WECL-PT-02

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

Flexible resources connected to transmission and distribution system can provide flexibility to system operators to eliminate congestions through a market mechanism. This BUC describes the exchanges of information and the rules that should be established between DSO and TSO in case of forecasted congestions in transmission and distribution system in order to keep power flows in the accepted thermal limits of the lines. DSOs and TSOs should procure flexibility in advance to solve a specific system loading issue on the distribution and transmission system thus deferring/eliminating the need for traditional system upgrades. This kind of flexibility service can also be used to support the network during planned maintenance actions. These exchanges of information mechanisms should be compatible with any future market model or governance issues. The market timeframe that will be examined is more than annually. For this timeframe, we will approach some of the process phases of ASM report:

• Prepare/Pre-qualification: The process in which it is checked whether a unit can deliver the product it intends to sell, taking into account the network conditions.
• Plan/Forecast: Planning of grid utilization and identifying potential congestions.
• Market Phase: Bids collection and evaluation, long-term contracts (availability or capacity products) and long-term products/services (activation of energy products)
• Monitoring and Activation: Grid monitoring and flexibility bids activation of bids for congestion management
• Measurement and settlement phase: Validation of delivery This Business Case is related to BUC-1, since the phases that will be covered are the same, but in a different time frame. Although some of the phases may be similar for both Use Cases, others will have to be adapted. In this Business Use Case, the measurement and settlement phase will not be addressed.

Complete description

Flexible resources connected to transmission and distribution system can provide flexibility to system operators to eliminate congestions through a market mechanism.

This BUC describes the exchanges of information and the processes that should be established for different scenarios: pre-qualification, plan/forecast, market phase and monitoring and activation phase. For each scenario, we will always take into account the more than annually timeframe.

Pre-qualification

The pre-qualification process should start after a flexibility service provider expresses interest in entering the flexibility market. This process serves to ensure that a particular flexibility service provider is capable of delivering a given product. In order to do that, two types of pre-qualification should be considered: Product Pre-qualification and Grid Pre-qualification.

The former ensures that the resource contains the technical requirements to be able to deliver the product and proceed to the market phase and eventually selected by a system operator. These technical requirements are defined by DSO and TSO and after the FSP indicates the attributes of the product it wants to deliver, a pre-qualification test should be performed to verify that all attributes are in compliance with the technical requirements. This test may be repeated on a periodic basis or whenever the characteristics of the product are found to change significantly.

The product pre-qualification can be done either by the DSO or TSO, regardless of its location. In case a system operator wants to activate a product already pre-qualified by another system operator, the former should have access to this information in order to make the process more efficient and not to pre-qualify the same product twice.

Regarding grid pre-qualification, this process ensures that the product provided by the Flexible Service Provider will not cause constraints in the networks where it is connected. This process can be avoided if the System Operators have already identified the areas where flexibility is always allowed. The grid pre-qualification should be performed by the System Operator of the network to which the product is connected in order to verify if the maximum capacity of the product does not impact the network it is connected to.

If the results of the two types of pre-qualification are approved, the entry of the FSP into the flexibility market is allowed.

The Pre-qualification scenario is independent of the time-frame, since it is a process that happens before the market phase. Plan/Forecast In this phase the System Operators consider the planning of grid reinforcement to solve unexpected or forecasted physical congestions related to reduced network capacity. In case the grid capacity is insufficient to meet the forecasted electricity production or consumption, System Operators should find solutions to tackle these kind of needs and may resort to the flexibility. This planning occurs 1 to 3 years in advance and the use of flexibility should be considered as a complement or even an alternative to traditional grid investments. The objectives of this phase are to identify possible congestions in the network and to support the procurement in the flexibility markets. Market Phase The market phase starts when the system operators forecast network congestion. For long-term timeframe this phase is divided into two stages.

1. The SO evaluates the bids and establishes agreements to reserve and activate, or just to reserve, the products that meet its needs.
2. In the short-term market (BUC-1), these products, once reserved, can be activated in order to solve SO needs. In the bid selection process, the SO should pay attention to whether the bid is located in its own network, or in another network. In the latter case, the SO should consult the SO where the bid is located so it can evaluate the constraints that may arise if the bid is accepted and activated. After this phase, the need arises to sort the accepted bids by a merit order list. This Business Use Case will address a multi-level market model.
   Monitoring and Activation This phase occurs after the list of bids sorted by a merit order is defined. The SO selects the bid it wants to activate, if the bid is located in the network of another SO, the latter should be consulted to validate the activation of this bid. If the SO’s need is not resolved this process is repeated iteratively until the SO needs are solved.

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)