Market-Based TSO–DSO Coordination: A Comprehensive Theoretical Market Framework and Lessons from Real-World Implementations

Author:

Troncia Matteo1ORCID,Chaves Ávila José Pablo1ORCID,Damas Silva Carlos2,Gerard Helena34ORCID,Willeghems Gwen34ORCID

Affiliation:

1. Institute for Research in Technology (IIT), Comillas Pontifical University, 28015 Madrid, Spain

2. E-REDES, Distribuição de Eletricidade, S.A., 1050-121 Lisbon, Portugal

3. Flemish Institute for Technological Research (VITO), Boeretang 200, 2400 Mol, Belgium

4. EnergyVille, Thor Park 8310-8320, 3600 Genk, Belgium

Abstract

This paper introduces a theoretical market framework (TMF) for conceptualizing and designing electricity markets, integrating transmission system operator and distribution system operator (TSO–DSO) coordination mechanisms. The TMF represents a comprehensive tool that formalizes new, innovative market concepts and their impact on existing markets, and outlines fundamental categories and decisions essential to market design. This paper, through the TMF, addresses the integration challenges posed by new mechanisms for system services. Utilizing the TMF, the study maps 13 European demonstrators’ TSO–DSO coordination solutions, identifying real-world challenges in designing and implementing novel system services markets. Drawing on these real-world insights, the paper offers market design and policy recommendations to address and overcome the specific challenges in market-based TSO–DSO coordination.

Funder

European Union’s Horizon 2020 research and innovation programme

Publisher

MDPI AG

Subject

Energy (miscellaneous),Energy Engineering and Power Technology,Renewable Energy, Sustainability and the Environment,Electrical and Electronic Engineering,Control and Optimization,Engineering (miscellaneous),Building and Construction

Reference46 articles.

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2. CIGRE Working Group C6.19 (2023, April 13). CIGRE Technical Brochure, Planning and Optimization Methods for Active Distribution Systems; CIGRE, Paris. Available online: https://e-cigre.org/publication/ELT_276_7-planning-and-optimization-methods-for-active-distribution-systems.

3. Hillberg, E., Antony, Z., Barbara, H., Steven, W., Jean, P., Jean-Yves, B., Sebastian, L., Gianluigi, M., Kjetil, U., and Irina, O. (2019). International Smart Grid Action Network—ISGAN Annex 6, ISGAN.

4. International Renewable Energy Agency (IRENA) (2021, February 05). Power System Flexibility for the Energy Transition, Part 1: Overview for Policy Makers. Available online: https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2018/Nov/IRENA_Power_system_flexibility_1_2018.pdf.

5. International Energy Agency (IEA) (2021, February 05). Status of Power System Transformation 2019—Power System Flexibility. IEA Webstore. Available online: https://webstore.iea.org/status-of-power-system-transformation-2019.

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