Emergence of distribution system operator in the Indian power sector and possible way ahead. (January 2022)

• Record Type: Journal Article
• Authors: Jadhav, Ashok M.; Abhyankar, Abhijit R.
• Is Part Of: Energy policy. Volume 160(2022)
• Publication Date: 2022-01
• Subjects: Distributed energy resources -- Distribution system operator -- DSO functionalities -- Electricity markets -- Market models; Energy policy -- Periodicals; Politique énergétique -- Périodiques; Electronic journals; 333.79
• DOI: 10.1016/j.enpol.2021.112650
• Languages: English
• ISSNs: 0301-4215

Abstract

Abstract: The rapid integration of renewable energy sources and demand-side participation has changed how electrical energy is being purchased, transmitted, distributed, or even consumed. It has opened new opportunities for the Indian power sector to redefine its existing operational and business models to cope with the unique challenges and follow an approach that maximizes social welfare across all energy supply chain segments. This journey will have significant impacts on the Distribution companies (DISCOMs). The anticipated segregation of wire and supply business would bring more operational efficiency in the distribution sector. The subsequent entry of retailers will handle the supply business of electricity. A new entity is likely to emerge as Distribution System Operator (DSO), providing network access, grid services and enabling consumer market participation. The emergence of DSO is decisive in achieving better socioeconomic and environmental benefits. The idea of DSO is still at the conceptual level in India. In this paper, an attempt has been made to present the DSO definition, highlight its need, enlist various DSO functions, and suggest possible DSO creation options. DSO's few competitive market models are examined from the Indian perspective, which will engage all stakeholders actively and ensure the reliable and efficient operation of the overall Indian power grid. Highlights: Presented key challenges and need for transition in power distribution sector. Illustrated role of Distribution System Operator in active grid management. Investigated four options for creating Distribution System Operators in India. Introduced and examined two market models for Distribution System Operators. Policy recommendations regarding adoption of Distribution System Operators.