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Trends in the Power industry in the European context
Spindleruv Mlyn
April 11th 2017
Peter HermansCTO Stedin
TSO – DSO relations
Exploration of the changes in the TSO DSO relations
in Europe
Stedin
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Consumers & small and medium business customers
Industry & high-volume business customers
Electricity 2.0 million 20,000Gas 1.9 million 2,100
PEOPLE2 million customers3880 employees
FACTS23,659 km – gas pipes
44,875 km – electricity cablesTelecom: 6000 km copper cable
1453 km optical fiber
FINANCIALS (2016)€ 1173 million – net revenue€ 105 million – net profit
Dutch “Urban” DSO
Serving: The Hague, Utrecht, Rotterdam
& Port of Rotterdam
DSO & TSO interactions with the Market todayRelatively independent
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Characteristics
• Limited DSO-TSO interaction (distr. grid is a “copper plate”)
• No European “one size fits all” model:
• With or without central data hubs• Regulated or commercial role• Run by TSO, DSO or jointly
• Balancing reserves mainly on TSO grid
• Supplier switching• Providing metering data• A&R services
• Nomination (E-programs)
• Balancing• Settlement
DSO TSO
market actors (BRPs, suppliers,metering companies)
Demand Response & FlexibilityBringing DSOs &TSOs together
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• Demand side flexibility required for:
• BRP for portfolio optimization• TSO for balancing & congestion mitigation on
transp. grid• DSO for congestion mitigation on distr. grid & PQ
• DNO -> DSO active system management
• Need to align processes between TSO & DSOs
• To avoid unwanted interference between congestion management and balancing
-> DSO & TSO: 2 actors on one system
RED = Acuterisk to the gridDSO intervenesdirectly in production andconsumption.
NEW! YELLOW = Potential risk to the gridDSO interacts with market and uses flexibility.
GREEN = Market phasewithout criticalgrid status.
Today TomorrowTraffic light concept
DSO & TSO interactions with the market tomorrowSignificantly increasing…
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Characteristics
• Significant more market actors then traditional suppliers & BRPs
• Blurring boundaries between retail / wholesale markets
• Interaction between DSOs and TSO in more near real-time
• Significant more data
• Need for collaboration
• Nomination (E-programs)
• Requesting flexibility for balancing, incl. use of decentralized resources
• Settlement• Open data distribution• Data privacy protection
• Supplier switching• Providing metering data• A&R services,
based on smart meters• Requesting & using
flexibility• Open data distribution• Data privacy protection
DSO TSO
One system
existing & many new market actors
European context: defining the TSO-DSO data exchangeThe first steps…..
Objectives of the European TSO-DSO data management working group
• To agree on a common terminology and principles
• Common understanding of the concepts discussed (e.g. role models)
• To reach a common understanding on TSO-DSO data exchange
• Provide recommendations to the European Commission on TSO-DSO data exchange
Approach followedWriting a book starts with chapter 1
Information Exchange
Interaction
Business Processes
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Process
1. Identify roles & responsibilities
2. Define interaction between roles: market mechanismsfor constraints/congestion management, balancing and market facilitation
3. Define processes between TSO & DSO supportingthese interactions
4. Define data exchange in these processes
Use case Template
1. Scope
2. Market relevance
7. Principles & recommendations for the EU
3. Process description (high-level)
4. Roles5. Common
definitions6. Information
exchange needs
• Congestion management • Balancing• Use of flexibility • Real-time control and supervision• Network planning
Elaborated in subgroups with TSO and DSO members (co-creation)
Using the Use Case approach
Reframing the challengeThe cultural issue
-> From DSOs against TSOs and vice versa to…
-> How to come to solutions where both parties cancontinue their legal tasks and respect roles and responsibilities of the other party?
-> Building trust, respect and collaboration
3 important questions in this reframing exercise:
1. What is the ambition of the TSOs, resp. DSOs?2. What is the fear of the TSOs, resp. DSOs?3. What can a TSO do to reduce the fear of the DSO and
vice versa?
