LINK - Economics

Except for technical / functional use, the benefit or business case of LINK-Solution determines the configuration and operation of various Links. The basics of the LINK-Economics is the functioning of available advanced technologies of management systems and optimal investment.

The available advanced technologies have undergone an intensive scientific review and have been demonstrated by the industry for both energy and distribution management systems. Therefore, there are established reliable advanced applications that should work on some upgrades to the specifics of Links. In other words, the accumulated knowledge and the available technologies for the operation of power systems is useful to LINK-Solution.

 However, LINK-Solution has some unique aspects that require innovations.  In general, the LINK-Solution differs significantly from the traditional power systems, because it consists of a set of Links that work independently together. New online and real time applications will be designed and developed to ensure reliable and resilient operation through the dynamic optimisation in each Link.

The large-scale integration of DERs and various advanced technologies enabled by LINK-Solution will reduce the CapEx and OpEx of the future power system. For example, the large-scale integration of DERs into the existing radial structures of medium and low voltage grids and customer plants will defer or completely avoid the cost of system extension that would otherwise be necessary to cope with the growing load. The use of the dynamic joint optimisation of demand and supply is a new opportunity on the power systems economics. In traditional energy systems, the control of loads is usually treated during the planning process and off-line analyses as demand-side management or load control associated by differentiated tariffs or contracts. Local Energy Communities, LECs, realised under the LINK-Solution behave differently. The marginal costs of own power production will be taken over at any time by the LEC-participants. In addition, LECs will have the opportunity to consider the marginal costs of energy provision at all times together with the corresponding costs for energy efficiency investments and demand reduction on the basis of demand response.

Power systems have traditionally been developed and operated to provide all customers with electricity that meets more or less the same standard of quality and reliability of power supply. LINK-Solution provides the ability to bring the control of power reliability and quality closer to the end user to optimise these characteristics for the respective loads. Therefore, heterogeneous standards of quality and reliability of power supply are possible, and based on and through combined economic and environmental studies, optimal investments in DERs or grid reinforcements will be identified.

With the new market design, each Link (or LEC) operator will participate into the whole market thus enabling power trading beyond the substation and the provision of ancillary services of small entities.