=Paper= {{Paper |id=Vol-2382/ICT4S2019_paper_11 |storemode=property |title=Building Energy Management Systems and their Role in the Energy Transition |pdfUrl=https://ceur-ws.org/Vol-2382/ICT4S2019_paper_11.pdf |volume=Vol-2382 |authors=Severin Beucker,Simon Hinterholzer |dblpUrl=https://dblp.org/rec/conf/ict4s/BeuckerH19 }} ==Building Energy Management Systems and their Role in the Energy Transition== https://ceur-ws.org/Vol-2382/ICT4S2019_paper_11.pdf
       Building Energy Management Systems and Their
                Role in the Energy Transition
                           Results from Research Projects and Applications in Germany

                                                       Severin Beucker, Simon Hinterholzer
                                                Borderstep Institute for Innovation and Sustainability
                                                                  Berlin, Germany
                                                beucker@borderstep.de, hinterholzer@borderstep.de

  Abstract - The building sector is responsible for a major share of                  Although efficiency measures (e.g., high-quality building
the final energy consumption in the European Union. Most                          insulation, solar architecture) and decarbonization strategies
attempts to improve this situation to date have focused on                        (e.g., using more renewable energies), are widely applied in the
construction or retrofitting measures. In contrast, this article                  construction of new buildings,1 retrofitting the existing
centers on the role of building energy management systems and its
ability to improve energy efficiency as well as to increase the
                                                                                  residential building stock is extremely challenging. High costs
consumption rate of renewable energies in the building sector.                    and inadequate financing schemes [4] and [5], long life cycles of
  The authors present findings from two research projects in                      materials and appliances, as well as social constraints
Germany that have analyzed applications of the technology for                     (increasing rents and housing prices) and cultural constraints
reducing heating demand and electricity consumption in                            (preserving historic buildings and urban centers) delay the
residential buildings and households. Particular attention was                    implementation of efficiency measures and the roll-out of
paid to life-cycle-wide and rebound effects of the technology to                  renewables in the building sector.
ensure that the applications achieve net savings.                                     Another approach to increasing efficiency is through smart
  The results also illustrate that building energy management
                                                                                  building technology, in other words, distributed, intelligent, and
systems can facilitate the implementation of the next phase of the
energy transition, which will require flexibility from the building
                                                                                  networked hardware and software systems that can reduce and
sector to adapt energy consumption to more volatile production                    shift energy consumption in buildings and households (see
patterns from renewable energies. Open architectures, standards,                  Section II). Smart building technology is becoming more
and interfaces play a crucial role in this process.                               important for the following reasons:
                                                                                      • Networked information and communication technology
  Index Terms                                                                              (ICT) in the energy sector: autonomous and ubiquitous
  Building energy management, energy transition, flexible energy                           sensors, smart measuring technologies (smart meters
consumption, demand-side management
                                                                                           and smart meter gateways), and open platforms and
                                                                                           interfaces are sweeping the building sector, becoming
     I. THE ENERGY TRANSITION IN THE BUILDING SECTOR                                       integral components of existing technologies and
    The building sector is of considerable importance for the                              products (heating, cooling, appliances, etc.) [6]. Energy
transition and decarbonization of the energy system. Almost                                networks and infrastructure (transmission and
80% of total final energy consumption in the EU is used for                                distribution networks) are also being equipped with
heating and hot water in residential and non-residential buildings                         smart technologies, gradually allowing communication
[1]. Moreover, approximately half of the stock of residential                              across different levels of the energy system (see II.B).
buildings in European countries was built before thermal                              • Demand for energy management in buildings: in
regulations or building codes were introduced in the 1970s [2],                            addition to the objectives for energy efficiency, the
resulting in poor insulation and high thermal losses.                                      increasing share of fluctuating energy production from
    The EU has therefore agreed on two policy goals for 2030.                              renewable sources is creating a need for more demand-
First, energy efficiency should be improved (in all sectors) by                            side flexibility in the energy system and the building
27% and greenhouse gas (GHG) emissions reduced by at least                                 sector [1]. Smart building technologies provide
40%. Second, the share of renewable energies is to be increased                            solutions for managing energy consumption in buildings
to 27% of the energy supply [3]. These policy goals present two                            and households, for coupling heating and electricity
challenges to the building sector: an increase in efficiency and                           consumption, and for adapting energy consumption
the integration of fluctuating renewable energy sources into a                             patterns to fluctuating energy production.
