December 2019

Author:Zeno WinkelsUIA Expert

The FED project Journal N° 5

Project led by the City of Gothenburg

ENERGYTRANSITION

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The FED project

With this project, the city of Gothenburg aims to develop, demonstrate and replicate a novel district level energy system, integrating electric power, as well as heating and cooling. This solution embraces and enhances the use of technologies such as PVs, heat-pumps and energy storage into a larger system. To overcome the main challenges, the proposed solution contains advancements in system development and operation, business logistics, legal framework as well as stakeholders’ acceptance.

The FED solution consists of three cornerstones:

FED demonstrator area – The selected demonstration is located at a campus with about 15 000 end-users. It has a well-balanced set of property owners, energy infrastructure, and users, including prosumers as well as buildings with different needs and usage profiles. The area is exempted from the law of concession for electricity distribution, providing the opportunity to test and validate a local energy market. The prerequisites to optimize the use of primary and secondary energy using intermediate storage are well developed, as they are for generation, storage and distribution.

FED System solution – Our solution will optimise the use of low-grade energy to replace primary energy. Adding fossil-free energy sources while optimising different buildings usage profiles; one building’s energy needs will be balanced with the surplus of another. Intermediate storage, fundamental to be a success, consists of heating storage in the building’s structure, an innovative cooling storage using phase changing material and batteries for electricity. An ICT service will host the local market and provide the connection to the outside world of spot prices and weather forecasts. The smart agents connect and trade within the system that provides the flexibility to support future volatile energy markets

FED Business solution – Create new sustainable markets. The success of FED depends on cooperation and energy exchange between several stakeholders. To make it happen, a local energy market creating business value for each stakeholder will be developed.

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Partnership:

• Göteborg Stad – City of Gothenburg

• Johanneberg Science Park AB - Public/Private Company

• Göteborg Energi AB - Public Company / Local energy utility

• Business Region Göteborg AB - Public Company for business support

• Chalmersfastigheter AB - Private Company and local property owner

• Akademiska hus AB - Private Company, national property owner

• Chalmers University of Technology - Academia

• RISE - Research Institute

• Ericsson AB - Private Company in ICT

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Table of Contents

1. ExecutiveSummary 5

2. Finaltechnicalprojectimplementationupdate 6

3. AviewonthefunctioningFEDsystem 9

4. Challenges 12

4.1 Leadershipforimplementation 12

4.2 Publicprocurement 13

4.3 Integratedcrossdepartmentalworking 13

4.4 Adoptingparticipativeapproach 14

4.5 Monitoring&evaluation 14

4.6 Financialsustainability 14

4.7 Communicatingwithtargetbeneficiaries 14

4.8 Replication&upscaling 15

5. Learningpointsandnextsteps 19

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1. ExecutiveSummary

1 https://www.linkedin.com/posts/johanneberg-science-park-ab_celsius-summit-2019-activity-6595614084295643137-q3tR 2 https://www.johannebergsciencepark.com/sites/default/files/FED_boken_uppslag_0.pdf

ThisfifthjournalontheFEDprojectinGothenburgincludes the end of the project and is writtenafter avisit to the slot-event in Brussels in theautumnof20191.

In the meantime, at the Chalmers campus inGothenburg, the 6500 kW steam boiler wasinstalled,aswellasthemorenovelPCM(PhaseChangeMaterial)storageandLi-Ionbatteries–allnicely intime.Thesewere the lastcomponentstocompleteunder theFEDcontract.So in fact,all foreseen technical hardware is installed andfunctioningnow.

So, in three years’ time the FED project hasdeveloped alocal energy system and alocal,digital marketplace with three energy carriers:electricity,districtheatinganddistrictcooling.Itoptimizesuseofenergystorages.

The FED upscaling strategies are not fullyanalysed in this journal yet, but some of thepreliminary work is here. The new hardwareproduces sustainable energy and in goodamounts. (Certainly in Swedishhottest summereverin2018).Ashighlightedearlier,thefinancialsustainability and upscaling are topics that areamong thepre-identifiedchallengesby theUIAandtheyarestillthere.ThecontentofthefinalJournal, number 6, in the autumn of 2020willsupplymoreinformationonthataswellasontheevaluation&monitoringresults.

