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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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