Get Started as Network Owner

To work with local flexibility markets and conditional agreements, preparations are required to varying degrees depending on the conditions and needs. First, some fundamental components need to be mapped out:

Define Network Constraint

The part of the power grid identified for flexibility measures during the network owner’s analysis. This often involves an entire station, a single transformer, or a bay, but it could also be, for example, a power line in the local or regional grid.

Capacity Constraint

Constraints most commonly arise due to high consumption or high production relative to a subscription level or technical component limit, though other scenarios may occur.

Selection of Flexibility Solution

The types of flexibility measures that are suitable. Market solutions can be combined with conditional agreements. Since capacity constraints may require either downregulation (reduced production, increased consumption) or upregulation (reduced consumption, increased production), the flexibility products in SWITCH can be used for both types of regulation.

Area and Impact

Where in the power grid the need exists. For a market, the grid owner may want to define a catchment area that indicates which grid area connected customers can contribute flexibility to. If the constraining point is in a meshed grid, flexibility resources may have an impact (electrical exchange) that is less than 100%. Impact factors are calculated by the grid owner and used in SWITCH to express the exchange between the grid owner’s component and the flexibility resource at a given switching state.

SWITCH Data Requirements

It is possible to manually test flexibility markets as a concept without having established an integration for data transfer to SWITCH. However, providing or transferring data to SWITCH is a prerequisite for utilizing the platform’s full functionality. With the right data, the platform supports the network owner in notifying and activating flexibility when the load at the constrained point risks exceeding the defined threshold.

From the network owner’s perspective, data needs can be divided into three categories:

1. Load/actuals measurement at the constrained point or component

2. Forecasted load at the constrained point or component

3. Limits for the constrained point or component for trading, activation, and control signals

Actuals Measurement

Once a capacity constraint has been defined, a suitable next step is to inventory the associated data available. In the network owner’s operational monitoring system (SCADA or equivalent), measurements of current, voltage, and power should be available and stored for the relevant point. Depending on the network owner’s product choice, the measurements must meet different requirements for frequency, accuracy, and proximity to real-time. For example, a grid component monitored for the control of conditional agreements may send power values to SWITCH every minute, while a local grid station linked to a flexibility market only needs to handle hourly average values.

If suitable measurements are available through a network owner with an existing integration to SWITCH, it may be possible to send data without additional IT development. Otherwise, the network owner needs to implement a solution that formats and uploads measurement values according to SWITCH’s requirements and specifications. More information is available in our developer documentation.

Forecasts

Load forecasts are an important tool for decision-making when there is a need to purchase flexibility, i.e. market demand. These can also be used to optimize and automate operational work with flexibility markets. Therefore, short-term forecasts in the form of time series for power values need to be produced and submitted to SWITCH. The network owner can either handle this within their own operations or purchase the service from a forecast provider. The time horizon of the forecast can be adjusted based on the market products used, as shown in the table below.

Product	Activity	Forecast time window
Seasonal availability (SA)	Notification of demand	Months (estimate only, done outside of SWITCH)
Availability Orders (AO)	Notification of demand	3 to 7 days
Direct Orders (DO)	Notification of demand	36 - 60 hours
SA / AO / DO	Activation Day-ahead	36 - 48 hours
SA / AO / DO	Activation Intraday	12 - 24 hours
Conditional agreements	Activation close to operational minute	1 - 12 hours (or with real-time measurement)

Forecast data should be submitted regularly as hourly averages or quarterly averages, in the same way as for actuals measurements but with future timestamps. Based on the forecast values, SWITCH can automatically notify needs and activate flexibility according to the network owner’s market settings. Note that control signals for conditional agreements can be executed with forecasts, but this is not a prerequisite.

Market Process

In addition to specifying input values and ensuring data access, there are several activities related to flexibility work for network owners (DSOs). The process below applies to the initiation of a market with new flexibility service providers (FSPs). Note that it is up to the DSO to decide on the method for procuring flexibility services.

1

Announcement

DSO publishes market needs for potential FSPs

2

Recruitment of FSP

DSO actively seeks providers in combination with FSPs expressing interest

3

Procurement and Application

DSO creates tenders for one or more markets, where FSPs apply for participation

4

Pre-qualification

Based on FSP applications and grid analysis, the DSO assesses whether new suppliers should gain access to SWITCH

5

Agreement

In the case of direct procurement, an agreement is signed between the DSO and FSP; otherwise, the platform supports DIS as a contract form

6

Onboarding of FSP

Once a supplier is approved, organization and user accounts are set up in the platform (performed by the SWITCH team at the DSO’s request)

7

Data Verification

FSP conducts tests in the SWITCH QA environment to verify data flows (including measurements and/or reference values) and basic resource characteristics

8

Resource Qualification

Each new flexibility resource intended for market participation is reviewed by the authorized DSO

9

Market Period Starts

During the announced dates, the market is active, and flexibility is traded

10

Market Period Ends

The DSO can perform regular and/or seasonal settlements with associated invoicing

Depending on the circumstances, additional FSPs can be pre-qualified even during an ongoing market period, especially if DIS is used as the contract form.

The time frame for the various steps in the process can vary, but typically steps 1-3 take several months, steps 4-8 take several weeks, and steps 9-10 cover a winter or summer season.

Roles and Responsibilities

The operational organization of flexibility work can take many forms, but certain roles are suitable as a starting point. Depending on resource availability, one person may hold multiple roles.

• Flexibility Analyst - Explores the power grid’s capacity challenges and prepares data for points where flexibility solutions are appropriate. May also investigate market potential by evaluating larger consumers and producers.

• Market Manager - Primary FSP contact throughout the process for one or more markets. Manages traded order quantities, defines activation and availability limits, makes forecast selections with associated evaluations, and handles resource qualification in SWITCH.

• Operations Representative - Represents the network operations organization and coordinates flexibility measures with the market manager. In the case of manual activation, operation instructions can be used to specify when and to what extent flexibility should be purchased.

• Controller - Conducts ongoing monitoring of flexibility trading for settlement with the market manager, and is responsible for remuneration and invoicing with FSPs.

• Superuser SWITCH - Trains employees and FSPs on platform usage. Creates and configures stations and markets in SWITCH, which are used for monitoring and trading.