Finally, the policy recommendations from theFEDprojectcanbeusedforagooddiscussiononthechallengesUIAintroducedin2016,andtouchonhigh-levelEUpolicy-elementsaswellaslocalones.Forthefulloverview,pleaseseetheFED’sownbooklet2.

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2. Final technical project implementationupdate

WhathappenedwhentheprojectfinishedinOctober2019?

The short story is, nothing happened. The FEDmarket place kept on running like it had beenrunning since the beginning of the year. Thesystem just grew in 2019, basically exactly likeplanned even before 2017 with 24 consumingbuildings and 11 prosumers. Prosumers beingbuildingsthatconsumeandproduceheat,coolingor electricity. The two buildings that host the

biofuelledheatproductionstayedinproductionand the 16 storage installations, among whichPCM-storage and Li-Ion batteries kept storing.Neverstandalone,asthatwasnotthemeaningoftheFEDproject.Thefigureunderneathgivesan overview of the system embedded in theGothenburgEnergisystem.

Overviewofthetechnicalsystem

Ofcourse,mostoftheunitswereinplacebeforethe FED project started. FED addedmore thanproduction and storage capacity, it developeda system for trade and with that, createdatestbedanditformulatedreplicationstrategies.FromtheviewpointoftheUIA,ittookonurbanchallenges,broughtdownlocalbarriersandwasoneofthefirstUIAprojectstobedelivered.This

chapterhowevershouldprovideanoverviewofthe technical delivery, both for the productionandstorageandforthemarketplace.Thisisbestdonewiththeuseoftwofigures.

Thefirstfigureshouldbefamiliarnowforreadersof the FED journals and it shows the ChalmersCampus with little number. The numbersrepresent specific installations thatare listed in

Figure 1: conceptual diagram of the energy flows between the external system and the FED system. (GE = Gothenburg Energi, the local energy supplier)

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thetableunderthefigure.Thisreportsincludesthe final updated figure, with the storage

capacities(11,12&13)nolongerinplanning,butfinallyinstalledandactivenow.

Figure 2: Completed infrastructure of the FED system, buildings that ‘only’ consume are visible, but not listed.

Notestofigure4-8:

1. Solar PV Modules, O7:23 SB2, O7:26 SB1,O7:8KC,O7:17Bibliotek,O7:44AWL,O7:27SB3, O7:28 Maskin, O7:20 Elkraft, O7:11ElkraftandKemi–connectedtoIKNnetwork.

2. Boiler1,KC–connectedtoVP01network.

3. Absorption Chillers, KC producing cooling –connectedtoKB0network.

4. Heating and Cooling Pumps (O7:28 VKA1,O7:8 VKA4) producing heating and cooling,KC–connectedtoKB0andVP01networks.

5. Chiller system, MC2 – connected toKB0network.

6. District heating connection from publicnetworktoVP01.

7. Electric power connection from publicnetworktoIKNnetworks.

8. Battery Storage, AWL –connected to IKNnetwork.

9. Heating and cooling pump (8-VKA2), KC –connectedtoVP01andKB0network.

10.Steam Boiler 2 and Steam Turbine, KC,used for production of heat and electricpower - connected to VP01 and IKNnetworkrespectively.

11.Quick-Charging Battery storage, O7.28Maskin–connectedtoIKNnetwork.

12.PCM Cooling Storage, AWL – connected toKB0network.

13.Cooling storage tank, O7:28 Maskin –connectedtoKB0network.

TheFEDMarketsystem

Thesecondpictureistheonethatshowsthefullmarket design of the FED. It hasn’t changedmuch, as it is conceptual of course, but is hasnowbeenproventowork.Fromtheviewpointof

the FED picture the listed storages, buildings,productionunitsareallmarketplayers,thatneedtobehandledviatheagentsinthemarket.

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Itisthethirdpicture,withthenicenamefigure4,thatisneededtounderstandthemulticommodity

system and it shows themarket-solving, in theunitnamedEricssonIoTAccelerator.

Figure 3: full market design of the FED

Figure 4: market solving in the FED

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3. AviewonthefunctioningFEDsystem

The infrastructure and control required for connecting all facilities included in FED and allowing for local market energy trading are fully operative since January 2019. This consists of the

distribution networks for heating, cooling and electric energy that are part of FED and the hardware that are connected to these.

