TradeRES-project: Innovative market models for renewable energy integration in the EU

Efficient and sustainable market designs

In the TradeRES project, TNO and partners aim to develop a market design for the EU electricity system using quantitative indicators such as supply security, average consumer costs, and investment payback periods.

We contribute to the following objectives:

• Providing efficient operational and investment incentives for an electricity system with a high share of VREs.
• Increasing the integration of the electricity system with other energy domains, such as transport and hydrogen.
• Enhancing the deployment of flexible electricity demand from households to industrial consumers.
• Ensuring supply security by guaranteeing sufficient controllable electricity generation capacity.
• Improving the economic efficiency of the electricity system.

The project is organised into seven work packages, including coordination and management, and the efficient dissemination and application of results. The core research is concentrated in four work packages, working closely with stakeholders such as market operators, aggregators, VRE producers, and energy network communities.

Innovative market models

TradeRES develops and tests market models in an advanced simulation environment that considers real-world characteristics such as limited predictability and the caution of involved parties.

The results of these market models are compared with a benchmark calculation of an optimal energy system. The expected outcomes are:

• Improved supply security.
• Control of average consumer costs.
• Efficient investment payback periods.

Expertise and coordination

TNO makes a significant contribution to the TradeRES project with our expertise, knowledge, and innovations in energy and climate policy. We are responsible for the benchmark calculation using the EU electricity market model COMPETES-TNO and for conducting and coordinating the case study on the Netherlands (together with TU Delft).

Project Partners

• LNEG (Portugal): project coordinator
• TNO (Netherlands)
• SMARTWATT (Portugal)
• EnBW (Germany)
• ISEP (Portugal)
• TU Delft (Netherlands)
• DLR (Germany)
• bitYoga (Norway)
• VTT (Finland)

Stakeholder involvement

Representatives of consumers, energy producers, grid operators, and the government are involved in all phases of the process to ensure the social acceptance of the research process and results.