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TenQuestionsConcerningSmartDistricts
NicholasGood*a,EduardoA.MartínezCese?aaandPierluigiMancarellaa,b
aSchoolofElectricalandElectronicEngineering,TheUniversityofManchester,FerrantiBuilding,M139PL,Manchester,UK;e-mails:{nicholas.good,eduardo.martinezcesena,p.mancarella}@manchester.ac.uk,
bDepartmentofElectricalandElectronicEngineering,TheUniversityofMelbourne,Parkville,Victoria,3010,9Australia;e-mail:pierluigi.mancarella@.au
*CorrespondingauthorTel:+44(0)1613064807
Abstract
Asanextensionofthe‘energytrilemma’ofaffordability/sustainability/securitytoalsoincludesocialacceptance,the‘energyquadrilemma’,isdrivingmultipleandcomplexdevelopmentsinenergysystems,particularlyatthelevelofdistributedenergyresources.These,andinparticulardemandsideresources,mayhaveanimportantroleinprovidingtheflexibilityrequiredforelectricitysystemstointegratelowcarbontechnologies,whilealsoincreasingtheefficiencyoftheenergysystemasawhole.Thisisparticularlyrelevanttoresourcesthatareaggregatedindistricts,forinstancethroughcommunityenergysystems,thatalsoadoptvariousenabling‘smart’technologies,thusbecoming‘smartdistricts’andsupportingthetransitiontowardsasmartgrid.Recognisingthatthesmartdistrictisarelativelynewandill-definedconcept,thispaperidentifiesandanswerstenquestionscoveringrelevantphysical,commercial,planningandoperationalaspectsofsmartdistricts.Inparticular,amongstothers,weproposeanewviewpointon‘energyefficiency’thatismorealignedwiththekeyroleofflexibilityinfutureenergysystems;criticisetheconceptsof‘self-sufficient’,‘net-zeroenergy’and‘energy-positive’buildingsanddistricts;discusshowprice-drivenoptimizationthrough‘transactiveenergy’approachescandeliverwhole-systemefficiencyandflexibilitybeyondthesmartdistrictitself;arguetheimportanceofconsideringmultipleenergyvectorsinamulti-energycontext;andfinallyspecifyfourrequirementsfordistrictstobecomesmartdistricts.
Keywords:Communityenergysystems,Flexibility,Transactiveenergy,Multi-energysystems,Smartdistricts,Energyefficiency,Energytrilemma,Energyquadrilemma,Smartgrid
Nomenclature
Acronyms
BSUoS
BalancingServiceUse-of-System
CHP
CombinedHeatandPower
CM
CapacityMarket
COP
Coefficient-Of-Performance
CP
CapacityPayments
DNCM
DistributionNetworkConstraintManagement
DR
DemandResponse
DUoS
DistributionUse-of-System
EDNO
ElectricityDistributionNetworkOperator
EDUoS
ElectricityDistributionUse-of-System
EHP
ElectricHeatPump
ESO
EnvironmentalandSocialObligation
ETNO
ElectricityTransmissionNetworkOperator
ETUoS
ElectricityTransmissionUse-of-System
EV
ElectricVehicle
GCP
GridConnectionPoint
GDUoS
GasDistributionUse-of-System
GDNO
GasDistributionNetworkOperator
GTNO
GasTransmissionNetworkOperator
GTUoS
GasTransmissionUse-of-System
ICT
InformationandCommunicationTechnology
LCI
LowCarbonIncentive
MIP
MinimisationofImbalancePenalties
NPC
NetPresentCost
NPV
NetPresentValue
OPWM
OptimisationofPurchasesontheWholesaleMarket
OR
OperatingReserve
PV
Photovoltaic
RES
RenewableEnergySources
SO
SystemOperator
TES
ThermalEnergyStore
UoS
Use-of-System
Introduction
Nowadays,thereareincreasingconcernsamongstpolicy-makersandresearchersabouthowtotacklethe’energyquadrilemma‘ofaffordability,sustainability,securityandsocialacceptance
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[1]
.Thisisincreasingfocusonhowsocietymightgenerate,transportandconsumeenergyatlowercost,withreducedemissionsandwithgreaterreliability
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[2]
,whileseamlesslyexchangingenergyservicesintransactiveenvironmentsthatincorporateeconomicsandcustomerpreferencesandchoices
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[3]
.Followingamulti-energyperspective
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[4]
,thesechallengesinvolveallformsofenergy,withelectricity,gasandheatbeingparticularlycommonenergyvectors.Centraltoaddressingthequadrilemmaisadoptionoflowcarbongenerationplant,whichgenerateselectricity/heatusingrenewableenergysources,orfromnuclearfission.Toincreaseconsumptionoflowcarbonenergy,andtoobtainenergyservicesmostefficiently,thisgrowingpenetrationofrenewableenergyisbeingaccompaniedbygeneralelectrificationofvariousservices.Examplesaresubstitutionbetweengasandelectricityforheating
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[5]
aswellascooling
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[6]
,orfueloilandelectricityfortransportation
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[7]
.Althoughwelcome,thesechangestoourenergysystemsaresignificant,andarehavingsignificantconsequences.Specifically:(i)distributedRenewableEnergySources(RES)generationandnewlargeheatingandelectricvehicleloadsareproducingnewchallengesforelectricitynetworkoperation
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[8]
;and(ii)significantpenetrationofintermittent,zeromarginalcostRES,andinflexiblenuclearisreducing(andreducingcertaintyon)runninghoursfortraditionalfossil-fuelelectricitygeneration,hasteningclosureofexistingplantanddiscouraginginvestmentinnewplant,reducinggenerationcapacitymarginsandtraditionalsourcesofflexibility
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[9,10]
.Thesechallengesarefurtherexacerbatedbyincreasingpressurestoreducepublicexpenditureandconsumerbillsandtoreducethecostofenergysystemoperationandmaintenance(evenasdemandforinvestmentgrowsas,indevelopedcountries,muchinfrastructureapproachesitsend-of-life,and,indevelopingcountries,demandforenergyservicesgrows
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