DSOs as beneficiaries of innovative contracts and services, facilitated through local electricity market structures

Abstract

This paper focuses on contracts that a distribution system operator (DSO) would find attractive given it can utilise the flexibility offered through a local electricity market environment. The context for this research work is based on the E-REGIO project that investigates the roles of a local system operator (LSO) as related to the facilitation of grid and community services. The current paper builds upon previous research by paying particular attention to the DSOs' needs and how these can be satisfied through innovative services and contract regimes Once a context of grid needs and the associated local market solution is set, and the theoretical description of the contracts and services is provided, the paper continues with an overview of the pilot-based approach used to verify the contract’s implementation as an instrument to meet the needs of the grid operators.