IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v186y2024ics030142152300561x.html
   My bibliography  Save this article

Risk vs. restriction—An investigation of capacity-limitation based congestion management in electric distribution grids

Author

Listed:
  • Hennig, Roman J.
  • de Vries, Laurens J.
  • Tindemans, Simon H.

Abstract

Electrification of energy end-uses brings an increasing load on electric distribution grids with load peaks that can cause network congestion. However, many new end-uses like electric vehicles, heat pumps, and electrified industrial processes have some flexibility to move their power consumption away from peak times. Congestion management mechanisms can harness this flexibility. This paper investigates congestion management mechanisms based on limited available network capacity for flexible loads during peak times. A case study discusses and investigates real-world examples of such mechanisms from proposals in Germany and the Netherlands. They differ concerning the lead time at which the capacity limitation is announced, with options from near real-time and day-ahead to long-term. These mechanisms are suited to remove network congestion, but there are significant trade-offs concerning the lead time. A shorter lead time leaves more room for using the network during non-congested times but creates a risk of curtailment for end-users, which may come with associated balancing and re-procurement costs. Longer lead times give more certainty on network access conditions but often restrict network usage even when there is no network congestion.

Suggested Citation

  • Hennig, Roman J. & de Vries, Laurens J. & Tindemans, Simon H., 2024. "Risk vs. restriction—An investigation of capacity-limitation based congestion management in electric distribution grids," Energy Policy, Elsevier, vol. 186(C).
    • Handle: RePEc:eee:enepol:v:186:y:2024:i:c:s030142152300561x
    DOI: 10.1016/j.enpol.2023.113976
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030142152300561X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2023.113976?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hennig, Roman J. & de Vries, Laurens J. & Tindemans, Simon H., 2023. "Congestion management in electricity distribution networks: Smart tariffs, local markets and direct control," Utilities Policy, Elsevier, vol. 85(C).
    2. Attar, Mehdi & Repo, Sami & Mann, Pierre, 2022. "Congestion management market design- Approach for the Nordics and Central Europe," Applied Energy, Elsevier, vol. 313(C).
    3. Ayman Esmat & Julio Usaola & Mª Ángeles Moreno, 2018. "A Decentralized Local Flexibility Market Considering the Uncertainty of Demand," Energies, MDPI, vol. 11(8), pages 1-32, August.
    4. Hennig, Roman J. & Ribó-Pérez, David & de Vries, Laurens J. & Tindemans, Simon H., 2022. "What is a good distribution network tariff?—Developing indicators for performance assessment," Applied Energy, Elsevier, vol. 318(C).
    5. Heinrich, Carsten & Ziras, Charalampos & Jensen, Tue V. & Bindner, Henrik W. & Kazempour, Jalal, 2021. "A local flexibility market mechanism with capacity limitation services," Energy Policy, Elsevier, vol. 156(C).
    6. Pudjianto, Danny & Djapic, Predrag & Aunedi, Marko & Gan, Chin Kim & Strbac, Goran & Huang, Sikai & Infield, David, 2013. "Smart control for minimizing distribution network reinforcement cost due to electrification," Energy Policy, Elsevier, vol. 52(C), pages 76-84.
    7. Radecke, Julia & Hefele, Joseph & Hirth, Lion, 2019. "Markets for Local Flexibility in Distribution Networks," EconStor Preprints 204559, ZBW - Leibniz Information Centre for Economics.
    8. Georges, Emeline & Cornélusse, Bertrand & Ernst, Damien & Lemort, Vincent & Mathieu, Sébastien, 2017. "Residential heat pump as flexible load for direct control service with parametrized duration and rebound effect," Applied Energy, Elsevier, vol. 187(C), pages 140-153.
    9. Anaya, Karim L. & Pollitt, Michael G., 2017. "Going smarter in the connection of distributed generation," Energy Policy, Elsevier, vol. 105(C), pages 608-617.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hennig, Roman J. & de Vries, Laurens J. & Tindemans, Simon H., 2023. "Congestion management in electricity distribution networks: Smart tariffs, local markets and direct control," Utilities Policy, Elsevier, vol. 85(C).
