TSO-DSO RELATIONS IN THE FUTURE EUROPEAN POWER SYSTEM Carlo SABELLI GO 15 San Francisco April 13 2016
42 TSOs in ENTSO-E the European Network for Transmission System Operators for Electricity 42 TSOs from 35 countries 600 million citizens served 900 GW generation managed 310 Thousand Km of transmission lines Grid Development Ten-Year Network Development Plans (TYNDP) Operational Planning Adequacy forecasts Innovation Market Regulation R&D plans Tools for Market Integration Network Codes https://www.entsoe.eu/
The Third Internal Energy Market Package Third Internal Energy Market Package Third IEM Package Directive 2009/72/EC on common rules for the internal market in electricity Electricity Directive) Regulation (EC) No. 713/2009 establishing an Agency for the Cooperation of Energy Regulators ACER Directive 2009/73/EC on common rules for the internal market in natural gas Gas Directive Regulation (EC) No. 714/2009 on conditions for access to the network for cross-border exchanges in electricity ENTSO-E Regulation (EC) No. 715/2009 on conditions for access to the natural gas transmission networks ENTSOG ENTSOE-E: TSO Association with Institutional duties
Load 530 Load from 530 to 574 GW Forecast 2015-2030 (the global system view) The GENRATION MIX and the FLEXIBILITY Power flows fluctuation across EUROPE Source: ENTSO-E TYNDP 2016 vision 4 Page 4
Renewable energy and more active consumers Thousands of small (embedded) units (embedded) Active consumers Source of data Active Distribution Systems Challenges TSO and DSO in common Resources are in the Distribution Systems The participation to the Market is key System stability, Resource variability, power flow control, Integrating demand side resources, Managing data, Empowering consumers, Unlocking flexibility, optimize storage. Changing our power system needs enhanced TSO-DSO coordination Page 5
4 DSO Associations (more than 2500 DSOs) and ENTSO-E launched a TSO- DSO platform in 2015 DSO 2525 DSO >100k Clients 223 DSO < 100k Clients 2302 Different Grids Different Models (Observer) Joint workshops to tackle the key issues Joint project team on data management Cooperation in innovation initiatives Associations have taken turns in hosting Cooperation Agreement Initiative completed by internal ENTSO-E internal project TSO-DSO Wholesale Retail interface Page 6
Enhancing TSO/DSO cooperation Ensuring consistency between wholesale and retail market Unlocking DSR potential One single market Market Operation Defining solutions for observability & controllability Active power management actions impacting balancing and congestion in transmission should be overseen by TSOs Redefine roles of TSOs and DSOs Defining data needs to fulfil regulated tasks Using existing standard developed at European level (CIM format) Defining IT architecture for data management Data Planning Enhancing the information exchange for planning Coordinating the assessment of connection capacity Page 7
Key issues for the TSO-DSO platform and cooperative approach Roles and responsibilities Empowering consumers Balancing Data management Project team was launched on data management Deliverable : recommendations to EC by Q2 2016 Network planning Workshop held on 14 January Active and reactive power management Voltage control Flexibility Reactive power management Workshop held on 20 January Data handling Planning Congestion management Roles and responsibilities Workshops in 2015 resulted in joint paper: General Guidelines for Reinforcing the cooperation between TSOs And DSOs Page 8
Example of TSO/DSO cooperation : Balancing TSOs might increasingly need to make use of flexibility on the distribution grid to reduce imbalances. Flexibility activation can cause congestions (active power and voltage) within the distribution grid. In order to prevent these congestions, close coordination between TSO/DSO is required: Long-Medium term Day-ahead/Intraday Close to real time Assess network capacity regarding flexibility pools Inform the Balancing Service Providers of possible limitations due to network constraints Assess network capacity regarding balancing offers Close coordination on activating offers that might cause congestions Close coordination in handling offers that might cause congestions Several options are possible for implementing this step Page 9
Balancing Guideline Market Design Initiative Balancing markets: Market Design Initiative should complement, not overlap with, the Balancing Guidelines (*) The EB GL defines elements and processes to be harmonised for integrated European balancing markets: Two-step approach to European Balancing market via Coordinated Balancing Areas Four processes (IN, afrr, mfrr, RR) Standard Products Reservation of cross zonal capacity TSO-TSO model for procurement of balancing services Single Common Merit Order List Settlement Integrated Balancing Markets Effective Price Signals System Resilience Prices should reflect power system scarcities and cost-relevant factors such as adequacy, resilience and location. Member States to avoid legal price caps to and to promote acceptance of scarcity pricing in all markets EC to introduce balance responsibility for RES and remove mandatory priority dispatch ENTSO-E and ACER to propose new AS and system services markets (e.g. reactive power, transient and dynamic stability, inertia, etc.) to keep the power system stable and reliable at all times Enable RES participation to provide balancing and ancillary services compatibly with system needs, product specifications IN, = Inbalance Netting; afrr,= Automatic Frequency RestorationReserve mfrr= Manual Frequency Restoration Reserve, RR= Reserve Replacement (*) one of the EU Grid Codes Page 10
Effective day-ahead and intraday markets for RES integration Full and timely implementation of the Capacity Allocation and Congestion Management guidelines (CACM) Ensure customers are free to access all relevant markets and enable aggregators participation ACER and the National regulatory agencies should put full financial balance responsibility on all market participants to expose market parties to system adequacy price signals ID Gate Cloure Time should allow market participants to adjust their schedules as closely as possible to real time while respecting the time required for guaranteeing system security To improve the investment signal while mitigating the risks for market participants, new risk hedging products should be introduced Page 11