IEEE Power & Energy Magazine - September/October 2016 - 19

Smart grid investments, mostly in services and technology,
can result in higher operating expenditures but can also
defer the need for acquiring traditional assets.
noncore activities, the greater there will be a need for regulatory control. However, the more the market is developed, the
less DSOs should be involved in carrying the new activities.

✔ Greater coordination is needed between DSOs and

TSOs in relation to the procurement of system services, operational and network planning/development/
investment decisions, and in developing greater whole
system security including cybersecurity.
✔ The exchange of data between network operators to
help coordination and optimization appears promising
in proven cases in real or close to real time (especially
for security issues that arise when the level of variable
renewable energy source penetration in distributed
generation is very high).
✔ DSOs need to exploit the flexibility from decentralized
demand and generation resources, via suitable markets.
✔ Fairer cost sharing should prevent the risk of creating
perverse incentives for DSOs to avoid reinforcement,
resulting ultimately in higher costs for customers, and
vice versa.

Reimagining the DSO-TSO Relationship
The increasing volumes of low-carbon technologies and also
the future flexibility to be featured by DSOs require significant coordination with the TSO for the power system to be
holistically and cost-effectively managed. Some of the key
issues affecting the future relationship between DSOs and
TSOs were identified by the CEER. This led to the following
additional principles:
✔ A whole-system approach must be taken in all areas
to avoid inefficiencies, especially in network planning
and investment, integration of demand-side response
and distributed generation, and regulation. This will
help to foster TSO and DSO innovation.

100
90

Installed Capacity (GW)

80
70
60
50
40
30
20
10
0
2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Austria

Belgium

Bulgaria

Croatia

Cyprus

Czech Republic

Denmark

France

Germany

Greece

Italy

Malta

The Netherlands

Poland

Portugal

Romania

Slovakia

Spain

Switzerland

Turkey

United Kindom

figure 2. European PV cumulative installed capacity, 2005-2015, based on multiple sources.
september/october 2016

ieee power & energy magazine

19



Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - September/October 2016

IEEE Power & Energy Magazine - September/October 2016 - Cover1
IEEE Power & Energy Magazine - September/October 2016 - Cover2
IEEE Power & Energy Magazine - September/October 2016 - 1
IEEE Power & Energy Magazine - September/October 2016 - 2
IEEE Power & Energy Magazine - September/October 2016 - 3
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IEEE Power & Energy Magazine - September/October 2016 - Cover3
IEEE Power & Energy Magazine - September/October 2016 - Cover4
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