Université Paris-Dauphine (UPD) is a French public high education establishment, specialized in the Organizational and Decision Sciences with a multidisciplinary approach from social sciences, mathematics, computer science. UPD is also a founding member of PSL- Paris Sciences et Lettres – Research University, that brings together some of France’s most prestigious and internationally respected research institutions. In 2009, UPD became the first French university to obtain the EQUIS accreditation from the European Foundation for Management Development, in recognition of its academic excellence and committed global perspective.
The economic research laboratory of UPD, the LEDa, more specifically its division of energy economics and geopolitics (CGEMP) in collaboration with the chair European Electricity Markets (CEEM) will carry out the tasks related to Market Design and Regulation (WP2) of the OSMOSE project and will be involved on the assessment of their possible implementation.
MAIN TASK ATTRIBUTED IN THE PROJECT
UPD is member of the OSMOSE consortium and joins the effort of RTE to analyse the current electricity market architectures and to propose an evolutionary framework of market designs capable of valuating new services coming from distributed assets (e.g. VRE, batteries, DSM), the more active role of consumers and the digitalisation of the grid. UPD leads the task 2 of WP2 which aims to build a comprehensive analysis of the existing regulatory issues and market barriers affecting the technologies being testing in the OSMOSE demonstrators and to propose evolutionary solutions to overcome them.
First, the approach adopted builds upon two surveys and an extensive literature review to quantify the multiservice capabilities of such technologies and to consider the market fundamentals for an adequate design of possible market products for appropriately rewarding the supply of such services. Aspects regarding the role of system operators (SO) are transversally considered in this task since new assets providing multiple service might be partially or fully distributed located on the grid, thus, the interface between TSO and DSO would be expected to evolve with new flows (e.g. market bids, data and signals) and new responsibilities. New TSO/DSO protocols and responsibility sharing schemes are going to be analysed in this task given the inputs from demonstrators of WP3, WP4 and WP5 which covers the main technological developments paving the way for new flexibility capabilities (i.e. grid forming, synchronization and smart coordinated control of storage, flexible AC transmission system devices, distributed generation and demand response).
Regarding the regional market integration launched under the flagship of “the Energy Union” in EU, cross-border exchange methodologies on a TSO-TSO viewpoint are also expected to evolve. Not only the market coupling of wholesale products is considered within the project, but the exchange of near real-time system services (e.g. frequency regulation reserves) are also expected to progress in the mid-term promoted by the EC Energy Balancing guidelines. Apart the enhanced need for harmonising of protocols, market rules and product characteristics, this regulatory reform also gives the opportunity to propose enhanced methodologies to calculate near real time cross-border capacities capable of alleviating interconnector congestions. This is the main topic being considered in the demonstrator of WP6.
Evolving technologies requires evolving market design as for guaranteeing short-term and long-term incentives for the optimal service supply and deployment of such advanced technologies, as well as an evolving regulation to provide a least-discriminatory set of rules for the development of emerging business models compatible with the principle of competition and market access. In this sense, UPD will conceive and propose new market architectures and regulatory frameworks harmonizing all these mechanisms.
Second, UPD will also collaborate with other members of WP2 on the phase of modelling and simulation of the evolutionary market design candidates, where the market architectures proposed will be simulated and compared using different indicators (existing and new ones) with the aim of assessing the feasibility, the economic efficiency and the distributional aspects resulting from their implementation.
