5. Local Energy Optimisation in Electricity Grids

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Local energy optimisation in electricity grids encompasses all technologies on the low voltage (LV) network that help ensure the integration of energy is carried out with minimal impact on supply quality. In the case of photovoltaic (PV) generation in LV networks, issues such as overvoltages and network instabilities may arise due to excessive generation during peak hours, which often coincide with low demand. Similarly, the gradual deployment of electric vehicle (EV) charging points, with increasingly higher power, can cause instabilities. In the current scenario of growing electrification of demand, all these aspects should be addressed.

Highlights

The total PV energy capacity in Europe is experiencing substantial growth, with annual additions hitting record highs and the total capacity projected to reach 405 GW by 2027. Similarly, the number of EV charging points is expanding rapidly and is expected to exceed 1.2 million by 2025 due to significant investments and supportive policies in the sector. These developments reflect Europe’s strong commitment to enhancing renewable energy infrastructure and aligning with broader climate and energy security goals​ (source: IEA).

Opportunities for DSOs

  • The installation of smart meters, with some countries currently engaged in deploying their second generation, will allow DSOs to understand what is happening on the grid. The use of Artificial Intelligence (AI) to make predictions and analyses will be necessary for planning LV networks according to their needs.

Challenges for DSOs

  • To ensure proper operation of the network, DSOs need, among others, to enhance monitoring of LV networks.
  • The variability of energy flows makes it necessary to monitor information on transformers in secondary substations as well as the headers of all LV feeders.
  • The presence of new actors, services, and modes of access to the grid, such as local flexibility markets, flexible connections, and energy communities, will require DSOs to integrate them into their planning, operation, and maintenance processes. This will also necessitate technological and operational integration.

E.DSO Considerations

E.DSO recommends to:

  • Strengthen the grid through investments in MV/LV grids for integrating new distributed resources and expanding distribution networks.
  • Use flexible transformer regulation to adjust voltage dynamically in response to fluctuating demand and distributed energy resource (DER) generation, enhancing grid stability and efficiency.
  • Employ smart transformers, LV balancers and regulators to maintain voltage within acceptable limits, crucial in high DER penetration areas prone to voltage fluctuations.
  • Utilise local flexibility mechanisms like demand response programs and energy storage to manage grid congestion and ensure voltage stability during peak periods and unexpected events.

Potential use cases

  • Real-time Monitoring and Predictive Maintenance: Implementing advanced monitoring systems on LV networks and secondary substations to increase grid reliability, reduce maintenance costs, and improve response times.
  • Smart Meter Integration and Data Analytics: Deploying second-generation smart meters to gather detailed consumption and generation data, enhancing energy flow visibility, improving demand forecasting, and optimising distribution.
  • Demand Response and Local Flexibility Markets: Creating local flexibility markets for demand response programs to improve grid stability, integrate renewable energy sources, and increase energy market participation.
  • Integration of EV Charging Infrastructure: Coordinating the deployment and operation of EV charging points with existing grid infrastructure to ensure smooth EV integration, reduce network overload risk, and support electric mobility.
  • AI-Driven Network Planning and Optimisation: Using AI to analyse data for optimising LV network planning and operation, leading to efficient resource allocation, reduced operational costs, and enhanced resilience.
  • Energy Communities and Local Flexibility: Facilitating the establishment of energy communities to contribute to local flexibility in the grid, increasing energy independence, better utilising renewable energy, and enhancing grid stability.

Ongoing projects

  • Spanish DSOs (i-DE, e-distribución, E-Redes, UFD, …). In Spain, the deployment of residential smart meters (<15 kW) was completed in 2018. When these smart meters reach 15 years of age, they must be replaced with new ones. This new meter replacement plan is an opportunity for all DSOs, which use power line communications (PLC), to digitise their secondary substations and feeders with new technologies. The Spanish Government has launched a call for projects with regulatory exemptions (i.e., sandboxes) which was participated by all DSOs. A resolution focused on flexible connections and local flexibility markets is expected in the near future.
  • ORES has developed a neutral compensator (Equi-8) that addresses voltage imbalances in three-phase LV networks, particularly in rural areas with few customers. This redistributes current across phases and between network and compensator neutrals, reducing voltage variation by a factor of 2-3. Voltage regulators are installed to stabilize line voltage in LV networks impacted by new assets like EVs and PV systems. These regulators adjust voltage per phase, with two versions available for different network types. ORES plans to install 20 regulators in 2024 and 50 more in 2025. In addition to this, ORES Solormax project uses AI to optimise solar production, preventing grid disconnections by modulating inverters in real-time.

Last update: 4 October 2024