Market-driven Multi-Energy Operational Planning in Indonesia – MARGIN

Project summary

The project "Market-driven Multi-Energy Operational Planning in Indonesia – MARGIN" will lay the foundation for future bottom-up multi-energy systems in Indonesia based on renewable energies (REs), communities and flexibility to provide better user motivation/engagement, higher stability and reliability of energy supply systems, and faster transition to sustainability. With appropriate market designs, MARGIN will coordinate the energy from decentralized energy resources while encouraging competitions in energy communities. Moreover, by incorporating operational planning models, MARGIN allows capturing socio-techno-economic aspects and constraints in decision-making process to assure not only optimality of solutions but also their applicability/feasibility in practice. Also, as a complement to the Danish-Indonesian Strategic Sector Cooperation (SSC) project on clean energy, renewable energy and energy efficiency (phase II), MARGIN will also cope with the two main concerns in Indonesia, i.e. (i) to further accommodate REs into the energy mix while reducing the fossil fuel dependence through hybrid energy solutions in the form of multi-energy storage and/or demand response actions, and (ii) to ensure that energy markets and energy systems can effectively coevolve with increasing penetrations of variable REs.
MARGIN is shaped around the concept of energy community to help diversification, environmental sustainability, and maximum use of domestic energy resources while unlocking other potentials at different temporal and spatial scales. The methodology to develop such energy systems will follow an (iterative) operational planning process as follows:
• Multi-energy planning: Develops short and long-term strategic energy plans considering socio-techno-economic aspects, external parameters and pre-defined constraints.
• Energy markets and business models: Develops practical energy market schemes and business models to set the grounds for significant growth of private market participation, to identify customer segments, value propositions, customer relationships, and to enable revenue streams.
• Control and operation management: Develops coordinated system-level energy management and lower-level supply/demand side control strategies according to the technical constraints.
• Energy devices and processes: Identifies energy sources potentials and feasible yet effective energy processes in energy communities of different sizes.

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