Across Europe, network congestion has been increasing at both transmission and distribution levels, driven in particular by the uptake of variable renewable energy and decentralised resources, as well as delays in network expansion. The further uptake of electric vehicles, heat pumps and other electric appliances adds a new dimension to the challenge, especially also at distribution level. These appliances add new loads, but can at the same time represent significant flexibility resources. Relying only on grid investments to cope with this challenge could take too long to realise and would be very expensive. On the other hand, making use of distributed flexibility resources not only for transmission but also for distribution network management can lead to very significant cost savings and much more efficient integration of renewable energy sources.
smartEn’s latest position paper, Design Principles for (Local) Markets for Electricity System Services, lays out Key Recommendations pertaining to:
- Setting the right incentive structures for (Distribution) System Operators
- Enabling market platforms for flexibility
- Defining adequate product design
- Ensuring transparency
For further information, check out media coverage on the piece here: