The changing role of DSOs in the Energy Union

FSR Regulatory Policy Workshop Series 2015-2016

In recent years, wind- and solar-based generation contributed with the greatest volumes to the penetration of renewable energy into the pre-existing electricity market. The electricity output from these technologies is intrinsically less predictable and programmable than generation from conventional or traditional technologies. Consequently, generation outputs will become more variable and a higher degree of flexibility will be required.

This flexibility can be provided, at least in part, by existing resources; but the scale of the challenge is such that additional resources, such as demand response, will have to be harnessed.

As most of the new renewable-based generation capacity will be connected to the distribution grid and some of these resources will also be provided at distribution level; the variability/flexibility challenge might have to be managed both by Distribution System Operators (DSOs) and Transmission System Operators (TSOs).

While TSOs have traditionally been responsible for keeping the electricity system in balance, DSOs have, until now, mainly focused on developing, maintaining and operating the distribution grid. The expected developments in the electricity sector may therefore lead DSOs to assume new roles and responsibilities, somewhat more similar to those traditionally performed by TSOs. One of the main consequences might be that more timely and detailed data on consumption patterns and electricity prices will have to become available to final consumers, or to other actors (e.g. aggregators) operating on their behalf. This clearly raises data and consumer protection concerns, especially on how to ensure consumers’ provision of flexibility in an affordable and consumer-friendly way.

This Workshop aims at defining the new roles and responsibilities that DSOs will have to assume in connection with this greater need for system flexibility. This issue involves a number of different aspects and it is nowadays widely addressed. The Workshop instead will focus specifically on the following questions:

1. To what extent the variability/flexibility challenge will have to be managed at distribution system level?
2. If DSOs have to be engaged, what is expected from DSOs is similar to what TSOs have been performing for many years?
3. What level and form of cooperation and interface between the DSOs’ and TSOs’ system operation functions is required?
4. What changes in the organisation, business model and, possibly, culture is required from DSOs to perform any new function relate to the variability/flexibility challenge?

To address these questions, the Workshop will be structured in two sessions. Session I will focus on the operational and coordination aspects. Session II will examine the organisational implications for DSOs.

This workshop is open exclusively to National Regulators, representatives from public bodies and FSR donors. Special registration requests must be submitted to the Coordinator of this workshop, Ilaria Conti.

Registration deadline: 27 April 2016

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