Flexibility – stakeholder interaction is key
To utilise flexibility to its full potential, coordination between the various stakeholders within the energy supply chain is required, a new ISGAN (International Smart Grid Action Network) study indicates.
The study, based on a survey of stakeholders including transmission and distribution system operators and various third parties, revealed that there are numerous projects and initiatives extending across all network levels, which are delivering value, but challenges and barriers remain.
The study found transmission-connected generation and large industrial loads to be the most drawn upon flexibility resource currently. Conversely, distributed energy resources, i.e. generation, storage or loads, were the least likely to be used, with the general exception of some European countries.
When used, load flexibility was frequently deployed to satisfy transmission capacity needs, followed by frequency regulation, transmission-level economic dispatch and contingency reserve services.
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Utilising load flexibility for voltage regulation or economic dispatch within distribution/local energy markets was the least mature, either under consideration or not being pursued.
In this context most respondents indicated that currently DSOs do not contribute to congestion management and prequalification of flexibilities. However, in the countries they do the indications are that these methods have significant potential in future power systems.
Among the barriers identified a major one is that the roles and responsibilities of the various stakeholders in the energy sector are not clearly defined. In some cases, the DSO has no role when it comes to flexibility, since the assets are currently market-based, while it was also mentioned that the reason for limited or lack of flexibilities is the lack of a meaningful business case for market participants.
From the consumer perspective, insufficient incentives to participate proves to be a barrier in many countries due to limited integration within the regulatory framework.
Flexibility platforms
Another finding of the study is that the development of various flexibility registers and coordination platforms will be needed to utilise the available flexibility. It is expected that these platforms would enable the prequalification of resources for the system operators and the joint optimisation of the bids for all needs.
Within this context, the DSO is expected to have an increased active role when enabling flexibility provision and coordinating with the TSO. In other cases, it was also mentioned that prosumers will become more active with respect to on-peak load reduction and flexibility services.
From the regulatory perspective, in some countries there are ongoing discussions and a formal process to address the definition of policies and rules that will allow for the integration of flexibility services from distributed resources. However, these are unlikely to happen in the immediate future but are expected to take place within the next decade.
The report concludes with a series of recommendations, including system enhancements to facilitate the inclusion of devices and methods to further interactions and further develop value stacking of joint products.
Next-generation smart meters are noted as able to act as an access point for behind-the-meter equipment capable of providing flexibility services. These, therefore, should have more technical capabilities.
The study will now feed into the future work of ISGAN’s working groups on power systems and flexibility markets.