system with a steady demand.                                                          • User and behavior orientation: finally, users are an
                                                                                           important factor in the transition towards an efficient
     1
       These principles and strategies are integral parts of building codes and
directives for energy performance (see, e.g., the Energy Performance of
Buildings Directive (EPBD) and the Energy Efficiency Directive (EED)).
         and flexible energy system. Besides rapidly developing                     optimization vs selective optimization) and the number and
         technology and improved usability, behavior is crucial                     accuracy of the measured variables and values used for
         for mobilizing efficiency and flexibility potentials in the                optimization [12]. While thermostat-based heating control often
         building sector. Smart building technology and                             relies on one or a small number of measuring points, BEMS take
         applications can facilitate and incentivize a change in                    many measured values from individual rooms, user preferences,
         consumption patterns (e.g., through visualization and                      building characteristics, and the weather forecast into account.
         efficient feedback mechanisms) [8] and [9].
                                                                                    B. Evolution Toward Open Standards and Platforms
Against this background, the objectives of the present paper are:
(1) to summarize and demonstrate that state-of-the-art smart                            Smart building technology is undergoing a radical change. In
building technology can contribute to significant (net) energy                      the past, BAS and BEMS were known for their proprietary
savings, and (2) to describe how the technology can be applied                      approaches and communication protocols that often led to
to use inherent flexibility2 and demand management potential in                     technological and financial dependencies [14]. Furthermore,
the building sector for the energy transition.                                      applications were often user-unfriendly, forcing customers to
    The findings presented in this paper were gained from two                       adapt to autonomous control systems and leaving very little
research projects and selected pilot installations of smart                         room for interaction. This situation has changed significantly
building technology in Germany. Although the German                                 over the past decade. Many (although not all) systems are based
objectives and strategies for a transition of the energy system                     on interoperable hierarchical architectures and (semi-)open
result from national policies and a specific building stock, the                    standards and protocols (e.g., Connected Living,3 OpenTherm,
findings can be transferred to other countries.                                     Open Metering System).4 The energy sector itself is a strong
                                                                                    driver for open architectures and interfaces with the objective of
II. ROLE OF SMART BUILDING TECHNOLOGY FOR THE ENERGY                                creating integrated and networked smart energy systems and
                      TRANSITION                                                    markets, integrating energy generation, distribution, and
                                                                                    consumption (see e.g., USEF,5 VHPready,6 and EEBUS.7)
A. Definition of Smart Building Technology and Building                                 Finally, BEMS user interfaces and feedback mechanisms
    Energy Management Systems                                                       have improved significantly, benefiting from the general
    Smart building technology is based on building automation                       development of smart devices such as smartphones and tablets
systems (BAS). A BAS is used to monitor and control                                 [13]. Another advantage of BEMS open architectures for users
mechanical devices, lighting, heating, ventilation, and air                         is that these allow the integration of additional services from
conditioning (HVAC) systems, etc. in buildings [10]. BAS can                        other smart building domains such as facility and service
generally be used in residential as well as commercial and public                   companies (e.g., assisted living or security services).
buildings, and also in industrial sites, where microcontroller-
based automation emerged back in the 1970s [11]. The
following definition focuses solely on residential buildings and
their role in the energy transition, which is different to industrial
applications.
    Building energy management systems (BEMS) are a
subcategory of BAS that are specifically used for energy
management in buildings and households. BEMS consist of
distributed sensors (temperature, humidity, motion, etc.) and
actuators (pumps, radiator valves, vents, etc.) in rooms,
apartments, and buildings that are hierarchically linked to
control units (apartment manager and building manager, see Fig.
