The document discusses the transformation of distribution system operators (DSOs) to actively manage distributed energy resources on the grid. It notes that as more renewable generation and electric vehicles are connected, the distribution grid will no longer behave as a "copper plate" and DSOs will need new competencies in real-time forecasting, flexibility procurement, and grid-customer interactions. It also addresses challenges around grid tariffs, data access and standardization, platform selection, and ensuring the transformation is affordable and equitable for all customers.

1. peter.hermans@stedin.net

2. Assets: Cables,Trafo’s
Asset Management
Grids
(Transport &
Distribution)
Net Management
Balancing
System
Management
Consumers Generators
• Balancing
by Tennet
• Tennet:Transport Grid
• RNBs: Distribution Grid
• D-Grid:”copper plate”
• Tennet: voor transportnet
• RNBs: voor distributie net
Asset Management
Grid
(Transport &
Distribution)
Net Management
Active System
Management
System
Management
Consumers Generators
• Balancing
• Congestion management
• DA-ID grid safety analyses
• Additional Grid- Market
interactions
• D-Grids: no “copper plate”
anymore
• End of flat fee capacity tariff
• Customer ownership of relevant
system assets
• DER- Grid Integration
• Metering
Assets: Cables,Trafo’s,
EV’s, Storage, Inverters
etc.
From Distribution Network Operator (DNO) to Distribution System Operator (DSO)
Agenda

3. Organizational readiness (1):
Overall drivers for change
• Agility and acceleration require a
multidisciplinary approach
• Realizing the targets of energy transition is a
multidisciplinary challenge
• Strong interaction between Markets, Technology &
Regulation
• In 2025 the DSO business will be
predominantly a digital business
• “bitts control watts” and “the grid as a platform”
• Building digital competencies is key
• The future energy system will not be bounded
by existing organizational structures
• Preparing for ecosystem alignment
• Re-architecting the existing IT/OT/IOT landscape to align
in the future business ecosystem Converged skill sets
Markets
Friction Friction
Energy
Market
Strategy Business IT Technology
Vendors
Expert oriented skills sets
Regulation Technology

4. Organizational readiness (2):
Preparing for new ecosystem alignment
1. Real-time
energy
distribution
2. Grid analysis &
planning
3. Infrastructure
Operation
4. Customer, market & data
management
Corporate Services & Data
2030Agility through
loosely coupling
Defining the scheduled grid
maintenance & inspection
portfolio
Defining the grid expansion/
renewal/ reconstruction
portfolio
Executing
of the
portfolio
Executing
of the
portfolio
Physical Grid
Asset
Risc
Manage
ment
Investment & Grid strategy
Market &
Customer
Interaction
Account
management
Data
Management
(smart meter,
A&R)
Customer
Service
CRM &
Billing
Service &
asset
restoratio
n
Real Time Energy Distribution
Municipalities
End
Customers
Commercial
Market
Parties
End
Customers
End
Customers
Analytics
& IOT
DSO processes
2018
DSOs core business can be characterized by 4 core activities
Each of the 4 core activities (worlds) has :
• Its own characteristics an challenges in the energy transition
• Its own dynamics, in relation to the external environment, which between
themselves differ in direction & speed
Agility from the technology landscape can be increased by:
• Creation of strong focus and cohesion per world (efficiency & effectivity)
• Loosely coupling as much as possible between these worlds
The 4 worlds are supported by a 5e corporate world:
• Containing typical corporate functionality (eg HR, FIN, LT)
• Governing corporate data: data which is common and used in the 4 worlds
-> “Loosely coupling” supporting business agility while maintaining overall business value

5. Customer acceptance of smart assets:
• Simple in use → automated operations
• Low cost → large addressable market
• Freedom of choice → no lock-in solutions
Customer assets - grid integration, meaning:
• Solving the grid challenges at high DER penetration
rates
• Increasing LV grid observability
This requires:
• De-facto standards, creating a market
• Grid connection agreements to be enhanced with a
logical interface
• Additional regulation on access to data & services
• New DSO market facilitating services via DERMS ?
DER-Agnostic Grid
DER-
Aware
Grid
DER-Leveraging Grid
DER-Centric
Grid
• Levels of DER are insignificant
• Grid ignores connected DER
• Levels of DER become noticeable
• The grid is aware of the presence of DER, and accounts
for them in distribution planning and operations
• Levels of DER become useful
• The grid makes use of DER, taking advantage of the
services that they can provide
Levelofregulatoryawareness
EvolvingUtilityChallenges
• Levels of DER become mission-critical
• The grid depends on certain behaviors and/or services
of DER in order to operate effectively
Stages in DER-Integration Research
based on
Challenges on the grid edge: the integration of
customer smart assets

6. Key Question: Selecting platform(s) for the future ?
• Seamles edge- cloud computing,
also as basis for distributed SCADA systems
• Cloud options: IAAS, PAAS, SAAS
• Public or private cloud
• Commitment of the developers community
• Scope: IT OT IOT
• Excellent cyber security
Answering this question requires:
• Assessing technical capabilities of platform options (POC)
• Monitoring market momentum of relevant market players
• Deep understanding of cloud business models
• Vendor willingness to cooperate in the eco system with other
vendors
• Correct timing in investment decisions (not too late/ too early)
Edge computing
Connectivity
Cloud computing
Distributed platform
IOT based platforms: recognizing the industry trends
The grid emerging as a platform: “bitts control watts”

7. The transformation of the technology market
Who will be the winners ?
No other “core” ERP considered for
now (eg MS Dynamics or IFS)
Post-modern 2025 options
(some examples)
Customer
Engagement
Meter Data Mgt
(EDSN)
Enterprise Asset
Mgt
Operational ERP /
Project Lifecycle
Administrative
ERP
Analytics, Big
Data Platform
(Advanced)
Distribution Mgt
Field Service Mgt
IoT Platform
E-Terra + new GUI +
“App”
Process & Data
Intregration
Platform
IAAS
PAAS
SAAS?
?

