Universidad Pontificia Comillas. Madrid (Spain)
October 31st, 2024
Summary:
Power systems globally are undergoing significant changes, driven by energy sector decarbonization, sector electrification, new Demand Response (DR) opportunities, and power sector digitalization. These shifts necessitate increased coordination between Transmission System Operators (TSOs) and Distribution System Operators (DSOs), especially in procuring and activating distributed flexibility.
This thesis highlights four missing elements essential for effective distributed flexibility procurement by System Operators: (i) DER integration in balancing and congestion markets, (ii) TSO-DSO coordination schemes, (iii) transmission-distribution optimization models, and (iv) data management frameworks.
The thesis assesses different Coordination Schemes (CSs) for distributed flexibility procurement in balancing and congestion management contexts. Using models applied to Swedish and Spanish case studies, it examines Non-Served Flexibility (NSF) and DSOs' ability to mitigate congestion through flexibility. Findings reveal, for instance, that in Sweden, an additional 10 GWh/year of activated flexibility could accommodate 145 GWh of new demand without NSF. Contrastingly, Spanish case results underscore the challenges of non-controllable Distributed Generation (DG) in offering upward flexibility.
A bilevel model for interface flow pricing is also proposed, exploring TSO-leader and DSO-follower dynamics in a Stackelberg game to identify regulatory risks and test mechanisms. Findings suggest that a strategic TSO can economically activate flexibility providers but may distort cost allocation if unregulated. A proposed cap-and-floor mechanism demonstrates that a Fragmented CS with TSO incentives can achieve efficient flexibility procurement with lower regulatory overhead than a Common CS.
Finally, a qualitative analysis examines structural and regulatory barriers to flexibility in eight European countries. Results show existing barriers from both stakeholders’ perspectives and regulatory frameworks, with limited CS implementation where product harmonization is lacking. Conclusions emphasize the need for policy-driven markets to overcome resistance and align flexibility exploitation between TSOs and DSOs.
The thesis contributes to the TSO-DSO coordination research field by identifying key characteristics for DER integration in flexibility markets, and by proposing incentive-based mechanisms for effective coordination. Future research directions include expanding case studies to complete subtransmission models and testing new incentive-based mechanisms.
Spanish layman's summary:
Esta tesis explora aspectos cuantitativos y cualitativos de diferentes esquemas de coordinación para que TSOs y DSOs coordinen la adquisición y activación de flexibilidad distribuida. Se utilizan caso de estudios realistas, teoría de juegos y análisis regulatorios para proponer soluciones para la coordinación TSO-DSO en el contexto europeo.
English layman's summary:
This thesis explores quantitative and qualitative aspects of different Coordination Schemes for TSOs and DSOs to coordinate the procurement and activation of distributed flexibility. Realistic case studies, game theory and regulatory analyses are used to propose solutions for TSO-DSO coordination in the European context.
Descriptors: Transmission and distribution, Power distribution, Power transmission
Keywords: TSO-DSO Coordination; Distributed Flexibility; Bilevel optimisation; Power system economics; Electricity markets
Citation:
L. Lind (2024), TSO-DSO coordination: a multidimensional study on coordination schemes, modelling and regulation in the european context. Universidad Pontificia Comillas. Madrid (Spain).
