Pilot and market projects

Energinet is involved in a number of pilot and market projects aimed to ensure exchange of experience, knowledge sharing and collaboration on the energy system of the future.

Energinet offers our services as a sparring and collaborative partner to several stakeholders with good ideas on how to incorporate more demand-side response in the electricity system, or consumers who want to find out how they can contribute as flexible consumers. 
These pilot and market projects result in knowledge sharing, which is mutually beneficial. The projects allow our collaboration and knowledge-sharing partners to test their business models and ideas in the market. At the same time, the projects allow Energinet to identify and investigate possible barriers or inconveniences in the existing framework and rules. They also provide Energinet with valuable insight into new developments in the energy sector. As a result, Energinet and our collaboration partners can work together to create a future energy system that is 100% green and that ensures that the security of supply is maintained in a way that is efficient to society as a whole. 
Energinet's participation in pilot and market projects differs from project to project. The majority of projects were launched on the initiative of external participants, and Energinet’s role is to act as a sounding board with the expertise to qualify the ideas in relation to the existing rules and framework as well as offer general advice and knowledge about the electricity system. Other projects have been launched by Energinet or requires greater participation by Energinet – this depends on the originator or nature of the project. 
Energinet continues to offer our collaboration on new ideas and solutions, and the door is always open if existing projects require feedback on tests of various aspects of their ideas. 
In general, the pilot and market projects focus on the possibilities for flexibility in the current electricity system and market as well as the steps required for demand-side response to come into play at an appropriate level. This so-called appropriate level refers to the fact that demand-side response must participate on an equal footing with other market capacities and should not have special terms. Instead it must be driven by market forces, meaning that it belongs in the market as long as there is a business case for it. Consumers must determine the value of the security of supply. 
The projects focus on everything from studies on consumer behaviour and technological compatibility to the aggregator's role in the market and the possibilities of different types of consumers and/or local areas to become participants in the electricity market. 

You can read more about aggregators here. Basically, when new roles emerge in the electricity market, the framework and rules of the market must be updated to define how such a role can/will be included in the market, how to ensure that this participant can operate on equal terms and how to exploit the service delivered (in this case, demand-side response) optimally. 
Part of the work to create the optimal market framework and rules involves determining how to establish the most effective and appropriate scope of practice. Therefore, projects have also been launched that focus on IT platforms and data processing in relation to demand-side response. One such example relates to blockchain – a technology which is examined for its potential value in relation to both demand-side response and the energy system in general. 
Demand-side response may be offered by many different consumer types and may provide different types of flexibility to the electricity system. You can read more about the electricity system and the requirements for becoming a supplier of demand-side response by visiting new to the electricity market and in our tender conditions for ancillary services
Working with demand-side response, a distinction is often made between new demand stemming from new technologies such as electric vehicles, heat pumps or new generation methods, and known demand such as cooling or freezing facilities, or heating facilities for water in swimming pools. Demand-side response may also potentially be incorporated in plans to improve electricity efficiency or find electricity savings. These are all examples of central points in the existing pilot and market projects. The projects also include consumers who want to act flexibly using some of the demand types mentioned above. Energinet participates in these projects to a greater or lesser degree but follows them all with great interest. 
Interest in demand-side response is similarly high in our neighbouring countries' TSOs where this is also seen as part of the solution to future energy challenges. Energinet keeps an eye on these trends and participates in subprojects focused on demand types within a similar framework to that which Energinet uses in our pilot and market projects.