The traditional centralised power generation and distribution model is undergoing an intense transformation. This stems from skyrocketing energy demands and a dire need for sustainability in the energy sector.
The advent of renewable energy sources, smart technologies, and decentralised generation is driving the electricity landscape to a more resilient, dynamic, and sustainable infrastructure. And in this new shift, Distribution System Operators will be the crucial link between energy production and consumption.
But what are Distribution System Operators (DSOs)? What role do they play in the electricity distribution network? Here’s everything you need to know about the DSO model.
The Definition of a Distribution System Operator
A Distribution System Operator is an entity that distributes and manages the energy from the generation sources to the final consumers. The DSO model requires significant investments in smart meters, automation, big data, real-time systems, and data analytics. This explains the need for digitalisation in securing the DSO model.
Understanding Power Distribution Models
The traditional energy distribution follows a unidirectional model from centralised power plants through high-voltage transmission networks to distribution networks and finally to end consumers. Those involved in the distribution level are known as Distribution Network Operators or DNOs.
The Distribution Service Operator model, on the other hand, embraces a more decentralised and dynamic approach to energy distribution. It represents a departure from the traditional top-down power distribution approach. Moreover, the DSO model acknowledges the presence of distributed generation, renewable energy sources, and advanced technologies.
However, this modern energy system requires a change of utilities’ natural monopolies and grid management strategies, which now creates the role of Distribution System Operators.
What are the Advantages of the DSO Model?
The increasing electricity demand for low carbon emission technologies and the hike in distributed energy sources has given rise to the need for a distribution network that can proactively handle customers’ needs. And this is where the DSO model comes into play. Here are some of the benefits of this modern energy distribution model.
- Integration: DSO allows for massive integration of renewable energies. This, in turn, enhances supply quality and creates value for customers.
- Measuring and managing energy flows: The DSO model utilises smart meters to measure and manage bidirectional energy flows and the sporadic nature of solar and wind sources.
- Fair value for clean energy: DSOs can offer incentives such as programs and rates for distributed energy generation. This gives distributed energy generators meaningful value for their services and incentivises more DER.
- Provides real-time information: The model gives customers access to real-time information on energy consumption. This ensures a complete and personalised experience for the customer.
The roles of a Distribution System Operator
Here are some of the unique functions of the DSO;
Real-time operational and customer support
The DSO is responsible for monitoring grid conditions, including voltage, congestion, transformer loading, and overall grid health, and dispatching local resources in real-time to support the needs of the distribution system.
They also interact directly with customers and address their needs, including managing connection requests, processing electricity supply agreements, and handling customer inquiries.
Local resource scheduling
Under this role, the DSO will conduct scheduling and netload forecasting and determine compensation for resource owners and aggregators.
Integrating distributed energy resources (DERs)
DSOs facilitate the integration of DERs like wind turbines, solar panels, and energy storage systems into the distribution grid. They establish connection procedures and DERs’ impact on grid operations and manage the technical requirements for safe and reliable integration.
Final Thoughts
DSO is a new model for modernising the energy system. The primary role of the DSO is to provide reliable real-time distribution service. This will likely end the current conflict of interest with DER and ensure a smooth transition toward a more decentralised and sustainable energy future.