• DSO-TSO cooperation issues and solutions for distribution grid congestion management

      Hadush, Samson Yemane; Meeus, Leonardo (Energy Policy, 2018)
      The role of DSOs is evolving due to the increasing penetration of intermittent and distributed energy resources in the distribution system. On the one hand, TSOs are accessing flexibility resources connected to the distribution grid. On the other hand, DSOs are actively managing distribution grid congestion, moving away from the conventional fit and forget approach. As a result, the need for DSO-TSO cooperation has become increasingly important. In this study, we first discuss market and grid operation issues related to different system states and the corresponding congestion management approaches, in the context of the European electricity market design and regulation. Second, we discuss viable solutions that are inspired by inter-TSO cooperation solutions as well as solutions that are being adopted by DSOs. Our findings show that the issues are rather similar both at transmission and distribution level; however, the need for cooperation and the solutions will depend on where structural congestion will occur and which borders will be managed. We also note that cooperation between DSOs as well as between DSOs and microgrids could become more important with the development of local energy markets in the long term.
    • The effect of welfare distribution and cost allocation on offshore grid design

      Hadush, Samson Yemane; De Jonghe, Cedric; Belmans, Ronnie (IEEE Transactions on Sustainable Energy, 2014)
      Innovative offshore grid designs such as integrating offshore wind farms (OWFs) with interconnectors are gaining popularity. Adequate investment in these designs requires aligning the interest of stakeholders through an appropriate cost allocation method. The aim of this paper is twofold. First, it shows how welfare distribution can influence a stakeholders offshore grid design choice. Second, it evaluates the effect of various cost allocation schemes in aligning diverse stakeholder interests toward efficient grid design. The results confirm that an investment in an efficient offshore grid design may not be guaranteed as long as the chosen cost allocation method ignores the welfare distribution effect. Most methods fail in this regard. Even when they provide cost incentives, they do not always ensure cooperation. Cognizant of this limitation, this study proposes a method that allocates costs in proportion to the incremental net benefit (PINB) of each stakeholder. This method reflects both the distribution of welfare and cost savings.
    • The implication of the European inter-TSO compensation mechanism for cross-border electricity transmission investments

      Hadush, Samson Yemane; De Jonghe, Cedric; Belmans, Ronnie (International Journal of Electrical Power & Energy Systems, 2015)
      An efficient cross-border investment and well-designed markets and regulatory instruments are crucial prerequisites to the creation of a fully functional European internal electricity market. One of the prominent regulatory measures taken to speed up the creation of the internal market was to abolish tariff pancaking by replacing cross-border tariffs with an Inter-Transmission System Operators Compensation (ITC) mechanism through which transmission system operators (TSOs) can compensate each other. In this study, the implication of introducing such mechanism on the cross-border investment outcome is explored. The results indicate that the current ITC mechanism is loosely linked to the cross-border investment decisions of TSOs. In addition, the study concludes that factors such as the ITC fund size and the number of participating TSOs can influence the investment outcome.