Evaluating Smart Grid Development for Incentive Regulation
Parkkinen, Joni (2011)
Parkkinen, Joni
2011
Sähkötekniikan koulutusohjelma
Tieto- ja sähkötekniikan tiedekunta - Faculty of Computing and Electrical Engineering
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Hyväksymispäivämäärä
2011-10-05
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tty-2011102414852
https://urn.fi/URN:NBN:fi:tty-2011102414852
Tiivistelmä
European Union accepted a new climate- and energy package in 2008. As a consequence of the new and quite challenging strategy the whole electricity industry has to evolve, concerning also electricity distribution sector, especially as the role of electricity as an energy carrier increases. At the same time the expectations of the society as well as a single customer increase towards electricity supply, voltage quality and the whole network service. Smart Grids can integrate the existing network infrastructure with advanced automation and ICT- technology enabling more efficient and flexible use of the network by opening up new possibilities for additional services. For this reason, a need for the development of “smart” solutions and their introduction increase continuously. DSOs are in a crucial role concerning the development of the network infrastructure.
Network business is a regional monopoly business sector which is regulated by authorities. As the operation environment changes also the regulation model need to be developed into a right direction. The model should allow DSOs to have such economic conditions, that the grid development with “smart” solutions becomes possible which is a prerequisite in order to reach the political targets as well. Significance of the directing signals of regulation and potential incentives are crucial from Smart Grid perspective. This has to be taken into account when developing the future regulation models.
The aim of this thesis is to analyze the “smartness” of electricity distribution networks from different perspectives. The recognition of the most important “smart” solutions is a prerequisite when evaluating the level of “smartness” in a network. Therefore the focus is on analyzing the benefits of “smart” solutions by reflecting them with the ultimate objectives of Smart Grids (EU 20/20/20 targets). Based on analyzes carried out during the work, there has been developed an approach for determining the level of “smartness” in a network. The approach includes the most important aspects of “smartness” suitable to be used especially in the Nordic countries.
The approach has been applied in practice by performing a case study of Vattenfall’s distribution networks in Finland and in Sweden. Based on analyzes carried out during the work, the most important challenges concerning future development have been identified and discussed. In addition, consideration of ways to ensure the development of network business into a right direction has been made. As an enabler for Smart Grid development there is a regulation model, which takes into account the needed innovative solutions by providing advanced incentives for the DSOs to overcome the increasing challenges. Potential incentives related to “smart” solutions and Smart Grids have been discussed briefly in the work. Review of how the approach created to evaluate the level of “smartness” could be used in the future regulation models on a larger scale, is however left for further research proposal. /Kir11
Network business is a regional monopoly business sector which is regulated by authorities. As the operation environment changes also the regulation model need to be developed into a right direction. The model should allow DSOs to have such economic conditions, that the grid development with “smart” solutions becomes possible which is a prerequisite in order to reach the political targets as well. Significance of the directing signals of regulation and potential incentives are crucial from Smart Grid perspective. This has to be taken into account when developing the future regulation models.
The aim of this thesis is to analyze the “smartness” of electricity distribution networks from different perspectives. The recognition of the most important “smart” solutions is a prerequisite when evaluating the level of “smartness” in a network. Therefore the focus is on analyzing the benefits of “smart” solutions by reflecting them with the ultimate objectives of Smart Grids (EU 20/20/20 targets). Based on analyzes carried out during the work, there has been developed an approach for determining the level of “smartness” in a network. The approach includes the most important aspects of “smartness” suitable to be used especially in the Nordic countries.
The approach has been applied in practice by performing a case study of Vattenfall’s distribution networks in Finland and in Sweden. Based on analyzes carried out during the work, the most important challenges concerning future development have been identified and discussed. In addition, consideration of ways to ensure the development of network business into a right direction has been made. As an enabler for Smart Grid development there is a regulation model, which takes into account the needed innovative solutions by providing advanced incentives for the DSOs to overcome the increasing challenges. Potential incentives related to “smart” solutions and Smart Grids have been discussed briefly in the work. Review of how the approach created to evaluate the level of “smartness” could be used in the future regulation models on a larger scale, is however left for further research proposal. /Kir11