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Enedis roadmap for the transformation of network planning methods and the integration of flexibilities sets forth the progress of Enedis work and shares knowledge on this emerging topic with all the electric network stakeholders. Roadmap for the transformation of network planning methods and the integration of flexibilities February 2020

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Page 1: Roadmap for the transformation of network planning methods … · and network operations optimization extends far beyond reconsidering network planning methods and parameters. These

Enedis roadmap for the transformation of network planning methods and the integration of flexibilities sets forth the progress of Enedis work and shares knowledge on this emerging topic with all the electric network stakeholders.

Roadmap for the transformation of network planning methods and the integration of flexibilities

February 2020

Page 2: Roadmap for the transformation of network planning methods … · and network operations optimization extends far beyond reconsidering network planning methods and parameters. These

Many stakeholders expect much from local flexibilities:

Territories anticipate the development of RE and their value at a local level

Market players want to supplement their business model (storage, EV charging infrastructures...)

Network operators see flexibilities as an additional lever to optimize network management from a technical and economic perspective

National and European institutions (CRE –French Energy Regulation Commission, European Commission, DGEC – French Directorate-General for Energy and Climate...) want to increase market players’ visibility.

Enedis is engaged in a major work program to embed local flexibilities in its industrial model while involving its stakeholders. Enedis relies on technical and economic studies, as well as experiments and demonstrators, to test and validate the functionalities to be industrialized. Simultaneously, Enedis has engaged for several years now an educational approach focusing on Smart Grid:

Publication in 2017 by Enedis and the French Association of Electricity Distributors of the report “Economic assessment of smart grids solutions”

Contribution by Enedis to the report commissioned by CRE and published in 2017 on flexibility valorization mechanisms for the design and management of distribution public networks

Publication in October 2019 by Enedis of the document “Flexibilities to enhance the Energy Transition and the performance of the Distribution Network “, which describes flexibilities use cases for the distribution system, their principles, and potential gains.

Page 3: Roadmap for the transformation of network planning methods … · and network operations optimization extends far beyond reconsidering network planning methods and parameters. These

The foremost flexibility use is with national marketmechanisms, to manage supply-demand balanceat any time horizon (ancillary services, balancingmarket, etc.): this is the legal responsibility of RTE.The use of flexibilities to manage the supply-demand balance has been a reality since thecreation of the electric system. Enedis stands as afacilitator for any player wishing to make the mostof flexibilities connected to the public distributionnetwork in any of these mechanisms. More than40,000 “flexible” sites connected to Enedisnetwork, with a total capacity of around 1,000 MW,already participate in national balancingmechanisms and in the demand side responsemarket.

For network operators, local flexibilities are anadditional lever to technically and economicallyoptimize network operations. Flexibilities competewith “traditional” network management levers asthey may provide new solutions with a bettercost/efficiency ratio for the community.

A few reminders

Flexibility is a voluntary increase or decrease of generation or consumption power of one or several sites, at a given time for a given duration, in response to an external signal to provide a service to

the energy system.

Enedis refers to local flexibility since the effectiveness of flexibility sources to

alleviate network constraints depends largely on their location.

DEFINITION

FLEXIBILITIES: CONTEXTAND ENEDIS APPROACH

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Flexibilities are inherently a lever for networkoperations: flexibility activation is decided based ondetection of a potentially problematic situation forthe network. Local flexibilities constitute a risktransfer from network planning to networkoperations (real-time or close to real-time).

On the transmission network, the short-termtreatment of congestion through adjustments hasbeen an operational reality for a long time. Now,the development of Smart Grid technologiesenables to use flexibilities, to alleviate, inter alia,constraints on the distribution network.

Enedis undertakes a major evolution to embedlocal flexibilities in its industrial model and isengaged in a comprehensive work program to thisend. Embedding flexibility in investment decisionsand network operations optimization extends farbeyond reconsidering network planning methodsand parameters.

These changes impact many business and ITprocesses, for Enedis as well as for its stakeholders.

Flexibilities: a transformation program for Enedis and its stakeholders

Enedis relies on real-life cases to manage change. Becauseof the current flexibility maturity and similarly to EuropeanDSO, Enedis tests local flexibilities and capitalizes feedbacks.Flexibilities use cases are complex and unequal in value:Enedis will progressively and as soon as possibleimplement these different flexibility use cases.

