the additional level of complexity that prosumers will bring to the scheme. Although balancing the grid will become more complex for the TSO,\u00a0there will be many benefits for the environment<\/strong>, thanks to reduced grid losses and lower climate-altering gas emissions from renewable generation.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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1\u00a0https:\/\/www.terna.it\/it\/sistema-elettrico\/statistiche\/pubblicazioni-statistiche<\/a><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Decentralisation of the electrical energy market and the role of prosumers By Attilio Di Sabato The current electricity market is divided into four basic sectors: Production\u00a0 Every country has\u00a0large power plants\u00a0that produce energy, most of which are privately owned and use\u00a0non-renewable sources. The share of electricity that is not produced domestically is purchased and imported […]<\/p>\n","protected":false},"author":1,"featured_media":1285,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"no-sidebar","site-content-layout":"","ast-site-content-layout":"full-width-container","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"_jet_sm_ready_style":"","_jet_sm_style":"","_jet_sm_controls_values":"","_jet_sm_fonts_collection":"","_jet_sm_fonts_links":"","footnotes":""},"categories":[28,1,26],"tags":[],"class_list":["post-1486","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-non-categorizzato","category-sviluppo-sostenibile"],"yoast_head":"\nDecentralisation of the electrical energy market & prosumers's role<\/title>\n<meta name=\"description\" content=\"The current electricity market is divided into four basic sectors: Production - 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