Flexibility market in DSO grid

Distribution network | Flexibility & storage

DESCRIPTION

According to the Clean Energy Package all distribution system operators (DSOs) should consider procuring flexibility* services, including congestion management in their areas, in order to improve efficiencies in the operation and development of the distribution system. Therefore, ESO is currently preparing a concept for flexibility services and invites the market to actively participate in the development of this concept.

*Flexibility - the possibility to adjust the electrical consumption or the electrical production.

PROBLEM

The electricity system is facing many new changes. Large electricity production units are being replaced by many distributed renewable energy sources. Since more and more customers are installing their own generation units, the electricity flow is not only one-directional and grid operators have to manage excess electricity from prosumers as well. Moreover, other sectors such as transport and heating are also shifting to electrification. These changes bring many challenges to DSOs as they have to cope with fluctuating electricity production and increased consumption. Due to these reasons some areas become congested or some voltage problems arises.

SOLUTION

To solve above mentioned problems there are several solutions. The most easiest would be to simply reinforce the grid in the areas there the problem occurs. However, this option is very expensive and it might be not the most rational one if the problem is not constant and it only happens in certain seasons. Therefore, another solution would be to procure flexibility services at those places. In this case DSO would procure flexibility services from market players by asking them to increase or reduce their consumption or production.

This procurement of flexibility services would most likely happen through a dedicated market platform.

To understand the nature of flexibility service procurement ESO in collaboration with Piclo (the leading independent marketplace for flexible energy systems) have launched a joint pilot to introduce market parties to how such a market platform would look like.

The goal of this pilot is to allow market parties to register and upload their assets in order to understand if the future flexibility requirements could be fulfilled. Participants would also be able to see the potential flexibility need of ESO in the platform. Note: it is not the the scope of this pilot to actually trade the flexibility.

Visit https://ltu.picloflex.com/ to view flexibility requirements and locations and register your account.

Video tutorials for use of the platform are available HERE.

For additional support or questions about using Piclo email support@piclo.energy

STATUS AND PROGRESS

The Piclo platform is currently open for registration and will be available until 31 Septemeber 2022 and is free for market parties.

Want to know more about the pilot and flexibility services in general? Contact our Innovation expert Ina Vaitiekutė ina.vaitiekute@eso.lt

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