Congestions in electricity distribution networks are a major challenge in the context of the energy transition and increasing decentralised generation. They can be tackled by investing in network reinforcement, recognising investments in tariffs or the purchase of flexibility services by distribution operators, said Raul Toma, Managing Partner EVOLVE Energy Management Solutions.
“Either we invest money to reinforce the networks, which entails a risk related to the lack of long-term visibility, or ANRE recognises this additional CAPEX in tariffs. The alternative is the purchase of flexibility services by the distribution operators,” explained Toma at the conference “Stepping stones for the BESS technologies development”, organised by Energynomics.
The transition from centralised to decentralised generation is a global challenge, including for Romania. Currently, the approximately 200,000 prosumers in the country total more than 2,000 MW installed, which puts significant pressure on the distribution grids. This phenomenon generates congestion both during the day, when there is a massive injection of energy from renewable sources, and in the evening, during peak consumption hours. Voltage variations exceeding the limits set by the performance standards also affect the stability of the networks.
Possible solutions for congestion management
- Investing in strengthening networks
This approach involves increasing the capacity of the distribution infrastructure by modernising and extending networks. However, there are risks associated with this solution, such as the lack of medium to long term visibility of future congestion areas and the capital constraints available to distribution operators.
- Recognising investment in tariffs
Another option is for ANRE to allow this additional CAPEX to be recognised in tariffs, which would allow distribution operators to finance network expansion and reinforcement projects without having to bear the full cost from their own resources.
- Purchase of flexibility services
The most modern solution is the use of flexibility services, which involves a transition from the traditional CAPEX model to an OPEX-based model. This involves the integration of distributed resources – such as energy storage batteries, flexible consumers or aggregated renewable power plants – into a grid balancing mechanism.
This concept is supported by ANRE Order 124/2022, which regulates the purchase of flexibility services and reactive energy for voltage regulation. Transmission and distribution network operators in Romania have already started the implementation of a common platform for congestion management at extra-high (400-220 kV) and high (110 kV) voltage levels. The next step is to develop similar solutions for medium and low voltage levels.
The role of batteries and flexibility platforms
Energy storage units are becoming an essential solution both technically and commercially. They enable the provision of services such as price arbitrage, imbalance compensation and voltage regulation, thus helping to optimise the grid. In addition, trading platforms for flexibility services, similar to those already used in Western Europe, will allow better coordination between distribution operators and flexibility service providers.
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EVOLVE Energy Management Solutions, part of the RomCapital Invest Holding group, plays an active role in the development of these mechanisms. The company was selected by ANRE as expert consultant to analyse the opportunity of introducing a flexibility market in Romania. Advanced digital platforms, such as Distributed Resource Management Systems (DERMS), will allow distribution operators to monitor congestion areas in real time and manage available resources more efficiently.
The future of congestion management in distribution networks depends on adopting a balanced mix of solutions, including both traditional investments and modern flexibility mechanisms. Romania has the opportunity to implement successful models from Western Europe, thus optimising the use of existing infrastructure and facilitating the integration of renewables.
Conferința “Puncte de sprijin pentru sistemele de stocare a energiei în baterii” a fost organizată de Energynomics, cu sprijinul partenerilor noștri: AJ Brand, Alive Capital, BCR, Big Store, Elektra Renewable Support, EnergoBit, Enery, Enevo Group, Enexus. EVOLVE Energy Management Solutions, Huawei, Nofar Energy, Photomate, Prime Batteries Technology, Pixii AS, Renomia Gallagher, smartPulse, SolarToday, SolaX Power, Think Blu Solution, Wiren, WTW Romania, YEO.