On the 03-10-2019 the Swiss Federal Office of Energy SFOE and Research Center for Energy Networks – ETH Zürich in cooperation with ISGAN Annex 6 (Power Transmission & Distribution Systems) hosted a public workshop on needs, challenges and opportunities of TSO-DSO coordination in Montreux, Switzerland.

An introduction to the workshop demonstrated how there has been a paradigm shift in the electrical supply industry, where the traditional characteristics of centralized generation, fixed loads, and uni-directional power flow have transformed into systems which are decentralized, controllable and incorporate bi- directional power flow. This shift toward distributed and renewable electricity poses as a challenge to both the TSO and DSO and thus there has been an increasing awareness relating to the needs, challenges and opportunities associated with the implementation of the necessary solutions. Successful TSO-DSO coordination requires the consideration of various perspectives of the technical, market and regulatory aspects in order to maximize the potential benefits provided by DERs, this includes congestion relief, reactive power and voltage control and frequency reserves.

An overview of International Activities on TSO-DSO interaction extending from 2014 to 2019 was provided. Since the results of various projects relating to TSO-DSO interaction are starting to become available, investigations are currently being conducted on the ‘Lessons learned on international projects on TSO-DSO interaction’ which will consolidate the outcomes of these projects and will be available in 2020. This deliverable will take the form of an interview style video, in which various stakeholders are invited to participate. A sneak preview of the video was shown at the workshop and received a positive response from the audience.

Additionally, some highlights of the workshops included a summary of TSO-DSO report which focused on the TSO-DSO interaction in congestion management and balancing. The drive for increased in TSO-DSO interaction was also emphasized in countries such as Ireland, where a target for 75% power generation from non-synchronous machines is to be achieved and raises the question as to ‘who’ is responsible for providing the necessary reactive power in order to achieve this goal. Further information into the development of business use cases which enable the TSO-DSO coordination was also presented. An interesting analogy between the power system and the human body showed that, it is necessary to ensure the optimal health of the power system which often requires a systematic behavioral change. In this regard, it has become evident that demand side management plays an important role in terms of market related aspects and that sufficient incentives for optimization should be introduced when it comes to DER flexibility.

The panel discussion incorporated a Q&A session received a constructive response. The presenters from the previous discussion were available for further questions and discussion.

Antony Zegers, AIT-Austrian Institute of Technology GmbH Austria, Tony Hearne (ESB Networks), Ireland, Gonca Gürses (RWTH Aachen), Germany, Andreas Beer (Repower AG), Switzerland, Markus Imhof (Swissgrid AG), Switzerland, Alexander Fuchs, ETH Zürich, Switzerland,
Moderator: Dr Turhan Demiray (ETH Zürich) , Switzerland

This paper documents the Annex 2 unified framework for assessment, prioritized assessment results by each Participant, purpose and methodology for multinational (or clustering) analysis, analysis results of common motivating drivers and driver-technology pairs of high priority at the national level as well as across all nations and to nations clustered by economies or by continent, and comparison of multinational prioritized assessment results between the 2014 and 2020 studies.

Recently, the energy market is going through drastic changes with the launch of a new climate regime and the advent of the Fourth Industrial Revolution era. Amid these changes, many countries worldwide are strategically pushing for digital transformation to address various issues arising from the pursuit of energy conversion policies. As defined by the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety of Germany (BMU), energy transition refers to the shift to a sustainable economy through renewable energy, energy efficiency, and sustainable development, and its ultimate goal is replacing coal or other nonrenewable energy sources entirely with renewable ones.

Thus, energy transition is the shifting of centralized nuclear and fossil-based energy systems into decentralized renewable energy-based systems. However, the critical issue behind it is to expand the use of renewable energy and reduce energy consumption through energy efficiency. As such, energy transition can be more efficient through digital transformation, which combines technology and ICT in the field of electrical energy. Therefore, the present publication examines the various cases of the digital transformation of utilities and identifies the implications of digital transformation in the transition to clean energy. Moreover, ISGAN Annex 4 aims to convey some messages, such as what the digital transformation means in terms of transition into smarter energy, its potentiality, and the most pressing challenges, to policymakers and related industries.

This discussion paper identifies and consolidates the lessons learned from international projects, use cases, and best practices on TSO-DSO interaction. The results have been obtained from projects that are still in their early phases based on their preliminary findings as well as those that have reached their dissemination stages. Furthermore, this work aims to present a global view of developments of TSO-DSO interaction based on collaboration from stakeholders within the ISGAN community, as well as additional collaboration partners (TSOs, DSOs, project leaders, etc).

The main target audience is focused toward stakeholders who are familiar with the topic and will provide them with an overview and reference towards projects such that the lessons learned can be considered within future projects. The video provides a high-level overview which encapsulates the main findings, while this report forms a supplementary consolidation of the results in order to provide additional information in more detail.

ISGAN Policy Messages for CEM

Operating as both a Clean Energy Ministerial (CEM) Initiative and an International Energy Agency (IEA) Technology Collaboration Programme (TCP), the International Smart Grid Action Network (ISGAN) is an international platform for the development and exchange of knowledge and expertise on smarter, cleaner, and more flexible electricity grids (i.e., “smart grids”). ISGAN provides an important channel for communication of experience, trends, lessons learned, and future plans in support of national, regional and global clean energy objectives.

To learn more about CEM’s and IEA’s involvement, see Background.

The IGSAN Executive Committee meets twice a year.

