Complementary business models for distribution system operator in a peer-to-peer electricity market

As more distributed renewable energy resources are connected and peer-to-peer energy trading frameworks are forming, the traditional business model of the distribution system operator and energy retailers faces emerging load and price risks. In this paper, two sustainable and complementary business models for the DSO the new energy ecosystem are proposed: DSO as the platform operator of the P2P energy exchange framework (including flexibility market and electric vehicle market) and DSO as the service supplier. The two complementary business models exploit the competitive advantages of the DSO (infrastructure, expertise) and provide the DSO with sustainable income stream to complement the revenue reduction under intermittent scenario of demand and DRES production.

I. Introduction

The changing landscape of the energy sector influences the Distribution System Operators (DSO) and their role, with regulation and policies being a driving force. Scenarios of distribution networks show possible future active distribution networks with increased flexibility, distributed energy resources (DER) and the role of prosumers. This adds new complexity and responsibilities to the role of the DSO, often being the monopolistic operator of their grid and requires investments to be made to handle the evolution of the grid. These future networks will require rethinking of how DSOs are remunerated for the new services they would be required to provide in addition to their traditional roles of grid operators. Technologies and regulations supporting the energy transition will create new business opportunities in the electricity domain. Capturing this value will enable DSOs to tap into a new revenue stream and finance the transition and their role in the evolving regulations that defines their responsibilities.