Delft University of Technology

MSc Engineering and Policy Analysis

EPA 2941 Master Thesis
August 2009
St.Nr. 1385216
Irelia Hiromi Valenzo Aoki
Information Architecture Design for
the Electricity Distribution Network
Dr. Rolf Knneke
Dr. Theo Fens
Dr. Jan van den Berg
Chairman:
First Supervisor:
Second Supervisor:

Outline

Page
List of Figures ...................................................................................................................................i
List of Acronyms ..............................................................................................................................i
Preface ...................................................................................................................................ii
Executive Summary...................................................................................................................... iii

Chapter 1. Problem Description.......................................................................................... 1
1.1. Problem Definition...................................................................................................... 1
1.1.1. Background.............................................................................................. 1
1.1.2. Problem Statement ............................................................................... 2
1.1.3. Demarcation of the Problem................................................................ 3
1.2. Relevance of the Problem.......................................................................................... 4
1.3. Research Objective and Research Question........................................................ 5
1.4. Research Methodology............................................................................................... 5
Chapter 2. The IA as a Guideline in a Transformation Process ............................... 7
2.1. General Concept of Enterprise Architecture........................................................ 7
2.2. Enterprise Architecture Frameworks..................................................................... 9
2.3. The Required Elements to Build the Information Architecture.................. 10
2.4. Conclusions ................................................................................................................. 12
Chapter 3. Overview of the Electricity System.............................................................. 13
3.1. The Electricity Value Chain ................................................................................... 13
3.2. The Technical and Economic Subsystems of the Electricity System........ 14
3.3. Conclusions ................................................................................................................. 15
Chapter 4. The Transition in the Distribution Network............................................ 16
4.1. Technological and Institutional Context............................................................ 16
4.1.1. Distributed Generation ...................................................................... 16
4.1.2. Ownership Unbundling ..................................................................... 20
4.1.3. Relationship between Distributed Generation and Unbundling ...... 21
4.2. Enabling Technologies in the TO-BE DN........................................................ 22
4.2.1. Smart Metering................................................................................... 22
4.2.2. Other Enabling Technologies............................................................ 24
4.3. AS-IS Situation: The Passive Distribution Network ....................................... 25
4.3.1. Physical Sub-System of the AS-IS Network....................................... 25
4.3.2. Economic Sub-System of the AS-IS Network.................................... 29
4.3.3. Information in the AS-IS Network..................................................... 30
4.4. TO-BE Situation: The Active Distribution Network...................................... 30
4.4.1. The Concept of a Smart Grid ............................................................. 30
4.4.3. The Active Network ........................................................................... 32
4.4.4. Physical Sub-system of the TO-BE DN............................................ 33
4.4.5. Economic Sub-system of the TO-BE DN......................................... 35
4.4.6. Information in the TO-BE DN.......................................................... 36
4.5. Conclusions ................................................................................................................. 37
Chapter 5. Design of the IA for the Distribution Network........................................ 40
5.1. Preliminary Phase...................................................................................................... 40
5.2. Phase A: The Architecture Vision for the Distribution Network................. 41
5.3. Phase B: The Business Architecture of the Distribution Network............. 42
5.3.1. Entities that shape the electricity system.......................................... 42
5.3.2. Functions in the Distribution Network ............................................. 44