    2. Potenciano Menci, Sergio & Valarezo, Orlando, 2024. "Decoding design characteristics of local flexibility markets for congestion management with a multi-layered taxonomy," Applied Energy, Elsevier, vol. 357(C).
    3. Theo Dronne & Fabien Roques & Marcelo Saguan, 2021. "Local Flexibility Markets for Distribution Network Congestion-Management in Center-Western Europe: Which Design for Which Needs?," Energies, MDPI, vol. 14(14), pages 1-18, July.
    4. Karim L. Anaya & Michael G. Pollitt, 2021. "How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects," Energies, MDPI, vol. 14(15), pages 1-26, July.
    5. Bellenbaum, Julia & Höckner, Jonas & Weber, Christoph, 2022. "Designing flexibility procurement markets for congestion management – investigating two-stage procurement auctions," Energy Economics, Elsevier, vol. 106(C).
    6. Lind, Leandro & Chaves-Ávila, José Pablo & Valarezo, Orlando & Sanjab, Anibal & Olmos, Luis, 2024. "Baseline methods for distributed flexibility in power systems considering resource, market, and product characteristics," Utilities Policy, Elsevier, vol. 86(C).
    7. Aguado, José A. & Paredes, Ángel, 2023. "Coordinated and decentralized trading of flexibility products in Inter-DSO Local Electricity Markets via ADMM," Applied Energy, Elsevier, vol. 337(C).
    8. Heilmann, Erik, 2023. "The impact of transparency policies on local flexibility markets in electric distribution networks," Utilities Policy, Elsevier, vol. 83(C).
    9. Jin Zhang & Lianrui Ma & Jinkai Li, 2021. "Why Low-Carbon Publicity Effect Limits? The Role of Heterogeneous Intention in Reducing Household Energy Consumption," Energies, MDPI, vol. 14(22), pages 1-17, November.
    10. Nayeem Rahman & Rodrigo Rabetino & Arto Rajala & Jukka Partanen, 2021. "Ushering in a New Dawn: Demand-Side Local Flexibility Platform Governance and Design in the Finnish Energy Markets," Energies, MDPI, vol. 14(15), pages 1-23, July.
    11. Song, Chunhe & Jing, Wei & Zeng, Peng & Yu, Haibin & Rosenberg, Catherine, 2018. "Energy consumption analysis of residential swimming pools for peak load shaving," Applied Energy, Elsevier, vol. 220(C), pages 176-191.
    12. Gupta, Ruchi & Pena-Bello, Alejandro & Streicher, Kai Nino & Roduner, Cattia & Farhat, Yamshid & Thöni, David & Patel, Martin Kumar & Parra, David, 2021. "Spatial analysis of distribution grid capacity and costs to enable massive deployment of PV, electric mobility and electric heating," Applied Energy, Elsevier, vol. 287(C).
    13. Peter Boait & J. Richard Snape & Robin Morris & Jo Hamilton & Sarah Darby, 2019. "The Practice and Potential of Renewable Energy Localisation: Results from a UK Field Trial," Sustainability, MDPI, vol. 11(1), pages 1-15, January.
    14. Byers, Edward A. & Gasparatos, Alexandros & Serrenho, André C., 2015. "A framework for the exergy analysis of future transport pathways: Application for the United Kingdom transport system 2010–2050," Energy, Elsevier, vol. 88(C), pages 849-862.
    15. Xu, Xinkuo & Guan, Chengmei & Jin, Jiayu, 2018. "Valuing the carbon assets of distributed photovoltaic generation in China," Energy Policy, Elsevier, vol. 121(C), pages 374-382.
    16. Earl, James & Fell, Michael J., 2019. "Electric vehicle manufacturers' perceptions of the market potential for demand-side flexibility using electric vehicles in the United Kingdom," Energy Policy, Elsevier, vol. 129(C), pages 646-652.
    17. Oduro, Richard A. & Taylor, Peter G., 2023. "Future pathways for energy networks: A review of international experiences in high income countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    18. Richter, Laura-Lucia & Pollitt, Michael G., 2018. "Which smart electricity service contracts will consumers accept? The demand for compensation in a platform market," Energy Economics, Elsevier, vol. 72(C), pages 436-450.
    19. Vaughan, Jim & Doumen, Sjoerd C. & Kok, Koen, 2023. "Empowering tomorrow, controlling today: A multi-criteria assessment of distribution grid tariff designs," Applied Energy, Elsevier, vol. 341(C).
    20. Heilmann, Erik & Klempp, Nikolai & Wetzel, Heike, 2020. "Design of regional flexibility markets for electricity: A product classification framework for and application to German pilot projects," Utilities Policy, Elsevier, vol. 67(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:186:y:2024:i:c:s030142152300561x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.