To enable this transformation, Enedis:

Develops methods to identify and to valueflexibility opportunities, then to activateand to control flexibilities: Enedis makessure that the economic efficiency offlexibility versus other available levers;

Embeds flexibilities and their value innetwork control, while continuing to ensurethe safety of persons and property (inparticular, adapt protection systems);

Develops a “DSO-TSO” coordination modelto integrate flexibilities, as DSO and TSOmay share a flexibility pool;

Builds a framework of rules and processes,in close cooperation with stakeholders;

Develops methods and tools to manageflexibilities portfolio throughout their lifecycle across Enedis activities: networkplanning, network control, tendering andcontracting, flexibility activation settlement,investment and network connection for newcustomers, etc.;

Performs change management and trainsits staff.

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2020

“Investment deferral”

Activations in case of successful market-based flexibility procurement

Feedback on market-based flexibility procurement and real-life activations

Marked-based flex. procurement for identified opportunities

Further experiments if needed, depending on feedback

“Support for real-time operations”

1st call for tenders (6 areas)

Evolution of design methods

Development and industrialization of needed flexibility methods

Evolution of technical and economic parameters

Smart connection offers for MV Producers

Type 1 embedded in the network connection process

Type 2 embedded in the network connection process

Documentation update (type 1)

Regulatory changes

Documentation update (type 2)

Experiments(types 1 and 2)**

Smart connection offers for MV Consumers

1st configurations embedded in the network connection process

Depending on opportunities: experimentation of other configurations, feedback, and embedding

First experiments and feedbackDocumentationupdate (1st

smart offers)

LV Flexibilities Participation in demonstrators

UpdateMap of flexibilityopportunities

Flexibilities embedded in S3REnR*

ReFlex S3REnR* project(including a call for tenders)

Regulatory changes and feedback

Connection capacity increase with direct generation curtailments (according to constraints)

Market based flex. procurement as an alternative to direct generation curtailments

Regulatory sandbox implementation

Experiments preparation

Market-based flex. activations

CRE and RTE validation oftemporary methods

Legend

External Agreement

Marked-based flex. procurement

After 20212021

Depending on previous project milestones

Collective benefits

Individual benefits

THE ROADMAP

Type 1: guaranteed powerType 2: max. vol. limitations

Regional Renewable Energies Connection Master Plans (S3REnR in French)

**

*

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Principles of network design

Purpose of network design

Fundamentals of methods and tools

Network planning aims to establish an efficientnetwork structure (HV/MV primarysubstations, MV/LV substations, power cables,voltage level, etc.) at the best cost/qualityratio for the community, i.e. enablingelectricity to be distributed and collected onthe whole territory, for all customers and onthe long term. The expected high gridreliability leads to consider any kinds ofsituations, including extreme and rare events.

The operability of a network requires thatdesign takes into account real-time operationsand symmetrically that control room operatorsare enabled to operate the infrastructure.These two phases, network planning andoperations, are therefore closely linked.

Because of its careful sizing of the publicdistribution network and its efficient networkoperations, Enedis now guarantees an averagereliability of 99.99% in France, with optimizedcosts across all its processes.

The methods and tools for networkdimensioning studies are used:

• for connection studies: guarantying thewhole requested capacity to inject orwithdraw at any time;

• for network planning studies: diagnosis andassessment of network upgradesopportunities to improve the quality ofsupply, at the initiative of Enedis;

• or, e.g., in the case of third-party requeststo relocate networks.

These methods and tools allow to:

• diagnose the network and identify potentialstructural constraints1;

• choose the optimal strategy by comparingseveral solutions (do nothing, change thenetwork operating scheme, reinforce orrestructure the network) that can fully orpartially meet the identified constraints;

• plan the medium- and long-term evolutionof the network, to achieve the best balancebetween cost and quality over time.

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Choosing the optimal strategy for a givennetwork consists in determining a cost/qualityoptimum from a collective standpoint ratherthan from an individual standpoint: we thusrefer to the collective value of each solution.To do so, Enedis primary substation studiesassesses the different solutions on a technicaland economic basis: collective benefits(valuation of the reduction in non-quality andtechnical losses) vs. investment costs andchanges in operating costs.