5.4. Phase C: The Information Systems Architecture ............................................. 46
5.4.1. Information Architecture ................................................................... 47
5.4.2. Applications Architecture................................................................... 50
5.5. Conclusions ................................................................................................................. 51
Chapter 6. Reflection ............................................................................................................ 53
6.1. Contribution ................................................................................................................ 53
6.2. Assumptions................................................................................................................ 54
6.3. Constraints................................................................................................................... 54
6.4. Further Development................................................................................................ 54
Chapter 7. Conclusions and Recommendations........................................................... 56
7.1. Conclusions ................................................................................................................. 56
7.1.1. The Value of an Information Architecture......................................... 56
7.1.2. The Elements to Deduct the Relevant Information in the System... 56
7.1.3. Using the IA Concept in the Case of the Distribution Network ....... 56
7.1.4. The Design Principles for the IA....................................................... 57
7.1.5. Entities as Building Blocks for the Information Architecture........... 57
7.1.6. Functions as Building Blocks for the Information Architecture....... 57
7.1.7. Depiction of Information Used in the Distribution Network ........... 58
7.1.8. Information Applications ................................................................... 58
7.2. Recommendations..................................................................................................... 58
7.2.1. General Recommendations for the Development of an Information-
Architecture ....................................................................................................... 58
7.2.2. Recommendation for DSOs ............................................................... 59
7.2.3. Recommendation for Policy Makers and Regulators........................ 60
References ................................................................................................................................ 61

Appendix I. The ADM Development Cycle......................................................................... I
Appendix II. Institutional Design of the Liberalised Electricity System.................... II
Appendix III. General Description of the Electricity System in the Netherlands .... III
Appendix IV. Technical Characteristics of the Distributed Generation
Technologies IV
Appendix V. Transactions in the Electricity System with the Presence of
Distributed Generation.................................................................................................................V
Appendix VI. Analysis of the DG Capabilities to Provide Network Services ............ VI
Appendix VII. Business Model in the TO-BE DN.................................................. VII
Appendix VIII. Critical Technical Functions of the Electricity System.............VIII
Appendix IX. Questionnaire for Validation......................................................................... IX

i
List of Figures

Page
Figure 1: Thesis Structure............................................................................................................... 6
Figure 2: Positioning of this thesis in the enterprise architecture model. ............................... 8
Figure 3: ADM Development Cycle (TOGAF 2009).............................................................. 10
Figure 4: Schematic representation of the problem and position of the Information-
Architecture ..................................................................................................................................... 11
Figure 5:The Value Chain Approach and the Liberalisation Process (Fens 2008-2009) .... 13
Figure 6: Flows within the value Chain (Fens 2008-2009)...................................................... 14
Figure 7: Basic Installation of the Meter (Netherlands-Standardization-Institute 2007).... 22
Figure 8: The Electricity System (Gomez-Exposito 2009) ..................................................... 26
Figure 9: The elements o fan automation system (Strauss 2003) ........................................... 28
Figure 10: Strauss Basic architecture of the electricity system automation.......................... 29
Figure 11: Representation of the AS-IS Automation System.................................................. 29
Figure 12: Structure of an Active Network. Modified from (Advisory_Council 2008) ...... 34
Figure 13: Representation of the Automation System in the TO-BE DN. The elements are
extended towards the low voltage network................................................................................. 35
Figure 14: Entities of the system in the AS-IS situation.......................................................... 42
Figure 15: Entities in the system in the TO-BE situation ....................................................... 43
Figure 16: Functions of the Distribution Network in the AS-IS and in the TO-BE
situation ............................................................................................................................................ 46
Figure 17: Information Exchange in the AS-IS situation (energy billing)............................. 49
Figure 18: Information exchange in the TO-BE situation (Use-of-system charges)........... 49
Figure 19: Components of the ICT System............................................................................... 50
Figure 20: Transactions within the electricity market in presence of distributed generation
including the Balancing Market (van Werven and Scheepers 2005)..........................................V
Figure 21: Overview of the transactions in the electricity market including the balancing
and the ancillary services market ....................................................................................................V
Figure 22: Business model of the TO-BE DN. The DSO creates new revenue sources and
reduces expenditures through active network management................................................... VII

List of Acronyms

ADM Architecture Development Method
DG Distributed Generation
DN Distribution Network
DSO Distribution System Operator
IA Information Architecture
ICT Information and Communication Technology
RES Renewable Energy Resources
TOGAF The Open Group Architectural Framework
TSO Transmission System Operator
VPP Virtual Power Plant


ii
Preface


This master thesis is the result of a work of five months in the section of Economics of
Infrastructures, in the Faculty of Technology, Policy, and Management of the Technical
University of Delft.

