1. DSO-TSO cooperation issues and solutions for distribution grid congestion management
Leonardo meeus & Samson Yemane Hadush
Energy Centre, Vlerick business school
November, 2017

2. TSO-DSO cooperation for distribution grid congestion management
Issues
TSO procure balancing services connected to distribution grids
EU Clean Energy Package
New DSO role to procure and use flexibility to remedy congestion in distribution grids

3. acknowledgements
We received a lot of feedback by discussing these issues in the following settings
Florence School of Regulation focus group, online debate, and workshop
Horizon 2020 project meeting at DG ENERGY
DSO Chair partnership at Vlerick Business School
Future Power Markets Platform
Florence School of Regulation online training network codes
Will be published as working paper at Florence School of Regulation

4. Different borders to manage
T-T border
(a) two transmission systems (T)
T-UT border
(b) a transmission system (T) and transmission grid user (UT)
T-D border
(c) a transmission system (T) and a distribution system (D)
D-UD border
(d) a distribution system (D) and distribution grid user (UD)

5. Congestion management approaches in different system states

6. Congestion management approaches in different system states
Congestion Pricing
Redispatch &
Smart curtailment
Curtailment
Low
High
Grid Operator intervention
High
Low
Market design reflects physical reality

7. Green state congestion management current situation
Evolution
Focus on T-T border
Mostly national bidding zones
Transfer rights to trade between bidding zones
Allocation of rights
Auctions (explicit)
(Flow-based) Market coupling (implicit)
“copper plate” national transmission grids

8. Green state congestion management current situation
Nodal pricing in wholesale markets
Zonal pricing in wholesale markets
“copper plate” national transmission grids

9. Green state congestion management current situation
zonal pricing in wholesale markets
Zonal pricing in wholesale markets
“copper plate” national transmission grids
“Fit and forget” Distribution grids

10. Green state congestion management Possible Future?
distribution locational marginal prices (DLMPs)
Nodal pricing in wholesale markets
Shaloudegi et al. 2012;
Heydt et al. 2012;
Meng & Chowdhury 2011;
Singh & Goswami 2010;
Sotkiewicz & Vignolo 2006;
Li et al. 2014;
Caramanis et al. 2016;
Ntakou & Caramanis 2014

11. Orange state congestion management current situation
TSO
DSO
Balancing
Frequency Containment Reserves
Frequency Restoration Reserves
Replacement Reserves
Congestion management
Balancing services can also be activated to remedy congestion
i.e. :”re-dispatching”
Balancing
DSO “pre-qualification” of TSO balancing services connected to distribution grids
Congestion management
Non-firm access to distribution grids
i.e.: “smart curtailing or smart connection arrangements”

12. What if structural congestion?
European experience
USA experience

13. At which border will we have congestion in distribution grids?
Smart curtailing  UD-D access rights
DSO pre-qualification  T-D transfer rights

14. T-D Cooperation inspired by TSO-TSO Network codes
Capacity calculation
Capacity allocation
TSO-TSO: Past
TSO-TSO: past
Separate calculation and methodology
Explicit wholesale
Borders often closed after day-ahead
TSO-TSO: Network codes
TSO-TSO: Network codes
Capacity calculation regions
Regional capacity calculation methodology
Wholesale market coupling
Exchange balancing energy TSO-TSO model; & balancing capacity with T-T border capacity reservation
Product harmonization
TSO-DSO
Joint or hierarchical approach to TSO-DSO capacity calculation?
TSO-DSO
TSO-DSO model or BSP-DSO model?
T-D border capacity reservation?
Product harmonization?
Network codes
Capacity Allocation and Congestion Management (CACM)
Forward Capacity Allocation (FCA)
Electricity Balancing

15. T-D Cooperation inspired by TSO-TSO Network codes
Curtailment compensation
TSO-TSO: Past
Compensation, except if force majeure
Definition of force Majeure not clear
TSO-TSO: Network code
High compensation, if not force majeure
Minimum compensation if force majeure (definition of force majeure less consequential)
DSO-TSO cooperation
DSO-TSO compensation methodology to be developed