Göteborg Energi embraces full-scale innovation
Individual solutions with local energy production and more renewable energy is a trend. Why does a utility company engage in a project like FED? Won’t it risk to lose a lot of customers if FED becomes a success and replicates?
The Fossil-free Energy Districts project, FED, is an innovative effort by the City of Gothenburg to decrease the use of energy and the dependence on fossil fuel in a built environment. A unique local marketplace for electricity, district heating and cooling is being developed together with eight strong partners. During 2017−2019 the FED testbed will be situated on Chalmers campus Johanneberg.
− As a utility company, we provide common district heating and distribute electric energy. With FED we want to explore how we can offer our customers more renewable production and what role we have in a changed energy landscape, says Erika Antonsson, R&D strategist at Göteborg Energi.
Energy efficiency has been on the agenda at Göteborg Energi for many years. Combined with a higher level of digitalization and more renewable energy, the FED system, which allows a local marketplace for three energy carriers, is spot on. The innovation height lies in the marketplace.
− Except cut carbon emissions the incentive for us is to examine how FED will contribute to the congestion management, since more renewable energy in the system makes it more volatile, Erika emphasizes.
Erika is responsible for the development of the FED marketplace − the project core − and works closely with three of the partners to get the marketplace settled. RISE Research Institutes of Sweden create the market design and business models, Ericsson develops the software of the smart control systems and Chalmers University of Technology does the simulations.
Trading with excess energy
But how is that unique marketplace going to work? How can a market participant sell its excess solar energy? Detailed use cases are being made. A so-called agent will be crucial and the intelligent part of the system.
− The agent will calculate how it should act on the market. It will get signals from a market participant, for example a battery for energy storage, and add information about weather conditions and energy prices to make a bid, Erika explains.
Many components will be involved and communication between interfaces is essential. In the end, the marketplace is of course going to work automatically.
Flexibility is one of the key words within FED. In this case, flexibility means that you can switch between different energy carriers depending on production and price. You can also decide when to buy energy. For example, an overproduction of renewable electric energy could contribute to the district heating system.
One of the challenges is to find incentives for the energy trade to take place, to find the right value for demand and response.
− The business models will look different depending on what issue we address. We are still discussing the details of the payment part of the system, says Erika, who finds it both interesting, challenging and fun to co-create with her partners.
Contact:
Erika Antonsson, Göteborg Energi
+46 725-213694
erika.antonsson@goteborgenergi.se
Iréne Svensson, Projekt Coordinator FED, Johanneberg Science Park
+46 769-417130
irene.svensson@johannebergsciencepark.com
Johanneberg Science Park, Göteborg Energi, Business Region Göteborg, Ericsson, RISE Research Institutes of Sweden, Akademiska Hus, Chalmersfastigheter and Chalmers University of Technology are all contributing with their expertise and knowledge to make FED attractive for other European cities as well. FED is co-financed by the European Regional and Development Fund through the Urban Innovative Actions Initiative, an initiative of the European Commission for cities to test new solutions for urban challenges.
