The European energy market is ripe with opportunity for Virtual Power Plant providers, driven by the continent’s ambitious renewable energy goals. However, a significant hurdle stands in the way of seamless expansion: a fragmented regulatory landscape and a lack of technical standardization.

The challenge is particularly pronounced when it comes to integrating with country-specific Transmission System Operator protocols, such as Durom, which can make or break a VPP’s ability to enter a new market. This article will explain what Durom is, why it presents a barrier to expansion, and how VPP providers can overcome this challenge with a strategic approach to technical integration.

What Durom and Other TSO Protocols are, and Why They Matter for VPPs

Durom is a specific TSO protocol used for communication and data exchange within the Romanian electricity market. The name is an acronym for “Domestic and cross-border User interface for the Romanian electricity Market” and is the protocol for the Romanian Transmission System Operator (TSO). A VPP platform cannot participate in the Romanian market without a compliant and robust integration layer for this protocol.

Durom is an example of a broader issue. Other countries use their own distinct systems. For instance, in some parts of Europe, TSOs may use legacy protocols such as DAMAS, while others have different proprietary or semi-proprietary systems. A VPP platform must be able to handle these diverse protocols to effectively operate across multiple national markets.

These protocols are critical for market participation as they facilitate key operational functions:

  • Bidding: Submitting bids for energy or capacity in a specific market.
  • Dispatch Orders: Receiving instructions from the TSO to adjust a VPP’s output or consumption.
  • Data Handling: Exchanging data streams in a specific format required by the TSO.

The Problem with Legacy Protocols: A Barrier to Expansion

Legacy systems like Durom present significant challenges for VPP providers. The requirements are often opaque, data formats can be complex, and there’s a general lack of standardization. For example, Durom’s supported communication protocol is HTTPS via TLS 1.2, and it relies on a common authentication process requiring a login name and password with each SOAP message. This contrasts sharply with modern, well-documented APIs, forcing VPP teams to spend valuable time and resources trying to reverse-engineer and adapt to each country’s unique system.

This process is not only time-consuming but also creates significant market entry delays and missed revenue opportunities. Since each new market may have its own legacy system, this challenge becomes a repeating cycle of technical debt that can stunt a VPP provider’s growth. The cost and effort of building and maintaining these bespoke integrations for every new country make a single, uniform solution for all of Europe currently unfeasible.

The Strategic Solution: Building a Robust Middleware Layer

Overcoming the challenge of legacy protocols requires a strategic shift from trying to build everything in-house to leveraging specialized expertise. A robust middleware layer serves as a strategic bridge between your VPP platform and a TSO’s legacy system.

This layer is designed to:

  • Handle Complex Data Translation: It translates your VPP platform’s data into the specific formats and protocols required by the TSO, ensuring seamless communication.
  • Automate Bidding and Dispatch: It automates the process of submitting bids and receiving dispatch orders, which is crucial for real-time market participation and grid service delivery.
  • Ensure Production-Ready Integrations: With a dedicated, expert-built middleware, VPP providers can confidently roll out production-ready solutions, avoiding delays caused by non-compliant systems.

By building a dedicated middleware layer, VPP providers can achieve a 2–3x faster time to market. This approach allows them to quickly expand into new territories without getting bogged down in the technical complexities of each market’s legacy systems.

Unlocking European Market Potential

Navigating a fragmented market with legacy protocols like Durom and DAMAS is a significant technical and business challenge. While the EU is working towards harmonized balancing markets through initiatives like the Electricity Balancing Guideline (EBGL), Europe is still a patchwork of balancing products, and TSOs are responsible for setting their own protocols for data exchange.

The most effective strategy for VPP providers is to build flexible, adaptable platforms that can integrate with country-specific legacy systems while also preparing for future standardized protocols. By prioritizing expert engineering partnerships to navigate these technical hurdles, VPP providers can unlock their growth potential and establish a stronger foothold in Europe.