InteGrid SRA & Replication Roadmap (02/06/2020)

WP 8 D8.3 Replication Roadmap
Webinar 02 June 2020
Standardisation / Business ModelsICT

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 731218 1
Presenters
Sergio Potenciano Menci
Research Engineer
Austrian Institute of Technology (AIT)
Sergio.Potenciano-Menci@ait.ac.at
Barbara Herndler
Research Engineer
Austrian Institute of Technology (AIT)
Barbara.Herndler@ait.ac.at
Ana Raquel Castanho
Consultant – Power Systems & Markets
DNV GL - Energy Advisory
Ana.Raquel.Castanho@dnvgl.com
Leandro Lind
Research Assistant
Research in technology (IIT)
leandro.lind@iit.comillas.edu

Agenda
Technical SRA
Introduction
Economic and Regulatory SRA
Best practices & Recommendations
Replication roadmap
Discussions
Wrap up & feedback

Introduction to ISGAN
• ISGAN: The International Smart Grid Action Network
• International platform for the development and exchange of knowledge and
expertise on smarter, cleaner, and more flexible electricity grids (“Smart Grids”)
• ISGAN provides an important channel for communication
• Visions in support of clean energy objectives
• Experience
• Trends
• Lessons learned
• New flexible and resilient solutions
for Smart Grids

ISGAN Objectives
The core objective of ISGAN is to attain national, regional and global clean energy and
climate goals supported by the integration of advanced technological, operational and
analytical capabilities for electric power grids, including the smart management and
coordination of the participants in the electricity system.
ISGAN
Broad international expert network
Knowledge sharing, technical assistance,
project coordination Global, regional & national policy support
Strategic partnerships
IEA, CEM, GSGF, Mission Innovation, etc.

ISGAN Structure
Annexes
Annex 1
Global
Smart Grid
Inventory Annex 2
Smart Grid
Case
Studies
Annex 3
Benefit-
Cost
Analyses
and
Toolkits
Annex 4
Synthesis
of Insights
for Decision
Makers
Annex 5
Smart Grid
International
Research
Facility
Network
Annex 6
Power T&D
Systems
Annex 7
Smart Grids
Transitions
Annex 8:
ISGAN
Academy
on Smart
Grids
https://www.iea-isgan.org/

InteGrid Context I
Goals
Demonstrate the DSO as market facilitator and
implement new business models using new data
management and consumer involvement
Demonstrate scalable and replicable set of
solutions, which work integrated to enable DSO's
plan and operate a grid with a high penetration of
DERs
PT locations: Cladas da Rainha, Alcohete and Évora || SL location: Trojane || SE locations: Royal Seaport and Hammarby Sjöstad

InteGrid Context II
Network operators Enablers
Research, Consulting & Tool developers
Aggregation

SRA InteGrid
• SRA Goal
• Analyze the future scenarios impact into today’s networks using
the new developed and integrated tools to identify potential
barrier, constraints and drivers when the set of solutions is
extensively roll-out or replicated to other areas.
• SRA points of view are mapped to the SGAM
• Functional, ICT*, Economic and Regulatory.
*Information and communication technologies (ICT)

SRA Focus Areas
REGULATORY
The regulatory analysis is based on the
investigation of the regulatory drivers and
barriers which may be imposed within
various countries in order to highlight the
compatibility of these regulations during
the deployment of smart grid functions.
ICT
The ICT analysis focuses on the system
characterization using a reduced complex
architecture representation provided by
the SGAM in a two step analysis: a
quantitative and a qualitative analysis. The
quantitative analysis focuses on the
potential network architecture bottlenecks
and the qualitative analysis stresses them
through the use of simulations.
FUNCTIONAL
The functional analysis focuses on
the main functions and tools
developed within the project. It is
aimed at validating the technical
integration of these technologies at
the component based level.
ECONOMIC
The economic analysis provides the
cost benefit analysis based on the
net present value and the initial rate
of return of the implementation of
the new functions and tools. The
analysis provides an overview based
on the economies of scale,
macroeconomics and KPIs.

Operational planning (from hours to
week-ahead) of MV distribution
network to pre-book available flexibility
Distributed monitoring and control
of LV network using available
flexibilities
Perform health diagnostics and
preventive maintenance planning
of distribution network assets
Define optimal repair actions for unplanned
outages based on sensor data, historical
information and remote equipment diagnostics
Manage the impact of flexibility
activation from resources connected to
the distribution network
Provide data management and
exchange between DSO and
stakeholders
Procure and manage regulated
flexibilities from DER to optimize
operation and costs
Manage internal processes flexibility to minimize
energy costs according to market-driven
mechanisms and system operators requests
Home Energy Management
Aggregate and communicate multi-
period behind-the-meter flexibility
from LV and MV consumers
Engage Consumers in
Demand Side
Management Programs
Aggregate geographically distributed third-party
(multi-client) resources to offer ancillary services
to TSO (frequency) and DSO (non-frequency)
Grid
Operations
Grid
&
Market Hub
Grid Users
Energy
services
HLUC01 HLUC02
HLUC05 HLUC06
HLUC08 HLUC09
HLUC07
HLUC03 HLUC04
HLUC12HLUC11HLUC10
• Filter applied to all the HLUC in order to seek the core ones
where the efforts have to be applied
Pre-evaluation

