Key Attributes of Possible Designs for Flexible Distribution System Operation

Transcription

1 Panel on Who Designs the Grid of the Future University of Texas at Austin Austin, Texas, April 21-22, 2016 Key Attributes of Possible Designs for Flexible Distribution System Operation Jeremy Lin, Katarina Knezović 1

2 Disclaimer Statement The views presented in this presentation and related technical paper represent the sole views of the authors only and do not necessarily represent those of the authors affiliations. 2

3 Agenda Background What is Distribution System Operator (DSO)? Key attributes for DSO design framework Possible DSO designs and their comparisons Further discussions and conclusions 3

4 Background *courtesy of Daniel Esteban Morales Bondy 4

5 Background Proliferation of DER or DG in the near future RES (wind, solar), DR, DESS, EE, EV, and others Their high concentration can cause significant impact on the local distribution grid Parallel impact on the wholesale markets (RTO/ISO/TSO) New grid design is needed to value and effectively use growing DERs New DSO construct!! 5

6 What is DSO? Distribution System Operator/Operation: A new design that would value and utilize new services from DERs effectively and efficiently Responsible for balancing supply and demand variations at the low-voltage distribution system Management of two way power flows A link for agents from wholesale and retail markets A market mechanism in which available, feasible, costeffective DER solutions become part of distribution system planning a level playing field for DER vs traditional resources 6

7 Key Attributes for DSO Design Flexibility Market Administration Operational Authority Planning Authority Independence Open and Fair Access Transparency Interface between ISO/TSO and DSO 7

8 Key Attributes for DSO design Flexibility: power system flexibility (operational, planning, ) Active participation by load customers, PVs (e.g. reactive power capability), EVs (unidirectional/v2g) Market Administration: Administering and operating a distribution system market (energy, capacity, ancillary services) Better market design can manage DER growth by proper ressource valuations Aggregator for smaller resources Interaction with wholesale market at the transmission level 8

9 Key Attributes for DSO design Operational Authority: To ensure short-term reliability of the distribution grid Clear market rules for distribution system operation Better to have a single entity taking a dual role for operating both distribution system and distribution system market Planning Authority: Efficient planning of distribution network and DERs in local areas Creates incentives for investment in electric infrastructure with clear policies for distribution grid expansion Allows both regulated and merchant investments Network planning in open, fair and transparent manner 9

10 Key Attributes for DSO design Independence: Independent from any market participant and ressource owner No market participant should have influence on the market By analogy, US RTO/ISO are non-profit entities, complying to rules set by federal regulators Open and Fair Access: Open, fair and non-discriminatory access Strong competition leads to the most efficient DER utilisation Better if DSO does not own any DERs 10

11 Key Attributes for DSO design Transparency: Participants have free access to key market information Transparency on data, market admin and clearing rules, operating cost, and system operation procedures Transparency on market rules: (1) how DERs can become market participants, (2) their rights and obligations (3) termination rules Interface between ISO/TSO and DSO: Functional intersection between wholesale and retails transactions Aggregation of retail products to participate in the market via wholesale/retail interface Clear roles, responsibilities and prioritization between ISO/TSO and DSO 11

12 Possible DSO Designs Independent Distribution System Operator (IDSO) or Distribution System Operator (DSO) Distributed System Platform Provider (DSPP) Transmission and Distribution Service Provider (TDSP) European Model (evolvdso) 12

13 Possible DSO Designs IDSO/DSO (~RTO/ISO model) Operates and plans the distribution grid while maintaining safety and reliability Provides open and transparent system access to all market participants Implements market mechanisms Allows all stakeholders equal opportunities to meet consumer electricity needs DSPP (New York model) Operates and plans the distribution grid while maintaing safety and reliability Serves as the local balancing authority (load vs. DERs) Procures and employs advanced distribution management system (ADMS) Monetizes the value of DER products by creating market and tariff systems 13

14 Possible DSO Designs TDSP (Texas model) Unbundled businesses: generation, T&D, and retail sales Regulated by PUCT to provide non-discriminatory access to the grid Provides electricity transmission and delivery for its service area Maintains the grid and responsible for meter-readings TSP, DSP, or TDSP are possible European model (evolvdso) Network planning and operation processes Contracting flexibility services Market facilitation Cooperation between system operators Active distribution system management with various defined roles 14

15 DSO Design Comparisons 15

16 Further Discussions Market power issue will be more complex (local DERs can have market power) Minimum energy bid will be in low kw range resource aggregation needed Market competitiveness for a level playing field for all market participants 16

17 Conclusions Growing DERs at the distribution grid Need for novel DSO designs which are effective in dealing with issues related to DER penetration Key attributes for DSO design framework are identified and presented Comparisons of some existing/emerging DSO designs are made, based on these attributes 17

18 Questions? 18