MERLON · Project

Smart Software That Helps Local Energy Communities Trade Flexibility and Cut Grid Costs

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Imagine a neighborhood where every rooftop solar panel, home battery, and electric car charger could work together like a single smart power plant. MERLON built the software brain that coordinates all these scattered energy devices so the local grid stays balanced — even when the sun stops shining or wind dies down. Instead of expensive cable upgrades, the system unlocks hidden flexibility from things people already own and lets communities trade that flexibility on a local marketplace. It was tested on real pilot networks in Spain and Austria.

By the numbers

consortium partners across the project

countries represented in the consortium

industry partners (68% of consortium)

SMEs in the consortium

total deliverables produced

demo-related deliverables with pilot validation

real pilot networks tested (Spain and Austria)

The business problem

What needed solving

Local electricity grids are buckling under growing rooftop solar and wind installations. When too much renewable energy floods in at once, grid operators face congestion, voltage swings, and forced curtailment — wasting clean energy. The traditional fix is expensive cable and transformer upgrades costing millions, but most of the flexibility needed to balance the grid already exists in batteries, EV chargers, and heating systems that nobody is coordinating.

The solution

What was built

MERLON produced a complete modular energy management platform including: a VPP Configurator and Control Dispatch Module for dynamically assembling virtual power plants; forecasting and scheduling algorithms for predicting and optimizing local energy flows; a Blockchain-Enabled Flexibility Marketplace with contract templates for trading local flexibility; a Virtual Thermal Energy Storage component; and an Interoperability and Data Management layer — all validated through pilot deployment on real networks in Spain and Austria.

Audience

Who needs this

Distribution System Operators managing grids with high renewable penetrationEnergy cooperatives and local energy communities wanting to monetize flexibilityMicrogrid developers and energy-as-a-service providersSmart grid software companies looking for proven optimization modulesMunicipal utilities planning community energy projects

Business applications

Who can put this to work

Energy distribution

enterprise

Target: Distribution System Operators (DSOs) managing local grids with high renewable penetration

If you are a DSO struggling with grid congestion and voltage instability from growing rooftop solar — MERLON developed a VPP Configurator and Control Dispatch Module that dynamically groups distributed assets into virtual power plants to provide balancing and ancillary services. It was piloted on real networks in Spain and Austria with 19 consortium partners, and positions the DSO as an 'Aggregator of Aggregators' to manage local flexibility without costly infrastructure upgrades.

Energy cooperatives and community energy

SME

Target: Local energy communities and cooperatives seeking new revenue from flexibility trading

If you are an energy cooperative looking to monetize your members' solar panels, batteries, and EV chargers — MERLON built a Blockchain-Enabled Flexibility Marketplace with contract templates that lets communities package and sell their combined flexibility. The scheduling and forecasting modules optimize when each device charges or discharges, maximizing self-consumption and creating tradable flexibility products for the grid operator.

Smart energy technology providers

mid-size

Target: Software companies and system integrators building energy management platforms

If you are a technology provider developing microgrid or energy management solutions — MERLON created an interoperable modular platform including forecasting, scheduling, flexibility aggregation, and virtual thermal energy storage components, all tested through pilot deployment. With 13 industry partners in the consortium and a Microgrid-as-a-Service model already designed, the modules can be integrated into existing platforms to offer turnkey local energy optimization.

Frequently asked

Quick answers

What would it cost to deploy this system?

The project data does not include specific licensing fees or deployment costs. However, the system is positioned as a cost-efficient alternative to high-CAPEX grid upgrade investments, suggesting the software-based approach is significantly cheaper than physical infrastructure expansion. Contact the coordinator for commercial terms.

Can this work at industrial scale beyond pilot sites?

MERLON was validated on real pilot networks in Spain and Austria with realistic simulation scenarios. The modular architecture — with 13 demo deliverables covering forecasting, scheduling, VPP dispatch, and marketplace components — is designed for scalability. The 19-partner consortium across 8 countries provides a broad deployment base.

What about intellectual property and licensing?