Introduction – Identified clusters
HLUC01
Operational planning of
MV distribution
network to pre-book
available flexibility
HLUC12
Technical VPP
HLUC06
Grid & Market Hub
Cluster 01
Flexibility management for
optimized MV network operation
HLUC02
Distributed monitoring
and control LV network
HLUC09
HEMS
HLUC06
Grid & Market Hub
Cluster 02
optimized LV network operation
HLUC12
Commercial VPP
HLUC06
Grid & Market Hub
Cluster 03
Large customer cVPP
HLUC10
Flexibility aggregation
HLUC05
Traffic Light System
Cluster 04
Building aggregation
HLUC06
Grid & Market Hub
HLUC08
Cost optimization and
flexibilities at large
consumers
HLUC11
Local life and Tinco
Non

Functional
• Functional overview
• Clusters results
• Summary

Functional SRA – Overview
Key Topics for the Functional SRA
Network increase HEMS
DER penetration Tarif impact
Reactive power control strategies Flexibility sources increase
Rural vs Urban networks
Flexibility impact when HC is reduced to
either EV or DG
OLTC//Capacitor Banks controllable Season impact
Battery controllable Forecasting accuracy
Historical data Flex bid price
Number of controllable devices Flexibility price impact
Image adapted from:
https://powerpointschool.com

Functional – Clusters
HLUC01
MV distribution
network to pre-book
HLUC12
Technical VPP
HLUC06
Grid & Market Hub
Cluster 01
HLUC02
HLUC09
HEMS
HLUC06
Grid & Market Hub
Cluster 02
HLUC12
Commercial VPP
HLUC06
Grid & Market Hub
Cluster 03
Large customer cVPP
HLUC10
HLUC05
Cluster 04
HLUC06
Grid & Market Hub
HLUC08
consumers
HLUC11
Local life and Tinco
Non

Cluster 01
Flexibility management for optimized MV network operation
Historical data (load, generation)
Weather forecasts
Grid topology
SCADA measurements
MV/LV substation measurements
Flexibility offers
Load/Gen
Forecast
Network
State
Snapshot
DER schedules
DER measurements
MV Load and RES
forecasting
MV Load Allocation
Multi-Period Optimal
Power Flow (MPOPF)
Network assets (OLTC,
capacitors, storage)
Flexibility booking and control
actions (Day-Ahead)
Flexibility activation (Real time)
HLUC01
HLUC12

Functional SRA – Cluster 01 Results
Scenario Tools Lesson learned
Network overload
due to increased RES
injection
Activates
flexibilities from
tVPP
• Considers cost function in order provide an optimised solution
• Even with the MPOPF implemented, networks are still limited to a
maximum threshold of RES injection which can be accommodated. This
threshold can vary depending on the availability of flexibilities.
Activation of ESS
to
charge/discharge
• Charging of storage systems can successfully be used to accommodate
increase RES
• MPOPF considers the current state of the network before allowing
discharge actions (network protection)

Scenario Tools Lesson learned
Overvoltage/
undervoltage
violations due to
increased RES
injection
Activates RES reactive
power control
• Successfully mitigates overvoltage problems
• Currently implemented by DSOs
OLTC operation
• Solves most of the network overvoltage/undervoltage
problems (not solved when facing a severe problem)
• Currently implemented by DSOs
Exploitation of flexibility
from energy consumers
• Successfully mitigates overvoltage/undervoltage problems
• Overvoltages can be an indicator for which feeder additional
flexibility is required
• Location of the flexibilities is vital for success. Flexibilities located
directly to the bus problem can help
• DSOs should collaborate with large industrial customers and/or
flexibilities owners in order to leverage their ability to provide
support to ensure overall network stability.
Capacitor bank activation • Successfully mitigates undervoltage problems

Condition MPOPF Results
Increase in
Network size
Computation
time
• A linear relationship between network size Vs computation time
• Computational times are comparable with daily network operation
• Computation times are competitive when comparing with other OPF
approaches
Data availability Accuracy
• Insufficient historical data availability leads to inaccurate forecasting
• Lack of observability of the MV network results in an unreliable network state
estimation > results in inaccurate network optimisation

Cluster 02
Flexibility management for optimized LV network operation
Weather forecasts
Grid topology
SCADA measurements
Available flexibility
Load/Gen
Forecast
Network
State
Snapshot
Device schedule
Price
LV Load and RES
forecasting
Low Voltage State
Estimator (LVSE)
Low Voltage Controller
(LVC)
Home Energy
Management System
(HEMS)
Network assets (OLTC,
capacitors, storage)
Voltage limitations
secondary (MV/LV)
substation
Control actions
HEMS schedule
Curtailment
HLUC02
HLUC09