Resultsasatestbed

ThedifferentpartsoftheFEDmarketaffecteachother through the totaleconomicaloptimization,soitisonlywhenalloftheagentsareinoperationthat the total effect of the FED-system in realitycanbeverified.Thishasnotbeenthecaseforafullwinteryet,whichisthereasonthemonitoringandevaluationwillbeinJournal6.Itishoweveralreadypossibletolookatsomesub-plots:

Electricity

Ascanbeseenintable1,theimportedelectricityisreducedforthecampusareawhenconsidering

the FED investments and control system. ThemainreasonforthisisduetotheincreasedlocalproductionfromsolarPVplantsandtheelectricityturbine.Theuseofabsorptionchillersandheatpumpsincreasedthedemandforelectricity.Theelectricity for charging the batteries are higherthanwhatisextractedfromthebatteries.Thisisdue to the losses in the battery, and is, froma market perspective, compensated for by thevariationsinelectricityprice.

Table1:ElectricityintheFEDsystem

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Heat

FortheheatsystemtheexchangewiththedistrictheatingsystemincreasedwiththeFEDsystem,ascan be seen in the heat table. This is probablydue to the possibility to sell heatingwhen it isexpensiveandbuywhenit ischeap.TheusableheatfromtheboilersarereducedwiththeFED

systemandalsoalargershareoftheheatdemandis covered by heat pumps, certainly during theheating season. However, as the system isoperatedtodaythepossibleflexibilityinhowtheheatpumpsareusedislimitedsincethecoolingoutput from the heat pumps must meet the coolingdemandduringthewinter.

Table 2: Heat in the FED

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Conclusion so far:

Regardingtheoperationofthedifferentunits,itwasfoundthattheunitsarescheduleddifferentlyunder the FED market compared to the casewithoutthemarket.Onereasonforthisisduetothe added investments but also that the pricestructureismoredynamic intheFEDmarket. Itwasfoundthattheusageofheatpumpincreasedunder the FEDmarketbut also that the importandexportofheatincreased.Thereasonforthis

is due to the more dynamic prices, which arepossibleundertheFEDconditions,whichcreateshigherincentivestoexportwhenpricesarehighand to import when prices are low. For thecooling, the absorption chiller is used moreduring the summer due to the low heat pricewhilethecoolingduringthewinterisprovidedbyheatpumps.Inaddition,theutilizationofenergystorages,bothinbuildingsandbatteriesincreasedwhenaCO2factorwasintroduced.

Cooling

Duringthewinterperiodthecoolingisprovidedby the heat pumps while during the summerperiod the cooling comes from either the heatpumps or the absorption chiller, depending onthe price. The reason for the reduced coolingfromabsorptionchillerandambientaircoolersisthattheambientaircoolerwasnotinoperationafter2018.Duringthesummer,theutilizationof

the absorption chiller is slightly higher for thecasewithFEDcomparedtothecasewithoutFED.Itshouldbenotedthatduetothedecisionnottouse the ambient air coolers after 2018, thecooling produced from ambient air coolers hasbeen treated as cooling from the absorptionchillers in the base case. Hence, the cost andemissions in the base case is likely higher thantheactualnumbers.

Table3:CoolingintheFED

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4. Challenges

3 https://www.emissions-euets.com/internal-electricity-market-glossary/2095-energy-community

This particular series of journals on the FED project, of which this is number 5, has always paid attention to the challenges that were met during the implementation of the FED project. This is always very relevant in EU funded projects as solutions to barriers or, more abstract, changing perceptions of barriers may -if well disseminated- find their way in the European landscape and help speed up progress, in this project, in the energy transition.

ThesechallengeswerealwayslooselyformulatedtoseetothemfittingallUIAprojectsandinsomejournalstheoperationalactualityofimplementingthe project had little to do with the pre-formulated challenges. An example can be thechallenge:‘leadershipforimplementation’,whichwas not so much of an issue in Gothenburgbecause most project partners were also the

beneficiaries and have an institutionalizedcooperation. One of the journals (number 3)focussedonhowthisbecame thecaseand theroleofJohannebergScienceParkinthat.