MV network and HV/MV amine the followingsituations:

• Network in nominal configuration (“N”situation, all assets and equipment areavailable): structural capacity to deliverpeak demand during a relatively severe coldwave (ten-year period) and toaccommodate all the generation power –these situations being uncorrelated. This is adeterministic technical and economiccomparison of solutions to guarantee thisstructural capacity. These studies arecarried out following network connectionapplications or during network planning.

• Network in a downgraded situation (“N-1”situation where exactly one asset orequipment is faulty or unavailable, the MVgrid having a potential back-up through aneighboring network) at normaltemperature during high consumptionseasons.

Different solutions, including the “donothing” solution, are inter-compared usingtechnical and economic assessments. This isa probabilistic approach: the differentpossible load states of the network aremodelled using a “load duration curve”2 andthe different network incidents areprobabilized. These studies are carried outduring network planning.

LV studies are more standardized due tostructural issues (LV networks are tree-structured) and operational implementationissues, keeping the same principles.

The networks are not dimensioned to satisfythe sum of the connection capacitieshistorically requested by each customer: thecapacities stemming from the effects of loadaggregation (or from lower use of theinfrastructure compared to initial demand)are made available to the community. Indeed,the connection of a new consumer or producerwill take into account the power requested bythe customer, but also its integration into theexisting networks. To this end, Enedis modelsall other existing loads based on what they are(then projects them under planning conditions)and not based on their original connectionpower. The closest parameter to figure thiswould be the subscribed power rather than theconnection capacity.

1 Constraint: Voltage or current excursion beyond permissible thresholds. Threshold: maximum and possibly minimum value (voltage, current, etc.) resulting from the regulatory obligations imposed on Enedis for the safety of persons and property.

2 Load duration curve: curve describing the number of hours a given power is exceeded.

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A few reminders on load modeling

Load (consumption and generation)representation in network planning is part ofthe data required for network studies, be it fortheir diagnosis or for decision-making studies.

The load hypotheses used for these studies andtheir representation by load duration curvesare an industrially accepted choice.

• The infrastructure is built to be operated atall times, not just for consumption orgeneration peaks. Long-term studies arecarried out based on a complete networkand on an optimized operating scheme.

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• Representation of the same load differsaccording to the extent of the study: thefurther away from the connection point, themore this potential individual load will “mix”with other neighboring loads throughcomplex and non-constant phenomena ofaggregation over time.

Thanks to Linky smart meters, Enedis can nowmeasure consumption and generation ofcustomers below 36 kVA at a higher frequency.Moreover, in the medium term, Enedis willsystematically collect load curves of customersabove 36kVA. These new and frequentmeasurements offer opportunities to readjustand recalibrate load models currently used forLV and MV network planning. This is an on-going work that will be carried out over severalyears.

The ReFlex experimental framework(optimizing investments of Regional RenewableEnergies Connection Master Plans) will require,from 2020 onwards in preparation to asubsequent generalization, to continue on-going studies on the effects of aggregationbetween generation sectors on one hand, andbetween consumption and generation on theother hand. These studies will enable todetermine, in cooperation with stakeholders,the best collective balance between increasingcapacities of primary stations and usingflexibility for temporary productioncurtailment.

The resilience issue for such technical andeconomic study only encompasses the lossof a single asset. However, Enedis must beable to operate the network at lessrestrictive load levels, under lesssatisfactory but more frequent networkconditions: e.g. during maintenanceoperations when assets are unavailable forsome duration. Consumption andgeneration situations considered indevelopment studies implicitly addressthese situations.

• Using load duration curves is consistentwith the issues examined in networkstudies: permanent future features of anetwork solution at a geographically knownlocation (the location issue no longer arisesonce the solution is chosen).

A contrario, such hypotheses no longer applywhen it comes to flexibility and as such requiremajor adaptations to study the impact of aflexibility service.

Load modeling in network planning aims atrepresenting, over the projected time-frame ofthe study, “plausible” loads, representative ofcurrent and future use of networks in designsituations.

These loads do not directly compare with pastuse:

• Historical data from a given year is only oneof an infinite number of possibilities: themodelled loads used for a study are“projected” in extreme and rare conditions(weather conditions, etc.) as well asextended over time (increase/decrease,deformation, etc.).

