IEEE Electrification Magazine - March 2014 - 85

the concept of the project is to combine centralized and decentralized control approaches with the
following philosophy: let the end-customer decide
as much as possible within his or her private grid.
therefore, offer the end customer the online tools
with appropriate boundary conditions and incentives to optimize his or her energy interface to the
outside world according to actual (dynamic) prices
and energy efficiency considerations that reflect the
real-time needs of the public grid. to this end, provide centralized information but allow for decentralized decisions.

Business Cases
the technological developments in the sh/sG project
have been based on nine business cases that describe
how smart grid approaches could be applied by single
stakeholders in the electricity supply business. as
shown in figure 1, not all business cases are applicable
to all stakeholders, but each stakeholder can apply
more than one business case. table 1 summarizes the
nine business cases.

The Overall Architecture
the sh/sG architecture has to account for the heterogeneity of concepts adapted and tested within the project. one
major overarching paradigm that has to be reflected is the
distributed control paradigm. following this, there needs to
be some distributed decision making at the house level,
which is facilitated through an appropriate in-house architecture in combination with global coordination. the latter,
in turn, facilitates a business case of some involved enterprise. table 2 summarizes the main characteristics of the
three technologies employed in the project: PowerMatcher,
beMi, and MaGic.
there are some important commonalities between these
technologies. as already depicted in table 2, it can be recognized that the common idea of the sh/sG implementation
follows a unified approach: PowerMatcher, beMi, and MaGic
manage demand and supply on the basis of a centralized
optimization tool that works with decentralized decision
making. this is highly important for the acceptability of
these technologies since each participant keeps full control
over his devices but has incentives to align the device operation with the global status of the overall system.
each of the three technologies is based on the concept
of mapping the demand to the producible or produced
energy. it is possible to adjust the amount of energy to be
consumed by deploying features like automatically
switching on and off consuming devices or indirectly
influencing the consumer's behavior via price incentives.
these features are part of all three trials (which are based
on three different technology approaches), and the automated switching of the controllable devices in the households plays a significant part. the control of the shiftable
production of energy is in a similar way possible by means

of automated on and off switching features for chP producers, as an example.
each of the concepts includes a centralized negotiation
or calculation mechanism that tries to map the producible
energy to the consumable energy for all actors (smart
houses and production sites) within the smart grid. external production sites producing and providing a certain
amount of energy can be included in the negotiation process as a fixed and uncontrollable amount of energy.
therefore, the architecture of all three setups contains a
central coordination mechanism.
the way the three coordination mechanisms are
designed is similar from a high-level perspective, but differs
in the details. each tool either collects information or forecasts the desired amount of energy to be consumed or
produced from all participating smart houses and production sites. each tool is able to understand not only the
desired energy amounts but also some indicators about the
conditions energy will be consumed or produced, namely,
price incentives to shift demand. based on all offers and
requests, the tool analyses how the equilibrium can be
reached under the given conditions.
one major difference between the negotiation procedures is the time cycle of the negotiations and, therefore,
the consideration of unforeseeable changes. PowerMatcher
and the MaGic system work in (near) real time. the advantage is that for unforeseeable demand or production
requests, a short reaction time can be expected to map the
complementary production or demand requests. the beMi
technology, in contrast, works on a time scale of a day,
where day-ahead production and consumption patterns
are considered to define the price levels that are used as
decision-guiding signals.
the field trials described in next few sections aim to
investigate the appropriate time scale of equilibrium calculations. the near real-time negotiation demands a high
degree of scalability and performance requirements. the
PowerMatcher tool performs real-time negotiation using a
multilevel approach realized by the use of agents, clustering several smart houses or concentrator levels stepwise.
for a small number of smart houses, the concept of real
time could scale easily, but for a higher number of smart
houses, the concept has yet to be proven.
decentralized decisions about consumption and production decisions are decentralized, i.e., the control of
switching on or off of a certain producing or consuming
device is always done within the smart house itself. even
when for the smart houses a central control is established,
the decision remains within the house. of course, the
decision is guided by a centrally determined and provided
signal (e.g., virtual price signal or a real-time tariff/price
structure or direct control signals).
because of the difference between the technologies
employed, sh/sG does not have a common architecture
in the classical notion, but an amalgamation of heterogeneous approaches that are glued together by an soa, as
	

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