1). Their main function is to control and monitor heating demand
in buildings [6] and to adapt the central heat generating unit (gas
boiler, district heating station, combined heat and power (CHP)
plant, etc.) according to the demand of the building and its
                                                                                    Fig. 1 BEMS with sensors, actors, and control units and an open platform for
residents. The difference between BEMS and simple thermostat-                       services (source/©: © Riedel Automatisierungstechnik GmbH)
based heating control derives from the architecture (hierarchical

      2                                                                                  5
        This preliminary definition of flexibility for the energy system was               USEF is a foundation created by organizations active in the smart energy
developed as part of the research project WindNODE (see Section VI).                industry. Its goal is to develop a framework and market model for an integrated
      3
        Connected Living is an innovation center and association that aims at       smart energy system (www.usef.energy, retrieved December 2018).
                                                                                         6
creating a network and platform for a cross-sector and cross-producer smart                VHPready is an open industry standard for the control and integration of
home platform (https://connected-living.org/en, retrieved December 2018).           decentralized power and heat generation plants, consumers, and energy storage
      4
        A number of open standards have been established. OpenTherm is a            systems into virtual power plants and smart grid applications
standard communications protocol used in central heating systems                    (www.vhpready.de/en/home/, retrieved December 2018).
                                                                                         7
(www.opentherm.eu, retrieved December 2018), and the Open Metering System                  EEBUS is an initiative that seeks to introduce a global language for devices
is a standard for manufacturers and utilities for communication between different   in the energy sector to communicate with one another (www.eebus.org/en/
utility meters (www.oms-group.org, retrieved December 2018).                        vision/language-for-energy/, retrieved December 2018).
C. Building Energy Management Systems: Interoperable                                  management, storage technologies, and dynamic pricing
    Platforms for Flexibility                                                         schemes [18] and [19].
    The evolution of BEMS toward open and interoperable                                   BEMS provide interfaces to receive signals for external
systems and platforms has unlocked new areas of application.                          incentives for flexibility (see Fig. 3). The signals might be either
While in the past systems often focused on the optimization of                        control, price, or other incentives that ensure that an economic
energy efficiency in single apartments and the behavior of                            optimum is achieved at the local level. The system is able to react
individual residents [15], [16], and [17], new interoperable (best                    flexibly to external events such as surpluses from wind energy
available) technology takes into account the optimization of                          or bottlenecks in the electricity grid. Signals can either be used
whole buildings and neighborhoods8 as well as the supply                              to stimulate adaptive behavior or for autonomous optimization
system with increasing shares of renewable energies, a more                           with BEMS. Signals can be emitted by market participants (e.g.,
decentralized energy production (e.g., integration of solar                           aggregators10) that collect smaller flexibilities and trade these
panels, heat pumps, or CHP) and consumption (e.g., storage in                         either via virtual power plants11 (VPP) or directly on energy
batteries, electric mobility) (see Fig. 2) [21].                                      markets. New flexibility markets and models of the above-
                                                                                      mentioned aggregators are described for example in “The
                                                                                      Framework explained” by Universal Smart Energy Framework
                                                                                      (USEF) [19].
                                                                                         III.    RESULTS FROM THE DEVELOPMENT AND APPLICATION
                                                                                                  OF BEMS IN A GERMAN NEIGHBORHOOD
                                                                                          The results presented in the following section were derived
                                                                                      from two joint research projects funded by the German Federal
                                                                                      Ministry for Economic Affairs and Energy (see Section VI).
                                                                                          The objective of the projects was to integrate an existing
                                                                                      BEMS into an open smart building platform and to further
                                                                                      develop its optimization functions. The improved technology
                                                                                      was implemented in two different neighborhoods in Germany
                                                                                      and the effects of the energy management were monitored over
                                                                                      a period of several years.
                                                                                      A. Integration of BEMS into an Open Smart Building Platform
                                                                                          In a first step, an existing BEMS for the optimization of the
                                                                                      energy consumption (heat and electricity) in households and
                                                                                      buildings was integrated into an open smart home platform.12
                                                                                      This allows the system to communicate and interact with
                                                                                      standardized bus systems and interfaces from the home
                                                                                      automation sector (IP-Bus, EnOcean, wireless M-Bus, etc.). A
                                                                                      Smart Home Internet Protocol (SHIP) connects proprietary with
                                                                                      open standards (see Fig. 3).
