Economic Implications of DSO-TSO Coordination Schemes at a System Level and for Market Actors in case of Flexibility or Traditional Grid-based Solution

Abstract

This paper proposes a methodology to evaluate the economic implication of the use of flexibility to solve both joint DSO-TSO and local DSO-specific congestion management needs. The presented methodology enables evaluating the economic implications at a system level and per market actor according to the selected DSO-TSO coordination scheme and given flexibility needs. Firstly, several DSO-TSO coordination schemes are presented to solve joint needs, in which market access to flexible resources at the distribution grid is enabled to a greater or lesser extent. Secondly, the use of flexibility is compared to traditional grid solutions (i.e., grid reinforcement, temporary commissioning services) to enable the DSO to make cost-efficient grid decisions in the short and medium term. Finally, the economic impact on flexible service providers at the distribution level is carefully presented. This methodology seeks to support energy policies and other regulatory decisions.This work has received funding from the European Union’s Horizon 2020 research and innovation program under grant agreement nº 824414. TECNALIA is a “CERVERA Technology Centre of Excellence” recognized by the Ministry of Science and Innovatio