The energy sector is immersed in a complex process of transformation. The regulatory changes required to respond to decarbonisation targets and the rapid penetration and evolution of digital technologies is redefining the way in which energy is generated, transported and consumed. This speeds up the transition to a digital, decentralised electric power grid in which distributed energy resources will play a key role in the optimisation of the grid.

As a result of the electrification of the economy, it is estimated that it will be necessary to generate 70,000 TWh to respond to energy demands by 2050. This is almost three times current capacity; two-thirds of the total will be covered by variable renewable energy sources. In this scenario, the electric power system needs to address the challenge of responding to a complex demand model, with a distributed generation mix that guarantees stable supplies. Therefore, the transformation of the energy system not only involves the deployment of renewable energy assets, it requires the implementation of physical and digital solutions to equip the system with a high degree of flexibility.

The continuous fall in the cost of renewables and the policies and measures put in place to achieve a climate-neutral economy by 2050 have speeded up the decentralisation of the system, incentivising the deployment of smaller and highly digitized generation plants adapted to the energy demands of end users. The distributed generation market reached 217.8 billion dollars in 2020, and it is expected to hit 386.7 billion dollars in 2027. This distributed generation of energy model plays an essential role in the development of a fully decarbonized power system, and it is positioning itself as one of the key pillars in the new value chain.

The digitization of distributed generation assets has shown itself to have great potential for building more efficient, flexible and resilient energy systems. The deployment of this type of energy means that not only a digital model of assets that comprise the grid and its operation is possible, it opens the door to two-way management of energy, transforming passive assets into resources that play an active role in the new energy ecosystem, creating opportunities for the development of new business models.

Adding this digital layer also enables the aggregated management of distributed resources through Virtual Power Plants (VPP), which appear as solutions with the potential to ensure grid stability while maximising the economic value of the distributed resources. Having tools to monitor and manage VPPs will enable the implementation of design strategies to monetize the capacity of distributed assets to provide the necessary flexibilityfor the electric power system.

ACCIONA is launching this challenge to identify tools and solutions that enable the aggregated management, operation and organisation of distributed resources in order to provide advanced services to the grid. The solutions proposed should be oriented towards building and scaling up Virtual Power Plants:

• With granular and aggregated control of the assets that comprise them
• Their operation strengthens the stability and flexibility of the grid in real time
• They have the capacity to scale up the model and dynamically integrate new distributed resources.

If the proposed solution allows research and testing of new business models and creates value for the stakeholders that make up the electric power system, this will be taken into account.