                                                                                          During integration and further development, particular
                                                                                      attention was paid to the usability of the BEMS. A newly
                                                                                      designed graphical user interface and feedback mechanisms for
                                                                                      single room temperature control were implemented.
Fig. 2 The role of energy management in buildings against the background of
a changing energy system (source: according to [7])                                       Integration of BEMS into interoperable platforms is a
                                                                                      prerequisite for the fast-developing demand for flexibility and
    BEMS can be used to optimize complex systems and                                  energy management in a future smart grid (see Section IV). The
facilitate and allocate flexibility.9 Flexibility is becoming more                    main driver for this is the increasing share of fluctuating
important with the increasing share of fluctuating renewable                          renewable energies (solar and wind) in the grid [18].
energies (solar, wind, etc.) in the grid. Alternative strategies for
dealing with a fluctuating energy supply are demand response

     8                                                                                     11
        A neighborhood is defined in this paper as an aggregation of several                  A virtual power plant is an approach to connecting decentralized energy
(multistory) residential buildings.                                                   systems to capitalize them in a combined form and it appears on the market like
     9
       Flexibility is understood as the capability of elements in the energy system   a traditional power plant.
                                                                                           12
to actively react with adapted performance to an external signal that reflects the              The existing BEMS of the German company Riedel
variability in electricity production and consumption. (This preliminary              Automatisierungstechnik GmbH was integrated into the open smart home
definition of flexibility for the energy system was developed in the research         platform concept of the German Connected Living Association (see
project WindNODE, see Section VI).                                                    www.connected-living.org/en).
     10
        An aggregator is a generic market role combining electrical appliances to
make their energy and flexibility more valuable on the market.
                                                                             buildings to times with lower grid loads or by actively feeding
                                                                             energy (electricity from CHP plant) into the grid.
                                                                                 In the above-mentioned case of the neighborhood in Berlin,
                                                                             it was done by using the thermal building mass. Simulations of
                                                                             the buildings have demonstrated that up to 16% of the yearly
                                                                             heating demand in the multistory buildings can be shifted by the
                                                                             temporary adaption of average room temperatures by ±1 °C in
                                                                             apartments [21]. This thermal storage capacity of the building’s
                                                                             mass can be made accessible through BEMS, as the system
                                                                             allows precise predictions of heating demand.
                                                                                 Combined with technologies such as CHP, heat pumps or
                                                                             electric heating, this thermal flexibility can be made available to
                                                                             adapt the dynamic electricity consumption/production profiles
Fig. 3 Open architecture of BEMS (source/©: Riedel Automatisierungstechnik   of these systems [24]. Furthermore, the technology enables the
GmbH)                                                                        efficient allocation and coordination of small price-incentivized
                                                                             flexibilities.
B. Reduction of Energy Demand in Residential Buildings                           The simulation was verified in the buildings with short trials
                                                                             of adapted operation modes of the CHP plant. This result is of
    In a second step, the BEMS was installed in a neighborhood
                                                                             interest for various reasons. First, it indicates that the inherent
consisting of six multistory residential buildings with 224
                                                                             building mass can be used to reduce and shift energy
apartments in Berlin, Germany. These buildings, owned by a
                                                                             consumption in households and buildings. Second, it provides
cooperative, were built in the 1950s/1960s and partially
                                                                             inexpensive flexibility that can be used and increased with
refurbished in the 1990s (with new windows and moderate
                                                                             manageable additional measures (see Section IV).
insultation on walls and attic). The buildings are supplied with
locally produced heat and electricity from a CHP plant (34 kWel/             D. BEMS and User Acceptance
78 kWth), operated by a contractor, and additional boilers.                      The introduction of BEMS in the selected residential
Subsequently, the energy consumption of the individual tenants               buildings was accompanied by an intense and continuous
and apartments for heating and warm water in the complex was                 discussion with the residents of the apartments. The residents
monitored from 2015 to 2018.                                                 learned to operate the BEMS and to adapt the standard operating
    The introduction of the BEMS in the neighborhood led to an               scheme of the single room temperature control to their individual
average reduction of heat demand of 24% (80.8 kWh/m2a to 61.4                needs. To avoid a rejection and malfunction of the system, the
kWh/m2a). Residents’ operating costs were cut by 17% [21].                   following steps were taken:
    Although the heating energy savings depend on the                            • High priority during the development of the BEMS was
characteristics of the building (size, building material and                         given to a user-friendly design and the user interface of
physical properties, structure of residents, behavior, etc.), similar                the control system (apartment manager) with simple
savings (approximately 20%) have been documented in                                  feedback mechanisms.
