How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects

The aim of this paper is to analyse and evaluate the deployment of smart platforms (operated by distribution system operators—DSOs—or by independent parties) in key jurisdictions that facilitate the trading of flexibility services—primarily by DSOs. We look at key innovation projects/initiatives fro...

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Main Authors: Karim L. Anaya, Michael G. Pollitt
Format: Article
Language:English
Published: MDPI AG 2021-07-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/14/15/4475
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author Karim L. Anaya
Michael G. Pollitt
author_facet Karim L. Anaya
Michael G. Pollitt
author_sort Karim L. Anaya
collection DOAJ
description The aim of this paper is to analyse and evaluate the deployment of smart platforms (operated by distribution system operators—DSOs—or by independent parties) in key jurisdictions that facilitate the trading of flexibility services—primarily by DSOs. We look at key innovation projects/initiatives from seven jurisdictions, including Australia, France, Germany, Great Britain, Japan, The Netherlands and Norway. We have deliberately selected 13 use cases that operate under different regulatory frameworks and market rules, and have been recently implemented (from 2017 onwards). With the selection of key use cases this study seeks to discuss the different smart architecture solutions and main capabilities across different demonstrators and their relationship to business as usual. It also analyses flexibility market designs, identifies main characteristics, and compares different price formation schemes and procurement methods. The value of flexibility for DSOs is also discussed.
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spelling doaj.art-4db57ed06f404265bab4048a3d977a9b2023-11-22T05:33:29ZengMDPI AGEnergies1996-10732021-07-011415447510.3390/en14154475How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation ProjectsKarim L. Anaya0Michael G. Pollitt1Energy Policy Research Group, Cambridge Judge Business School, Cambridge CB2 1AG, UKEnergy Policy Research Group, Cambridge Judge Business School, Cambridge CB2 1AG, UKThe aim of this paper is to analyse and evaluate the deployment of smart platforms (operated by distribution system operators—DSOs—or by independent parties) in key jurisdictions that facilitate the trading of flexibility services—primarily by DSOs. We look at key innovation projects/initiatives from seven jurisdictions, including Australia, France, Germany, Great Britain, Japan, The Netherlands and Norway. We have deliberately selected 13 use cases that operate under different regulatory frameworks and market rules, and have been recently implemented (from 2017 onwards). With the selection of key use cases this study seeks to discuss the different smart architecture solutions and main capabilities across different demonstrators and their relationship to business as usual. It also analyses flexibility market designs, identifies main characteristics, and compares different price formation schemes and procurement methods. The value of flexibility for DSOs is also discussed.https://www.mdpi.com/1996-1073/14/15/4475distribution system operatorsflexibility servicesregulationprocurementdistribution energy resourcesinnovation projects
spellingShingle Karim L. Anaya
Michael G. Pollitt
How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects
Energies
distribution system operators
flexibility services
regulation
procurement
distribution energy resources
innovation projects
title How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects
title_full How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects
title_fullStr How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects
title_full_unstemmed How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects
title_short How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects
title_sort how to procure flexibility services within the electricity distribution system lessons from an international review of innovation projects
topic distribution system operators
flexibility services
regulation
procurement
distribution energy resources
innovation projects
url https://www.mdpi.com/1996-1073/14/15/4475
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