Market-based local balancing in distribution networks

Increasing penetration of DG and RES results from EU energy and climate policy. The first phase of DG and RES development, called produce and forget endangers power system operation and causes more and more problems within increasing number of units connected. Therefore, approach transformation from produce and forget to system responsibilities is required. The only measure, which allows for taking into account power system aspect, economics and electricity generation is optimisation implemented as a part of local balancing system. Local balancing concept proposed in the paper includes energy balancing, power flows and power losses. The paper analyses operation of distribution network with DG units and verifies results from balancing system application. Authors indicates also the future needs in the field of active management of distribution networks.