comparable projects and types of buildings in Germany [21],                      • The cooperative (owner of the buildings) asked the
[22], and [23]. The results also show that efficiency gains are                      residents ahead of implementation to endorse
higher in multistory buildings with multiple apartments and                          introducing the efficiency measures and achieved an
distinct heating demands than in individual or semidetached                          approval rating of over 75%.
houses with simple heating patterns [22].
                                                                                 • The residents were trained to use the systems. Their
    In the same neighborhood, the BEMS was used (in
                                                                                     concerns regarding comfort and costs were respected
combination with smart meters) to visualize electricity
                                                                                     and they learned how to change the settings if so desired.
consumption of the residents in the apartments. Although
                                                                                 Two years after implementation, a survey with all residents
transparency of electricity consumption can lead to individual
                                                                             was conducted. Acceptance of the system was unchanged and
savings (e.g., through exchange of appliances with high energy
                                                                             reduced operating costs, energy efficiency, and comfort were
consumption and behavior change of residents) [8], there are
                                                                             discussed with representatives of the residents.13
currently no incentives for residents in Germany (e.g., dynamic
prices) that would encourage an adapted consumption to a                     E. Assessment of Environmental Effects of BEMS
fluctuating energy supply.                                                       Finally, assessment of the life-cycle-wide energy and
C. Mobilizing Thermal Storage Capacity of Buildings                          resource consumption of BEMS is of interest in order to judge
                                                                             whether the technology can contribute to net savings. Research
   In a third step, the objective was to prove that BEMS can be
                                                                             by the authors has proven that:
used to mobilize flexibility in the building sector. This can be
done either by shifting energy consumption in households and                     • Potential net emissions savings through the application
                                                                                     of BEMS strongly depend on the heat energy saved

    13
       The results of the survey have not been published. The data are the
property of the building cooperative.
         (functional unit: 1 kWh saved), and can vary from                         •    How can smaller flexibilities from buildings be
         approximately 0.4 kg CO2 equivalent (for natural gas                           complemented with other approaches or technologies to
         heating avoided) to over 1 kg CO2 equivalent (for                              form bundles that are technologically and commercially
         electric heating avoided in regions with GHG-intensive                         useful?
         electricity generation). At present, BEMS typically                        • What are use cases, value chains, and business models
         avoid at least 40 times as many GHG emissions as they                          that allow the aggregation of smaller flexibilities from
         produce over their entire life cycle if they are used in                       buildings and how can they be realized?
         regions with moderate to cold climates [12].                               The following sections will describe how these questions are
    • A comparison of building insulation and BEMS in                           being pursued in ongoing research of the authors, using the
         Germany showed that CO2 abatement costs for building                   technology and neighborhood described in Section III above.
         insulation (approximately. €100/tCO2) are at least three
         times higher than the costs for BEMS (approx. 30                       A. Increasing the Flexibility Potentials from Buildings
         €/tCO2) [25]. It follows from this that BEMS can be                        With residential buildings, there are several options to
         efficiently used to quickly reduce energy consumption                  increase flexibility potentials. Although BEMS were primarily
         in the building sector, even when cost restrictions for                developed to control and optimize heating systems and
         refurbishments or strict conservation codes for buildings              electricity consumption in buildings, thanks to their open
         apply.                                                                 architecture and interfaces, they can also integrate (existing and
    Finally, as with other technologies, BEMS can have rebound                  additional) sources for flexibility, such as cooling, air
effects [26]. Direct or primary rebound effects deriving from                   conditioning, heat pumps, electric mobility, etc.