• LVC can successfully be used to solve problems in resistive and inductive networks
using DSO assets and customer assets
• LVC tool has a positive impact in the power losses
• OLTCs can solve most of the voltage problems related to the increase of RES
capacity
• Energy Storage Systems located at the secondary side of the transformer for
congestion management, have a positive but very limited effect
• Distributed storage is a more effective solution, although implementation effort is
more complex
• The location of the HEMS is vital to solve voltage violations
• Quality of the historical data available for the state estimator is not a barrier
No LVC With LVC

Cluster 03
Large customer cVPP
HLUC05
HLUC12
Weather forecasts
Network model
Flexibility bids
Load/Gen
Forecast
DER schedules
DER measurements
MV Load and RES
forecasting
Traffic Light System (TLS)
Commercial Virtual
Power Plant (cVPP)
TSO
simulator
Activated bids
Evaluation results
Waste Water
Treatment Plant
HLUC08

Functional SRA – Cluster 03 results
• Mismatch between technical and
economic interest can lead to
suboptimal solutions
• The price of flexibilities overrules
their location
• In general flexibilities close to the
primary substation are advantaged
• Future scenarios like EV charging or
higher high penetration of DERs
makes a TLS necessary to avoid
problems

Functional SRA – Cluster 04 results
• Simplified building model was created to formulate an optimization problem to minimise
and maximise power consumption by maintaining temperature between 21-23⁰C
• Single building for 1 day > scaled to building pool of 100

• Single households are able to provide
the largest degree of load reduction
• Households receiving the
environmental signal had the largest
potential in load reduction
• Households receiving the price signal
showed a more reliable decrease in
consumption
• Incentives for DSM should be
prolonged in order to achieve
maximum response rate
Functional SRA – Non clustered

Functional SRA Summary
Cluster 1: Flex. management for MV
• OLTC, helps to solve voltage problems
• ESS accommodate Res Charge ||Discharge
• Capacitor banks, help mitigation
• Flex. (key) Help (location & size)
• Networks are limited to a certain RES level
• Accuracy can lead to undesired activations
• Need data for proper state estimation
Cluster 2: Flex. management for LV
• OLTC solves voltage violations
• LVC solves voltage violations
• LVC can be used for resistive and inductive
• HEMS help mitigate problems
• HEMS location important
• Computation can deal with system scaling
• Data history is no barrier for state estimator
Cluster 3: Large customer cVPP
• Economic Optimization: Prices of flexibilities
overrule their location
• Current flexibilities do not lead to problems
• Future scenarios like EV charging or higher
wind penetration makes TLS necessary
• Flexibilities closer to primary substation are
advantaged by the TLS
Cluster 4: Building aggregation & Non
• HEMS help load reduction, incentives
drivers
• Single households provide largest degree of
flexibility
• Price signal: more reliable load reduction
• Environment signal: largest load reduction
potential

This Photo by Unknown Author is licensed under CC BY-SA

Information and communication technology
• ICT overview
• Summary

ICT SRA – Overview
Qualitative Quantitative
Image adapted from: https://powerpointschool.com

ICT SRA Clusters
HLUC01
MV distribution
network to pre-book
HLUC12
Technical VPP
HLUC06
Grid & Market Hub
Cluster 01
HLUC02
HLUC09
HEMS
HLUC06
Grid & Market Hub
Cluster 02
HLUC12
Commercial VPP
HLUC06
Grid & Market Hub
Cluster 03
Large customer cVPP
HLUC05
HLUC08
consumers

ICT – SGAM Cluster 01
Cloud
DER
Customer
Premises
DistributionGeneration Transmission
ProcessOperationEnterpriseMarketStationField
33
MV LV
AMI - SM
(SysGrid; InovGrid)
23
SCADA/DMS
ADMS-DRMS
(POA)
O
MS
5
RTU
OVH lines
37
Software-based application
Field/Station deviceLoad
Battery
Disconnector
Solar Station
Wired Link Wireless/
Wired Link
HV
42
31
MV DER Meter
(per Flex)
Gm-hub
platform
CRM
Database
Asset Management
Database
Weather Observation
Database
(IPMA; NOAA; Meteo Galicia) GIS
Database
(SITRD)
Router@SS
13
12
Back end
Gateway (DSO)
40
IDP
(InteGrid DSO Platform)
tVPP gateway
41
Database
Processing and database
Router
MV DER control
(per Flex)
26
RTU DER
(per Flex 1:1)
8
DTC
Per transformer
11
6
15
9
7'
Front end
Gateway (DSO)
10
Telemetering
(legacy meters)
90
14
Data Lake OT
(BI SCADA)
22
34
28
18
RTU – Internal SS
(underground cable)
4
24
MV Load
Allocator
MPOPF
17
16
SAP-P05
(CRMD)
30
29
32
20
DSO - Tool
21
19
27
39
Meter SS
legacy
EI (server)35
SGL
3836
RES/Load DSO
forecasting
system
200
Technical VPP system
orchestration environment
Wind Farm
7

