EACL-SL-01 v2

1. Description of the Use Case

1.1. Name of the Use Case

1.2. Version Management

1.3. Scope and Objectives of Use Case

1.4. Narrative of Use Case

Short description

Due to excessive and increasing energy consumption, existing MV/LV secondary substations occasionally becomes thermally overloaded and power lines congested. Demand response services can be utilised to decrease duration or even prevent overloads of the distribution grid components. In particular, switching of the heat pumps in one substation area can be used to reduce the transformer load during peak hours. In regard how DSO procure this flexibility service, two scenarios are considered. In the first scenario, service provider (e.g. aggregator) enters into a contract with DSO for a long-term period. The second scenario assumes that local flexibility market exists and that DSO purchases flexibility service at the local flexibility market to resolve congestion problems in the distribution grid.

Complete description

In this BUC, DSO uses flexibility resources connected to the distribution grid to resolve congestion problem and postpone investment in the grid reinforcement. Depending on how local flexibility market is organised, two scenarios are considered.
The first scenario corresponds to over the counter market (OCM) in which flexibility service provider (FSP) make a long-term (e.g. 6 months) bilateral contract with DSO related. This first scenario includes the following processes:
· Prequalification: after DSO publishes a call for flexibility procurement, FSP sends a request for prequalification. Within this process, DSO evaluates technical info and optionally run tests (depending on the offered power and impact on the distribution grid) to confirm capability of FSP to deliver a service.
· Offering: when DSO identifies a need for the flexibility, DSO sends requests for offers. FSP send an offer. DSO collects and ranks the offer. After selection of the best offer, contract is signed.
· Activation: when congestion in the grid is predicted or occurred, DSO sends a request to FSP for contracted flexibility at a given location in the distribution grid. FSP acknowledges request and activates a service (e.g. reduces a consumption by switching off heat pumps).
· Settlement: using calculated base line, volume of the delivered power is calculated. This is volume is confirmed by both sides (e.g. check of error in measurements) and invoice is sent.
In the second scenario, DSO procures flexibility on the organised local flexibility market. This scenario includes the following processes:
· Grid prequalification: at the start of this process, flexibility resources are registered at the flexibility register. Flexibility register (component located at the market operator) initiates prequalification of the registered resource run by DSO, to validate existence of the resource and it’s impact on the distribution grid. The complexity of this procedure depends on the volume/power and the impact on the grid of the flexibility resources.
· Product prequalification: DSO defines the requirements that each local flexibility product should meet. Flexibility market operator (FMO) coordinates the prequalification process. Flexibility service provider sends the prequalification request with accompanying information to the FMO, who forwards this request to DSO. DSO runs predefined tests and calculation, after send the results and acknowledge FMO about the final decision. FMO stores this information to the flexibility register and acknowledges FSP
· Bidding: DSO expresses the need for the flexibility service to FMO (based on the load and distributed generation prediction and state of the distribution grid), which publishes request for bids. FMO collects the bids from flexibility service provides and selects the optimal bids. FMO sends information about selected bids to DSO, flexibility service provider, TSO and flexibility register.
· Activation: For the selected bid, activation is initiated by DSO sending activation signal to the flexibility service provider. FSP internally activates flexibility resources and acknowledges DSO. DSO informs TSO about activated flexibility resources in the distribution grid in order to avoid collision and double activation on the balancing market. During the activation, flexibility register (component of the market operator) collects the measurements from DSO and FSP.
Settlement: Flexibility register calculates the base line. After the activated product has been delivered, flexibility register calculates delivered volume and information to DSO and FSP. In the process of volume validation, DSO and FSP should validate delivered volume. When volume can’t be validated, alignment process is initiated. FMO monetizes the delivered flexibility product and send the bill to DSO and reimbursement to FSP.

1.5. Key Performance Indicatiors (KPI)

1.6. Use case conditions

1.7. Further information to the use case for classification/mapping

1.8. General remarks

2. Diagrams of Use Case

3. Technical Details

3.1. Actors

3.2. References

4. Step by Step Analysis of Use Case

4.1. Overview of Scenarios

Notes

4.2. Steps – Scenarios

5. Information Exchanged

6. Requirements (optional)

7. Common Terms and Definitions

8. Custom Information (optional)