The idea of designing an IA for the electricity distribution network came form my curiosity
in combining different fields and the current research work of Dr. Theo Fens and Dr. Rolf
Knneke. I am really enthusiastic in trying the interfaces of different areas of knowledge,
and even though ICT and electricity are not very distant fields, they are not combined that
often. Besides, my bachelor studies were purely technical, and the idea of trying a research
in the Economics of Infrastructures department was challenging for me. Again, I decided
to do so because it was interesting to try more in depth a different field of study.

This thesis also represents the finalization of my master studies on Engineering and Policy
Analysis. Therefore, I would like to acknowledge the people that contributed to the
fulfillment of this project, and also to all the people that supported me during these two
years of study.

First of all, I would like to thank the advice, patience and great willingness to help of my
graduation committee. Dr. Theo Fens, who was my first supervisor, devoted valuable time
making detailed reviews of my thesis. I appreciate his knowledge in the subject, but
moreover his advices on how to perform my work. His advices helped me during the
elaboration of this thesis, and I am sure they will help me in my entire professional life. Dr.
Rolf Knneke, the chairman of my committee, was really helpful during the initial stage of
my research, while searching for the topic and clarifying initial concepts. His orientation at
that stage was decisive for the success of my project. Dr. Jan van den Berg, who was my
second supervisor, encouraged me all the time to abstract the real essence of the things I
was researching, and showed me the great value of making the things simple and concise.

Besides, I would like to thank the illustrative discussions I had with other professors and
PhD students of the university, especially during the initial stages of my research. They
helped me a lot to structure my ideas, to generate new ones, and to find valuable
bibliography.

I want also to thank all my EPA classmates. They were a great support both during the
courses and during the thesis development. Especially during the thesis time, Shahnaz
helped me a lot to organize my activities, and cheer me up all the time. Fokke always
showed interest on my topic, and sometimes, he even renewed my motivation and curiosity
on my own work. I also want to thank Anders for his great contribution making my thesis
more beautiful.

Apart from mentioning the persons who directly contributed to my thesis, I want to take
the opportunity to thank my friends for their affection and support. During my master
studies, I learned a lot from them. They encourage me, and provided me very nice
experiences that I will always keep in my mind.

Last but not least, I want to thank to my family. Gracias pap, mam, Yukiko y Naomi por todo
su amor y apoyo incondicional. Gracias a los tos y tas que siempre me hicieron sentir querida y recordada,
y gracias a las primas por animarme aun estando lejos.

iii
Executive Summary

Problem Definition
Policy goals of sustainability, security, and competitiveness are driving a major
transformation in the electricity sector in Europe. In this transformation, numerous
institutional and technological changes are taking place, and are challenging the present
characteristics of electricity infrastructure.

To accommodate all these changes, electricity networks might evolve towards a more
intelligent way of operation. Intelligence in this context refers to the capacity of using
information to make decision, and to develop new functionalities. In other words, in the
future, electricity networks might increase their usage of information, and might add an
information-layer to their current infrastructure.

In this thesis we focus on two specific events: the process of unbundling, which is an
institutional change, and the integration of distributed generation (DG), which is a
technological change. As mentioned before, these events require the utilization of more
information because more transactions are carried out in the system.

As information is not tangible, it is useful to conceptualize and represent it in order to
manage it. For instance, in the case of electricity network operators, a clear depiction of the
information needed to develop new functionalities might guide a better deployment of
supporting Information and Communication Technology (ICT) infrastructure.

At this point is useful to introduce the concept of Information-Architecture, as a formal
description and structuring of the information and the ICT systems that support the
activities of an organization. This concept has been developed after many enterprises
integrated ICT systems in their activities. This thesis proposes to apply the concept of IA
to the case of the electricity networks.