Cloud
DER CustomerPremisesDistributionGeneration
Transmiss
ion
33
MV LV
AMI – SM
(SysGrid; InovGrid)
23
SCADA/DMS
ADMS-DRMS
(POA)
65
37
HV
31
Gm-hub
platform
RES/Load DSO
forecasting
system
CRM
Database
Asset Management
Database
Weather Observation
Database
(IPMA; NOAA; Meteo Galicia)
GIS
Database
(SITRD)
Router@SS
13
12
Backend gateway
(DSO)
40
IDP
(InteGrid DSO Platform)
26
DTC
Per transformer
6
15
Front end
Gateway (DSO)
66
Telemetering
(legacy meters)
90
14
Data Lake OT
(BI SCADA)
22
34
28
4
24
LVSE
LVC 51 54
30
29
32
20
27
EI (server)35
SGL
3836
SM
Customer
HEMS
(INESC)
EV Charging
60 HEMS
(VPS)
61
HEMS server
(INESC)
HEMS server
(VPS)
70 71
68 69
62
DSO - Batt
64
ESMS
67
63
LV – Storage HMI
(V4G)
53
52
DSO
tool LV
50
39
SAP-P05
(CRMD)
OM
S
Meter SS
(Legacy)
RTU – Internal SS
(underground cable)
56
Public light
Gateway
80
Public Light
Server
81
Software-based application
Field/Station deviceLoad
Battery
Disconnector
Solar Station
Wired Link
Wireless/
Wired Link
Database
Processing and database
Router
DSO owned battery
HMI

DER CustomerPremisesDistributionGeneration Transmission
Cloud
18
31
MV LV
AMI
Head End
SCADA
EV CS
SM per
Customer
(VPP | DSO)
RTU (OLTC)
G
20
HV
RTU (VPP)
Per customer
Commercial VPP
System orchestration
environment
33
Load/RES DSO
forecasting system
MPOPF/PF
Price forecasting
system
25
Load forecasting
system
27 Time Series
Database
26
1
19
17
24
Gateway
34
16
31
28
SM per DER
(VPP | DSO)
13
P/f controller
30
30
15
Traffic
Light
System
24
22
20
RTU
CP Control
8
10
TSO simulator
(bidding)
35
36
23
21
Ethernet
Switch
2
Smart Meter
per feeder
3
Charging Point
Operator (CPO)
29
MV DER
DER control
per DER
9
12
Smart Meter
@ PSS
Meter Data
Management Database
Customer
Flex control
(VPP)
14
Smart meter
@ SSS
4
6
11'
Data
Concentrator
MV
LV
5'
7
9'
10'
GM-hub
platform
Human-Machine
Interface
Software-based
application
Field/Station device
G
Generating unit
Load
Battery
Disconnector
Solar Station
Wired Link Wireless/Wired Link
Database Processing and database
Router
CP = Charging Point
DSO = Distributor system Operator
VPP = Virtual Power plant
PSS = Primary Substation
SSS= Secondary Substation
PLC = Power Line Communication
RTU = Remote Terminal Unit
*RTU (VPP) + SM (VPP) is one device
Link 5: show alternative way to connect the
substation
Link 9': show alternative way to connect
the SM
the SM
the Concentrator

ICT SRA Summary
• Data Storage correctly dimensioned
• RTUs shall be kept simple
• Interoperability needed
• Plug & play can help
• Cyber Security
• Avoid legacy communications for RT
• Use proper application protocols
• Avoid dedicated physical machines
• Virtualization of services in cloud
• Resource optimization can help timing
• Cyber security
• Data rate critical for RT – P2P solution or
logic
• Nodes have limits for PLC
• Interoperability necessary specially for cVPP
integration
• RT needs low latency
• Use proper application protocols
• Storage could cause long term problems
• Junction nodes, extremely important (RTUs)
General
• No major events are foreseen
• Cyber security big next topic
• Storage could be an issue but also a driver
• Technology will depend on the UC
• Interoperability
• Microservices & cloud computing
recommended

Economic
• Economic overview
• Summary

Economic SRA – Overview
To conclude on the economic worthiness
of the scale increase and replication, a
cost-benefit analysis has been
conducted, namely looking at the Net
Present Value (NPV) and the Internal
Rate of Return (IRR).
• Technical such as:
• RES penetration level;
• Network characteristics (resistive vs inductive) and size;
• Controllable resources.
• Regulatory, namely related to the electricity markets design;
• Macroeconomic;
• Economies of scale.
Key Topics for the Economic SRA
Image adapted from:

Economic SRA – Clusters
HLUC01
MV distribution
network to pre-book
HLUC12
Technical VPP
HLUC06
Grid & Market Hub
Cluster 01
HLUC02
HLUC09
HEMS
HLUC06
Grid & Market Hub
Cluster 02
HLUC12
Commercial VPP
HLUC06
Grid & Market Hub
Cluster 03
Large customer cVPP
HLUC10
HLUC05
Cluster 04
HLUC06
Grid & Market Hub
HLUC08
consumers

