IEEE Power & Energy Magazine - September/October 2019 - 70

In a real-world deployment, one should take into account
different security standards, considering the possibility
for tampering with the measuring devices.

proposed frameworks and mechanisms in this pilot study
endorse a holistic system approach and fuel further development toward decentralized energy markets. This real-life
pilot enabled the DSO to learn and develop a dashboard and
internal policies that work toward an operational model for
distributed procurement of congestion management services
on a daily basis. More must be done to develop a full-scale
model. Here are some key insights and takeaways.
1) In a decentralized electric power market, the need exists
for a centralized mechanism that authorizes the measurement and verification of transactions with a high degree of locational/contextual and temporal granularity.
2) A market-based decentralized coordination mechanism
based on voluntary participation is, to a certain extent,
able to ease strains on the local grid. However, in some
cases, a hardwired control is required to safeguard system reliability. This has been incorporated into the recently prescribed Dutch and European regulatory model
and will be enforced in The Netherlands. We expect this
will be a common practice in other similar markets.
3) Further alignment is necessary between centralized
and decentralized coordination to prevent so-called tier
bypassing. Additional societal discussion is needed to
understand to what extent it is acceptable to solve this
coordination issue through pricing strategies and incentives. Other value drivers must be identified and incorporated in the coordination algorithms when necessary.
4) Moving toward a layered decomposition, more standardization and interoperability are necessary for scalability.
This raises the issue of to what extent an ISO model
should be explored as the local electronic market where
bids and steering information are being processed. In
such a structure, each entity would transact directly or
indirectly via an aggregator with the ISO platform.
5) Although developing open source-based solutions may
be agile and quick, maintaining a required service level requires more commitment and higher investment,
which, in turn, requires an attractive business case upfront. Yet developing such a business case is challenging in an industry facing major changes in the future.
6) Having customers own their devices' specific data safeguards privacy and aligns with the GDPR. From a commercial perspective, these device-specific data are helpful for
forecasting and transaction purposes. We recommend
that customer data should only be released with customer
authorization to enhance privacy and security.
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7) Finally, we acknowledge the current developments in
the ICT infrastructure advancing stability and availability toward acceptable industry standards for system operators. Greater numbers of industry players
are accelerating their digitalization strategies to incorporate these developments.

For Further Reading
K. Kok, "The powerMatcher: Smart coordination for the smart
electricity grid," Ph.D. dissertation, LNO, The Netherlands,
2013. [Online]. Available: https://www.researchgate.net/profile/
Koen_Kok/publication/261286701_The_PowerMatcher_
Smart_Coordination_for_the_Smart_Electricity_Grid/links/
0deec533c5c3c335de000000.pdf
USEF, The framework explained, https://www.usef.energy/
download-the-framework/
L. Kristov, P. De Martini, and J. D. Taft, "A tale of two
visions: Designing a decentralized transactive electric system,"
IEEE Power Energy Mag., vol. 14, no. 3, pp. 63-69, 2016.
LNO, "FrontRunners2: Flexibility of the residential electricity usage," [Online]. Available: https://www.energiekoplopers
.nl/wp-content/uploads/2019/03/Eindrapportage-Energie
Koplopers2.pdf
P. Bellavista and A. Zanni, "Feasibility of fog computing
deployment based on docker containerization over Raspberry
Pi," in Proc. 18th Int. Conf. Distributed Computing and Networking, 2017. doi: 10.1145/3007748.3007777.
FlexiblePower Alliance Network, "Energy flexibility interface." Accessed on: May 20, 2019 [Online]. Available:
https://flexible-energy.eu/efi/
S. Chen and C. C. Liu, "From demand response to transactive energy: State of the art," J. Modern Power Syst. Clean
Energy, vol. 5, no. 10, pp. 10-19, 2017.

Biographies
Abo Rassa is with Alliander, Arnhem, The Netherlands.
Coen van Leeuwen is with The Netherlands Organization for Applied Scientific Research TNO, The Hague,
The Netherlands, and the Delft University of Technology,
The Netherlands.
Robertjan Spaans is with Alliander, Arnhem, The
Netherlands.
Koen Kok is with The Netherlands Organization for Applied Scientific Research TNO, The Hague, The Netherlands,
and the Eindhoven University of Technology, The Netherlands.
p&e
september/october 2019

https://www.researchgate.net/profile/Koen_Kok/publication/261286701_The_PowerMatcher_Smart_Coordination_for_the_Smart_Electricity_Grid/links/0deec533c5c3c335de000000.pdf https://www.researchgate.net/profile/Koen_Kok/publication/261286701_The_PowerMatcher_Smart_Coordination_for_the_Smart_Electricity_Grid/links/0deec533c5c3c335de000000.pdf https://www.researchgate.net/profile/Koen_Kok/publication/261286701_The_PowerMatcher_Smart_Coordination_for_the_Smart_Electricity_Grid/links/0deec533c5c3c335de000000.pdf https://www.researchgate.net/profile/Koen_Kok/publication/261286701_The_PowerMatcher_Smart_Coordination_for_the_Smart_Electricity_Grid/links/0deec533c5c3c335de000000.pdf https://www.usef.energy/download-the-framework/ https://www.usef.energy/download-the-framework/ https://www.energiekoplopers.nl/wp-content/uploads/2019/03/Eindrapportage-EnergieKoplopers2.pdf https://www.energiekoplopers.nl/wp-content/uploads/2019/03/Eindrapportage-EnergieKoplopers2.pdf https://www.energiekoplopers.nl/wp-content/uploads/2019/03/Eindrapportage-EnergieKoplopers2.pdf https://www.flexible-energy.eu/efi/

IEEE Power & Energy Magazine - September/October 2019

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