USE OF FLEXIBILITY IN DISTRIBUTION NETWORKS

Abstract

The Electricity Market Act stipulates that the distribution system operator is encouraged to use flexibility, including participation in congestion management in distribution network in coordination with transmission system operator, to increase efficiency, develop the distribution system and promote energy efficiency measures. DSO can access flexibility in one or more of the following ways: market-based procurement of flexibility services, distribution network tariffs, flexible (non-firm) connection agreements, rules based (regulated) approach, in combination or separately. The categories are not necessarily mutually exclusive and the inherent regulatory incentives and implemented measures may overlap. Member States and national regulatory authorities should, therefore, carefully evaluate the interactions when implementing new forms of access to flexibilities or when enhancing existing ones. The paper reviews the mentioned possibilities of using flexibility in the distribution network.