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Regardless of the solutions studied (do nothing,network restructuring, reinforcement,flexibilities contracting), technical andeconomic assessments to determine theoptimal network evolution solutions use thefollowing structuring parameters. Those willbe first updated early 2020, then on a recurringbasis and as needed.

Evolution of technical and economic parameters

The valuation of failure (cost of Non-DistributedEnergy - NDE, Non-injected Energy - NIE)quantifies the cost borne by the community inthe event of a network failure leading to a poweroutage or an inability to produce.

• The value of the NDE depends on the capacityto anticipate the failure (planned works vs.incidents) and its duration. It corresponds to aloss of socio-economic value due to theoutage. It is based on surveys and economicanalysis, for each segment of customersconnected to the public distribution network;

• The value of the NIE is the substitution value,for the community, of the energy that couldnot be injected into the distribution network.It is therefore homogeneous to the long-termelectricity market price, minus the variablecost of generation of curtailed resources (setto zero for the PV and wind energy sectors).

The cost of technical losses represents the fullcost of technical losses for the networks(including associated energy procurement cost onthe energy markets).

The discount rate is used to calculate the netpresent value of technology and economicbalance sheets over a long time horizon, tocompare several solutions. The updated rate isbased on a public reference, adapted to theprinciple of a societal cost-benefit analysis toreflect collective value creation: its value isestimated at 4.5%, in accordance with FranceStratégie's recommendations.

DEVELOPMENTS IN DESIGN METHODS

Enedis regularly updates its methods andmodels to take into account changing context(IT developments, changes in uses, etc.).Today, external changes are important andstructuring and require more than the simpleand regular updating of models by Enedis.

Flexibility studies require an approach thatradically departs from current researchmethods and tools (load curve studies vs. loadduration or dimensioning capacity studies).They require detailing temporal evolution ofconstraints on a specific asset, whereas anormative approach is enough to representthis temporal evolution in “classic” studies.

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Fundamentals of flexibility and evolution of study methods

As detailed above, the “classic” networkdevelopment study is based on referencesituations and load duration representation.

A contrario, flexibility studies require a newapproach, breaking away from current studymethods and tools: estimating a flexibilityrequires an explicit representation of its impactover time (to measure the effect of a productshaped and limited in duration, season, etc.)and in space (to take into account its location).

This results in comparing the optimal assetsolution (reinforcement / restructuring) andthe proposed flexibility solution(s) in order todetermine the best solution.

The optimal asset solution and flexibility havedifferent impacts, both in terms of failure andtechnical losses reduction (flexibility has amarginal effect on losses reduction).

KEY DEADLINES

NDE, NIE, technical losses, economic sections of cables (update of the Reference Technical Documentation): in 2020

There are two different approaches to assesstheir value:

• For smart connection offers, the value isindividual and the connection applicanttakes the decision.

• For flexibilities used to defer investment,the value is collective and Enedis takes thedecision to contract a flexibility, following atwo-step process.

In a first step, the optimal asset solution iscompared to an ideal flexibility (perfectresponse, ideal location, zero cost), throughtechnical and economic assessments. Aflexibility opportunity to defer areinforcement is identified if (and as long as)the reinforcement is “beaten” by the idealflexibility, with regard to the evolutionobserved each year in the area (evolution ofloads, disappearance of the flexibility pool).

This method assumes that an ideal source offlexibility exists, i.e.:

• with an unlimited volume and durationduring each incident,

• a perfect response (total reliability of theflexibility pool),

• an ideal location of flexibility sources foreach incident (including the distribution offlexibilities on several nodes for a givenincident, i.e. always “on the right side” ofthe incident to help recovery of theaccessible network),

• an ideal start-up delay.

Changes in these economic parameters lead tochanges in industrial technical and economicchoices. For example, the choice of cables(“economic cable cross-sections”) is optimizedto limit technical losses. A network operatedas close as possible to its capacity over longperiods generates high technical losses andtherefore does not correspond to the technicaland economic optimum.

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Flexibilities, risk management, and experiment

The efficient control of contracted powermodulation generates the collective benefit,yielding to prefer this alternative to a“conventional” means of operations orinvestment. In other words, it boils down toguaranteeing the consistency of hypotheses atthe time of the decision of investment deferraland flexibility contracting, up until real-timeoperations (control room center, use of mobilepower supply restoration units, etc.).

