Liverpool Multi-Vector Energy Exchange
The LMEX Project is creating a detailed design for a city-wide, smart local energy system.
New Resource Partners
About the project
The system facilitates the local trading of energy and flexibility among local renewable generation, electric vehicles, energy storage, and low-carbon heating and cooling.
The project has delivered designs for three key components:
- A Smart Network Controller which communicates with, controls and optimises local energy assets in real time
- A Flexibility Exchange Platform which provides the market trading platform; and
- The business model for the exchange itself (LEX).
What did the project achieve?
- City-wide local energy exchange architecture.
- Design of key technical components: market exchange software, user interface, and physical Smart Network Controller.
- A commercially viable business model for the LEX operator.
- Analysis showing the value of the LEX to Liverpool with the potential for this to rise to over £10m per year by the end of the decade.
Key lessons learnt
- The importance of a hybrid public-private finance model to drive forward local energy infrastructure, with public finance supporting early-stage development and de-risking and private finance providing the scale.
- There is significant interest within the finance community in investing in smart local energy system projects, but the scale and characteristics of many local energy projects are a barrier. There is a need to build portfolios for investment and to standardise investment opportunities.
- There is very little data visibility on the need for local flexibility to optimise grid operation and minimise reinforcement investment, especially in the light of electrification of transport and heat. Without this, proving the value of this revenue stream is challenging.
- Deliver control mode demonstration of the software and hardware through the physical design lab using follow-on Innovate UK Impact Accelerator funding.
- Develop new software as part of the follow-on funding to guide energy suppliers and other investors to local investment opportunities.
Implement LMEX in Liverpool and expand to other cities across Great Britain.