Distribution System Operators (DSOs)
OPENTUNITY and the Rise of AI in Energy
A new report by the International Energy Agency (IEA), titled "Energy and AI", offers a comprehensive, data-driven analysis of how artificial intelligence (AI) is poised to reshape the global energy landscape. The report emphasizes both the transformative potential of AI and the energy challenges it may bring, particularly concerning the soaring electricity demand of data centers.
According to the IEA, the electricity demand from data centers could more than double by 2030, reaching 945 TWh—more than the current total electricity consumption of Japan. AI-optimized data centers are expected to account for the majority of this increase. In countries like the United States, data centers could drive nearly half of the projected electricity demand growth over the next five years.
Yet, while the rising energy consumption poses challenges, the report also highlights how AI can offer powerful solutions: reducing costs, enhancing system efficiency, increasing competitiveness, and lowering emissions. These insights align closely with OPENTUNITY’s mission.
What This Means for OPENTUNITY
The OPENTUNITY project is dedicated to designing and testing innovative energy solutions that promote digitalization, flexibility, and sustainability in the energy system. AI plays an increasingly important role in enabling smarter, data-driven decision-making across the energy value chain—from optimizing grid operations to empowering end-users to manage their consumption more efficiently.
Several OPENTUNITY innovations, such as federated data exchange frameworks, intelligent grid flexibility mechanisms, and user-centered energy management tools, are designed to not only accommodate but leverage AI technologies. As the IEA report points out, such technologies can help mitigate the growing demand of AI itself by improving the overall energy system’s efficiency and enabling cleaner energy integration.
Bridging Innovation and Infrastructure
A critical point in the IEA report is the urgent need for investment in generation and grid infrastructure to support AI’s rising electricity demand. This complements one of OPENTUNITY’s key areas of focus: enhancing grid flexibility and promoting better coordination between distribution system operators (DSOs), transmission system operators (TSOs), and end-users.
Through its pilot projects across Europe, including initiatives focused on smart grid management, local flexibility markets, and data sovereignty, OPENTUNITY directly contributes to the kind of systemic transformation the IEA envisions—where technology, policy, and infrastructure evolve together to unlock a sustainable energy future.
Looking Forward
The IEA also notes that the full potential of AI in the energy sector will require strong cooperation between policymakers, technology providers, and energy stakeholders. This spirit of collaboration is at the heart of the OPENTUNITY project, bringing together 21 partners from 9 countries to develop interoperable solutions that are scalable across Europe.
As AI becomes more deeply embedded in both scientific discovery and energy system operations, OPENTUNITY will continue to explore its role in accelerating clean energy innovation and ensuring that digital technologies remain aligned with Europe’s sustainability goals.
📄 Explore the full IEA report here: IEA Energy and AI Report
Want to learn how OPENTUNITY is preparing for an AI-driven energy future? Follow us for more updates.
OPENTUNITY's Network Planning Tool
Strategic planning of the distribution network is essential to efficiently integrate Renewable Energy Sources (RES), reduce costs, and ensure a secure grid operation. Traditionally, grid planning is based on expensive infrastructure expansion, which does not adapt to rapidly evolving flexibility markets or available flexibility resources.
New OPENTUNITY Network Planning Tool
Within the OPENTUNITY project, ICCS is developing an advanced Network Planning Tool that integrates best planning practices with novel research methodologies and very fast algorithms to address the challenges of modern distribution grids. The tool supports Distribution System Operators (DSOs) in making strategic and informed decisions by integrating sophisticated programming techniques such as Mixed-Integer Linear Programming (MILP) and Mixed-Integer Second-Order Cone Programming (MISOCP) for performing network planning, a fast power flow algorithm for critical scenario identification and timeseries clustering for scenarios extraction. Different objectives can be set, such as cost optimization, investments deferral, or maximizing RES capacity, allowing DSOs to quickly design and compare alternative investment options and operation scenarios.
A user interface provides graphical representations of key results. For example, in a cost optimization scenario (figure on the right side), the planning tool graphically represents the impact of strategic decisions, such as the optimal time to invest in infrastructure and its corresponding impact on power loss costs. The interface can alternatively illustrate scenarios with a focus on delaying expenditures, highlighting how strategic use of flexibility resources can defer costly investments (figure on the left side).