In close collaboration with the Secretariat, a chair and four vice chairs also serve on the committee as the Presidium:

• Luciano Martini, ExCo Chair, Ricerca Sul Sistema Energetico  S.p.A, Italy, luciano.martini[at]rse-web.it
• Russell Conklin, ExCo Vice Chair, U.S. Department of Energy, U.S.A., russell.conklin[at]hq.doe.gov
• Arun Kumar Mishra, ExCo Vice Chair, Director NSGM-PMU, India, akmishra[at]powergrid.in
• Wickie Lassen Agdal, ExCo Vice Chair, Advisor EUDP, Denmark, wbl[at]ens.dk
• John Ward, ExCo Vice Chair, Director of the Energy Systems Research Program CSIRO, Australia, john.k.ward[at]csiro.au

ISGAN is supported by a Co-Secretariat at the AIT Austrian Institute of Technology and the Korea Smart Grid Institute  (KSGI).

AIT holds the position of the ISGAN Operating Agent.

• Mihai Calin, oa[at]iea-isgan.org

The Secretariat at AIT is responsible for all organizational and communication matters. Primary points of contact are:

• Susanne Windischberger, secretariat[at]iea-isgan.org
• Catrin Haider, secretariat[at]iea-isgan.org

KSGI is responsible for ISGAN’s contribution to the Clean Energy Ministerial (CEM) and the ISGAN Award of Excellence. Primary points of contact are:

• Sky Jong-Cheon Son, jcson@smartgrid.or.kr
• Aram AN, realaram@smartgrid.or.kr
• Chloe SungJi Yoon, ysj@smartgrid.or.kr

ISGAN’s working groups include:

• Budget Review Group
• Annex Coordination Group
• CEM Preparatory Team
• ISGAN Awards Team
• ISGAN Academy Committee
• Strategic Communications and Private Sector Engagement Team

Overview

The primary objective of Working Group 3 (WG3) is to develop a global framework and related analyses that can identify, define, and quantify in a standardized way the benefits that can be realized from the demonstration and deployment of smart grid technologies and practices in an electricity system.

More specifically, WG3 develops tools used by analysts, regulators, utilities, and other electricity system stakeholders. These tools help define and decide on system needs and priorities for smart grid system investment and regulatory changes. Results help develop specific business cases, considering specific regulatory and market structures, current system status, demand profiles, and available generation assets and resources.

In their analysis, different ISGAN countries are likely to prioritize distinct domains within the power sector. Therefore, in developing methodological frameworks and tools, a broad definition of smart grid is adopted to encompass the full range of technologies and activities from centralized power generation to transmission and distribution networks end uses and distributed generation, and different energy vectors. The CBA-MCA tool is also used for sector coupling and evaluating various integrated energy systems.

WG 3 continues to leverage existing knowledge and experience gained in different participating countries, as well as current international efforts underway and cooperation among major smart grids stakeholders globally. 

Working Group 3 Tasks

• Task 1: Online tool improvement and dissemination

• • Subtask 1.1    Analysis of the state of the art on the uncertainty integration in CBA/MCA tools
  • Subtask 1.2    Analysis of online tools for flexibility assessment
  • Subtask 1.3    ISGAN MCA/CBA platform updates and design
  • Subtask 1.4    Promotion of the ISGAN MCA/CBA platform

• Task 2: Identification of suitable regulatory frameworks to foster flexibility

• • Subtask 2.1    Methodologies for assessing the needed flexibility
  • Subtask 2.2    Analysis of the state of the art on market models
  • Subtask 2.3    Case studies identification and analysis

Published documents from Working Group 3 are found here:

Overview

Working Group 7 investigates institutional and social change associated with Smart Grid deployment. Using the transition management framework, WG7 sparks international, coordinated trans-disciplinary research activity. WG7’s social science results help to complement technology-oriented Smart Grid activities. WG7 also collects and analyzes aspects of innovation studies, political sciences, institutional economics, sociology, and energy-related laws and regulations and works to make these aspects palpable for policymakers and other stakeholders. Policymakers can turn to WG7 to gain insights into the direction, efficacy, and efficiency of the energy system transition. In addition to policymakers, WG7 contributes its knowledge of non-technical aspects and the framework conditions conducive to Smart Grid deployment to other ISGAN Working Groups. Working Groups that may focus on more technical aspects of Smart Grids can turn to WG7 to see how their results address societal needs, political governance, policies, regulations, and human behavior considering the diversity of institutional structures and governance traditions of ISGAN countries.

Tasks

Working Group 7 is dedicated to three key tasks. Task 1 focuses on transition processes and pathways, with a specific emphasis on regulatory experimentation, which has been successfully explored in previous WG7 activities including regulatory sandboxes. Our goal now is to delve deeper into this topic and further its development. Additionally, we are investigating policy instruments and effective governance processes that can pave the way for decentralized energy systems in the future.

Task 2 revolves around institutional organizational models and processes for the smart grid deployment. We scrutinize alternatives to the commonly used, though not always suitable, technology readiness level system. This task also seeks to establish a unified terminology in the smart grid transition field, leading to the launch of the Smart Transitions Wiki.

In Task 3, titled ‘Structures of Institutional Change,’ we examine grid tariff structures and regulatory incentive mechanisms for Distribution System Operators (DSOs). This task maps the framework underlying the transition processes for smart grids and presents results as comparative analyses.

The structure for WG7 is outlined as follows:

Task 1: Transition Processes and Pathways

• Regulatory experimenting
• Policy instruments and governance processes

Task 2: Future Models and Translation Function

• Institutional organizational models and processes
• The technology readiness dilemma in the development of decentralized energy systems
• Energy as a service of general interest

Task 3: Structures of Institutional Change

• Tariff structures
• Incentive mechanisms through regulation

Published documents from Working Group 7 are found here: