Feature: CEER Paper on DSO Procedures of Procurement of Flexibility
The topic of flexibility is of increasing interest and importance across the entire energy value chain and CEER has published a number of papers relating to flexibility over the past years. Our latest CEER paper on DSO procedures of procurement of flexibility provides insights on the implications for incentives, prerequisites and interactions among the involved parties with Distribution System Operators’ (DSOs) access to and use of flexibility.
Aim of the paper
The paper explains how flexibility can be made available and how market-based procurement procedures could be arranged at the distribution level, focusing on necessary preconditions and different methods giving an overview of most of the aspects to co
Who are DSOs and why is flexibility important?
DSOs are responsible for operating and investing in the distribution networks, in order to transport electricity (and gas) to and from their network users. Significant changes in the European energy system over the last decade have been driven by increasing deployment of intermittent renewable generation, decarbonisation, and digitalisation. One way of managing these changes and ensuring secure and efficient system operation is through procurement of flexibility by DSOs. Flexibility is the capacity of the electricity system to respond to changes that may affect the balance of supply and demand at all times.
In the electricity distribution system, procurement of flexibility by DSOs could lead to a better utilisation and development of network capacity and thereby defer or be an alternative to traditional reinforcement, where it is a cost-efficient alternative. Furthermore, Article 32 of the Electricity Directive (2019/944) sets new requirements on the use of flexibility in distribution networks.
DSOs procuring flexibility should support the move towards an affordable, secure and efficient power system. At the distribution level, the need for the use of flexibility to benefit the grid will increase as a result of the ongoing energy and electricity system transition.
What does the paper recommend?
CEER's flexibility paper recommends the following principles for all kinds of market-based flexibility procurement by DSOs:
- balanced incentives
- adequate neutrality
- technical prerequisites and
- an overall framework for procurement.
CEER considers market-based procurement of flexibility as one very important option which could allow for a substantial benefit in the distribution grid, contributing to its further development to support as renewable, reliant and efficient an energy supply as possible.