The consortium includes 13 industry partners and 5 SMEs, with HYPERTECH (a Greek SME) as coordinator. IP arrangements would be governed by the consortium agreement. Businesses interested in licensing specific modules should contact the coordinator directly for terms.

Does this comply with EU energy market regulations?

MERLON was specifically designed to align with EU clean energy package goals, including provisions for local energy communities and flexibility markets. The blockchain-enabled marketplace includes contract templates, suggesting regulatory compliance was built into the design. The project addressed the LC-SC3-ES-3-2018-2020 topic on local energy systems.

How long would integration take with our existing systems?

The platform includes a dedicated Interoperability and Data Management component that went through multiple iterations (first, second, and final versions refined through pilot deployment). Smart inverter integration and standard protocols are part of the design, which should reduce integration time with existing grid management systems.

What specific grid problems does this solve?

Based on the project objectives, MERLON addresses congestion management, local voltage instabilities, RES curtailment, and supply-demand imbalances caused by high shares of intermittent renewables. It also optimizes EV charging and coordinates demand response with CHP plants and storage.

Is the project still active or is the team available?

MERLON closed in April 2022, meaning the technology is mature and the team is potentially available for commercial engagements. The project website at merlon-project.eu may have updated contact information and results documentation.

Consortium

Who built it

The MERLON consortium is heavily industry-oriented with 13 out of 19 partners (68%) from the private sector, which is a strong signal of commercial intent. It includes 5 SMEs and spans 8 countries (Austria, Belgium, Cyprus, Greece, Spain, France, India, UK), giving it broad European market reach plus an international dimension. The coordinator HYPERTECH is a Greek ICT SME, meaning the IP likely sits close to a commercially motivated entity rather than a university. With 3 universities and 3 research organizations providing the scientific backbone, and 62 total deliverables produced, this is a well-resourced project with the industrial weight to push results toward market.

HYPERTECH (CHAIPERTEK) ANONYMOS VIOMICHANIKI EMPORIKI ETAIREIA PLIROFORIKIS KAI NEON TECHNOLOGIONCoordinator · EL
ENERGIE GUSSING GMBHparticipant · AT
MERIT CONSULTING HOUSEparticipant · BE
IMPERIAL COLLEGE OF SCIENCE TECHNOLOGY AND MEDICINEparticipant · UK
SUITE5 DATA INTELLIGENCE SOLUTIONS LIMITEDparticipant · CY
WIRTSCHAFTSAGENTUR BURGENLAND FORSCHUNGS- UND INNOVATIONS GMBHparticipant · AT
UNIVERSITY OF NEWCASTLE UPON TYNEparticipant · UK
SOREA SOCIETE DES REGIES DE L'ARCparticipant · FR
ATOS SPAIN SAparticipant · ES
COBRA INSTALACIONES Y SERVICIOS S.Aparticipant · ES
ETRA INVESTIGACION Y DESARROLLO SAparticipant · ES
EUROPAISCHES ZENTRUM FUR ERNEUERBARE ENERGIE GUSSING GMBHparticipant · AT
ASON ELECTRONICA AERONAUTICA SAthirdparty · ES
UNIVERSITY OF PELOPONNESEparticipant · EL
COOPERATIVA ELECTRICA BENEFICA SANFRANCISCO DE ASIS SOCIEDAD COOPERATIVA VALENCIANAparticipant · ES
ATOS IT SOLUTIONS AND SERVICES IBERIA SLthirdparty · ES
MERIT CONSULTING HOUSE - OLOKRIROMENES SYMVOULEFTIKES IPIRESIES EPIXEIRISEON IDIOTIKI KEFALAIOUXIKI ETAIREIAparticipant · EL

How to reach the team

HYPERTECH is a Greek ICT SME — search for their team on LinkedIn or their company website for direct contacts.

Order a report on this consortium See HYPERTECH (CHAIPERTEK) ANONYMOS VIOMICHANIKI EMPORIKI ETAIREIA PLIROFORIKIS KAI NEON TECHNOLOGION profile →

Next steps

Talk to the team behind this work.

Want an introduction to the MERLON team for licensing or deployment? SciTransfer can connect you with the right people — contact us for a matchmaking consultation.

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