Economic SRA – Cluster 01 Results
• Its economic interest and potential to scale up depends very much on the network characteristics. Networks
must be stressed by the integration of considerable amounts of RES.
• Smaller scale applications in stressed networks, which are not interesting from an economic perspective, can
become interesting once they are scaled up.
• The overall net benefits are less significant in situations where the grid is not stressed and, as for network
losses reduction, they do not seem a main driver for these solutions.
• The results may suggest that the technical VPP is a concept with low perspectives of success, but this view is
too simplistic since when higher penetrations of renewable energy are considered, the flexibility of
generation and demand is actually needed to solve the network issues.
-2,000,000 €
-1,500,000 €
-1,000,000 €
-500,000 €
0 €
500,000 €
1,000,000 €
1,500,000 €
2,000,000 €
Normal Conditions More RES integration
NPV-Slovenia
Total DSO FO Society
-6,000,000 €
-4,000,000 €
-2,000,000 €
0 €
2,000,000 €
4,000,000 €
6,000,000 €
8,000,000 €
10,000,000 €
12,000,000 €
Before Scaling-up After Scaling-up
NPV-Slovenia
Total DSO FO Society

• The characteristics of the network are key. This cluster captures the most value and can actually be viable in
larger rural networks with high RES penetration. When scaled up, this cluster can prove interesting for the
same type of networks, even with moderate RES penetration.
• However, the scale must be big enough as the analysis showed that for Portugal; the same does not hold true
for the case of Slovenia given the significantly smaller network of Elektro Ljubljana.
• The flexibility provided by the HEMS can be more advantageous for the DSO than investing in solutions such
as batteries or OLTC transformers High-risk option in a real implementation since it depends on the
engagement of domestic consumers. Regulatory changes are required to mitigate this risk.
• A balanced strategy considering a mix of HEMS use and DSO’s own equipment seems adequate, although with
less positive business cases.
0 €
50,000 €
100,000 €
150,000 €
200,000 €
250,000 €
300,000 €
350,000 €
HEMS flex HEMS+ES flex OLTC+HEMS flex
NPVTotal-Portugal
Large rural networks with high RES integration
(before scaling-up)
-10,000,000 €
0 €
10,000,000 €
20,000,000 €
30,000,000 €
40,000,000 €
50,000,000 €
60,000,000 €
Portugal Slovenia
NPVTotal
Large rural network with moderate RES integration
(after scaling-up)

• The economic replicability analysis demonstrated that
almost all scenarios were viable in Slovenia. The exact
opposite happened for the case of Portugal.
• Procurement scheme of mFRR: In Slovenia, mFRR is
remunerated on availability (capacity) and activation in
and in Portugal it is only remunerated on mobilization.
• Both the number of DER aggregated and the average
available flexibility per DER may play an important role
in the economic results of the cVPP.
• Moreover, the business case in Portugal, especially for
pools offering upwards reserve is hurt by the abundance
of this product in the market which also results from
regulatory obligation.
• The risks for a commercial VPP to operate in Portugal
under current regulation are regarded as too high by
Monte Carlo analysis. The particular application to the
wastewater plant only validated this reasoning.
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
-969,280€
-875,915€
-782,551€
-689,186€
-595,821€
-502,457€
-409,092€
-315,727€
-222,363€
-128,998€
-35,633€
57,731€
151,096€
244,461€
337,825€
431,190€
524,555€
617,919€
711,284€
804,649€
898,013€
NPV (Euros)
Portugal - Monte Carlo
0
100
200
300
400
500
600
700
800
900
1000
0.5 0.75 1 1.25 1.5 1.75 2
NrofpoolswithapositiveNPV
Average DER capacity (MW)
Portugal (FO)
Slovenia (Total)

• The results observed by the economic SRA for the secondary reserve market participation
are considerably better when compared against the tertiary reserve market.
• aFRR services are also receives on capacity, reinforcing the importance of the remuneration
scheme employed to enable these new market players.
• The likelihood of mobilization after the capacity is contracted is much higher for the aFRR
than for the mFRR market.
• Nevertheless, main regulatory aspects of the design of this balancing market have been
disregarded for the purpose of this analysis such as technical qualification requirements
and the actual bidding relation on the regulation band, since they impose barriers on the
participation of DER.

Economic SRA Summary
• Network dependent (characteristics &
type)
• tVPP business model not profitable as
today
• Scaling makes the applications interesting
as they are now just too small
• Network type importance for asset type
(Resistive vs Inductive)
• Positive results even with moderate RES
penetration
• HEMS has advantages vs OLTC, however
customer engagement is required
• Combination HEMS + DSO assets
• Positive results in SL but not in PT
• Market depend (mFRR)
• SL: capacity Vs PT: only if mobilized
• Number of DER & available flex extremely
important
• PT upwards products high competition
• Current regulation jeopardizes cVPP in PT
Cluster 4: Building aggregation
• Secondary reserve better
• aFRR mobilization & capacity remuneration
• aFRR higher mobilization chance VS. mFRR
• Barriers
• Pre-qualification
• Bidding relation

Regulatory
• Regulatory overview
• Summary

Regulatory Replicability – Overview
Image adapted from:

