Evolution of DSO roles needed for further DRES integration in Europe. Marco Baron EUW Strategic Programme Wien, 4/11/2015

Transcription

1 Evolution of DSO roles needed for further DRES integration in Europe Marco Baron EUW Strategic Programme Wien,

2 evolvdso project FP7 Call for proposal: Energy TSO DSO cooperation Demand response and consumer awareness Evolution of DSO roles Meter and network data management Project Consortium: 16 partners including DSOs, TSOs, renowned research institutions, new market players, associations Duration: September 2013 December 2016 Active integration of DRES Validation and exploitation of flexibility resources Project budget: 7,8 M Development of methodologies and tools for new and evolving DSO roles for efficient DRES integration in distribution networks 2

3 INDEX DSO roles model towards an active distribution management approach Opportunities and challenges related to four main concepts: Constraints Management TSO-DSO cooperation Flexibility related data Management Innovation on regulatory support Conclusions Preliminary regulatory and market recommendations 3

4 Why is evolvdso relevant in the current context? Wide array of distributed energy resources are allowing and requiring changes in the way DSOs plan and operate the networks under their responsibility What new roles must the DSO assume to adapt to the changing energy paradigm, while maintaining necessary quality of supply standards? What new services can the DSO provide in the future in order to better support the energy markets? What new tools/methodologies must be developed to support these new roles? How must regulation and markets be adapted to support a cleaner and more efficient energy system in line with the new DSO role? 4

5 Roles Overview of roles Three levels of innovation New role Definition of new activity Evolving role Major evolution required Existing role Minor adaptations required Distribution Constraints Market Officer Neutral Market Facilitator Data Manager Contributor to system security Distribution System Optimizer Other Parties Relationship Manager Customer Relationship Manager Current definition of roles Existing role Evolving role New role Smart Meter Operator Level of innovation 5

6 Focus on data management Data Manager role Innovation brought by the role Enhanced data management capabilities (e.g. privacy, security, reliability, traceability, transparency) DSO as superuser DSO: Optimized grid management and planning (in concert with Distribution System Optimiser role) TSO: Enhanced aggregated information for optimal network planning BRP & Flexibility Operators: Data provision for settlement processes Examples of value created for Regulators: No duplication of ICT infrastructure, no additional neutral entity to be controlled Public Authorities: Optimized (richer) data for energy planning purposes that help to meet national/regional objectives Grid users: Optimised network tariff due to avoided transaction costs for DSO data needs 6

7 INDEX DSO roles model towards an active distribution management approach Opportunities and challenges related to four main concepts: Constraints Management TSO-DSO cooperation Flexibility related data Management Innovation on regulatory support Conclusions Preliminary regulatory and market recommendations 7

8 Lines of research conducted by the project Six Countries analyzed Constraints management Possibility to offer limited (e.g. dynamically constraint) connection and access contracts Participation in activation process of flexibilities by TSO Possibility to contract flexibility for constraints management Provision of incentives to procure flexibility for operational purposes DSOs contract system flexibility services for constraints management BE FR DE IRE IT PT 8

9 Lines of research conducted by the project Six Countries analyzed DSO-TSO cooperation Mechanisms for (bi-directional) relevant data exchange between DSO and TSO Mechanism for definition of hierarchy and assignation of priority concerning flexibility activation Mechanisms for DSO-TSO relevant information exchange BE FR DE IRE IT PT 9

10 Lines of research conducted by the project Six Countries analyzed Flexibility-related data management Participation in the pre-qualification of flexibility units/operators and perimeters Informed about offers made by flexibility operators to the TSO (e.g. reserves) Informed about offers made by flexibility operators to electricity markets DSOs pre-qualify flexibility operators and perimeters BE FR DE IRE IT PT DSOs are informed about offers made by flexibility operators BE FR DE IRE IT PT 10

11 Lines of research conducted by the project Six Countries analyzed Innovation, especially on regulatory support provided to non-conventional technologies. BE FR DE IRE IT PT Regulatory support to investments in non-conventional technologies 11

12 INDEX DSO roles model towards an active distribution management approach Opportunities and challenges related to four main concepts: Constraints Management TSO-DSO cooperation Flexibility related data Management Innovation on regulatory support Conclusions 12

13 Conclusions From the assessment of potential future DSO roles, it emerges that #1 DSO key player... DSOs are key players in the transition towards active distribution grid management. #2 Need of flexibility services... DSO need flexibility to safeguard normal operation and prevent/mitigate emergency situations. They may need these services in different timeframes as alternatives for grid investment and/or conventional operational actions #3 TSO-DSO coordination... TSOs and DSOs will have to jointly define mechanisms for optimal use of system flexibility services for the sake of the entire power system and its users 13

14 Conclusions Future markets and regulatory frameworks should... #4 Incentives...Recognize the need and should provide incentives for possible innovative flexibility levers to be activated on distribution grid level. #5 Cost recognition...set clear rules for the recognition of the costs (both CAPEX and OPEX, over all timeframes) associated with innovative smart grid solutions #6 Data management...continue to safeguard the availability of neutral, secure, cost-efficient and transparent data and information management on distribution grid level for all concerned stakeholders. #7 Market Harmonization Take national differences into account (no one-size-fits all) on the short to medium term, but strive for harmonization on the longer term; 14

15 D1.4 Assessment of future market architectures and regulatory frameworks for network integration of DRES the future roles of DSOs THANK YOU Please download the deliverable at 15

16 16

17 BACKUP 17

18 Participation in resource activation process In Germany, DSOs are also involved in the pre-qualification process. In Belgium, DSOs collaborate with the Belgian TSO Elia on the procurement process of specific reserves, called R3 Dynamic Profile 18

19 Preliminary assessment of DSO roles Examples of inputs and European links considered during analysis SGTF EG 3 Work ( First year and final report ) 1) In a lot of EU countries DSOs are responsible for handling metering data and perform efficient, not-discriminatory and secure data handling. Data management = collecting, validating, managing providing data). 2) In some countries with a fragmented network structure with many DSOs, a more centralized data management model is under discussion. 3) January 2015: DSOs (and TSOs) have the possibility to optimize investment in networks through the use of demand side flexibility. The DSO role in flexibility can co-exist along-side a supplier (or other party) data management model provided it is properly regulated. DSOs should have the opportunity to use flexibility services for the benefit of the network and hence the consumer. DSO as Market Facilitator Third Party Market Facilitator Distribution System Optimizer CEER public consultation on the Future Role of the DSO (input for the forthcoming EC retail market communication) public hearing 30/3 1) The DSO must run its business in a way which reflects the reasonable expectations of network users and other stakeholders 2) The DSO must act as a neutral market facilitator in undertaking its core functions 3) The DSO must act in the public interest, taking into account of costs and benefits 19

20 Preliminary assessment of DSO roles Inputs considered during analysis ENTSO-E Grid Codes Draft grid codes considered in the fields of: Information exchange, collaboration, flexibility management. Related to Operational Security (OS), Operational Planning and Scheduling (OPS), Load Frequency Control and Reserves (LFCR), Operational Procedures in an Emergency (EP) Pragmatic approach: aware of developments while pursuing innovation-driven approach to contribute to ongoing and future work DSO as Contributor to System Security, Neutral Market Facilitator and Distribution System Optimizer Internal surveys with evolvdso partners for WP1 WP2 Surveys related to: scenarios, current market design and regulatory framework, current practices of DSOs to deal with DRES, current and possible future responsibilities (roles and services), limitations and opportunities by future regulatory frameworks linked to future roles 20