The Swiss Federal Office of Energy (SFOE) has today published a study by Frontier and IAEW Aachen on mechanisms for co-ordinating flexibility measures  in the distribution grid.

In the coming years the power sector in Switzerland will go through a fundamental transformation process which may lead to network congestion in the distribution grid. Distribution Network Operators (DNOs) can resolve bottlenecks either by expanding the network conventionally (for instance by grid enforcement or constructing new lines), or by drawing on flexibility applications of distribution grid users (such as flexible load, batteries or small-scale generation). However, as grid users may alternatively sell these flexibility applications to the wholesale or ancillary service market, this flexibility use by DNOs requires co-ordination and regulation.

Frontier and IAEW recommend that SFOE implements competitive procurement measures for flexible loads and storage. This could be done, for instance, by requiring DNOs to offer flexibility owners a range of alternative network access contracts with discounted network charges for granting the DNO access to the flexibility application. For flexibility from small-scale generation such as wind or solar power generation, the study proposes a regulated approach to appropriately compensate plant operators whenever their electricity generation is curtailed to relieve network congestion.

Frontier regularly advises public and private sector organisations in Switzerland and across Europe on policy development, market design and security of supply issues in the energy sector.

For more information, please contact Miriam Rau at m.rau@frontier-economics.com or call +49 221 337 131 00.