Selected Countries for Regulatory Rep.
Country Reason for selection
InteGrid Demo Country
InteGrid Target Country
InteGrid Target Country
Several different DSO regulatory frameworks (Flanders and Wallonia), but some of the
most advanced regulation on independent aggregation, including ways to solve the
balancing responsibility allocation problem.
Balancing markets potentially very favourable to demand-side and DER participation.
Remarkably different TSO-DSO landscape (four TSOs, 800+ DSOs). Innovative market-
based platform for flexibility procurement being tested (Enera). Balancing markets quite
open to demand-side participation
Innovative output network regulation (RIIO). Innovative incentives for flexibility
procurement, including local market initiatives (Piclo Flex). Balancing markets open to
demand-side participation, but complex market design
DSO regulation presents several innovative features promoting smart grid deployment and
DG-RES integration.

Regulatory replicability – Clusters
HLUC01
MV distribution
network to pre-book
HLUC12
Technical VPP
HLUC06
Grid & Market Hub
Cluster 01
HLUC02
HLUC09
HEMS
HLUC06
Grid & Market Hub
Cluster 02
HLUC12
Commercial VPP
HLUC06
Grid & Market Hub
Cluster 03
Large customer cVPP
HLUC10
HLUC05
Cluster 04
HLUC06
Grid & Market Hub
HLUC08
consumers

Regulatory replicability – Clusters
HLUC01
MV distribution
network to pre-book
HLUC12
Technical VPP
HLUC06
Grid & Market Hub
Cluster 01
HLUC02
HLUC09
HEMS
HLUC06
Grid & Market Hub
Cluster 02
HLUC12
Commercial VPP
HLUC06
Grid & Market Hub
Cluster 03
Large customer cVPP
HLUC10
HLUC05
Cluster 04
HLUC06
Grid & Market Hub
HLUC08
consumers
1. Active Grid Operation
Using Flexibility
2. Demand-side participation in
balancing markets

Regulatory Replicability – Maturity Assessment
Key Topics for the Regulatory
Replicability
• Revenue Regulation for DSOs
• Relevant output-based
incentives for DSOs
• Local Flexibility procurement
mechanisms
• Balancing market design
• Aggregation rules
• Tariff design
Regulatory Maturity
Assessment

Clusters 1 and 2:
Active Grid Operation Using Flexibilities
PT SI SE ES AT UK IT DE
Would DSOs benefit from using flexibility to defer or avoid
grid investments?
2 1 1 1 3 4 2 1
Would DSOs recover the costs associated with the use of
flexibility?
2 2 1 3 2 4 3 2
Do DSOs and regulators adopt a long-term vision for grid
development/regulation, including the use of flexibilities?
2 2 1 2 1 4 3 2
Local flexibility
mechanisms
Are DSOs enabled by regulation to procure flexibility from
grid users to support grid operation?
1 0 0 2 2 4 0 3
Do DSOs receive (strong) economic incentives to reduce
energy losses?
2 4 4 2 3 1 4 NA
Is the impact of DER and smart grid solutions considered
when setting baseline/target levels for losses?
1 2 2 2 1 NA 3 NA
Key regulatory question
DSO revenue
regulation
Incentives for
the reduction of
energy losses
Flexibility
Management for
Optimized MV
Network
Operation
Description Regulatory topic
Maturity level
Cluster 1 – Assessment

Clusters 1 and 2:
Active Grid Operation Using Flexibilities
grid investments?
2 1 1 1 3 4 2 1
flexibility?
2 2 1 3 2 4 3 2
2 2 1 2 1 4 3 2
Local flexibility
mechanisms
1 0 0 2 2 4 0 3
energy losses?
2 4 4 2 3 1 4 NA
1 2 2 2 1 NA 3 NA
Key regulatory question
DSO revenue
regulation
Incentives for
the reduction of
energy losses
Flexibility
Management for
Optimized MV
Network
Operation
Description Regulatory topic
Maturity level
grid investments?
3 1 1 1 3 4 2 1
flexibility?
2 2 1 3 2 4 3 2
1 2 1 2 1 4 3 2
Local flexibility
mechanisms
1 0 0 0 2 4 0 3
energy losses?
2 4 4 2 3 1 4 NA
1 2 2 2 1 NA 3 NA
Are taxes and/or other regulated charges distorting
flexibility incentives embedded in the tariffs?
1 3 2 2 2 3 2 0
Maturity level
Description Regulatory topic Key regulatory question
DSO revenue
regulation
Incentives for the
reduction of
energy losses
Regulated charges
and retail tariffs
Flexibility
Management
for Optimized
LV Network
Operation
Cluster 1
Cluster 2

