A carbon neutral power system based on renewable generation will require tremendous investment in electricity networks if demand flexibility and storage are not efficiently developed to compensate renewable variability locally. The decarbonization of the energy system with the electrification of transport through electric vehicles, and the heating and cooling of buildings with heat pumps, together with the reduction of stationary battery costs, offers new decentralized flexibility opportunities. Network regulation should be adapted to promote the adoption of those flexible resources by end-users and their use by network operators, mainly at distribution level, in day-by-day operations and when planning the need for additional network infrastructure. This paper presents and discusses three regulatory tools that can be used for this purpose: flexible network access, local flexibility market mechanisms and cost-reflective tariffs.
Keywords: Flexible network access, local flexibility market mechanisms and cost-reflective tariffs
Registration date: 2020-05-16