14th Mediterranean Conference on Power Generation, Transmission, Distribution and Energy Conversion - MED POWER 2024, Athens (Greece). 03-06 November 2024
Summary:
This paper explores innovative approaches to enhance the use of flexibility for electrical distribution networks by integrating time-of-use tariffs and local markets for DSO services. The study presents an analysis through a case study of three distinct scenarios. The first scenario examines the impact of the simultaneous operation of heat pump and electric vehicle loads, leading to significant congestion issues within the network. It highlights the challenges posed by the increasing presence of flexible loads without any pricing signals to guide their operation. In the second scenario, price signals based on time block and contracted capacity charges are introduced, demonstrating how these signals can effectively alleviate network congestion but could shift problems to other hours. The third scenario combines the benefits of tariffs with a local market, resulting in the most significant reduction in grid congestion. Consequently, the outcomes of the current analysis could support regulators and policymakers in designing efficient acquisition mechanisms tailored to the characteristics of the context to which they apply.
Spanish layman's summary:
Este estudio examina cómo la interacción entre las tarifas de red con mercados locales puede mejorar la flexibilidad en las redes de distribución eléctrica. A través de tres escenarios, se analiza el impacto de cargas flexibles, como bombas de calor y vehículos eléctricos, en la congestión de la red. En el primer escenario, la falta de señales de precio provoca una congestión significativa. El segundo escenario introduce señales de precios, lo que ayuda a reducir la congestión, pero puede trasladar el problema a otras horas. El tercer escenario combina estas tarifas con un mercado local para servicios del Operador del Sistema de Distribución (DSO), logrando la reducción más efectiva de la congestión. Los resultados sugieren que la integración de estos mecanismos puede mejorar la eficiencia de la red y posponer innecesarios refuerzos de infraestructura.
English layman's summary:
This paper explores how network tariffs and local markets can improve flexibility in electrical distribution networks. The study analyses three scenarios to understand the impact of flexible loads like heat pumps and electric vehicles on grid congestion. In the first scenario, the absence of pricing signals leads to significant network congestion. The second scenario introduces time-based pricing signals, which help reduce congestion but can shift the problem to different times. The third scenario combines these tariffs with a local market for Distribution System Operator (DSO) services, achieving the most effective reduction in congestion. The results suggest that integrating these mechanisms can enhance network efficiency and postpone unnecessary reinforcement.
Keywords: acquisition flexibility mechanisms, congestion management, network tariffs, local markets
Publication date: 2024-11-03.
Citation:
E.C. Ormeño-Mejía, M. Troncia, J.P. Chaves, M. Valarezo, M. Galici, Integrating third-party flexibility resources into distribution networks: a quantitative assessment on the interactions of network tariffs and local markets, 14th Mediterranean Conference on Power Generation, Transmission, Distribution and Energy Conversion - MED POWER 2024, Athens (Greece). 03-06 November 2024.