Clusters 3 and 4:
Demand-side participation in balancing markets
Cluster 3
Cluster 4
PT SI SE ES AT UK IT DE FR BE
Are (mFRR) balancing markets open for demand-
response participation?
1 3 3 2 3 2 3 3 4 4
Are products and conditions suitable for
demand/DER participation (in mFRR)?
1 2 2 1 2 2 2 2 3 3
Are there barriers for the aggregation of resources
in balancing markets?
1 3 2 1 3 2 2 3 4 4
Is the independent aggregation allowed? Is it
viable?
1 3 2 1 3 2 1 3 4 4
Is different type of DER aggregation (VPP concept)
possible?
1 3 2 0 3 2 1 3 3 4
TSO-DSO
coordination
Is TSO-DSO coordination mature enough for DER to
provide balancing services?
1 1 1 1 1 1 1 2 2 2
Aggregation
Maturity level
Balancing Market
Design
Regulatory topic Key regulatory question
PT SI SE ES AT UK IT DE FR BE
Are (aFRR) balancing markets open for demand-
response participation?
1 2 1 1 2 2 1 3 1 1
Are products and conditions suitable for
demand/DER participation (in aFRR)?
1 1 2 1 2 2 2 2 1 1
Aggregation
Are there barriers for the aggregation of resources
in balancing markets?
1 2 2 1 2 2 2 3 1 2
TSO-DSO
coordination
Is TSO-DSO coordination mature enough for DER to
provide balancing services?
1 1 1 1 1 1 1 2 2 2
Balancing Market
Design
Regulatory topic Key regulatory question
Maturity level

Overall regulatory replicability

Progress & results discussion – Regulatory
• Replicability is still limited by a strong
CAPEX-oriented regulation
• Local flexibility procurement mechanisms
are not in place so far
• Incentives for loss reduction exist, but fail to
account for the DER impact
• Conclusions from Cluster 1 also apply for
Cluster 2
• Additionally, retail tariffs play an important
role on HEMS adoption. So far, regulated
charges and policy costs weaken flexibility
incentives.
• Most mFRR markets are already open to
demand participation, but practical
barriers still exist
• Independent aggregation faces
undefinitions in most countries
• The cVPP is possible in several countries
Cluster 4: Building aggregation
• The aFRR market, focus of Cluster 4, is
closed to demand in many countries
• Product requirements for aFRR may
represent a barrier for (aggregated) demand
participation (e.g. prequalification,
communication)

Roadmap to replication – Overview
Real demonstration Simulation based Knowledge transfer
Images adapted from: https://www.flaticon.com/

Roadmap to replication - Basis
Lessons
learned
Best
practices
Roadmap
Project planning, implementation and execution
Replication roadmap process

Best practices identified (project guidelines)
Images adapted from: https://www.flaticon.com/

Functional recommendations
Network characteristics
•Network modularity, such as MV vs LV, should also be
identified
•The network type, such as rural vs urban, resistive vs
inductive etc. should be known
•The network dimension and hosting capacity should be
established
•MPOPF can be used to minimise network losses by
controlling the OLTC and flexibly activation
Smart solutions, network intelligence, system
integration
•OLTC should be used in combination with smart functions
•Location and availability of flexibilities are key
•Customers located at the end of the feeder in LV resistive
networks are equipped with HEMS
•Dynamic pricing schemes integrated with HEMS should be
implemented as far as possible to maximise load shifting
•Consideration of the capacity of the primary transformer
before the activation of flexibilities via the TLS
Data characteristics
•Open data among partners for tools to work and be
simulated correctly and with the necessary fidelity
•Check data format to avoid tool chain problems
•Building characteristics and constraints are to be
defined appropriately so ensure accurate
representation
Operation priority
•Quantify of fairness: resource type, distance to
node, state of charge, contract characteristics
•With dispersed network flexibilities, network losses
are to be accounted for prior to flexibility activation
for successful implementation of the TLS
Customer participation (HEMS)
•DSO shall encourage the HEMS
•Location of HEMS devices is key
•Easy DSM incentives for the customer to understand
and keep active

ICT recommendations
Correct technical dimensioning of field devices (Storage, power, autonomy)
Correct scheduling of substation devices (gateways)
Seek interoperability (Gm-Hub) & Plug and play concepts
Direct connection links tend to scale better than shared ones (check costs)
Cybersecurity – check NIST and upcoming Bridge
Check legacy systems (old meters but also older technologies as 2G)
•Check coverage of new technologies (distance and signal)
Microservices should use virtual environment approach for cloud computing architectures

Prepare a detailed list of the
implementation expenditures
under normal and scaling
scenarios
Perform dedicated studies to
understand the best technical-
economic options
Getting to know the regulation
of each country in detail to
determine its fit for application
Economic recommendations
Deploy InteGrid solutions into
large-scale, since economies of
scale can be generally achieved
Considering implementing more
than one cluster to the
distribution business

Regulatory recommendations
Consider the current and future publications and initiatives
from the regulator
Consider the impact of regulatory characteristics on other
focus areas (functional, ICT, Economic) of the SRA
Regulatory replicability may be influenced by other indirect
regulatory topics. Additionally, policies and market conditions
also play a role in the compatibility potential of a certain
solution.

