Issue link: https://fhpublishing.uberflip.com/i/748539
NETWORK / 10 / NOVEMBER 2016 DSO VISION • Local control would be best placed to meet local customer service requirements • Scalable architecture • Responsibilities of DSO align with asset ownership boundary • DNO carrying out DSO role would be best placed to manage new requirements alongside existing customer and stakeholder priorities • No resource contention • Can compare relative DSO performance and reward appropriately • No ambiguity of control • Could drive different approaches and innovation across DSOs • Can be locally responsive with locally specific solutions • Potential for innovative localised customer propositions from local suppliers • Can be piloted in an area or a community Challenges • Regulation will be required to standardise approach across DSOs, so that national customers and retailers can operate fairly across the UK • Most significant commercial and regulatory change required of the DSO models discussed • DNOs would need to adapt their roles to market facilitators on a real time basis Benefits of Total DSO model saying if the system is not properly co- ordinated "it is dangerous and could lead to an excess of power". It acknowledged that several models could work to balance distributed generation, but they all still need overall co-ordination from a central position. The UK government, while actively exploring how an increasingly independent SO might work, has also said that overall control does not necessarily have to be awarded to one body, and a more collaborative approach could be employed. The industry would do well to come to a resolution quickly as there have already been warnings about the ongoing tensions holding back the ancillary services market. But the solution must not be a dictatorship, Flexitricity spoke up at the LCNI market to warn delegates that the wish of the DSR market to be allowed to have a continuing relationship with the transmission market should not be ignored. SPEN's DSO vision SPEN wants to transition towards becoming a full DSO that will facilitate an open and inclusive balancing services market at the transmission/distribution interface. The DSO will also carry out local system balancing efficiently using the distribution network. DERs will be aggregated into virtual power plant (VPP) or virtual balancing mechanism units (VBMUs), which will interface with the SO to act on balancing instructions. DSOs will have to facilitate a market for this aggregation, which will demand the development of a mechanism for remuneration for DERs for the services they provide. SPEN says this approach "will be critical to ensure that the market is prepared for the emergence of new participants". The DSO will also balance the local distribution network, making effective use of the existing distribution network and, where it is practical to do so, matching local generation with local demand. The increased information on system use will also act as an investment driver, identifying where further network reinforcement is necessary. The model will be capable of enacting system balancing actions from the SO within timescales that best meet the needs of the SO and the capabilities of the DERs connected throughout its network areas. If SPEN is to realise its DSO vision, it is critically important that there is a communications infrastructure that provides a seamless interface between the TSO, its control facilities and the aggregated DER resources. SPEN intends to transition to a DSO in stages, identifying those network areas in most urgent need of real time monitoring. But the evolution will not be absolute. Not all network and geographic areas will require the full range of integration and DSO services. Instead, suitable monitoring technology will have to be installed. By taking this approach, SPEN will undertake "no regret" actions because these are already required for the transition towards smart grids, while the modular aspect will allow testing of the model in a controlled manner. Active network management (ANM) ANM will be the cornerstone of the transi- tion to DSO and the technology is largely proven – although two key areas still require development. First, the standardisation of solutions and the interface with communication networks to enable innovation. This will also have the effect of reducing the implementation cost for these solutions, driving further efficiency. Second, more advanced optimisation tools, so"ware and data management methods will be required to provide a number of axes of optimisation. Trials SPEN is planning trials in two DSO-enabled network areas within the current price control period. • Dumfries and Galloway This network area is rich in natural resources but demand is relatively low. There is 340MW of distributed generation connected and just 190MW of demand, making the area a net exporter of energy. A solution to connect a further 660MW of contracted generation on both the transmission and distribution systems is required, but the SO determined that SPEN's original solution is not the most cost-effective option. It will therefore seek to develop the area into a DSO-enabled network to facilitate the connections. • North and Mid Wales This area includes a range of urban and rural environments with a significant penetration of distributed generation. There is currently 800MW of demand with 800MW DG connected and a further 700MW contracted to connect to the network. To facilitate this future generation, SPEN intends to use solutions including ANM, enhanced thermal ratings, battery storage and direct current cables. The heavily meshed nature of the network will allow SPEN to demonstrate ANM solutions on this type of network architecture. N "The implementation of a DSO model optimises customer engagement, minimises costs, improves customer service, manages losses and optimises investment at a local level." Frank Mitchell, chief executive, SPEN