Effects of end-user participation under a TSO-DSO coordination scheme for Norway

Abstract

This paper analyses the Norwegian Power System through a sequence of models that represents dynamics of the wholesale power market, distribution power network, end-users, and a coordination scheme between Transmission System Operators (TSOs) and Distribution System Operators (DSOs). The models assess the impact of end-user flexibility and TSO-DSO coordination on the power system’s operation, with an emphasis on two research questions: the extent to which flexibility from end-users affects the power system’s operation under the TSO-DSO coordination scheme, and the potential of the TSO-DSO coordination scheme in incentivizing end-users’ flexibility. The paper presents three scenarios, involving varying degrees of coordination and end-user participation that are modeled and applied to the entire Norwegian power system. The results indicate that active end-user participation in the power market with a TSO-DSO coordination scheme could enhance the flexibility of the power system and support redispatch, while attaining a 14.5% redispatch cost reduction and 0.33% total system cost reduction. These findings offer insights for power system stakeholders concerning the potential advantages and challenges associated with fostering end-user flexibility and further developing TSO-DSO coordination schemes.