Utilizing Privately Owned Flexibilities in the German Distribution System : Technical and Regulatory Framework

University essay from KTH/Skolan för elektroteknik och datavetenskap (EECS)

Author: Nahal Tamadon; [2019]

Keywords: ;

Abstract: This Master’s thesis project aims to define the technical and regulatory framework of asystem flexibility service utilizing distributed flexibilities connected to the low-voltage (LV)level. The flexibility service outlined here is local balancing, with the purpose of increasing theload-generation balance in LV networks using thermostatically controlled loads and ElectricalEnergy Storage (EES) devices. The thesis is performed at Avacon Netz GmbH, a GermanDSO, as part of the German demo for project InterFlex.The first part of the thesis encompasses the technical framework of local balancing. For thispurpose, day-ahead scheduling algorithms for heat pumps and EES devices are proposed toincrease the local consumption of distributed generation, and thereby decrease the reversepower flow and load peaks. Two scheduling algorithms are proposed in this thesis, one basedon numerical methods and one on optimization. The proposed algorithms are simulated fornine LV-networks in Avacon Netz’ grid area. The simulation results show that by utilizing allthe residential heat pumps and EES devices, the load peaks and the peak reverse flow can bereduced by up to 21.30% and 37.30% respectively.The commercial and regulatory framework of local balancing are analyzed in the second part ofthe thesis. The said service can be traded either using market-based mechanisms, or throughbilateral contracts between the DSO and the flexibility providers. Utilization of distributedflexibilities through the DSO has been vaguely mentioned in the German Energy Industry Act.The contractual framework and level of load interference has yet to be explicitly defined. Themarket-based trading is also analyzed in Part II, proposing a local semi-competitive marketfor flexibility services. Unlike flexibility services such as voltage or frequency control, localbalancing does not require a high level of DSO-TSO coordination. The service optimizesnetwork-capacity allocation, and makes room for additional integration of renewable-basedgeneration.

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