Abstract
The energy market is undergoing important changes, driven by the realization of the European internal energy market on the one hand and the increase of distributed energy resources on the other hand. The introduction of new resources in the energy market that are mainly connected to the distribution grid creates new opportunities and challenges for system operators (TSO and DSO), commercial market players, and end consumers. In particular, resources connected at the distribution grid could be used to provide ancillary services (e.g., frequency control, congestion management, and voltage control). Consequently, coordination between system operators is needed to guarantee a safe, reliable, and cost-efficient use of these resources. This chapter introduces five coordination schemes to enhance interaction between system operators. Each scheme is described in terms of roles, responsibilities, and market design. Furthermore, we discuss the advantages, disadvantages, and feasibility of each coordination scheme and evaluate the link with the ongoing European evolutions.
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Notes
- 1.
Consisting of a distribution and a transmission grid.
- 2.
System balancing implies among others that the TSO has to correct for instant deviations between injection and off-take of electricity. This is indispensable as such imbalances could lead to a drop in frequency or voltage.
- 3.
From a simplified view, the TSO provides these services to respond to a few tasks (balance generation and load, maintain voltages, control generation to avoid overloading of grid assets, restart the system (after a collapse)).
- 4.
Challenges related to DER are, for instance, related to the fact that they are much more dispersed (smaller volumes) and often weather dependent (wind, solar). The latter makes them more volatile and less predictable which could lead to system imbalances and increase network operators’ need for control services closer to delivery.
- 5.
The SmartNet project arises from the need to find answers and propose new practical solutions to the increasing integration of renewable energy sources in the existing electricity transmission network. This project has received funding from the European Union’s Horizon 2020 research and innovation program under grant agreement no 691405. http://smartnet-project.eu/.
- 6.
Such a pre-defined schedule is necessary as TSO and DSO grids do not work independently from each other (they are connected through interconnection points). Through these interconnection points, there is a flow of energy. This flow can (for instance) be predicted in advance based on BRP nominations in the day-ahead market. A nomination tells the TSO the planned generation and/or consumption of the BRP. In the shared balancing responsibility model, these nominations could be used to develop each day a pre-defined schedule that determines the flow through the interconnection points.
- 7.
Note that system operators (TSO and DSO) could also decide to sell previously contracted flexibility.
- 8.
Liquidity refers to the speed and the ease with which investors can realize the cash value of an investment. Illiquid assets, for example, real estate, can be hard to sell quickly, and a quick sale may require a substantial discount from the price at which it could be sold in an unrushed situation [2].
- 9.
From a simplified view, the operator of the AC power system must balance generation and load and maintain voltage across the power system in normal and contingency conditions, he controls that the loading of grid assets stay within safety margins, and he restarts the system after a collapse.
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Gerard, H., Rivero, E., Vanschoenwinkel, J. (2020). TSO-DSO Interaction and Acquisition of Ancillary Services from Distribution. In: Migliavacca, G. (eds) TSO-DSO Interactions and Ancillary Services in Electricity Transmission and Distribution Networks. Springer, Cham. https://doi.org/10.1007/978-3-030-29203-4_2
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