Reliability of a flexibility service is constitutiveof the service: it concretizes the risk transferfrom traditional levers to the flexibilityservice. Be it using reinforcement or flexibility,the aim is to ensure compliance withthresholds (voltage, current, etc.) resultingfrom regulatory obligations (quality of supply),while continuing to guarantee safety forpersons and property.

Experiments are necessary to initiate andchallenge the processes and to ensure, in realtime, the value creation through flexibilities.This value creation is expected at the time offlexibility contracting then generated in real-time, whereas it is guaranteed by design for areinforcement.

Not every constraint is an opportunity forflexibility. In many cases, constraints requireinvestment because they are related to atopological constraint that flexibility cannotsolve, a regulatory obligation, a need for assetrenewal, a decision to bury overhead lines, arequest for quality improvement, a need todevelop new projects... Flexibilities cantherefore potentially solve only some of theidentified constraints.

The second step is a market-basedprocurement approach to assess the flexibilitypool, in terms of service and price. Enedis willevaluate the players' bids according to theservice and price they offer. The flexibilityservice will be the best solution only if itscollective value (including the residual non-quality and the cost of the service for Enedis)is greater than the reinforcement solution’s.

Intrinsically, flexibilities are an operation leverand not a network planning tool.

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IN CASE OF AN INCIDENT, THE USE OF FLEXIBILITIES ALLOWS FASTER SERVICE

RESTORATION FOR CUSTOMERSNormal operation

All customers are supplied,through three feeders connectedto the left transformer, and two other feeders to the right transformer.

Incident on the left transformerPower is no longer provided to the customers on the left.The second transformer continues to supply the customers on the right.

Grid switchingThe second transformer continues to supply the customers on the right and additionally supplies some customers on the left, up to its capacity limits.

Activation of flexibilitiesThe flexible sites reduce their consumption or inject energy into the grid, which helps accelerate power restoration for more customers.

F

From the “Economic assessment of smart grid solutions” 2017 report

F

F

F

Power on

Power off Out of order

Legend

F Flexibility

At maximum capacity

Illustration of the possible increase in power restorationvia flexibilities - decrease of consumption or increase of generation - in case of an

incident on an HV/MV transformer occurring in a two-transformer primary

substation.

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Different frameworks to activate local flexibilities

B. For a collective benefit, in the context

of public network development or operations

Flexibilities constitute a new lever to manageoperations or to optimize network design, for thebenefit of the community (e.g. the transformationcapacity of a primary substation).

• Opting for a flexibility service requires that itprovides greater value than “traditional”levers used in network operations or planning,over the timeframe concerned by theflexibility service. The value provided by theflexibility depends on the service offered andon its price.

• The flexibility offered (i.e. power modulationon demand by Enedis) by one or more gridusers and selected by Enedis for a collectivebenefit must be remunerated.

• In particular, Enedis shall ensure that theeffects of the DSO activations are neutralizedwithin the perimeter of balancing responsibleparties and more globally within the entirecommunity of Balance Responsible Parties.

There are 2 main families of local flexibilities:

A. For an individual benefit, as part of the

individual connection

The Smart (or conditional) Connection Offer isindividual: it is chosen by the customer(consumer or producer) as an alternative to hisReference Connection Offer.

• The benefit of this smart connection offerfor the customer is a reduction in networkconnection costs and/or delays.

• In return, the customer agrees totemporarily limit its consumption orgeneration, on demand and withoutcompensation from the distribution systemoperator.

• The customer arbitrates between thereduced connection costs / delays and thecosts related to the impact of theselimitations on its industrial process.

• The customer is responsible for taking intoaccount the consequences of theselimitations in his contractual commitments(especially with his Balance ResponsibleParty).