If we stay away from what can be considerednormalissuesincollaborativeprojectsandfocusonwhatwasrelevantintheFEDapplicationwecanhighlightsomeissuesandthendivedeeperinto themain issueof theFED,butprobablyofmost innovative projects, which is replicationandupscaling.

To consider the challenges at the end of theprojectisalogicalconsequenceandcanperhapsalso learnusaboutthewaywesawtheenergytransition in 2015 when the FED project wasproposed, and when the UIA developed it’schallenges.Let’slistthemfortheoverview.

4.1 LeadershipforimplementationThere’salottosayaboutleadership.IntheUIAfield,welookatthemunicipalityforleadership.IntheFED-projectthecityusedtheopportunityto have Johanneberg Science Park, to take theleadership role. This obviously worked for theproject,butnoteverycityhasaScienceparklikeJohannebergSciencePark.

Since the project is technically over, one canalmost conclude there were no leadershipproblems for implementation although thesemayexistattheendoftheproject,whenstepscouldbetakentoscalethesystem.However,atthemomenttherearestilltoomanyuncertaintiesabouttheimpacttodothat.

Furthermore,thelegislationdoesnotallowit,soEU and national regulation and taxes have tocome in. Legislative challenges are hamperinggrowth of systems like these. Still the new EUlegislationonenergycommunities3mayprovidepossibilitiestoshowmoreleadershipinupscalingsmallenergysystems.

ItseemsEricssonandGöteborgEnergiarenottheplayersthatwilltakethenextstepwiththeFEDsoforsomething tohappen leadershiphas tostandup to organize something. Vattenfall, EON, andsmallercompaniesareprovidingthis.Butthecityhas the overall responsibility so the problem oflegislationandcertaintyofimpactholdthemback.

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4.2 Public procurementSince Akademiska hus and Chalmersfastigheterhave theirnormalprocedures, thesehavebeenimplementedandworked for theprocurement.Onehastokeepinmindthoughthatthewholeenergy system was mostly there, and the newhardwareandsoftwarewasaddedintheproject.Both battery units were also part of otherprojects,forfinancialandacademicreasons.Theinterdependency with other projects addingsystems means you cannot fully control theadditions from other parties, which let totimingissues.

Mostof thehardwarewas rather standard andthe procurement of the innovative part, to be

produced by the programmers of Ericsson wasdoneviapartnership in theFEDproject tohelpdeveloptheuniqueagentsandalsousesomeoftheircommercialofftheshelfsolutionstomakeallthecomponentsfit.

So, in theplanningof theproject it isuseful toknowwhichpartsmakeit innovativeandwhichparts are more ‘normal’ building blocks. Thenormal blocks do not need extra procurementattentionbecauseyouhaveproceduresinplace.It’stheinnovationthat’shardtoprocureandinthis case has been co-createdwith Ericsson, incooperationwiththeotherprojectpartners.

4.3 IntegratedcrossdepartmentalworkingAlthough originally used for municipalorganisations the aligning of interests andpriorities of such different companies andemployees as energy suppliers, real estateowners and academic researchers has beena constant topic in the past three years.WhenI visited however, I have always found inspiredpeople that seemed to strengthen each othermuch more than I expected and had littleproblemsformulatingcommongoals.

Andofcourse,thiscooperationwasestablishedat the campus area before the applicationwaswrittenandwhenthepossibilitycametheprojectwas designed. The local partnership andknowledgeandlong-termconnectivitywillseetocontinued cooperation. The players havecommongoalsandareabletorecognizethese.

Onecanalsofocusatapeopleaspect.Gothenburgisnotabigcitysothepeopleareconnectedandaremovingaroundovertheleadingorgansationsinthetown,almostbydefault.Thiscreatesshortlines,therewillalwaysbesomebodywhoknows

somebody.Thisisquiterelevantwhenyouwantthings to work and happen at the operationallevel of implementing a project. Respect isimportantandbuildsupinlongtermrelationships.

Finally,IwouldliketoreiteratetheconclusioninJournal 3,which looked closer at science parksandconcluded:

Recapturing the Gothenburg situation as described, I would argue that the last two points (execute, measure, collaborate & create) and possibly the first (create a unified mission) entail the FED project but that the common goal and motivation are very much the continuous process going on at Johanneberg and personified by Johanneberg Science Park. This conclusion may prove that JSP can be a great, natural choice of project-lead in projects with the same typology, which is also testified by the list of EU-projects they are engaged in.

