Dynamic pricing by scalable energy management systems — Field experiences and simulation results using PowerMatcher

Response of demand, distributed generation and electricity storage (e.g. vehicle to grid) will be crucial for power systems management in the future smart electricity grid. In this paper, we describe a smart grid technology that integrates demand and supply flexibility in the operation of the electricity system through the use of dynamic pricing. Over the last few years, this technology has been researched and developed into a market-ready system, and has been deployed in a number of successful field trials. Recent field experiences and simulation studies show the potential of the technology for network operations (e.g. congestion management and black-start support), for market operations (e.g. virtual power plant operations), and integration of large-scale wind power generation. The scalability of the technology, i.e. the ability to perform well under mass-application circumstances, has been proved in a targeted field experiment. This paper gives an overview of the results of two field trials and three simulation studies. In these trials and simulations, demand and supply response from real and simulated electrical vehicles, household appliances and heating systems (heat pumps and micro co-generation) has been successfully coordinated to reach specific smart grid goals.