The approach which leads to successReflection on collaboration
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Stop sending, start collaborating
Select a team, built trust, agree on process
and set an example
1 2
Explore the issues behind the issues
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Ambition Fear Ambition Fear
Finalization, going for consenus
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• Engaged in a co-creation process leading to 8 recommendations and 5 use cases
• Respecting each others roles:• TSO: balancing & transp. grid congestion
mitigation• DSO: using flexibility for distr. grid congestion
mitigation• DSO & TSO both facilitating the market
• Approach to avoid unwanted interference between congestion management & balancing
• Options defined for allowing TSO to have access to data of users, connected to DSO grids
• Equal access to flexibility in all markets: BRPs to enhance their products in nomination and bidding with additional information (e.g. locational and ramp up information); one integrated bid ladder
The first results: Co-creation and relevant topics addressed
1. Data exchange has to support efficient market functioning
2. Focus on services rather than on platforms
3. Establish third- party acces to data4. Parties for data management must be
neutral5. Standardization of data is needed6. Use flexibility according to market rules
while singling out system risks7. Avoid harmful interference between
congestion management and balancing8. Ensure data acces for TSO related to grid
users connected to distribution grid
Recommendation 2: Publishing a service catalogueDescribing services provides full transparancy on data exchange
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Value
• Market models in Member States may differ on existence and governance on datahubs / platforms
• This however is irrelevant for EU-wide market functioning, as TSO & DSO interactions with the market (-> services) are the basis for EU-widemarket functioning
• So EU orientation on services enable EU-widemarket functioning with different underlying modelson data hubs
• Independently of service delivery, TSOs and DSOscan cooperate and consolidate on platforms
Platform
PlatformPlatform
DSO
ser
vice
s
TSO
ser
vice
s
TSO
ser
vice
s
DSO
ser
vice
s
DSO TSO
CDH/GWA
Federated TSO- DSO platform
TSO/DSOInterface
Customers MarketParties
Services to Customers & Markets
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Identified way to do this
• Offered flexibility can be activated only once in any timeframe
• TSOs continue balancing based on market principles whileallowing DSOs to asses impact and communicate limitsbefore activation
• DSOs (and TSOs) can perform congestion management bycontracting flexibility, not disturbing system balance (e.g. in day-ahead, or activation of “balance neutral” flexibility bids)
• Enhancing forecasts and bids of BRPs with additionalinformation (e.g. including locational information / ramp up speed etc.)
• Qualification, certification and validation of the execution of contracted flexibility services, by TSOs and DSOs
Recommendation 7:Avoiding harmful interference between congestion management and balancing
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Agreed in more detail:
• TSO should be able to perform its legal task on balancing, which requires data of specific level of detail and timeframe
• DSO is responsible to provide this data to TSO (TSO access to this data is mandatory)
• For TSOs 3 options exists:
1. Access to this data via a market party (e.g. aggegrator/ BSP)
2. Access to this data via DSO (e.g. via their SCADA systems)
3. Direct access to this data from the grid connected user (after agreement with DSOs), without transferring DSO metering responsibility
Recommendation 8:Ensure data access for TSO related to grid users connected to distribution grid
Flexibility & congestion management in the NetherlandsStatus update
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• Good collaboration between TSO and DSOs
• Dialogue between TSO, DSO, Market Parties, Policy Maker & Regulator
• Debate on aggregator market models
• Draft principles for use of flexibility in congestion management established
• Key questions for the policy maker formulated
6. Applicability to all grid layers HV, MV & LV?
3. Complete “freedom of dispatch” versus
(some) market restrictions
2. What is the right DSO grid investment
level?
1. Future affordability of the copper plate
principle
5. Usage of flexibility: temporary or structural?
4. Using flexibility versus expanding the grid
Key questions for the policymaker
Preparing a pilot in NL on the use of flexibilityfor mitigating congestion
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BRPTradingplatforms
BRP/AggregatorTSO
Balancing
DSO/TSO
Congestion management
Publishing of Congestion
Points & MarketRestrictions
RSS feed RSS feed
Reserve pool
Regulated domainCommercial domain
• Taking TSO/DSO data management report as starting point
• Market platform for intradaytrading with integrated bid ladder (for balancing & congestionmanagement)
• Collaboration between TenneT, Stedin & ETPA
• Defining the use case on congestion management for pilot implementation
• Planning: demo april 2017, pilot September 2017
A win-win scenario for TSO & DSOCharacteristics
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• DSO procures flexibility intraday(included in BRP nomination & portfolio optimization)
• Bids contain enhanced information (location, ramp up etc.)
• TSO & DSO have common view on bidsin the market
• Warning capability: DSO informs TSO on load limits in distribution grid
• Congestion spread: DSO activatesflexibility for congestion management in a balance neutral way