BEMS can be eliminated with a high degree of certainty due to                       One option that can easily be realized in residential buildings
the high efficiency achieved by the technology. Indirect or                     is power-to-heat (PtH) elements in existing warm water buffer
macroeconomic effects are more difficult to assess. At this point,              systems. These can be retrofitted in existing hot water storage
it can only be assumed that these effects are not dominant                      tanks and local district heating networks and they provide
because of rising operating costs (heating and electricity) for                 inexpensive solutions for flexibility by converting excessive
residents in the German housing and rental market.                              renewable energies (e.g., PV or wind) into heat14. PtH elements
                                                                                are therefore simple solutions for coupling the electricity sector
    IV. FUTURE APPLICATIONS OF BEMS FOR THE ENERGY                              to the heat sector.
                      TRANSITION                                                    The neighborhood in Berlin, Germany described in Section
    The results presented in the preceding section indicate that                III.B was equipped with such PtH elements (6 x kW = 48 kW)
BEMS can successfully be used to manage complex buildings                       in existing warm water buffer tanks. The PtH elements were
and neighborhoods with multiple power generating units (e.g.,                   integrated in the BEMS (see Fig. 1) and are now, together with
boilers, CHP plants). In these applications, BEMS serve as a                    the CHP plant (36 kW), part of the flexibility potentials of the
platform for complex controlling and optimization processes.                    buildings. The flexibility can be used to:
They minimize costs (e.g., residents’ operating costs) and                          • consume electricity from the grid by turning off the CHP
environmental effects (e.g., GHG emissions) and translate this                           plant and charging the warm water storage tanks
into specific objective functions of the BEMS, using priority                            (negative balancing power in times of high grid loads)
circuits for CHP plants (to prevent wear and tear)) [6]. Hence,                          or by
BEMS can also be used to facilitate and allocate flexibility or                     • feeding electricity into the grid from CHP plant and
grid-reactive behavior of buildings by using inherent storage.                           slightly overriding the present temperatures in the
Thus, buildings can provide affordable alternatives in                                   complex by max 1°C and using the buildings as inherent
comparison with other storage solutions (batteries, power-to-x,                          thermal storage (see Section III.C) (positive balancing
etc.) [18].                                                                              power in times of low grid loads).
    A key insight from research projects to date is that, although                  Control via the BEMS ensures that costs are minimized and
technically possible, the mobilization of flexibilities from the                changes made due to flexibility options will be in line with the
building sector is highly dependent on (financial) incentives.                  temperatures preset by the residents with minor alterations.
These incentives could be, for instance, dynamic pricing
schemes that take into account availability of renewable                        B. Analyzing Value Chains for Energy Flexibility of
energies, storage options, and grid capacity. Dynamic pricing                       Residential Buildings
would be a strong driver for the allocation of (relatively                          For the commercialization of flexibility of the building
speaking, compared to other sectors such as industry) smaller                   sector, it is important to understand the flexibility needs in the
flexibilities from residential buildings. Such smaller flexibilities            energy market and to identify approaches or instruments that can
could then be allocated to dimension in the GW range with                       serve these market needs. Although demand for flexibility is
significance for the energy system. Further research by the                     subject to national (in this case, German) regulations, some
authors therefore focuses on two questions:                                     general rules apply. First, flexibility is needed to balance
                                                                                upcoming supply and demand on the market (day-ahead and

    14
       The installation of PtH elements in warm water storage/buffer tanks is
inexpensive and can be performed by plumbers in a few working hours.
intraday). Second, there is a need for flexibility to stabilize the               1) Grid Services for a DSO/TSO Flexibility Platform
transmission grid (frequency control) and to avoid network                          The first model aims at offering flexibility to the electricity
bottlenecks (congestion management). Third, electricity                         grid. It combines the functions of a TSO16/DSO17 operational
suppliers (the balance responsible party) have to supply their                  online platform (acquiring flexibility from plant operators) and
electricity to customers continuously and precisely as required.                a coordination platform (optimization between TSO and DSO,
They need to be flexible for short-term adaptation to                           in this case, a project specific platform, see Fig. 3) according to
unforeseeable fluctuations in electricity generation and                        USEF [28].
consumption [27]. Finally, flexibility can be used to achieve a
high self-sufficiency rate. For prosumers, this means that their
own production is able to meet their needs most of the time, so
that they rarely have to buy energy from suppliers.
