Enhancing low voltage flexibility through home energy management: a co-creation approach with DSOs and market product development

This paper explores the evolving landscape of low voltage (LV) developments in the Netherlands, focusing on the transition to fossil free energy consumption, resulting in the integration of electric vehicles (EVs), residential rooftop solar panels (PVs), residential heating with heat pumps (HP). These technologies increase peak grid demand. Which require alternative strategies for demand management. It highlights the role of flexibility as a bridging solution and outline a strategy to enable LV flexibility through resident power limiting contract by the Distribution System Operator (DSO) using Home Energy Management Systems (HEMS), emphasizing the prerequisites for success. One essential prerequisite that is identified is a significant role for market participation in developing and executing this strategy. To this end an approach of open innovation and market participation is proposed, advocating for co-creation with stakeholders. The advantages of this collaborative method, supported by literature, are underscored and call for broader collaboration. Finally, the results of a recent case study are shared, using this open innovation method to develop congestion mitigation in LV networks through HEMS in co-creation between a Dutch DSO and 35+ market parties. The willingness of various parties to join these initiatives and the positive competitive environment are identified. Two discourses become visible in this collaboration: That of the small innovative energy retailers who feel the urge to collaborate versus the large traditional energy suppliers who want to remain in full control of all aspects of their business portfolio.