Maximising value for local flexibility management in low voltage distribution networks

The integration of information and communication technologies into the energy infrastructures will profoundly change the business model structures of the electricity value chain. As business value will be increasingly attached to the bidirectional flows of electricity, data and revenue where flows are driven by a coupling of stakeholder optimization objectives and free market principles, new business platforms will emerge to harness future potential of the energy value chain. Utilizing the business modelling methodology of value network analysis, value flows are mapped within the context of a multi-sided business platform to understand the value created in a network of interdependent relationship, its networked position and the stakeholder interactions required for value delivery. Focusing on the low voltage area of the smart grid, this paper identifies the business platform, its actors, value proposition, and collaboration opportunities involving local energy communities where a local flexibility aggregator facilitates flexibility management between retailers, DSOs, consumers and prosumers.