IEEE Power & Energy Magazine - March/April 2014 - 55

model, so that it is not necessary to change iT systems
and processes to adapt to a completely new structure
and chains of information or data flows.
✔ The dso is used to dealing with new technologies and
is the entity most interested in implementing them in
the grid to improve service quality and reduce costs.
The dso, as an entity that is directly and physically linked
to the customer base, also has a key role to play in tomorrow's
energy system. limiting the tasks and responsibilities of the
dsos in this respect would have a strong negative impact on the
future development of the european energy market. by allocating well-regulated additional tasks and responsibilities to dsos,
the development of the internal energy market will be accelerated, since dsos, by providing market facilitation and data services, enable this in a logical and evolutionary way.
having an "independent and neutral" agent manage the
data from the distribution network-customer frontier, instead
of the dso, should be considered cautiously. The possible
benefits identified for all stakeholders when implementing a
smart grid depend on the correct management of the data from
all the frontier points of the distribution network, including
smart meters. beyond the adoption of a market model, many
purely operational processes that are the responsibility of the
dso will rely heavily on the availability and reliability of the
critical smart grid and metering data.
regarding the data owned by the customers or the users of
the grid, the main principle that should be followed is the need to
obtain permission from the customers to manage, use, and create value from this information. This is a standard public service
responsibility that already exists within a regulatory framework
applicable to all european countries, regardless of their specific
situations. regulatory bodies ensure that customers receive service value. This principle also covers the historical functions
that come with the operation of the system. regulated agents are
best positioned to act as neutral market facilitators because they
can be supervised easily. This should be considered whenever
the neutrality of dsos is placed in question.

consumption in response to real-time information and
changing price signals.
europe's electricity system will need to adjust to these
changes in customer behavior. For instance, suppliers will
design creative and dynamic feedback programs to provide customers with information that will let them actively
manage their consumption. yet this alone will not change
electricity consumption: active demand response will only
become possible once customers become more aware of the
value of shifting their electricity consumption. by the same
token, grid tariffs should reflect actual costs. retail markets
will then be able to deliver attractive products and services
based on accurate price signals.
smart meters are an integral part of getting demand-side
participation right. They will increase customers' awareness
of their energy consumption, an essential prerequisite if they
are to become more active. national regulators should support a rollout of smart meters by clearly defining who should
be responsible and how the costs should be recovered.
The shift toward demand-side participation will not be
possible without investing in the distribution grid. The regulatory framework should therefore encourage such investments. in addition, a clear and forward-looking market
model for smart grids and demand-side participation will
be crucial. such a new market model should set out clear
roles and responsibilities for market and system operators.
A new set of agreements between suppliers and distributors
can ensure better cooperation, allowing customers to benefit
from proper market functionality, smooth processes, and a
secure and reliable electricity supply.
but customers will only actively participate in tomorrow's
retail electricity markets if their privacy and data security
are safeguarded and if the system makes all major market
processes simpler and easier to understand. As stated in the
August 2011 report EURELECTRIC Views on Demand-Side
Participation, ensuring this should be at the heart of any
demand-side participation model.

Active Demand

Decentralized Storage

demand-side participation, as european dsos understand
it, consists of two parts: 1) active and engaged consumers (demand response) and 2) measures taken by utilities to
ensure an even supply of electricity by smoothing out peaks
(demand-side management). Together, these components will
bring benefits to consumers, suppliers, and distributors alike.
The demand for electricity is predicted to increase up
to 2020 and beyond, as consumers make ever greater use
of electric and plugged-in hybrid vehicles, air- and groundsourced heat pumps, and air conditioning. The electricity
distribution network will have to respond to this challenge,
ensuring an even and continuous flow of electricity through
demand-side management.
At the same time, the customers' role in the electricity
market will increase, paving the way for demand response.
customers will be able to manage and adjust their electricity

electricity storage is one of the flexible solutions to the problem of temporary disparities between supply and demand.
conventional and pumped hydropower already supports the
integration of increasing amounts of ress by providing the
necessary flexibility and storage capacity to balance fluctuations. Peak production of intermittent renewable sources
that feed into the MV and lV grids will, however, require
additional small-scale, grid-connected electricity storage
solutions. such "decentralized" storage can support the
development of dG. it can also provide a range of applications and services to dsos facing challenges such as increasing peak loads and stricter power quality requirements.
decentralized storage systems could affect the management of the distribution grid in a number of functional areas,
including energy management, system services, and the
internal business of the dso, as follows:

march/april 2014

ieee power & energy magazine

Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - March/April 2014