Of course the main winner here is the municipality, or the public if you want. By making a relative

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small investment it the science park it creates consensus over a list of organisations that it would never manage to, if the system would not exist. How else would a housing company come

4 https://hll.livinglab.chalmers.se/

into contact with a project on driver-less vehicles, or how would a car company learn about solar panels on an inhabited Living Lab4?

4.4 AdoptingparticipativeapproachThis topic is about common ownership ofproblems,orevenbetter,solutions.

In the beginning WP4 (energy hardware) andWP5 (software agent development) needed totalkandconnecttoeachother.Theenergystaffneeded to be close to the programmers thatmaketheagents,andthathappenedonlylaterintheproject.Ittookaboutayeartorecognizethis.This was a very relevant connection to makebecausetheEricssonprogrammersarenormally

not in contact with the boiler guys. It wasconcluded that a good contact at a lower levelthan just the FED steering group in the projectwas necessary to work together. This is reallyrelevant,timemustbeallowedforthat!

The FED project itself and the institutionalizedparticipation by means of the board ofJohannebergScienceParkofalmostallpartnersare-Ithink-exemplarywaysofcollaborating.

4.5 Monitoring&evaluationThetimeplanoftheprojectwasveryambitious.This is very common in EU projects, since allrequestedelementsneedtobeinaproposal inaverytimelymannertogetthetop-ratingsfromthe evaluators. With monitoring being -bydefinition- at the endof thetimeline, it alwayssuffers from delays and unforeseen things. Thecaveatisofcoursethatgoodambitiousinnovationprojectshaveunforeseenelements.

TheFEDsystemwillbeinoperationlongerthanforeseentosupplythedataoverafullwinter.The

monitoringequipmentisworkingwell,andsomeearly overviews of the renewable energyproducedaresuppliedinchapter2ofthisJournal.

Evaluation-wise, there have been constantdiscussionsonelementsintheprojectandtheircontribution and need from differentperspectives,whichisforexamplewhythewatertank for heat storage was not ordered. Thesediscussions and evaluations with the relevantprojectpartnershaveresultedinaclearoverviewandwillbepresentedintheFEDfinalreport.

4.6 FinancialsustainabilitySeereplication&upscaling

4.7 CommunicatingwithtargetbeneficiariesThecommunicationwithtargetbeneficiarieshasmainly been handled by Johanneberg SciencePark.Theyarespecializedinbusiness-to-businesscommunicationandmanyofthestakeholdersin

otherscienceparksfollowtheircommunicationsand transfer these to relevant stakeholders intheirecosystems.GothenburgBusinessregionissimilarly active in Sweden and beyond and

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interested parties know how to find bothorganisationsonTwitter,LinkedInetc.

The FED’sfinal national conferencewasheld inGothenburg5onthelastdayofOctober2019andthereweremanybusinessesthatwereinterested.From the group of real estate and energycompanies, in fact all the important players inSwedentookpartintheevent.Thenationalandlocalauthoritieswerepresentandshowingalotof interest. Johanneberg Science Park and theFED project are helping them to build theirknowledge. The Swedish energy agency & theSwedish agency for smart grids have also beeninterestedinparticular.

Itisfairtosaythatfromamarketingperspective,the FED has pinpointed the right individuals,

5 https://youtu.be/7N3PdLmE7Yw

invited them, they responded, and then theprocesses of sharing knowledge really started.There have also been articles in branch-relatedbusinessmagazinesforenergyandrealestate.Andof course students and academia have beeninvolvedandlearningviatheChalmersconnection.

Toeventually go to consumer levelwith amulti-commodity grid that uses flexible pricing, mayneedlargerstepsanddifferentstrategiesbutisnotimpossible at all. Many mobile-phone operatorsusethesamefrequencies-infrastructure-andnotmany clients complain about it, for example.The FED recommends though, to give verycareful considerations to social acceptance in itspolicyrecommendations.

