The role of DSOs is evolving due to the increasing penetration of intermittent and distributed energy resources in the distribution system. On the one hand, TSOs are accessing flexibility resources connected to the distribution grid. On the other hand, DSOs are actively managing distribution grid congestion, moving away from the conventional fit and forget approach. As a result, the need for DSO-TSO cooperation has become increasingly important. In this study, we first discuss market and grid operation issues related to different system states and the corresponding congestion management approaches. Second, we discuss possible solutions that are inspired by inter-TSO cooperation solutions as well as solutions that are being adopted by DSOs. Our findings show that the issues are rather similar both at transmission and distribution level; however, the need for cooperation and the solutions will depend on where structural congestion will occur and which borders will be managed.

The role of DSOs is evolving due to the increasing penetration of intermittent and distributed energy resources in the distribution system. On the one hand, TSOs are accessing flexibility resources connected to the distribution grid. On the other hand, DSOs are actively managing distribution grid congestion, moving away from the conventional fit and forget approach. As a result, the need for DSO-TSO cooperation has become increasingly important. In this study, we first discuss market and grid operation issues related to different system states and the corresponding congestion management approaches. Second, we discuss possible solutions that are inspired by inter-TSO cooperation solutions as well as solutions that are being adopted by DSOs. Our findings show that the issues are rather similar both at transmission and distribution level; however, the need for cooperation and the solutions will depend on where structural congestion will occur and which borders will be managed.

No abstract

No abstract

The market‐driven implementation of smart grid solutions and technologies depends on many factors, such as their costs and benefits relative to the alternatives, and the regulatory frameworks that apply to the relevant actors. This chapter focuses on the latter by illustrating that some countries have already started to adapt their regulatory frameworks to better incentivize power grid companies and grid users to consider smart grid solutions and technologies in the transition toward a more sustainable power system. We introduce four innovative smart grid cases: the introduction of active distribution grid management in the Orkney Isles in the north of Scotland to increase the integration of wind power on the archipelago; the deployment of smart meters in Italy to enable demand response; the development of an offshore HVDC grid in Kriegers Flak area in the Baltic sea to connect offshore wind farms to shore and to enable cross‐border trade among Denmark, Germany, and Sweden; and the demonstration of distributed system platform project in New York that integrates distributed energy resources securely and efficiently while maintaining interoperability. We discuss the main shortcomings of the conventional regulatory frameworks in relation to these cases: the bias toward cost reductions at the expense of innovation, the bias toward capital expenditures at the expense of operating expenditures; coordination issues between power grid companies; and disincentives for grid users to contribute to ongoing power grid innovation. Moreover, we provide an overview of smart regulations in other parts of the world, which are not covered in the four cases. We conclude by deriving lessons learned for other countries that still have to start adapting their regulatory frameworks to the context of smart grids.