Market-based TSO–DSO coordination: a comprehensive theoretical market framework and lessons from real-world implementations

M. Troncia, J.P. Chaves, C. Damas Silva, H. Gerard, G. Willeghems

Energies Vol. 16, nº. 19, pp. 6939-1 - 6939-28

Summary:

This paper introduces a theoretical market framework (TMF) for conceptualizing and designing electricity markets, integrating transmission system operator and distribution system operator (TSO–DSO) coordination mechanisms. The TMF represents a comprehensive tool that formalizes new, innovative market concepts and their impact on existing markets, and outlines fundamental categories and decisions essential to market design. This paper, through the TMF, addresses the integration challenges posed by new mechanisms for system services. Utilizing the TMF, the study maps 13 European demonstrators’ TSO–DSO coordination solutions, identifying real-world challenges in designing and implementing novel system services markets. Drawing on these real-world insights, the paper offers market design and policy recommendations to address and overcome the specific challenges in market-based TSO–DSO coordination.

Spanish layman's summary:

Este documento presenta un marco teórico de mercado para conceptualizar y diseñar mercados de electricidad, integrando mecanismos de coordinación entre operadores de sistemas de transmisión y operadores de sistemas de distribución. Se estudian 13 demostradores europeos de coordinación transmisión – distribución para la adquisición de servicios de red.

English layman's summary:

This paper introduces a theoretical market framework (TMF) for conceptualizing and designing electricity markets, integrating transmission system operator and distribution system operator (TSO–DSO) coordination mechanisms. 13 European demonstrators’ TSO–DSO coordination are studied for system services allocation.

Keywords: TSO–DSO coordination; real-world demonstrators; electricity market design; system services

JCR Impact Factor and WoS quartile: 3,000 - Q3 (2023)

DOI reference: https://doi.org/10.3390/en16196939

Published on paper: October 2023.

Published on-line: October 2023.

Citation:
M. Troncia, J.P. Chaves, C. Damas Silva, H. Gerard, G. Willeghems, Market-based TSO–DSO coordination: a comprehensive theoretical market framework and lessons from real-world implementations. Energies. Vol. 16, nº. 19, pp. 6939-1 - 6939-28, October 2023. [Online: October 2023]