FOCUS ON FLEXIBILITIES

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The main value potential of local flexibilities isthe integration of renewable energy:

• Investments optimization within RegionalRenewable Energies Connection MasterPlans (S3REnR) is the 1st source of flexibilityfor the public distribution network. To thisend, Enedis ReFlex project aims atincreasing the hosting capacity of HV/MVprimary substations. By 2035, the collectivecumulative savings on the publicdistribution network could reach €250million (a 30% cost saving on theconsidered assets, i.e. the transformationcapacity of primary substations). On thecurrent network, 2.5 GW (equivalent to oneyear's generation facility connection) ofadditional capacity could be immediatelymade available. Market-based flexibilityprocurement will be the preferred approachto compete with generation curtailmentwhich is technically accessible, controllable,and at a capped and controlled cost.

• Smart Connection Offers for MV producershave a more modest target (estimated ataround 50 MW of generation capacities /year).

Analysis of the flexibilities main sources of value

Consumption use cases represent a marginalvalue and are still at a R&D stage:

• Smart Connection for MV consumers couldbe offered: target would remain modestand should be supported by provisions thatavoid circumventing the principle ofcustomer declaration of connection power.

• Opportunities to help solve consumptionconstraints – at the level of primarysubstations and on the MV network –should remain rare (low currentconsumption increase). They imply specificdifficulties in terms of identification ofoperational fragility situations and then oftheir control in real-time operations.Contrary to the above mentioned RegionalRenewable Energies Connection MasterPlans framework, they raise the followingquestion: are there potential technically andeconomically efficient sources of flexibilityin these networks where load aggregation islimited? This is one of the challenges to betackled in the experiments launched byEnedis (request for interest and calls fortender).

Finally, flexibilities to help solve constraints onMV/LV secondary substations have a zero netpresent value. Flexibilities for the LV networkare still a matter for R&D and demonstrators,with reduced and far-off potential.

Value sources of flexibilities and the priorities toexplore and exploit their potential for thedistribution system are described in two reportspublished in 2017: “Economic assessment ofsmart grid solutions” produced by Enedis andthe Association des Distributeurs d'Electricitéen France and “Valuation mechanisms for thedesign and management of distribution publicnetworks” commissioned by the French EnergyRegulation Commission (CRE).

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The ReFlex project (integration of flexibilitiesin the design of Regional Renewable EnergiesConnection Master Plans) is the priority ofEnedis’ flexibility program: it is the largestsource of value on the distribution networkfor the community. Experiments are needed,which Enedis wants to initiate as early as 2020as part of the “regulatory sandbox”, with atarget to provide feedback by 2022. Followingthese experiments, a change in regulatoryframework will be necessary before thismethod of sizing primary substations can bepermanently integrated into RegionalRenewable Energies Connection Master Plans.

The smart connection offers for MV Producerswill be industrialized as soon as the regulatoryframework is specified3 and after adaptationof Enedis’ industrial tool (forecasting and real-time operations information systems).

Work program priorities

Smart connection offers for MV consumersstill need to be tested because of the variouspossible configurations for activation andcontractual conditions. They will beprogressively industrialized when technicallymature, provided that regulation evolves, whilepreserving the virtuous and incentive nature ofstating power in connection application.

Replacing “traditional” operating levers ordeferring investments by contractingflexibility services through calls for tenders isstill an experimental approach. Enedis studiesflexibilities on the basis of demonstrators, inspecific (targeted functionality, etc.) andsometimes simulated (simulation ofconsumption peaks) scenarios. Enedis isentering a new phase in 2019-2020 and isaddressing the market to procure flexibilityservices. For the 1st time, Enedis is testing onreal life cases a complete process:identification of opportunities, calls for tender,bid and contract management, integration intothe real-time operations process, activation,measurement, validation and settlement,payment if relevant.

The process launched in 2019 is experimental:it may evolve according to feedback. Enedisand its stakeholders must progress togetheron the knowledge and the use of flexibilitiesto generate sustainable value for thecommunity. The transposition of the CleanEnergy Package into French law will set aframework for these flexibility services.

Enedis will capitalize on experiments andmake the most of opportunities provided bythe developments in the regulatoryframework set by public authorities.

Enedis presents below its work program:Enedis will adapt its entire industrial tool andgradually embed flexibilities in its processes.

3 A decree should provide a framework for the flexibility volume of renewable energy facilities.

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Enedis intends to experiment in two areas themodification of the dimensioning hypothesis ofS3REnR primary stations, by increasing hostingcapacities and using flexibilities (via theregulatory sandbox). These experiments willenable to validate the implementation of theseflexibilities and better characterize their abilityto increase the hosting capacities of primarysubstations for renewable energy sources.