The context around in the electricity networks is diverse. For instance, unbundling between
large energy producers and transmission networks has been already implemented in
different places; conversely, unbundling between retail activities and distribution networks
is rarer. On the other hand, DG is already largely present at high voltage levels, but
practically inexistent in the low voltage distribution network (DN). As we may infer, in the
near future, if ownership unbundling and distributed generation keep progressing, the
segment of the networks that will suffer major changes is the low voltage distribution
network. In comparison to higher voltages networks, where already some usage of
information exists, the low voltage network will require the integration of more
information systems, because by now there is any information infrastructure there. The
visualized distribution network, which adds intelligence to accommodate DG is named
an active network. A development of an IA for this segment would be useful to reach
this active network state. This leads us to the formulation of the main research question of
this thesis:

Research Question: What high level IA for the electricity distribution network fulfills the design
requirements imposed by distributed generation and ownership unbundling?

Analysis
In order to solve this question, we have to understand four elements in the process of
transformation of the electricity distribution networks: 1) The baseline (AS-IS) situation of

iv
the network, which corresponds to a passive, vertically integrated into one utility, DN. 2)
The target (TO-BE) situation of the network, which corresponds to an active DN. 3) The
specific institutional and technology changes which imposes the information requirements,
in this case, ownership unbundling and DG. 4) The enabling technologies in a transition
towards an active network. Of special importance is the analysis of Smart Metering
technology.

Once these elements are analyzed, the construction of an Information Architecture (IA)
may rely on an architecture framework. In this thesis we based our process design on The
Open Group Architectural Framework (TOGAF) recommendations. An architecture
framework is a collection of detailed methods and a set of supporting tools that describes
the process to develop an architecture. TOGAF includes an Architecture Development
Method (ADM) consisting on eight phases. We describe up to the third phase of this cycle
to design the process for building an IA for the electricity DN.

Process Design
Before starting the ADM, it is important to plan the architectural work to be performed.
The development of an IA should be shared among different actors with interests in a
good performance of the DN in the future. These actors are the Distribution System
Operator (DSO), the Transmission System Operator (TSO), Metering Services Companies,
Retailers, DG operators, and Regulator. An early consensus among these actors would
favor the acceptability and robustness of the architecture. Already in this preliminary phase
we can observe some disagreements between the recommendations proposed by TOGAF
and the nature of the DSO enterprise.

The first step in de design of an IA consists on generating a vision for the DN. This vision
should include goals, general principles, stakeholders, and drivers. The business goals are
the ones established by policy makers, like preserving security of supply, providing a good
quality of service, and favoring competition. The general principles are specific institutional
arrangements created to regulate the performance of the DSO. The drivers are the events
of ownership unbundling and integration of DG in the low voltage network. The
stakeholders are the actors that interact with the DN.

The second step consists on defining the organization and structure of the distribution
business. Here, the basic building blocks to depict functions of the DN are defined. These
building blocks are the entities and the critical functions. An entity is an actor or group of
actors that perform a single function within the market institution of electricity, actors
from the legal institutions, or actors in charge of administrating information. The critical
functions are those performed within the DN to preserve the flow of electricity and the
economic flow to sustain the system.

The last step consists on identifying the information flows, information sources, and types
of information utilized by the DSO to support its critical functions. Information flows are
mainly present between market entities: TSO, DSO, Metering Services Entities, Retail
Companies, DG Operators, and consumers. But there is also an information loop between
the customers, regulator and the regulated entities. The main information sources are the
metering devices; an important development and an enabler for future functions is the
Smart Meter, which provides disaggregated information near the customer end. The types
of information can be classified in three categories: information related to the physical flow
of electricity, information related to economic transactions, and information to identify
entities and devices in the system.