Power flow results can also be presented in all scenarios, e.g. for RES capacity maximization (Figure 3), identifying optimal locations and capacities of new RES power plants for given budgetary constraints. The tool ensures that RES capacity expansion is closely aligned with existing grid constraints. The computed RES capacity at each substation in this case is represented in map-based visualizations.
Advancing Local Flexibility: Insights from OPENTUNITY’s Greek Pilot
As part of ongoing efforts to develop market-based mechanisms for local flexibility, HEDNO (DSO), IPTO (TSO), and NODES recently participated in an online interview with VITO, contributing their insights from the Local Flexibility Market (LFM) designed for the Greek Pilot within OPENTUNITY. This initiative is part of a broader study commissioned by the Directorate-General for Energy (DG ENER) to support the development of a European framework for demand response and flexibility markets.
The Role of DG ENER and VITO in Local Flexibility Markets
In accordance with Article 59(1)(e) of Regulation (EU) 2019/943, DG ENER is working on the establishment of a network code for demand response, which will set the rules, roles, and procedures for market-based procurement of flexibility services. To support this process, DG ENER has tasked VITO, a leading European research organization, with conducting a study on specification and design criteria for Local Flexibility Markets (LFMs).
The goal of this study is to identify best practices and design criteria tailored to different Member States, ensuring that LFMs contribute effectively to congestion management and other local grid services. Ultimately, the study will inform the upcoming demand response network code, helping to create a structured and scalable approach to flexibility procurement across the EU.
Greece’s Contribution to the Study
Recognized for its pioneering work on LFMs, Greece was invited to share insights from the flexibility market developed for the Greek Pilot in OPENTUNITY. As key stakeholders in this initiative, HEDNO, IPTO, and NODES participated in the study by:
- Completing a detailed questionnaire addressing various aspects of LFM design and operation.
- Engaging in a comprehensive interview with VITO’s research team to discuss key challenges and best practices.
The study focused on several critical areas, including:
- LFM Setup – Market structure, key stakeholders, coordination mechanisms, and platform development.
- Product Design – Flexibility products, bid formats, pricing schemes, and aggregation rules.
- Market Design – Prequalification, trading mechanisms, bid selection, and activation processes.
- Market Governance – DSO-TSO coordination, regulatory alignment, and data sharing.
- Performance Indicators – Market liquidity, traded flexibility volumes, transaction frequency, and cost-benefit analysis.
- Scalability & Lessons Learned – Success factors, challenges, and the potential for European harmonization.
By participating in this study, OPENTUNITY plays a vital role in shaping the future of LFMs in Europe, leveraging its experience in DSO-TSO coordination and flexibility procurement.
Towards a Unified European Approach to Flexibility Markets
The insights gathered from various LFM initiatives, including the Greek Pilot, will contribute to the design, implementation, and integration framework for local flexibility procurement. These findings will be shared in an upcoming workshop, facilitating further discussions and knowledge exchange among stakeholders.
Through its participation in this study, OPENTUNITY reaffirms its commitment to developing innovative flexibility solutions, supporting the EU’s vision for a more efficient, coordinated, and resilient electricity market.
Stay tuned for more updates on OPENTUNITY’s work in flexibility markets and local grid innovations! 🚀
NODES Partner Establishing Flexibility Markets in Various OPENTUNITY Pilot Sites
NODES Partner Establishing Flexibility Markets in Various OPENTUNITY Pilot Sites
22/03/2024
NODES is an independent market operator based in Norway, dedicated to managing an integrated marketplace that fosters the exchange and trading of flexibility across all grid levels. By doing so, NODES plays a pivotal role in optimizing the utilization of flexible resources within the grid.
Gesa Milzer, Senior Project Manager at NODES, sheds light on the OPENTUNITY initiative, which focuses on establishing flexibility markets, innovative market solutions, and a spectrum of products and services across various pilot sites in Europe:
– In Spain, collaborating with ANELL (DSO) and Estabanell (FSP).
– In Switzerland, partnering with AEM (DSO) and SUPSI (FSP).
– In Greece, working closely with HEDNO (DSO), IPTO (TSO), HyperTech (Aggregator), and ICCS (FSP).
These pilot-specific solutions are meticulously developed in collaboration with respective partners and subjected to diverse use cases to assess their practicality and necessitate any technical or operational adjustments. Ultimately, the goal is to transition these developed solutions from the testing phase into widely utilized operational products and services.
Read more here.