    These needs have a strong impact on the technological
options for flexible energy supply of buildings. At present,
market demand for flexibility is almost exclusively met by
bigger power plants (multiple MW each). Market access for
smaller (individual) plants, for example, from the building
sector, is therefore difficult to realize.
    For this reason, instruments that might help operators of
smaller plants or units to achieve flexible energy supply are
                                                                                Fig. 4. Flexibility of buildings through TSO flexibility platform (source: own)
being examined. Digital platforms and virtual power plants are
one approach for overcoming the existing barriers for smaller
                                                                                    Offers for flexibility can be submitted both a day ahead and
flexibility providers. They can efficiently pool flexibilities by
                                                                                intraday for individual quarters of an hour (96 values per day).
streamlining processes and minimizing costs that arise, for
                                                                                The call for flexibility can be both day-ahead and intraday.
instance, through registration and trading.
                                                                                    Flexible systems can be registered and offers submitted
    Marketing via VPP can also allow producers to offer
                                                                                either manually via a browser interface18 or automatically via
flexibility to more than one market at the same time (“multi-
                                                                                transfer of an xml file. An automated process fundamentally
use”). Based on precise predictions, it is possible to sell
                                                                                reduces the specific registration/transaction costs per kilowatt.
electricity (e.g., from CHP) on the market 24 hours a day and
                                                                                This is of importance for small flexible devices/systems wishing
simultaneously hold back negative balancing power for
                                                                                to compete with larger ones in the future.
frequency control. Therefore, CHP units are usually operated at
                                                                                   2) Market Flexibility via Virtual Power Plant
full power. If, for example, high loads occur in the grid (e.g., due
                                                                                    The second model aims at integrating flexibility into the
to surplus feed-in from wind generators), the output power of a
                                                                                market through a virtual power plant (VPP). VPP operators
CHP unit can be reduced at short notice to support grid
                                                                                usually control various plants for the generation and
balancing.
                                                                                consumption of electricity in order to be able to react flexibly to
C. Identifying Use Cases and Market Incentives for Digitally                    demand on the energy market and to generate optimum results
    Enabled Flexibility Services Provided by the Building                       across their entire portfolio.
    Sector
    To explore options for flexible or grid-reactive behavior of
buildings and to align them with market demand, research on the
current electricity system/market was conducted together with
relevant stakeholders. Potential models were drafted from a local
consortium consisting of a BEMS supplier, a CHP operator, a
housing company, and two research organizations. These drafts
were presented and discussed at a stakeholder workshop in
Berlin in 2017.15
    On the basis of these workshops, potential models for
flexibility services of local neighborhoods were developed. Two
models that fit the current framework of the electricity system
best are presented below:                                                       Fig. 5. Flexibility of buildings through VPP (source: own)

                                                                                    This case allows VPP operators to react to predictable
                                                                                fluctuations of electricity production in advance by optimizing

     15                                                                              17
        Participants in the stakeholder workshop were: housing companies, CHP           DSO: distribution system operator, the party responsible for operating the
operators, BEMS suppliers, TSOs, DSOs, energy legal experts, energy             distribution grid (sometimes called DNO, distribution network operator).
                                                                                     18
consulting companies, energy suppliers, and research organizations.                     See www.flexplattform.de (retrieved December 2018).
     16
         TSO: transmission system operator, the party responsible for the
electricity transport grid.
schedules. In an ideal market, only facilities that produce the       with dynamic pricing, decentralized production (e.g., CHP or
smallest specific emissions at the lowest cost, just enough to        PV) and power-to-heat technologies, BEMS can serve as an
cover the load (see Fig. 4), will operate.                            optimization platform for coupling the electricity and the heat
    A control box (gateway) is installed in one or more buildings     sector.
to connect the neighborhood to the VPP operator. The box                  Although the individual flexibility from buildings and
interacts with the BEMS which determines the local flexibility        neighborhoods appears small (below 100 kW), the total for this
options and optimizes their operation.                                sector in Germany amounts to gigawatts [29]. Thus, the building
                                                                      sector with its inherent flexibility potential can be made
D. Testing of Use Cases
                                                                      accessible for a renewable energy supply.
