China Power System Transformation |
Policy, market and regulatory frameworks for power system transformation |
This is because there are greater potential savings in replacing high-voltage infrastructure with DER deployment, as opposed to lower-cost reinforcements at lower voltage and the higher transaction costs of engaging smaller consumers.
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UK Power Networks product design for DER |
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Grid reinforcement |
Planned maintenance |
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deferral |
management |
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Value driver |
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Present value of deferring |
Managing unplanned |
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capital expenditure |
interruption risk |
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2023 flexibility potential |
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206 MW |
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Available to eligible DER |
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capacity out of the 206 MW |
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Required response time of |
30 minutes maximum |
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asset |
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DER type |
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Generation, storage and |
Only generation and storage |
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load reduction |
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Procurement type |
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Competitive tenders or set prices if reduced number of bids |
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Time between contract |
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6 months and 18 months |
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Case-specific; 1-12 months |
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award and delivery |
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ahead |
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Payment |
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Availability-based and utilisation-based |
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Contract term |
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1-4 years |
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Monthly or seasonal |
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This last point of appropriately identifying needs and measures will be a defining aspect of the transition from DNO to DSO. For example, the cost-benefit ratio may change with increased EV uptake along with the respective charging infrastructure in highly meshed low-voltage urban networks. With increasing service requirements being expected from the distribution grid, DSOs will have to develop the right combination of non-wire alternatives, infrastructure planning and customer engagement in demand response.
Source: UKPN (2018) http://futuresmart.ukpowernetworks.co.uk/wp-content/themes/ukpnfuturesmart/assets/pdf/futuresmart- flexibility-roadmap.pdf.
Policy principles for planning and infrastructure
Establish a flexibility roadmap based on the current and expected energy mix:
Institutional market reforms and increased shares of inverter-based generation and DER will affect the system’s flexibility needs. Their evolution should be matched through proactive and iterative policy and regulatory reforms.
Encourage integration of planning for transport and energy: Electrification of transport will be a defining feature of power system evolution in the coming years. Policy makers, grid companies and system operators need to engage with transport and urban planning, as well as the transport industry, to recognise shared goals.
Establish mechanisms for co-ordination with other sectors: The power system’s increasing exposure to hydrological patterns, wind speed and solar irradiation, as well as the commodity prices underlying back-up generation, will affect the extent to which
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