Functioning flexibility markets for electricity are vital to ensure the resource-efficient use of the power system. Local distribution system operators would also participate in flexible markets.

INTERRFACE is an EU-funded project under the Horizon 2020 programme to study the potential architecture of flexibility markets in Europe. The project involves 42 companies from 16 countries.

In the four-year project, Fingrid is focusing on developing and testing an information system to ensure smooth coordination between distribution system operators and transmission system operators., a startup established by a group of people with doctorates and master’s degrees in engineering from Aalto University, was involved in the open funding round for the project.

“We are focusing on what happens in individual buildings,” says Jaakko Rauhala, the CEO and one of the three founders of

Heat pumps control the smart grid

Kapacity’s customers are buildings that use heat pumps, and Kapacity offers them the chance of saving money on their electricity bills.

“We are developing a smart grid that enables the heating and ventilation in a building to be optimised according to the electricity production capacity. Kapacity provides flexibility markets with information on the flexible capacity of each building, and Fingrid activates the flexible load based on the information obtained and its own requirements.”

Now, a system is under development to enable individual buildings to offer a demand-side response – not just large industrial facilities.

“When we get up to speed, we will be able to control even thousands of buildings, from detached houses to shopping centres.”

The EU project is an important step for Kapacity.

“It is effective to work with Fingrid. There is enormous potential in the energy market transition and the development of data networks. Experiments help us to understand how to design services that make it easy for customers to get involved.”