4.8 Replication&upscalingThere’s a problem with projects that innovate at the systemic level. At a system level, it only makes sense for a building to be used as prosumer if there’s infrastructure to sell its production and if there’s a buyer. An investor in infrastructure needs to install the right capacity, but also needs to regather investments during the life-span. This may be more unpredictable if the system changes. PV-systems and heat pumps can be more or less profitable and services like energy storage may blossom in a new system. This is all being tested in the FED. That’s not the problem.

The problem of the upscaling of an innovative system is that there are many components and although the component owners have been very supportive in the project, the system itself is not their core business and after the project, well, life goes on. Perhaps there can be a specific component push, by an enthusiastic advocate or perhaps even patent-holder (like with linear innovation), but there’s no ‘natural’ carrier of the

burden of the responsibility (or budget) of upscaling and replicating a systemic innovation.

WithregardtotheFEDsystemithasalreadybeenconcludedthatwiththesetupoftheICTplatformandmarketplacethathasbeenconstructedithasbeenpossibletohaveastableoperationandaddnewagentsastheyarereadytobeimplemented.The FED-system has shown a strong stabilitydespite these disturbances, which is a majoradvantage in a real situationwherenewactorswouldjoininalocalmarketatdifferentstages.

AfterworkshopsinDenmarkandtheNetherlands,theprojecthasproposedalistof‘must-haves’andalistof‘nicetohaves’forfurtherupscaling.Ideallyall‘must-haves’arecovered,inwhichcasetheFEDsystem could probably be replicated. In realitythough,itislikelythatcertainelementsoftheFEDarereplicatedandothersnot,dependingonlocalvariations. The list that the FED produced readsasfollows:

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Table4:Must-haves&nicetohavesforaFEDreplication

Othersneedtostepupandseehowtheycanearnmoneywithasystemlikethis.Atthemoment,theincentivesarenottheresolittlehappenspasttherealisation of one-off smart grids. The FED, fromthat viewpoint has been a preparatorywork, forother experiments and has possibly laid somefoundations to build upon or perhaps use forinsightswhenregulationsstartchanging.

ItisexpectedthatJournalnumber6andpossiblythe Zoom-in, both foreseen in2020, godeeperintothereplicationstrategyandbusinessmodel.The reason for not developing a replicationstrategy now is that themonitoring figures arenotready. It is thereforedifficulttosee if there

arewinningorlosingtechnologiesinthesystem,or interdependencies that we cannot foreseenow.ThereasonforthatisthattheFED-systemthat is operating since January 2019 is nota constant entity since new agents have beenaddedtothesystemastheyhavebeenreadyandtested.One can therefore onlymonitor actionsand analyse outcomes that have taken placeduring this intermediary time when the FED-system is operating but not in its final state.Becauseof that, it is not possible to seewhichpartsoftheFEDcontainthelargestpotentialattheendof2020.Insalesterms,the‘compellingpoints’arenotmeasuredyet.

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Policyrecommendations

6 https://www.johannebergsciencepark.com/sites/default/files/FED-policy-folder.pdf

In theendof theproject, the FEDhaspublishedthefollowingpolicyrecommendations6.Theyare:

1. Striveforsocialacceptance

2. Directinvestmentsandincentives

3. Definetheroleofthemunicipality

4. Enabletradingwithflexibility

5. Enabletesting,demosandproofofconcepts

Asummarypertopicreadslikethis:

1. Strive for social acceptance

Thistopicaddressesthatlocalenergymarketscancontributetomoreeffectiveuseofenergybutthattherearenoregulationsfortheminplace.

At the moment there are as such very limitedpossibilities to trade between multiple energycarriers and that incentives to implement anenergy society are lacking.Oneof the issues isthatforhome-owners,orbuildingownersthere’snoincentivetolookanyfurtherthantheircurrentbusiness.Theydon’tseetheirhomesorbuildingsas a battery, or perhaps even as a productionunit,likeintheprosumersituation.

Social acceptance is necessary for successfulimplementation of new technical solutions andtheachievementofchangedbehaviours.

Thepolicy recommendations in thisareaaddressthe top EU-level where regulations are set, thenationalfollowupofArticle16intheCleanEnergyproposal and the local efforts needed to informandsupportcreationoflocalenergycommunities.

