Architectures for optimized interactions between TSOs and DSOs : experiences and learnings from SmartNet

Increased levels of Distributed Energy Resources (DERs) and their participation in provision of Ancillary Services (AS) at both transmission and distribution levels, call for a more advanced dispatching management of distribution networks to transform distribution from a “passive” into an “active” system. Moreover, new market architectures must be developed to enable participation of DERs in energy and AS markets. New operational and trading arrangements will also affect the interface between transmission and distribution networks, which will have to be managed in a coordinated manner between TSOs and DSOs in order to ensure the highest efficiency, effectiveness and security. Evaluation and validation of the proposed schemes has been carried out both via simulations which have modelled market operation under different TSO-DSOs interactions, as well as in the laboratory and pilot project settings. This paper present experiences and learnings obtained during development and testing of the market clearing algorithm and simulator, including bidding by market participants and aggregation to provide flexibility used for ancillary services. It also discusses how solutions proposed in the SmartNet align with the present national and European policy goals and positions of the key industrial stakeholders, and also elaborate on the final guidelines and regulatory recommendations that result from the SmartNet projec