v
Conclusions
The IA is a valuable representation, which favors communication between
stakeholders, supports management of information, and assists the transformation
process towards an active network
There is a discrepancy between the focus of architecture frameworks and the nature
of DN business. This brings some discrepancies in applying IA concept.
DG and ownership unbundling determine the design principles for the IA.
Regarding DG, it is imperative to know specific technical characteristics (type,
amount, location). In the case of unbundling, is important to know how
information can affect the already established institutions in this sector.
The basic building blocks for an IA are entities forming the electricity sector and
functions required by the DN
For defining entities, a functional approach is useful to deduct information flows.
Market, legal, and information administration entities should be included in the IA.
A major difference between the AS-IS and TO-BE situation is the additional
functions that the DSO must perform. These additional functions are less critical in
terms of time constraints, but still necessary in terms of technical scope.
A formal methodology for depicting information flows, information sources and
types of information must be employed to generate the IA
Information systems should provide governance into the system. For this, is
important to maintain a proper interaction between economic and physical
transactions facilitated by the DSO.
Different types of information, requires different communication links. The ones
with higher time criticality require a real-time communication technology, while
non-time critical functions allow for a slower communication technology.

Recommendations
For building an IA
Enrich the suggestions given by architectural frameworks with best practices in
similar (network) infrastructures.
In addition to a process-oriented architecture, an output-oriented architecture
should be used to formulate a clear depiction of information.
Early confrontation of the architectural design with the relevant actors (DSO, TSO,
Metering Services, Retailers, DG operator, and Regulator) favors a more robust
design
For DSOs
Develop an IA to contribute to a better (and more cost-effective) functioning of
the whole system
Elaborate an early and high level planning of the DG to be connected to the
network, as information supporting infrastructure depends on it.
Share the IA with regulator to develop information codes that support other
institutional arrangements.
Use an IA to optimize the exchange of information, and to anticipate problems
related to security, incompatibility or access to information.
For Regulators and Policy Makers
Prepare for the transition towards an active network by clearly defining entities in
the system and by developing information institutional arrangements.
Put special attention on the deployment of Smart Metering. Access rules should be
clear and adequate communication links to this device should be developed.
Favor standardization of information exchange, so the costs incurred by
unbundling are minimized

1
Chapter 1. Problem Description


Nowadays, electricity systems are under a major process of change, pursuing for secure,
sustainable and competitive energy provision. Liberalisation-which includes unbundling of
utilities-, larger proportion of renewable energy technology, and a tendency towards more
decentralized generation technologies, are clear trends in the transformation process of this
industry. In this transforming environment, it is expected a higher integration of
Information and Communications Technology (ICT) to make the operation of the
electricity systems suitable for the expected future conditions.

The focus of this thesis is the Distribution Network (DN), particularly the low voltage part,
because the integration of ICT will be of special importance in this segment of the system.
We analyze the DN functioning, its expected transformation, and its future information
requirements. To make this analysis, we propose to employ the concept of Information
Architecture (IA). This brings the main idea to be tacked in this thesis: how to apply the
concept of IA and how to apply it to the DN case.

To develop this idea, this first chapter has the intention to clarify the problem under study:
the design of an IA for the low voltage electricity DN. For this purpose, this chapter is
composed by four sections. In the first section (section 1.1), we present the problem
statement (what the problem is), and delimitate the problem. In section 1.2, we discuss
the relevance of the problem (why it is important). In section 1.3, we state the objective
and the research question to be solved. And finally, in section 1.4, we explain the
methodology to be followed (how are we going to tackle the problem).

1.1. Problem Definition

1.1.1. Background

Nowadays, policy goals for energy provision are driving a transformation of the electricity
sector, in which big technical, economical, and social challenges are present. This thesis is
focused on the Distribution Network (DN), because relevant technological and
institutional changes are currently being carried out around it.