2. Directinvestmentsandincentives

There is a very large gap between the largersystems in cities and the individual heating

demands per building. This topic addressesfinancial instruments, and in particular looks atthefactthatbuildingsplaynoroleinthesystemtradingtheCO2rights.

ThepolicyrecommendationsaimattheEuropeanInvestmentBank(IEB)tomakesolutionsliketheFED system possible and advocate to designincentivestocitieswhichareobtainedwhenCO2 emissionsaredecreased.

3. Definetheroleofthemunicipality

Thebuilt-inconflictbetweenthegoalofcreatingsolutionsonthewhole,saysocietallevel,tolocaloptimization is being addressed here.Municipalities in particular lack the tools toensurethatlocalenergycommunitiescontributetoarobustenergysystem.

The policy recommendations are to handmunicipalities possibilities to influence anddesignlocalenergycommunitiesandtofacilitatecollaborationbetweenthedifferentstakeholdersinthecity.

4. Enabletradingwithflexibility

Thisbroadtopicfocussesthelackofflexibilityinthecurrentenergymarketsandlackofregulationstocreatethem.Itdemandsrole-clarificationandincentives to use the market to push forenergyefficiency.

Therecommendationsdonotpushforadifferentmarket in total but focus on a couple ofimprovements:

• Design of regulations for flexibility of theheatingmarket

• Allow tariffs and pricing models to enableflexibilityservices

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• Allow conditions that can capture energysocieties

• ChangeSwedishElectricityActtoallow localsystems

• Implement more exemptions from nationallegislation

5. Enabletesting,demosandproofofconcepts

Complexsystemsolutionsdoneedtobetestedandareofteninvisibletoimportantstakeholders,

as the addressed problems are not identifiedbyall.

Recommendedsolutionsaretocreateconditionsfor new business models for flexibility serviceswith multiple energy carriers by allowingexemptionsfromcurrentregulationsinselecteddemo projects on district or city level.Furthermore, the FED team advises to enablemore demos via financing from national andinternationalprogrammes.

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5. Learningpointsandnextsteps

Gunilla Åkerström from the city of Gothenburgputsiteloquentlywhenshestates:

‘We know that the societal challenges ahead are not something that individual actors will manage by themselves. That’s why it is important for us as a city, and the development of our core services, that we become a good player in various forms of collaborations with industry and academia’.

Sheaddressesacollaborationissuethatisneededin every large city in Europe and at the sametime, she is speaking precisely about the FEDproject inwhichdifferentactorsproduce, tradeand consume in a new manner. Never beforewere heating, cooling and electricity traded inonesystemliketheFED.

Oneimportantlearningpointisthatitispossibleto trade electricity, heat and cooling in onesystem.Thedrivers for innovations like theFEDare the growth of distributed and renewableelectricity generation, which demand forcoordinationbetweenthe large/small scaleandthedistributed/centralisedproductionundertheconditionofgridstability.Againstabackgroundofdigitalization,urbanizationandelectrification,

FEDhasmadeabolddemonstrationhowtoaddflexibilityintheexistingsituationatJohanneberg.

Thedemonstrationalsomadeclearthatthecostofthemarket solver are not too high. At the sametimetheproject learned that it isnot soevidentwhohasthenaturalroletobethemarketoperator.Theselearningsareverymuchintheexperimentalfieldbecausetheybasicallytakeplaceoutsidethelaw,inthelawexemptsituationattheCampus.

Figure 5: Four result categories from the FED project

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Another learning point is that capacity building(education)isveryimportant.Theunderstandingthat buildings with advanced building controlsystemscanbecomeprosumers-orbatteries-inanadvancedenergysystemisnotoneyouwouldcallcommonknowledge!

Ofcourse,itbecameclearthatupdatedbuildingcontrolsystemsareneededforadvancedsystems

7 https://celsiuscity.eu/8 https://northsearegion.eu/access/news/local-energy-systems-a-piece-of-the-new-energy-puzzle/

and if youwant to replicate FED solutions. TheFEDProjectalsoreportedthatsocialacceptanceand legislation need careful consideration andwillneedtochangefortheFEDtobecomelargescale. Directions for next steps were alreadychosenwithvisitstoDenmark&theNetherlandsand inclusion of the FED in for example theCelsius7andAccess8projects.Theywillbefurtherdetailedinthecomingmonths.

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