The generalization of these dimensioningmethods on the new master plans will bedecided on the basis of feedback from the twoexperimental areas.

Optimization of the Regional Renewable Energies Connection Master Plans primary substation sizing (ReFlex project)

KEY DEADLINES

Preparation of the experiments: 2020

Application for exemptions to public authorities in the context of the regulatory sandbox: 1st semester of 2020

Validation of the temporary methods by the French Energy Regulation Commission (CRE) and RTE for balance perimeter corrections on the ReFlex project perimeter: 2nd semester of 2020

Hosting capacity increase of the identified HV/MV primary substations and first generation curtailments (depending on network constraints): 2021

Call for tender for flexibility services: 2021

First activations (depending on network constraints) of market-based flexibilities: 2022

Depending on feedback and regulatory changes, validation of the S3RENR plan then embedding of flexibilities in the revisions of Regional Renewable Energies Connection Master Plans : 2022 / 2023

Flexibilities for investment deferral and/or grid operations

Enedis has carried out an in-depth analysis of2019 and 2020 investment projects in terms ofopportunities for flexibility services: 3 cases ofopportunities have been identified. In addition,Enedis has identified 3 other cases notwarranting investment, yet of interest forflexibility services in case of an incident on thenetwork.

These 6 cases constitute the target of therequest for interest launched in November2019. The methods used will be capitalized toanalyze similar cases. New configurations willrequire the development of new methods.

As seen above, the location of a constraint andthe location of flexibility sources useful toalleviate that constraint might be different:flexibility opportunities require specialmethods for identification and valuation.Therefore feedback from Enedis, as well asfrom European and American distributionsystem operators, highlights the value ofidentifying and communicating on flexibilityopportunities, in order to foster the emergenceof appropriate proposals.

Enedis analyses the network constraints andwill publish the flexibility opportunities(where, when, how much?) it has identified,wherever they can be useful for the networkand integrated into its operational processes.

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Smart Connection Offers for MV producers

Enedis is finalizing the methods to offer SmartConnections for MV producers. These offerswill be included in the Technical ReferenceDocumentation as soon as legislation iscomplete, a priori in 2020.

KEY DEADLINES

1st experimental market-based procurement for 6 flexibility opportunities: request for interest in November 2019, call for tenders in the first half of 2020

Update of the flexibility opportunities map: March 2020

1st possible activations: from Q4 2020 onwards

Feedback (including activation in actual situations): 2021 - 2022

New market-based procurement: from 2022 onwards, depending on feedback and opportunities for flexibility

KEY DEADLINES

Smart Connection Offers for MV producers with guaranteed power (called “type 1”) embedded in the connection process: 2nd semester of 2020

Smart Connection Offers for MV producers with a maximum volume of limitations (called “type 2”) embedded in the connection process: 2nd semester of 2021

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Smart Connection Offers for MV consumers

Smart Connection Offers for MV consumers areless mature than those for MV producers.Enedis needs to continue experimenting theseoffers on other connection applications (orpower increases), in various networkconfigurations and with different types ofactivation (e.g. at the initiative of the networkcontrol centers, local automaton on voltagelevel, etc.).

This will enable Enedis to specify the differenttypes of possible smart offers for MVconsumers, and develop the study methodsand the necessary tools.

Depending on feedback and on a generalization framework preserving the virtuous and incentive nature of stating power in connection application, 1st

configurations for Smart Connection Offers for MV consumers embedded in the connection process (curtailment activated by a local automaton) : from the 2nd semester of 2021

Depending on opportunities: other configurations to be tested, then to be industrialized based on feedback.

KEY DEADLINES

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Enedis - Tour Enedis, 34 place des Corolles - 92079 Paris La Défense - enedis.fr270,037,000 - R.C.S. Nanterre 444,608,442

Enedis, l’électricité en réseau

Enedis is a public-service company managing the electricity-distribution grid.It develops, operates and modernizes the electricity grid and manages the associated data.

It performs customer connections, 24/7 emergency interventions, meter reading and all technical interventions. Enedis is independent from the energy providers, which are

responsible for the sale of electricity and the management of the supply contract.