Coordinated Operational Methodology for Managing and Accessing Network Distributed Energy Resources (COMMANDER)

Objective(s) 

This project aims to: 

• Identify and define alternative ESO/DSO coordination schemes for accessing and managing DERs with respect to their qualification, procurement, dispatch and settlement. In particular, the roles and responsibilities of the key actors involved, their interfaces across different timescales and information exchanges as well as key market arrangements to facilitate the process
• Quantify and assess the techno-economic feasibility of alternative ESO/DSO coordination schemes for accessing and managing DERs for service provision at operational timescales
• Develop an engineering-based roadmap and recommendations for the practical implementation of the preferred ESO/DSO coordination scheme.

Problem(s) 

The three challenges of decarbonisation, decentralisation and digitisation are changing the energy system. The end consumer, Distribution Network Operators (DNOs) and Distributed Energy Resources (DERs) are becoming active participants in providing increasing levels of flexibility to the Great Britain (GB) electricity system. This has, therefore, the potential to deliver whole system benefits by creating new flexibility market opportunities for potential service providers. These markets will enable flexibility services to compete alongside traditional investment options for all relevant network reinforcements or upgrades of significant value and to make the most cost-effective investment decisions in the future. As both the Electricity System Operator (ESO) and the DNOs (hereafter referred to as Distribution System Operators (DSOs) to reflect their more active operational role) are seeking additional sources of flexibility, there is uncertainty in relation to the roles and responsibilities of the ESO and DSOs in this new smart energy world. As services from DERs are increasingly used to tackle both network management and energy balancing issues, there is a need to ensure they can provide multiple services to several entities, such as the ESO, the DSOs and Suppliers, in techno-economic efficient and secure manner.

In this context, to ensure DERs can provide flexibility services to multiple entities, efficient coordination between the ESO and DSO is critically important when accessing DERs for flexibility service provision. Therefore, there is a need to:

• Identify and define alternative ESO/DSO coordination schemes for accessing and managing DERs with respect to their qualification, procurement, dispatch and settlement. In particular, the roles and responsibilities of the key actors involved, their interfaces across different timescales and information exchanges as well as key market arrangements to facilitate the process
• Quantify and assess the techno-economic feasibility of alternative ESO/DSO coordination schemes for accessing and managing DERs for service provision at operational timescales
• Develop an engineering-based roadmap and recommendations for the practical implementation of the preferred ESO/DSO coordination scheme.

The ESO/DSO coordination schemes will have a focus on maximising the use of flexibility provided by DERs with respect to enabling them to participate equally alongside other flexibility and balancing service providers, including conventional and renewable transmission connected assets as well as interconnectors.

Enabling efficient access to DERs through streamlined ESO/DSO coordination will deliver; opportunities for customers to realise value from services and new technology; more sustainable energy markets and networks; reduced costs to customers (e.g., network balancing and investment); enhanced security of supply; and the transition to net zero at the lowest overall cost for customers.

Method(s) 

The project brings together an experienced team of subject matter experts from WSP and Imperial College London, with significant expertise in power network utilities, transition to DSO, whole electricity system planning and operation, techno-economic modelling of whole electricity system and future electricity markets. They will deliver in close collaboration to ensure that learning outcomes are translatable into Business as Usual (BaU) practices in the ESO business and can be replicable and scalable across the GB DNOs. The project will be structured in the following five distinct work streams (WS), each of which has specific objectives.

WS1. Development of ESO/DSO Coordination Schemes

This WS will undertake research, analysis and stakeholder engagement of alternative ESO/DSO coordination schemes for accessing and managing DERs with respect to their qualification, procurement, dispatch and settlement. The key objectives of this WS are:

• Research and analysis of national and international trends on ESO/DSO coordination schemes, assess their relevance and applicability to the GB electricity system and extract appropriate lessons learned.
• Conduct stakeholder engagement activities within the ESO to take stock of different perspectives, objectives, aspirations and boundaries around potential future ESO/DSO coordination schemes in GB.
• Develop different ESO/DSO coordination schemes for accessing and managing DERs (limited to a maximum of two) on a high-level basis covering key aspects such as getting connected and commercial arrangements, system coordination and operation, and network design and development. It includes identifying and defining the roles and responsibilities of the key actors involved, such as suppliers, aggregators, DER providers, prosumers, local energy systems, etc., their interfaces and information exchanges.

Deliverables 

• Report on national and international trends on ESO/DSO coordination schemes
• Report on the developed ESO/DSO coordination schemes

WS2. Techno-Economic Feasibility Assessment of ESO/DSO Coordination Schemes at Operational Timescales 

This WS will perform techno-economic modelling of the whole electricity system to quantify and assess the techno-economic feasibility of the alternative ESO/DSO coordination schemes for accessing and managing DERs for service provision at operational timescales. The key objectives of this WS are:

• Enhance the current whole electricity system model to represent the developed ESO/DSO coordination schemes at operational timescales (both pre and post event). The model is based on a Security Constrained Optimal Power Flow and looks to minimise the costs of balancing the transmission and distribution systems, jointly or sequentially, considering dynamic operational constraints of conventional generating plans, renewable energy resources, transmission and distribution connected flexible energy resources, network outages, interconnection, etc.
• Define whole electricity system use cases against which to assess the coordination schemes. These will consider geographic locations of the networks, specific types of flexibility services, different technology types of flexibility services, etc.
• Map the use cases on to the model developed to quantify and assess the costs and benefits associated with operational performance of the different ESO/DSO coordination schemes.
• The model will quantify and assess the technical costs and benefits different ESO/DSO coordination schemes against the costs incurred from running the whole electricity system.

