To accommodate the growing share of renewable energy, substantial investments are urgently needed by 2025, creating a tight timeframe for implementation. The key to addressing increased power flow volume and volatility lies in leveraging diverse technologies, such as decentralized resources (battery storage, electric vehicles, electric water heaters, and heat pumps) for flexibility and adequacy. Elia anticipates a 64% rise in the need for upward flexibility and a 54% increase in downward flexibility over the next decade. Notably, residential electric storage water heaters (ESWHs) in Belgium offer over 1GW of flexible capacity, with more than 200,000 units sold in 2022 alone. The adoption of demand response (DR) is seen as crucial for handling decarbonization challenges at a low cost, yet its implementation in the residential sector faces challenges. Electrification of water heating in households remains limited, with only 31% using electricity as the primary source, and the majority relying on less energy-efficient resistance-based heating elements.

The broad implementation of demand response-ready water heaters faces several challenges. These include the necessity for cost-effective solutions to handle a large number of communicating devices and the adaptation of existing regulatory requirements designed for large production sites. Overcoming negative perceptions of digital meters is also vital. Additionally, hurdles include prioritizing user comfort and ownership, addressing conflicts among stakeholders in the evolving smart grid, and overcoming barriers to independent aggregation. Finally, identifying appropriate data-sharing platforms and demonstrating their effectiveness in simulated and real-world scenarios is also a significant challenge.

The project involves fundamental research, including the creation of a digital twin model for a heat pump boiler with detailed thermodynamic characterization. It also encompasses the innovative model development for user consumption profiles under dynamic pricing and capacity tariff conditions. Additionally, industrial research is conducted, focusing on the control development for the heat pump boiler, lab-scale testing, and the formulation of bidding algorithms for security of supply and transmission grid balancing, with recommendations provided to all stakeholders. Finally, experimental research includes the identification of the pilot site, installation of appliances, and operational assessments.

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