+70 PODs
monitored daily
RomeFlex: The New Energy Flexibility Market in Rome
Use Case
Energy flexibility
How to Enable the Local Flexibility Market
In the energy world, local energy flexibility emerges as a necessary solution to address the challenges posed by the energy transition.
For network operators, it becomes imperative to use innovative information and communication technologies (ICT) to manage the complexity of activities related to the local flexibility market.
The project "RomeFlex," developed by Areti, a company of the Acea group and the first Italian distributor (DSO) to start such a project, represents a significant step forward in the energy transition process and in creating a solid technological architecture capable of ensuring a more open and inclusive market approach.
Apio, on behalf of Areti, with its experience in the electric sector and in creating innovative digital platforms, has provided high-value technological solutions to support the achievement of RomeFlex project goals and create a new local electrical flexibility market.
The RomeFlex Project
The "RomeFlex" project marks an important milestone in the path of the European energy transition. This transition is characterized by an electric sector increasingly dominated by generation from renewable sources and distributed across the territory, and by an increase in consumption due to electric mobility and summer/winter conditioning achieved through heat pumps.
Areti is the first Italian distributor (DSO) to launch a local flexibility market project managed by GME. The goal of RomeFlex is to design a framework through which it is possible to implement an inclusive flexibility market at the service of all the utilities in the city of Rome. This project, thanks to its open structure, allows the entry of other DSOs interested in adopting similar pilot projects.
In the context of the electric market, the functioning of auctions is based on an organizational model that includes term auctions, managed through the Term Market. These auctions are designed to guarantee and remunerate the Balancing Service Providers (BSP) for about a year, the availability of flexibility resources at a price determined during the auctions themselves.
Once the auction is concluded, the winning bids are entered into the Spot Market. This market operates daily, identifying the specific services and related quantities needed by Areti for the next day (Local Day Ahead – LDA) or in the following four hours (Local Infra Day - LID) for optimal network management.
The RomeFlex project introduces a further possibility during the LDA and LID sessions. BSPs that have won the term auctions can improve the economic conditions of service delivery for certain hours, compared to what was offered at the auction base. Furthermore, all BSPs, even those who did not win the term auction, have the opportunity to present service offers for those specific hours.
This auction model, on the one hand, ensures a baseload of flexibility, and on the other hand, enables a competitive market where BSPs can optimize their offers and improve their economic positions.
The RomeFlex project promotes a smarter and more flexible management of the network by defining a framework capable of quickly adapting to market evolutions.
The platform allows active participation by citizens and businesses, which can offer their energy resources to the network through a BSP.
From February 1, 2024, users in Rome can participate in flexibility services. Areti has indeed started the onboarding program for BSPs that have won the first term auction of the Local Flexibility Market, called last November by GME (Electricity Market Manager) on behalf of Areti. This made available flexibility resources of 3,000 kW divided into different types of users (industrial, tertiary, residential) for the period February–April 2024.
The first user activated through the Local Flexibility Market on the distribution network of Rome was a 410 kW plant from the University of RomaTre. This will be followed by the gradual start of the service for all other users, about seventy, distributed in different neighborhoods of the capital.
In addition to Data Platform, IoT, and Blockchain Access Layer technologies developed by Apio, the RomeFlex project has seen the contribution of Engineering and Siemens, which have provided the systems for analysis, simulation, and electrical network flexibility. This Local Flexibility Market, organized and managed by GME, allows DSOs (Distribution System Operators) to procure flexibility services and remunerate them through transparent and non-discriminatory mechanisms.
RomeFlex is undoubtedly a significant step forward in the field of energy transition and offers a model for energy markets that can thus evolve in managing renewable penetration and coping with the increase in energy consumption.
The numbers of RomeFlex project
+3MW
of daily energy flexibility
+15MWh
of consumption monitored daily
Sustainable goals achieved with the project
Architecture
The RomeFlex project is an exemplary case of how technological innovation can revolutionize the management and distribution of electric power. Its unique architecture enables a wide range of stakeholders, from DSOs to individual users, to actively participate in the local flexibility market.
It required significant expertise in the IoT field and the creation of advanced technological solutions. Apio, with its vast experience in the Internet of Things (IoT), played a crucial role in ensuring the success of the project by providing its IoT Platform and know-how for the configuration of the Power Grid User Interface (PGUI), the project's heartbeat.
During the development phase, we focused on implementing the PGUI devices.
Furthermore, we managed the entire software design and development process, ensuring smooth and secure bidirectional communication between the device and the cloud.
Beyond the Internet of Things aspects, we were involved in creating the Blockchain Access Layer for the notarization of energy flow data and flexibility setpoints. It is in this layer that we intervened to create a system that verified the correctness of the signature affixed by the PGUIs, and then wrote and validated the information on a public blockchain. This process is crucial for the project's success because it guarantees a high level of transparency for the end customer.
The use of a public blockchain has particular significance in the context of the RomeFlex project, where the choice was made to operate through transparent and inclusive market logic. An economic value is recognized based on the service provided, and data relating to the validity of transactions are accessible to all. This is made possible thanks to Blockchain technology and the trading platform provided by GME, which ensures total transparency and immediate certification of all economic transactions and technical reporting of the service provided.
Lastly, we developed the Flexibili app, available in all stores, to allow users to interact with the RomeFlex platform.
A Flexible and Remunerative Market
The RomeFlex project is structured to ensure an economic compensation system based on transparent and inclusive market logic for customers who, through a BSP, can for the first time access flexibility services. The main goal is to manage the electric network smartly and flexibly, enabling the creation of a complete, evolved, and inclusive local flexibility market for all utilities in the city of Rome managed by Areti, a company of the ACEA Group responsible for the distribution of electric power in the capital.
At Apio, we are thrilled to have been part of such a significant and complex project that will play a crucial role in the energy transition by contributing to the integration of a significant amount of renewable energy production into the network.
This case study highlights the importance of adopting digital technologies in the context of the energy transition, underscoring the value of technological innovation in the management and distribution of electric power.
