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Flexibility and demand: a distribution systems operator’s perspective - Joost Gottmer, EU affairs, EDSO for<br />

Smart Grids<br />

2.2 Environmental and societal benefits<br />

In addition to solving challenges at the distribution level, flexibility could also bring a<br />

host of benefits for society and the environment. Flexibility services can facilitate the<br />

deployment of smart grids with more extensive monitoring and ICT tools, an optimal<br />

integration of renewable generation and electro-mobility in distribution grids – all this<br />

while maintaining security of supply and efficiency of the system. This could result in net<br />

environmental benefits for society as distribution grid are getting ready for the feed-in<br />

of large shares of RES.<br />

In addition, it can enable customers to make use of their own flexibility value which in<br />

turn will help them reduce their energy bill or receive financial rewards. Customers’<br />

flexibility potential could be either price-based (offering customers time-varying prices<br />

that reflect the value and cost of electricity in different time periods) or incentive-based<br />

(customers receive a reward to change their consumption due to a network constraint).<br />

The overall cost savings achieved by preventing expensive network reinforcements and<br />

upgrades, which would otherwise be spread amongst the regulated networks’ customer<br />

base, can bring further economic gains.<br />

Table 1: Potential costs vs. benefits of developing smarts grids & flexibility<br />

Revue E Tijdschrift – 131 ste jaargang/131 e année – n° 1-2-3-4-<strong>2<strong>01</strong>5</strong> (publication mars/publicatie maart 2<strong>01</strong>7)<br />

5

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