New method for evaluating the value of flexibility and new services for DSOs on the LV network

Abstract

Distribution System Operators (DSOs) are more and more in need of flexibility services due to variable distributed generation, particularly photovoltaics (PV), and increased electricity demand coming from electric vehicles and heat pumps connected to the low voltage (LV) network. This growth of the electricity demand as well as unforeseen bidirectional power flow pose a great risk of congestion in the LV network. However, the distributed generation and storage devices can also serve as a flexibility source. Market-based solutions like local flexibility markets (LFMs) are encouraged by the European Commission to help reduce emissions of greenhouse gases and help DSOs minimize or defer their investments in network reinforcement. In the project X-FLEX, a hybrid market platform is being developed to allow aggregators provision of flexibility services to DSOs in the event of anticipated or detected congestion. An important question for DSOs and flexibility providers is the value of these flexibility services and how to justify the investment in this solution rather than the traditional methods of grid reinforcements. This paper presents a method for assessing the value of flexibility services to the DSO from two perspectives, technical and economical. This paper also describes the simulation models used to perform the value analysis. This method was elaborated within the context of the X-FLEX project, thus taking into account the regulatory framework of two pilot countries: Greece and Slovenia.