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Challenges and opportunities for electricity grids and markets

M. Troncia, D. Ziegler, T. Gómez, J.P. Chaves, E. Beckstedde, L. Meeus, J. Villar, A. Rodrigues de Oliveira, B. Czarnecki, R. Magulski, T. Knop, C. Augusto, C. Marin, G. Faria

Summary:

Executive summary
The EUniversal project has the primary objective to overcome the existing limitations in the use of flexibility by distribution system operators (DSOs). A Universal Market Enabling Interface (UMEI) will be implemented to foster the provision of flexibility and link the active system management of distribution system operators with electricity markets. In this context, this document analyses the recent and ongoing European policy and strategy that will shape the future electricity grid and markets. Challenges and opportunities for grids and markets are identified and discussed to provide high-level recommendations and contribute to the distribution system evolution.
The ongoing energy transition is already affecting the electricity system; however, given the long-term GHG emission objective to be achieved, fundamental changes are imperative for the distribution system even in the near future. Policy drivers such as the use of renewable sources, the decentralisation of electricity generation, and the electrification of the energy demand will bring fundamental changes to the distribution system. Technology development such as digitalisation allows customers to connect at distribution networks to become active participants who interact with the system. Consumers with distributed energy resources can provide electricity back to the network by installing distributed generation and storage technologies, including electric vehicles. These technologies can provide a wide range of system services (frequency and non-frequency ancillary services, including congestion management) and support grid planning and operation.

The full document provides a high-level assessment of the needs of the future distribution system. This top-down qualitative approach identifies the overall objective to be achieved, the limits of strategies, and the high-level challenges to be addressed. The described top-down approach guides the assessment at the local level (bottom-up approach) that requires local information (e.g., actual deployment of the technology options, technical knowledge of the grid) to determine quantiatively the flexibility needs of a specific distribution network.

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Spanish layman's summary:

El documento ofrece una evaluación de alto nivel de las necesidades del futuro sistema de distribución. Este enfoque cualitativo identifica el objetivo general que debe alcanzarse, los límites de las estrategias y los retos de alto nivel que deben abordarse.


English layman's summary:

The document provides a high-level assessment of the needs of the future distribution system. This qualitative approach identifies the overall objective to be achieved, the limits of strategies, and the high-level challenges to be addressed.


Keywords: Characterisation of current network regulation and market rules that will shape future markets


IIT Project: EUniversal (EUniversal)

Funding entity: European Comission. H2020 – LC-ES-1-2019

Publication date: 01-09-2021

IIT-21-147I


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