Integration of DERs on power systems: challenges and opportunities

The integration of large amounts of distributed energy resources (DERs) as photovoltaic solar generation, micro-cogeneration, electric vehicles, distributed storage or demand response pose new challenges and opportunities on the power sector. In this paper, we review the current trends on: i) how consumers adopting DERs can self-provide energy services and provide other services at system level, ii) what can be expected at distribution networks and how retail markets will evolve with more proactive and market engaged consumers, iii) what are the effects and integration of DERs on wholesale markets, and iv) what are the challenges that DERs pose on cybersecurity and the opportunities for improving system resilience. Several recommendations are given for achieving an efficient integration of DERs. For instance, the design of a comprehensive system of prices and charges and the elimination of existing barriers for market participation are crucial reforms to achieve a level playing field between distributed and centralized resources when providing electricity services. This paper summarizes part of the work developed under the MIT Utility of the Future study

Remuneration mechanisms for investment in reactive power flexibility

Abstract The practices for the procurement of voltage control capability need changing because of the evolution of the power system driven by the penetration of renewable sources, low carbon policies, and decentralisation. New providers have to be involved. Therefore, new mechanisms to achieve cost-effective solutions have to be encouraged. To this aim, a cost-based incentive mechanism and a weighted auction are proposed for procuring additional reactive power capacity. Both mechanisms are conceived for encouraging effective investment in voltage control by reducing the overall procurement cost. Hence, the voltage sensitivity of the reactive power provider is part of both mechanisms. Voltage sensitivity is evaluated through the Multi Infeed Interaction Factors while the American Electric Power methodology is used for identifying the reactive power costs. The proposed mechanisms are general, and they can be exploited in transmission and distribution networks irrespective of the asset, which provides the reactive capacity. A case study concerning the 39-bus New-England power system is presented for providing the proof of concept of the proposed mechanisms. The analysis of the two mechanisms' pros and cons highlights that the weighted auction creates competition and shows low risks related to the exercise of potential market power

Regulación de la distribución de energía eléctrica en España: principios y mecanismos de retribución

First, a conceptual framework for electricity network regulation is presented. In the second part, this paper reviews the current situation of electricity distribution regulation in Spain highlighting its main shortcomings. Finally, some guidelines for the design of a new remuneration model for each distribution company are proposed. This new regulatory model will increase efficiency, promoting the required investment for improving quality of supply and reducing energy losses. This model is based on two new regulatory tools: regulatory accounting and network reference models.Este artículo presenta el marco conceptual de lo que debe ser una regulación ortodoxa de las actividades de red. En una segunda parte, revisa la situación de la regulación de la distribución en España, poniendo de manifiesto sus principales deficiencias. Finalmente se exponen las pautas para el diseño de un nuevo modelo retributivo para cada empresa. Este modelo aumentará la eficiencia, incentivando las inversiones necesarias para la mejora de la calidad y la disminución de las pérdidas. El modelo se apoya en dos nuevas herramientas: la contabilidad regulatoria y los modelos de red de referencia