Roadmaps - Functional
Functional Checklist: short list
• All clusters
 Are the relevant network characteristics known and available?
 Is there an OLTC (with control active) to provide support?
 Is there sufficient data availability and accessibility?
 Is the data complete and accurate?
• Cluster 01
 Tools: MV Load/Res forecasting, MV Load Allocation, MPOPF
 Actors: tVPP (VPP)
 Does the network currently experience any violations? If so, which
and at which nodes?
• Cluster 02
 Tools: Load and RES forecasting, LVC, LVSE, OLTC, HEMS
 Actors: DSO, customers/Flexibility owners
 What is the size of the network?
 How many HEMs devices are connected and where are they
located?
• Cluster 03
 Tools: Load and RES forecasting, TLS
 Actors: cVPP, TSO, DSO
 Is there sufficient flexibility available in the network based on
quantity and rating?
 Where are these flexibilities located and is their location feasible for
smart function success?
• Cluster 04 & Non-Cluster
 Proper building parameters (specially temperature)
 What are the demographics of the HEMS users
 Types of HEMS signal to be used> price Vs environmental
Perform functional SRA
• Consider smart functions
• Consider scenarios
• Analyse impact of SRA
No
replicability
success
Roadblocks?
Functional
Checklist
Yes
Followed
Recommendations?
No - none
No
High
replicability
success
Yes -all
Adjustments
possible?
Yes
Replication Cluster
X
No
Perform
Functional SRA
Low
replicability
success
Medium
replicability
success
Yes - some

Roadmaps - ICT
ICT Checklist (min requirements)
• All clusters (min requirements)
 SGAM or other ICT network simplification (SGAM recommended)
 AMI roll-out
 Flexibility devices able to be connected (MV and LV)
 Smart substations (retrieve data)
 Tools integrated (see functional)
• Cluster 01
 DSO – VPP connection (gm-hub recommended)
 Other DSO assets to be control (capacitor banks)
• Cluster 02
 DSO – Customer asset connection (gm-hub recommended)
• Cluster 03
 TLS (DSO) - VPP connection (gm-hub recommended)
 VPP – TSO connection (gm-hub recommended)
 Flexibility devices lower latency than 450 ms
• Recommended
 ICT Best practices
Perform ICT SRA
• Closer look to technical details
• Consider worst case scenarios
• Limit devices to reasonable numbers
• Divide and conquer approach
Replication Cluster
X
Roadblocks?
ICT checklist
Yes
No - none
No
High
replicability
success
Yes -all
Adjustments
possible?
Yes
No
No
replicability
success
Perform ICT SRA
Low
replicability
success
Medium
replicability
success
Yes - some
Followed
recommendations?

Positive
indicators?
Define real
implementation
circumstances
No
Outcome
changed?
Completely
Yes
High
replicability
success
No
Adjustments
possible?
Yes
Replication Cluster
X
No
No
replicability
success
Perform Eco SRA
Low
replicability
success
Medium
replicability
success
Yes – a bit
Sensitivity
analysis
Roadmap – Economic
Define real implementation circumstances
• Technical conditions of the networks (e.g.
(stress/non-stress by RES) and ICT systems
(fulfilment of requirements);
• Regulatory framework in place - Full
characterization, very precise understanding
on the potential impacts;
• Country’s macroeconomic, social and policy
aspects - Qualitative and quantitative
appraisal
Perform Eco SRA
• Define relevant case studies based upon the
previous assessment;
• Quantify costs, monetize benefits and
identify stakeholders involved;
• Compare costs against benefits from an
overall and each stakeholder’s perspective
(run economic model).
Adjustments possible?
Identify barriers and suggest
strategies to overcome them (if
applicable)

Roadmap – Regulatory
Definition of regulatory maturity levels:
Regulatory checklist:
Clusters 1 and 2:
 Are DSOs able to procure flexibility from local resources?
 Do DSOs receive any incentive to reduce energy losses?
 Are taxes and/or other regulated charges distorting flexibility
incentives embedded in the tariffs?
Clusters 3 and 4:
 Are balancing markets open for demand-response
participation?
 Is aggregation of resources allowed in balancing markets?
 Are different types of DER aggregation allowed (cluster 3)?
Roadblock?
Regulatory
checklist
Yes
Maturity
Low
No
High
replicability
potential
High
Are changes
expected?
Yes
Replication Cluster
X
NO
No
replicability
potential
Low
replicability
potential
Medium
replicability
potential
Medium
Assess
Regulatory
Maturity

Roadmap
Image adapted from https://www.presentationgo.com/?s=puzzle

1082
71 9
4
3
6
5
Vision & Strategy
Requirements
Planning
Work package development
Implementation
Consolidation
Lessons Learned
Scalability and
replicability analysis
Best Practices
Replication
roadmaps
Image adapted from:
https://omextemplates.content.office.net/sup
port/templates/en-us/tf00954201.potx

Questions & Answers
https://www.flaticon.com/free-icon/q-and-a_2274761?term=Q%20%20A&page=1&position=2

Wrap up
• InteGrid’s webpage: https://integrid-h2020.eu/
• SRA webpage: http://integrid-sra.eu/
• Questionnaire (on follow up email or after this session)

Follow us:
http://www.integrid-h2020.eu/
@integridproject
Thank you!

InteGrid SRA & Replication Roadmap (02/06/2020)

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