8. Smart meter roll out:
• Existing architecture based on designs 2004
• Making the meter smart
Challenge:
• Smart meters supporting new market/regulatory
requirements:
o Demand response, more realtime data, etc.
o New communications technologies
• How to leverage realized smart meter investments ?
This requires a smartmeter roadmap >2020
• Making the meter dumb again (like IoT sensors)
• Introducing add-on technology (gateway) on existing meters
• Implementing an edge- cloud computing architecture
• Gateway also to support DER – Grid integration
The future of the smart meter
a roadmap >2020 is urgently needed
CENTRAL
DATA PLATFORM
DATA
COMMUNICATIONS
LOCAL
APPLICATIONS
LOCAL
DATAPLATFORM
LOCAL
COMMUNICATIONS
SENSORS & MACHINES
AMI Head End
(incl.CRYPTO)
PLC/ GPRS/CDMA 5G/LTE/NB- IoT
Dataplatform
(cloud computing)
Smart meter
DSMR
Versions
2.2, 4, 5
Local
interface
G-Meter E-Meter
Connected
Devices
(Wireless)
M-Bus
Multi Utility
Gateway
(Edge Computing)
App 1 App n
…
G-Meter
E-Meter
HEMS Smart
Inverters
(Wireless)
M-Bus
…
App 2
REMOTE
APPLICATIONS
App 1 App nApp 2App 1 App nApp 2
re-architecting the grid edge

9. Trends
• Market fragmentation, due to competition
• Many TSO DSO flex-platform pilots
• One system, but multiple system operators
• Costly, complex and potential system risks
Needed
• True TSO DSO coordination on equal footing
• Clarity on who coordinates what ?
• EU Regulation
Flexibility Platforms
Are we going the right way in Europe ?
Reference Architecture

10. Platform with generic interfaces support
market access and clear definition of responsibilities
25-november-2018
• Result of true DSO-TSO cooperation
• Launched 29th january 2019,
by all Dutch DSO’s & TSO Tennet
• Building on the existing Intraday Market, easy
access for market parties
• Mitigating local congestion by procuring
spreads (re-dispatch)
• Platform supports TSO-DSO coordination to
avoid mutual harmfull interference
• First implementation in Europe
GOPACS: Grid operator platform in the Netherlands
for market-based congestion solutions
Congestion management needs
Confirmation bought spreads
Market notification of need for orders
Available orders with location
Procurement of spreads (IDCONS)
Trader
B
Buy orders
with location
Trader
A
Sell orders
with location
Grid Operator’s Platform for
Congestion Solutions
Outcomes
regular intraday
trade
TSO TenneT
DSO
Alliander
Market
Platform
ETPA
Market
Platform 2
DSO Stedin
Other grid
operators
Commercial
domain
Regulated
domain
Market
Platform 3

11. The challenge
• More grid dynamics (weather & dynamic pricing)
• The DSO grid is not a copper plate any more !
• Real time is not enough, what will happen in 1 hour ?
Needed:
• Need for deeper grid behaviour insight & predictive monitoring:
• “day ahead” & “intraday” load & generation forecasts in 15 min,
intervals of distribution grids, GLDPM compliant
• Additional regulation on quality of BRP forecasts
• Using smart meter data: PQ & load analysis for optimal grid
operations & planning
• DSO’s willing to learn from TSO’s
Forecasting in Day Ahead and Intraday
A new necessary competency required by DSOs

12. EMS/DMS
(SCADA)
Day Ahead/ID
Forecasting
Flex Procurement
(GOPACS)
DERMS
Netmodel
(GIS)
• Dynamic netmodel
• Request action
(deviation actual
from forecast)
Forecast Curves
(to validate
actuals against)
• BRP forecasts
• Weather data
• Metering data
Congestion
case
Notification
Congestion
Case solved
Receiving bids
• Market notification
• Request to
match spreads
DER-Grid
Control
DER –Grid
Monitoring
Static
Netmodel
Static
Netmodel
Activating
Flex
Markets
Monitoring
Flex (RT)
GridCustomer
Assets
ControlControl MonitoringMonitoring
Market Grid Interactions
will this be (part of) our evolving landscape ?
for discussion

14. Challenges:
• Affordability of the system, who shall pay the costs ?
• How to balance between societal and individual grid charges ?
• How to protect the vulnerables ?
• Renewables generation (PV, Wind) and dynamic pricing may
increase the grid peak baseload ration by a significant factor (up to
4x)
Needed:
• Differentiate between “grid access” and “grid usage”
• Define different energy grid services with different tariffs
(can be implemented with one smart meter)
Differentiated grid tariffs
A reflection on grid tariff structure is needed
Traffic light based tariff system

15. Questions ?
Thank You!