There are innovative technological solutions to be developed for local energy markets – with contributions from INESC TEC

There are innovative technological solutions to be developed for local energy markets – with contributions from INESC TEC

The delay in generating synthetic data for time series – fundamental elements in energy forecasting scenarios – was one of the motivations for GENESIS, a project that aims to provide local electricity markets with contextual synthetic data and reliable artificial intelligence models.

22nd September 2025

Technological limitations, lack of data, and the absence of accessible tools are among the challenges faced by Local Energy Markets (LEMs) – initiatives promoted by OMIE (the Iberian electricity market operator) that aim to empower consumers and integrate renewable energy sources, thereby increasing the efficiency of the grid. All these factors hinder the creation of representative and explainable synthetic data, resulting in unreliable scenarios for these markets.

These are the obstacles that the GENESIS project seeks to overcome, by combining contextual generative models with explainable artificial intelligence to develop reliable, transparent, and accessible solutions – but above all, solutions validated in real-world energy applications. The project, which brings together INESC TEC’s expertise in power systems and human engineering systems, is divided into two development phases.

The first focuses on data collection – essential elements to feed AI models – including data on energy consumption, renewable production, market prices, and contextual factors. The second phase aims at developing generative models capable of creating realistic and contextual synthetic data. This step is crucial for building explainable AI models adapted to different user profiles.

According to Tiago Campelos Pinto, INESC TEC researcher, the GENESIS project aims to create “new scientific knowledge” combined with “innovative technological solutions.” “The results could be directly applied to consumer and producer training, decision-making support for regulators and grid operators, and the development of new commercial solutions for companies in the energy sector,” he highlights.

Expected outcomes include the creation of “realistic contextual synthetic data that can be used to simulate complex energy scenarios without compromising user privacy.” Another aspect involves the implementation of “explainable AI models capable of tailoring explanations to the needs and profiles of different users.” All with the goal of “increasing transparency and trust in solutions.”

With regard to local energy markets, they will also benefit from a simulator that will make it possible to “test, compare, and validate different market models in a controlled environment,” with the active participation of experts and end users.

The GENESIS project, an R&D initiative, is promoted under the Foundation for Science and Technology, and also involves researchers from São Paulo State University – a partnership that strengthens “the project’s international dimension and adds expertise in optimization, applied AI, and energy systems planning,” concludes the researcher.

The researcher mentioned in the article is affiliated with INESC TEC and the University of Trás-os-Montes e Alto Douro (UTAD).