Abstract

Due to increasing distributed energy resources (DER) penetration, the DER hosting capacity of the existing distribution grid can be limited, and costly grid upgrades may be required due to potential but infrequent worst-case scenarios. DER management system (DERMS) can enable additional DER capacity to be interconnected to the existing distribution grid as a managed resource that can be curtailed to avoid violations under the infrequent worst case as an alternative to costly grid upgrades. With DER interconnected under flexible interconnection arrangements, DERMS can actively manage the grid constraints to avoid violations. This active management of DER under flexible interconnection would boost DER capacity, increase distribution system utilisation, and provide economic benefits to the DER owner through reduced interconnection costs. In this study, flexible interconnection capacity solutions (FICSs) are analysed for cases with limited hosting capacity. Testing is performed with a commercial DERMS solution provided by Smarter Grid Solutions. The study involves analysis of different principles of access for understanding technical benefits of constraint management, economic value estimation, utilisation of assets and deployment challenges involved in integrating these solutions. The study points out the key learnings and next steps for integrating FICS into the planning and operation of the grid.

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