DSO (Distribution System Operator) - customer interfaces for efficient system operations

The evolution of the DSO – Prosumer interface

The evolution of Distribution System Operators (DSOs) is transforming the way energy is distributed and managed, with a significant focus on enhancing customer interfaces to achieve more efficient system operations. Internationally, DSOs are adopting innovative technologies such as smart meters and real-time data analytics to facilitate bi-directional communication with consumers, enabling them to monitor and manage their energy consumption more effectively. This shift towards a more interactive and responsive energy distribution model is driven by the integration of renewable energy sources and decentralized energy resources (DERs), which require flexible and dynamic network management. As DSOs transition from traditional distribution network operators to active market facilitators, they are leveraging digital platforms and mobile applications to engage consumers, provide personalized energy services, and optimize energy flows. This technological advancement not only improves customer experience but also enhances the reliability and efficiency of the distribution network, supporting a broader goal of decarbonization and sustainable energy management.

 

CIGRE’s activities on DSO integration with customers

Where DSOs used to design their networks for rather predictable loads and have the required reinforcements in place on time, the world could not be(come) more different. The climate issues (and transition to renewables) have forced customers to use their energy requirements differently, resulting in (rapid) increased impacts to electrical loads (e.g. electric heating and mobility) and generation (e.g. solar and wind) on the distribution networks.

The natural reaction for DSOs might be to ramp up their grid reinforcement efforts to support the electrification drive and associated DER integration. Low-capacity factors for certain use cases (e.g. for PV) however raises the question whether all reinforcements would be cost effective. Increasingly, the DSO can (due to increased integration of DERs) and needs to (due to capacity constraints) unlock and orchestrate the customer-side related capabilities to optimally manage the distribution system. It requires increased communication with the customers on the state of the grid and the behaviour that is expected from the customer.

 

Distribution System Operators are integrating renewable energy sources into their systems through several key strategies:

 

1. Digitalization and Smart Grids: DSOs are leveraging digital technologies such as smart meters, automation, and real-time data analytics to manage the bi-directional flow of energy from decentralized renewable sources. This allows for efficient monitoring and management of energy consumption and generation, enabling the integration of intermittent renewable energy sources like solar and wind.
2. Distributed Energy Production (DEP) Utilization: DSOs are using distributed energy sources from prosumers (consumers who also generate energy) for peak load management and non-frequency ancillary services. This reduces the need for traditional, expensive peak management solutions and supports grid stability by providing reactive power support.
3. Energy System Integration: DSOs are acting as system integration facilitators by coordinating planning, development, and operation across different energy systems. This includes integrating electricity with other energy carriers like gas, hydrogen, and heat to achieve a more efficient and decarbonized energy system.
4. Flexibility Management: DSOs are developing strategies to manage flexibility in the grid, addressing challenges posed by the variable output of renewable sources. This involves assessing flexibility impacts, defining strategies to minimize costs, and adjusting operating models to optimize the integration of renewables.
5. Support for Energy Communities: DSOs are enabling the growth of energy communities, which empower consumers to participate actively in the energy system by generating and sharing renewable energy. This fosters a more decentralized and participatory energy model.

 

Distribution System Operators (DSOs) are leveraging several innovative technologies to manage the integration of renewable energy sources effectively:

 

1. Smart Grid Technologies: DSOs are utilizing smart grid technologies such as digital twins, machine learning (ML), and artificial intelligence (AI) to optimize grid operations. These technologies help in predictive maintenance, outage prediction, and real-time monitoring of energy flows, ensuring efficient integration of variable renewable energy sources.
2. Advanced Sensors and Monitoring Systems: The deployment of advanced sensors and monitoring systems allows DSOs to identify and subsequently manage network constraints and optimize energy distribution in real-time. This is crucial for handling the variability of renewable energy sources like solar and wind.
3. Digital Substations and Power Flow Control: Technologies like digital substations and modular power flow control enhance grid flexibility and efficiency, enabling better management of renewable energy inputs.
4. Data Analytics and AI for Flexibility Services: DSOs use data analytics and AI to procure flexibility services such as demand-side response, congestion management, and voltage control. This helps manage the variability of renewable energy sources and reduces the need for costly grid reinforcements.
5. Blockchain and Virtual Power Plants (VPPs): Blockchain technology can facilitate secure peer-to-peer energy trading, while VPPs aggregate distributed energy resources to provide grid support services, enhancing the integration of renewable energy.

 

These technologies collectively enable DSOs to manage renewable energy integration more efficiently, ensuring a stable and sustainable energy supply.

 

Planned SC C6 Working Group activity

C6 proposes to investigate several themes for the establishment of new Working Group activities, in cooperation with other Study Committees when necessary. A potential subject might be forecasting of renewable energy resources (solar) and load, which serves as a means for enhancing DER flexibility services, taking into account the use of AI and utilizing the geospatial location of DER. Additionally, distribution system planning approaches could be considered, researching how DER flexibility, AI and optimization tools can enhance energy efficiencies, system resilience, and the reliability of distribution networks. This should be regarded in close relationship with a clear definition of distribution network hosting capacity, translated to impact on customer connections (e.g. dynamic operating envelopes). As enabler, the capability assessment of customers' participation in demand response could be a subject of investigation. Finally, a reflection the role of virtual power plants in this system is relevant to be considered.

 

DSO-customer interface Working Group aim and scope

The Working Group intends to provide an overview of best practices relating to the interface between the DSO and the prosumer around the globe. It will thus be a reference for DSOs, Regulators, and associated Customers to achieve the aim of optimal system operations. Customers include all customers connected to the DSO grid (residential, commercial and industrial; generators and loads; on MV and LV). Also, the role of aggregators and virtual power plants are to be taken into consideration when assessing such impacts.

The Working Group will investigate trends adopted internationally by incorporating academic research whilst keeping an eye on emerging industry and regulatory practices.

 

The working group would investigate and report on:

 

1. Definitions relating to the DSO-customer interface(s).
2. Current and future use cases requiring DSO-customer cyber-secure communication, illustrating the purpose of/need for more extensive information exchange.
3. Levels of controllability and visibility required by the DSO linked to the use cases.
4. Use cases for which a new/improved interface is needed/helpful.
5. What data needs to be exchanged to support the identified use cases requiring a DSO-customer interface (e.g., P, Q, I, U, E, instantaneous vs. averages vs. min/max, grid status, setpoints, maintenance schedules, emergency conditions, frequency of data e.g. 5 minutes or 15 minutes).
6. What moment in time the data needs to be exchanged (e.g., day(s) ahead, intraday, real-time, after the fact).
7. The role of aggregators and virtual power plants in the use cases.
8. Current standards pertaining to DSO-customer interfaces.
9. Past and current DSO-customer interface implementations (hardware and software) and their pros and cons in relation to the current and future use cases.
10. Potential novel ways for interface implementations (smart meter, new hardware interface, new software interface, …)
11. Design recommendations for a DSO-customer interface, potentially differentiated for different types of customers, and considering the roles of the aggregator and retailer, including the physical interface.
12. Conclusions, future perspectives and emerging technologies.

 

The finalisation of the Working Group activity is expected in the first half of 2026. Further alignment with current Working Group activity in SC C2, C5 and D2 is also expected to take place in support of these perspectives. As the world evolves technologically, the outcomes of this Working Group will provide an added opportunity for the customer experience with the DSO to be enhanced.