IEEE Power & Energy Magazine - March/April 2021 - 49

US$ (millions)

its duration. Additionally, we have mapped the contribution investigation of the safe and efficient system integration
of DERs is greatly strengthened by demonstrations in
of each project to the four categories, depending on its focus.
The total funding per category and year is presented in real environments and networks. This leads to a need for
Figure 2. While all categories experienced a substantial larger experimental setups, involving DERs and distriincrease in funding in the first years of the decade, their bution networks, the participation of DERs in the wholeevolution in the subsequent years has not been the same. sale markets, and the investigation of mechanisms that
System integration and markets/business models are the two ensure not only the reliable provision of services on a
categories with an almost-continuous increase, whereas the system level but also the secure operation of distribufunding for the components and aggregation categories has tion networks.
For this reason, projects dealing with system integration
been declining since 2016. There is a continuous decrease in
the budget of projects related to flexibility components and tend to have larger budgets. A scatter plot of the projects'
aggregation, which dropped from a combined share of 60% starting year against their budget is displayed in Figure 3.
in 2010 to 30% in 2019. This difference was compensated by Only six projects exceeded a total budget of US$6 million,
an increase in the share of projects related to system integra- and all of them focused primarily on system integration. The
tion and market design.
In the early 2010s, concepts and ideas related to the utilization of DER flexibility were relatively new. Most of the
30
research work was devoted to various aspects of modeling,
control, and the monitoring of flexible loads, with a focus
25
on EVs and thermal loads. The goal was to demonstrate that
20
demand response could be a reliable provider of flexibility.
This was done by determining the characteristics and influ15
ence of the operational constraints of flexible units so that they
10
could be used for balancing purposes and lead to an increase
of energy security in the power system. Thus, it is natural that
5
earlier projects focused more on technical problems and under0
standing the capabilities of demand-side flexibility as a service
provider rather than system-integration issues.
Over the years, early-stage technical problems related
Year
to the control of DER flexibility in power systems have
Components
System Integration
largely been solved. The relevant technology has improved,
Aggregation
Markets
and many commercial solutions are now available, offering
advanced monitoring, control, and management capabilities,
both on individual and aggregated levels. The funded proj- figure 2. The project funding per category and year of
ects and research in the field of smart grids and flexibility nationally funded Danish projects related to demand-side
in general have shown that the main challenges associated flexibility.
with the wide-scale utilization of
DER flexibility are technical system integration and energy market
issues as well as viable business
25
models for end users, aggregators,
EnergyLab
and system operators.
iPower
20
Nordhavn
The system integration of
EcoGrid 2.0
demand-side flexibility covers
15
many issues, mainly associated
Cities
System Services
with the increasing penetration
10 From Small-Scale DERs
FED
of DERs in the power system
and the safe utilization of flex5
ibility. Central to these problems is the secure operation of
0
distribution networks because
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
it is at this level where DERs
Year
are installed, and it is through
the distribution network that figure 3. A scatter plot of the project budgets and starting years of nationally funded
services will be provided. The Danish projects related to demand-side flexibility.
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IEEE Power & Energy Magazine - March/April 2021

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