    The two cases developed for the building sector (DSO/TSO
flexibility as well as market flexibility for VPP) will be            C. The Role of ICT Open Architectures, Standards, and
implemented and verified with tests in the neighborhood in                 Interfaces
Berlin, Germany (see Section III.C). Time-limited trials (24-48            ICT and autonomous algorithms that optimize energy
hours each) under changing conditions (different seasons) are         management on different levels of the system (building,
planned. A major challenge is the requirement to not interfere        neighborhood, local (distribution) grid, and transmission grid)
with the need for continuous supply of heat and electricity for       are prerequisites for the efficient organization of a future energy
the residents.                                                        system. Not only does the technology make it possible to balance
    The trials will encompass the processing of external signals      energy production and storage, but it also allows the integration
for flexibility (e.g., signal from platform or VPP operator) via      of decentralized flexibilities of buildings and private households
interfaces of the open BEMS architecture (including interfaces        (including appliances such as refrigerators, air conditioners,
between the BEMS and the plant/units for flexibility), as well as     etc.), which can serve as additional reserves for demand-side
the ability of the buildings to react to the signals.                 flexibility.
    It is expected that the flexibility potential will depend on           Although open standards and interfaces in the home
various factors such as building physics (building construction,      automation and energy sector are currently developing, we are
materials, etc.), utilization of the building, and types of heating   still a long way from having open, interoperable, and (inter-)
and hot water systems.                                                nationally accepted architectures that cover different sectors of
    It is also expected that, due to the current market and pricing   the energy transition (energy production and distribution,
scheme (fixed prices for electricity, no incentive for flexibility,   industrial production, buildings and mobility).
etc.), options for commercialization of the flexibility will be
                                                                      D. Economic Incentives for the Energy Transition
limited (see Section B), but that with dynamic prices in the future
(due to higher shares of renewable energies) new business                 Finally, it can be concluded that financial incentives play an
models will develop.                                                  important role in the energy transition. Initial assessments
                                                                      indicate that under today’s regulatory and pricing scheme (in
                        V. CONCLUSIONS                                Germany), only small revenues can be obtained from these
  Results from the research, development, and trials with             decentralized flexibilities in the building sector. However, it is
BEMS allow the following conclusions.                                 also assumed that automated handling of flexibilities from the
                                                                      building sector with BEMS, platforms, and marketplaces will
A. BEMS and their Contribution to Energy Efficiency in the            significantly lower the costs of aggregation.
     Building Sector                                                      Thus, it is likely that handling and trading of smaller
     The building sector plays an important role in the transition    flexibilities will become more efficient. Together with
of the energy system and BEMS can help to make the building           incentives for flexibility (e.g., dynamic pricing schemes for grid-
sector accessible for this development. The technology can            reactive behavior, a flexible grid fee or tax) the development of
improve energy efficiency in buildings and households by              viable business models will be possible in the near future.
significantly reducing heating demand. If state-of-the art
knowledge and technology is applied, 20% of heat energy can                               VI. ACKNOWLEDGMENTS
be saved in partially refurbished residential buildings in                The authors would like to thank the reviewers for their
moderate to cold climates. This can be done in an economically        valuable comments and suggestions that helped to improve the
reasonable way, without interfering with the autonomy and             quality of this work.
comfort of the residents, and with net energy savings over the            The results presented in this article are based on two research
life cycle.                                                           projects funded by the German Federal Ministry for Economic
                                                                      Affairs and Energy (WindNODE (www.windnode.de), funding
B. BEMS Foster the Integration of Renewable Energies into
                                                                      reference number FKZ 03SIN504, and ProSHAPE
    the Grid
                                                                      (www.borderstep.de/projekte/proshapeconnected-energy/),
    In addition, BEMS can act as a key technology to balance          funding reference number FKZ 01MG3002A).
fluctuating electricity production from renewable sources with
the need for a steady energy supply in households and buildings.
The technology (together with smart meters) can be used to
increase transparency on energy consumption. When combined
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