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TSO-DSO RELATIONS IN THE FUTURE EUROPEAN POWER SYSTEM Carlo SABELLI GO 15 San Francisco April 13 2016 42 TSOs in ENTSO-E the European Network for Transmission System Operators for Electricity 42 TSOs from 35 countries 600 million citizens served 900 GW generation managed 310 Thousand Km of transmission lines Grid Development Operational Planning Ten-Year Network Development Plans (TYNDP) Adequacy forecasts Innovation Market Regulation R&D plans Tools for Market Integration Network Codes https://www.entsoe.eu/ The Third Internal Energy Market Package Third Internal Energy Market Package Third IEM Package Directive 2009/72/EC on common rules for the internal market in electricity Electricity Directive) Regulation (EC) No. 713/2009 establishing an Agency for the Cooperation of Energy Regulators ACER Regulation (EC) No. 714/2009 on conditions for access to the network for cross-border exchanges in electricity ENTSO-E ENTSOE-E: TSO Association with Institutional duties Directive 2009/73/EC on common rules for the internal market in natural gas Gas Directive Regulation (EC) No. 715/2009 on conditions for access to the natural gas transmission networks ENTSOG Forecast 2015-2030 (the global system view) Power flows fluctuation across EUROPE Load 530 Load from 530 to 574 GW The GENRATION MIX and the FLEXIBILITY TYNDP 2016 vision 4 Source: ENTSO-E Page 4 Renewable energy and more active consumers Thousands of small (embedded) units (embedded) Active consumers Source of data Active Distribution Systems Resources are in the Distribution Systems The participation to the Market is key Challenges TSO and System stability, Resource variability, power flow control, Integrating DSO in common demand side resources, Managing data, Empowering consumers, Unlocking flexibility, optimize storage. Changing our power system needs enhanced TSO-DSO coordination Page 5 4 DSO Associations (more than 2500 DSOs) and ENTSO-E launched a TSODSO platform in 2015 (Observer) 2525 DSO 223 DSO >100k Clients DSO < 100k Clients 2302 Different Grids Different Models •Joint workshops to tackle the key issues •Joint project team on data management •Cooperation in innovation initiatives •Associations have taken turns in hosting Cooperation Agreement Initiative completed by internal ENTSO-E internal project “TSO-DSO Wholesale – Retail interface” Page 6 Enhancing TSO/DSO cooperation • Ensuring consistency between wholesale and retail market • Unlocking DSR potential • One single market Market • Defining data needs to fulfil regulated tasks • Using existing standard developed at European level (CIM format) • Defining IT architecture for data management Data Operation Planning • Defining solutions for observability & controllability • Active power management actions impacting balancing and congestion in transmission should be overseen by TSOs • Redefine roles of TSOs and DSOs • Enhancing the information exchange for planning • Coordinating the assessment of connection capacity Page 7 Key issues for the TSO-DSO platform and cooperative approach Roles and responsibilities Empowering consumers Balancing Data management Network planning Active and reactive power management Voltage control Flexibility Data handling Planning • Workshop held on 14 January Reactive • Workshop held on 20 January power management Roles and responsibilities Congestion management • Project team was launched on data management • Deliverable : recommendations to EC by Q2 2016 • Workshops in 2015 resulted in joint paper: • General Guidelines for Reinforcing the cooperation between TSOs And DSOs Page 8 Example of TSO/DSO cooperation : Balancing • TSOs might increasingly need to make use of flexibility on the distribution grid to reduce imbalances. • Flexibility activation can cause congestions (active power and voltage) within the distribution grid. • In order to prevent these congestions, close coordination between TSO/DSO is required: Long-Medium term •Assess network capacity regarding flexibility pools •Inform the Balancing Service Providers of possible limitations due to network constraints Day-ahead/Intraday Close to real time • Assess network capacity regarding balancing offers • Close coordination in handling offers that might cause congestions • Close coordination on activating offers that might cause congestions • Several options are possible for implementing this step Page 9 The EB GL defines elements and processes to be harmonised for integrated European balancing markets: •Two-step approach to European Balancing market via Coordinated Balancing Areas •Four processes (IN, aFRR, mFRR, RR) •Standard Products •Reservation of cross zonal capacity •TSO-TSO model for procurement of balancing services •Single Common Merit Order List •Settlement Integrated Balancing Markets Effective Price Signals System Resilience IN, = Inbalance Netting; aFRR,= Automatic Frequency RestorationReserve mFRR= Manual Frequency Restoration Reserve , RR= Reserve Replacement (*) one of the EU Grid Codes • Prices should reflect power system scarcities and cost-relevant factors such as adequacy, resilience and location. • Member States to avoid legal price caps to and to promote acceptance of scarcity pricing in all markets • EC to introduce balance responsibility for RES and remove mandatory priority dispatch • ENTSO-E and ACER to propose new AS and system services markets (e.g. reactive power, transient and dynamic stability, inertia, etc.) to keep the power system stable and reliable at all times • Enable RES participation to provide balancing and ancillary services compatibly with system needs, product specifications Market Design Initiative Balancing Guideline Balancing markets: Market Design Initiative should complement, not overlap with, the Balancing Guidelines (*) Page 10 Effective day-ahead and intraday markets for RES integration Full and timely implementation of the Capacity Allocation and Congestion Management guidelines (CACM) Ensure customers are free to access all relevant markets and enable aggregators’ participation ACER and the National regulatory agencies should put full financial balance responsibility on all market participants to expose market parties to system adequacy price signals ID Gate Cloure Time should allow market participants’ to adjust their schedules as closely as possible to real time while respecting the time required for guaranteeing system security To improve the investment signal while mitigating the risks for market participants, new risk hedging products should be introduced Page 11