How DSO could facilitate system optimization in new market mechanisms for distributed resources

The paper presents the role of DSOs in future energy, capacity and balancing markets. DSO will have a role of market facilitator for decentralized generation and demand response, and will enable local optimization while fulfilling its traditional mission of safety of distribution networks. The French electric system faces two challenges: - A steady growth of peak demand at system level and on local networks, which can be aggravated by the upcoming of Electric Vehicles - Growth of the proportion of intermittent and decentralized generation in its electric mix. It is therefore of high importance that the electric system rely more and more on decentralized generation and demand response to address these balancing issues. Since these resources are connected to the distribution networks, DSOs are key to contribute to the management of a local system as part of a national optimization: - DSO is a technical contract holder with network capacities - DSO collects information regarding the Balancing Responsible Party and manage metering data - DSO supervises flows on its network and is responsible of its safety, - DSO is an independent party with nondiscrimination objectives DSO plays therefore a key role in the creation and handling of the aggregates that can be traded on these markets at 3 key times: certification, activation and evaluation. Based on its experience, ERDF shows the benefit for the stakeholders of its key contribution.