TSO/DSO Coordination in the Context of Distributed Energy Resource Penetration 1. Birk et al., (2016)

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1 TSO/DSO Coordination in the Context of Distributed Energy Resource Penetration 1 1 Birk et al., (2016)

2 With the growth of renewables, the increased interconnection of European grids, the development of local energy initiatives, and the specific requirements on TSO-DSO cooperation as set forth in the different Network Codes and Guidelines, TSOs and DSOs face new challenges that will require greater coordination. Source: General Guidelines for Improving TSO-DSO Cooperation, EDSO, ENTSO-E and Eurelectric 2015 The......have task forces and working groups investigating future roles for, relationships, markets, and coordination requirements between, the operators. Source: TSO/DSO Coordination in a Context of Distributed Energy Resource Penetration. Birk et al

3 Key Documents of Reference European Focused: General Guidelines for Reinforcing the Cooperation Between TSOs and DSOs (2015). From EDSO, ENTSO-E and Eurelectric Regarding data management, active/reactive power, coordinated network planning ENTSO-E Policy Recommendations CEER (2015). The Future Role of DSOs U.S. Focused: De Martini, et. al. (2015) Distribution Systems in A High Distributed Energy Resources Future. Planning, Market Design, Operation and Oversight. Dr. Lorenzo Kristov (2015). The Future History of Tomorrow s Energy Network. Please see memo for analysis, findings and a comprehensive list of references 3

4 A future decentralized electricity system DERs can provide system-wide services DERs have market and operational impacts Highlighting key interactions and coordination of services during operational phase New roles for DSOs and TSOs Transition through 2 phases likely Initial Phase TSO DSO DERs/Aggre gators Subsequent Phase Power Flow TSO DSO DERs/Aggre gators Services Operational Signals Diagram of the main interactions between TSO, DSO and DERs 4

5 Prices and services 5

6 DERs can provide services to the power system Energy Related Services Network Related Services Electrical Energy Network Connection Secondary Electricity Services Firm Capacity Black-start Voltage Control Power Quality Emissions Restrictions Primary Operating Reserves Energy Loss Reduction Renewables Incentives (FiT, ITC, or PTC) Secondary and Tertiary Reserves Network Constraint Management Domestic Fuel Content Requirement Electricity services separated into categories: energy, network and secondary services (Pérez-Arriaga, Burger, & Gómez, ) However, wholesale markets have restrictions which limit DER access 6 3 MacDonald et al., (2012)

7 1. Moderate penetration of DERs 2. Distribution can handle DERs 2. Distribution may face constraints from DERs 1. Increased penetration of DERs Initial Phase Subsequent Phase 4. Open wholesale markets to DERs 3. Incorporate distribution network into prices of energy 4. Define and implement new roles for DSOs 3. Develop new market roles and price signals to resolve conflicts So far, rapidly expanding deployments of DER are connected to the grid but not integrated into grid operations, which is a pattern that is unlikely to be sustainable. Source: The Integrated Grid. EPRI (2014) 7

8 Communicate energy forecasts and schedules between the actors Energy flow forecasts Energy schedules at different timeframes and dispatch coordination Potentially use an iterative approach to solve T&D network constraints Need for operating procedures to manage TSO dispatch of DERs in DSO territory TSO DSOs Could run DA market with DERs Inform DSO Needs forecasting of loads/generation Computes price DER/Aggregator Monitor resources Computes DLMP or contract Entire local distribution area Then sending information to TSO Long-term planning and long-term contracting DERs are potentially non-wires solutions for network expansion 8

9 References 1. Birk, M., Caves-Ávila, J.P., Gómez, T., Tabors, R. (2016, forthcoming). TSO/DSO Coordination in a Context of Distributed Energy Resource Penetration. Presented at EEIC Pérez-Arriaga, I, J., Bharatkumar, A., Burger, S., and Gómez, T. (2015, forthcoming). Towards a Comprehensive System of Prices and Charges for Electricity Services. Manuscript in preparation. 3. MacDonald, J., Cappers, P., Callaway, D., and Kiliccote, S. (2012, November). Demand Response Providing Ancillary Services. Presented at Grid-Interop. Retrieved December 23, 2015 from e_0.pdf 4. De Martini, P., Kristov, L., Schwartz, L. (2015, October) Distribution Systems in A High Distributed Energy Resources Future. Planning, Market Design, Operation and Oversight. Berkeley Lab. Future Electric Utility Regulation. Retrieved December 14 th, 2015 from 5. Dr. Lorenzo Kristov, The Future History of Tomorrow s Energy Network, Public Utilities Fortnightly, May EDSO for Smart Grids. (2014, May) European Distribution System Operators for Smart Grids. Flexibility: The role of DSOs in tomorrow s electricity market. May 5 th, ENTSOE (2015). General Guidelines for Reinforcing the Cooperation Between TSOs and DSOs. September 11 th, ENTSOE (2015). Markets and Innovation Deliver the Energy Union ENTSOE (2015). Regulatory Governance for the Energy Union: Implement and Update ENTSOE (2015). ENTSO-E Work Programme. E%20general%20publications/151218_AWP2016_Final_post_ACER_opinion.pdf 11. ENTSOE (2015). Where Markets Meet Security of Supply ENTSOE (2015). Where the Energy Union starts: Regions. 9