Deliverables 

• Report on the techno-economic feasibility assessment of the developed ESO/DSO coordination schemes at operational timescales.

WS3. Impact Assessment of the ESO/DSO Coordination Schemes 

This WS will undertake an impact assessment of the ESO/DSO coordination schemes. The impact assessment will combine a quantitative assessment of relative costs and benefits of the schemes with a qualitative assessment across a wide-ranging criterion that will be informed by stakeholder feedback within the ESO. It will provide in-depth insights on the strengths and weaknesses of the different schemes. The key objectives of this WS are:

• Enhance the current whole electricity system model to represent the developed ESO/DSO coordination schemes at planning timescales. For each scheme, the optimisation-based model will balance the costs of investing in generation, transmission and distribution infrastructures and the costs running the whole system against the benefits brought by flexibility service provision from transmission and distribution connected flexibility resources.
• Quantitative assessment (i.e., economic case criterion) of the relative costs and benefits for the impact assessment. Application of the model to quantify and assess the different ESO/DSO coordination schemes against the costs incurred from investing in traditional electricity infrastructure and balancing the whole electricity system and the benefits brought by flexibility energy resources.
• Develop a wide-ranging criterion to underpin the qualitative assessment of the overall impact assessment. The criteria may cover the strategic case, commercial case, financial case, etc. including aspects such as customer experience, market viability sustainability, environmental sustainability, regulatory frameworks, industry structure and organisation. Conduct stakeholder engagement activities within the ESO to support with scoring across the criteria.
• Combine the quantitative and qualitative assessments to form the overall impact assessment. Select the preferred ESO/DSO coordination scheme for roadmap development.

Deliverables 

• Report on the impact assessment of the ESO/DSO coordination schemes.

WS4. Roadmap for the Physical Deployment of the ESO/DSO Coordination Scheme 

This WS will develop an engineering-based roadmap and recommendations for the practical implementation of the preferred ESO/DSO coordination scheme. The key objectives of this WS are:

• Identify and define the key activities and initiatives, covering technical, commercial and regulatory aspects, that need to happen to enable the physical deployment of the schemes. Carry out stakeholder engagement activities to feedback on the roadmap activities. Organise the activities on a priority list according to their alignment to the ESO strategic objectives and value delivered.
• Time-sequence the activities onto the roadmap itself. The sequence will reflect the established priorities and will be modified, as appropriate, to account for dependencies. There will also be a high-level assessment of the ability of the ESO to manage the implied rate of change. Develop a set of management KPIs track the delivery of the roadmap.
• To assess the roadmap in terms of its impact across operational areas of the ESO business. The assessment will identify areas of high, medium and low change across the business across different time periods and will describe key changes.

Deliverables 

Report on the roadmap for the physical deployment of the preferred ESO/DSO coordination scheme.

WS5. Broader Application of Findings, Reporting and Knowledge Dissemination 

This WS will complete all project reporting and knowledge dissemination required as part of Network Innovation Allowance (NIA). The key objectives of this WS are:

• Deliver the monthly project management related reports such as the project risk register, actions log, lessons learned log, key output milestones report, IPR register, project monthly report, etc.
• Deliver the annual project report and the project close down report; and Deliver knowledge dissemination webinars and workshops to industry stakeholder, etc.

Deliverables 

• Annual project report
• Project close down report
• Knowledge dissemination event (workshop or seminar with key stakeholders).

In line with the ENA’s ENIP document, the risk rating is scored Low.

TRL Steps = 1 (2 TRL steps)

Cost = 1 (£450k)

Suppliers = 1 (1 supplier)

Data Assumptions = 2

Total = 5 (Low)

• Scope

  To ensure DERs can provide flexibility services to multiple entities, efficient coordination between the ESO and DSOs is critically important when accessing DERs for flexibility service provision. At present there is a lot of uncertainty in relation to the roles and responsibilities of the ESO and DSO’s in this new smart energy world.

  This project seeks to build on the work of the Open Networks and the Regional Development programmes by researching the current international trends in this area and help define a roadmap for the practical implementation of the schemes across GB. With WPD as a project partner, it will give greater insight into the challenges from both a system operator and DNO perspective.

  The ESO/DSO coordination schemes will have a focus on maximising the use of flexibility provided by DERs with respect to enabling them to participate equally alongside other flexibility and balancing service providers, including conventional and renewable transmission connected assets as well as interconnectors.

  Enabling efficient access to DERs through streamlined ESO/DSO coordination will deliver:

  • Opportunities for customers to realise value from services and new technology
  • More sustainable energy markets and networks
  • Reduced costs to consumers through more optimised use of services
  • Enhanced security of supply
  •  
  • Transition to net zero at the lowest overall cost for customers.
• Success Criteria

  The project will be classed as successful if the following criteria is met:

  • There is a greater understanding of the latest national and international trends on ESO/DSO coordination schemes and how they could potentially be applicable to the GB system
  • There is a detailed techno-economic feasibility and analysis of each ESO/DSO coordination scheme
  • There is a developed roadmap which outlines the physical deployment of the preferred ESO/DSO coordination schemes

  To operationalise the findings from this project, further functional workstreams will have been identified, which encapsulates all of the technological, commercial, regulatory and operational change required at granular organisational level.

• Potential for New Learning

  This project will define a roadmap for the future of the ESO/DSO coordination schemes. At present there is much uncertainty around the future roles of the ESO and DNO’s and this project will help to bridge the gaps in knowledge and highlight areas for further exploration.

  This project is first of its kind in the UK, bringing together ESO / DSO to coordinate and maximise efficiency of access to DERs to this degree of detail.

• Documents and Links

  NIA Project Registration and PEA

• Monthly updates

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