One relevant event is the technological change caused by the appearance of Distributed
Generation (DG)
1
. Usually, DNs were designed as passive, radial networks with a structure
that reflected the need of conducting electricity (together with the transmission network)
from centralized, large scale energy generators towards end users in a top-down fashion.
However, with the increasing number of DG and renewable energy sources (RES) directly
connected to the DN (i.e. large Combined Heat and Power (CHP) plants, and wind farms)
the traditional conception of energy production is being modified. In consequence, the
operation of the DNs is expected also to be adapted to cope with this different energy
production that resembles more a network fashion.

Specifically talking about the DN, the tendency of installing DG is likely to reach the low
voltage segment. Technical developments suggest the possibility that a large share of
electricity is generated by micro-generator systems at the consumer end (i.e. systems
comprising micro CHP and photovoltaic cells at households). This would imply feeding

1
This term will be elaborated on in section 4.1.1

2
electricity at the most external end of the network. This new structure would completely
reverse the top-down conception of energy generation and oppose centralized management
scheme, confronting the traditional designs of DNs.

Another relevant event is the institutional changes produced within the liberalization
process, which implies unbundling of utilities. Unbundling entails the separation of -
originally fully integrated- electricity utilities into functional segments managed by
independent actors. The main intention of unbundling is to make a differentiation between
segments with characteristics of natural monopolies that must be regulated (the networks)
form those with a commercial nature that must be operated under market environments.
Thus, the implication of unbundling is that DN operation must be separated from
generation, trade and retail activities. Besides, unbundling incorporates a clear separation
between the transmission network and DNs, although they jointly compound the physical
core of the electricity system, the network. Evidently, the fully unbundled envisaged
future of the electricity sector implies that the operation of the DN and its role within the
electricity system is modified.

1.1.2. Problem Statement

Technical and institutional changes impose new challenges for the operation of the DN. As
a response to these challenges, many conceptualizations of how the future DN should be
in the future have been developed. One generalized vision is the one of an active
network
2
, in which active management of the elements of the network is performed to
achieve higher control, coordination, and to develop new functionalities.

Active management implies the handling of more and different information. For example,
the future Distributed System Operator (DSO)
3
should have, at least, a registry of the DG
connected to the network and should use this information to ensure the proper functioning
of the whole system.

Active management is possible thanks to the existence of enabling technologies that allow a
different use of information. ICT technologies that makes feasible the exchange and
processing of information, and advances in metering and sensors devices that generate the
necessary data to analyze the system, are examples of todays enabling technologies.

Restating the previous reasoning, we can say that a main difference between the traditional
DN and the future conceived DN is the type of information used, and the way it is
handled. To improve the functioning of the DN different (and more) information will arise
with the integration of new elements in the network; the way of using this information will
allow for creating new functions, new modes of operation, and new transactions among
different actors.

Evidently, in order to arrive at the conceptualized future DN, the necessary information
sources in the network, and the ICT systems that facilitates information exchange should
be deployed. In this deployment, a high-level guideline representing the information
required in the future DN would be a useful tool to effectively steer the transformation of
the DN.


2
This term reflects the opposition to the traditional passive characteristic of the distribution network. This
concept will be further elaborated on section 4.4
3
The DSO is the actor in charge of the DN

3
Here, it is useful to introduce the concept of Architecture, as described in the American
National Standards Institute/Institute of Electrical and Electronics Engineers
(ANSI/IEEE) Std 1471-2000. Architecture is the fundamental organization of a system,
embodied in its components, their relationships to each other and the environment, and
the principles governing its design and evolution.

Using the previous idea, and applied to the case of the electricity system, we can say that an
IA would be a useful tool to conceptualize the information elements of the electricity
system, and to assists in the transformation process of this system. We can understand the
concept of IA as a formal description of how the information is structured and organized
between different actors/elements involved in the operation of the energy value chain in
which the DN is one of the actors. It is a conceptualization of DN elements, their inter-
relationships, and the principles and guidelines governing ICT systems used for the
management of this network.

This led us to the problem statement of this thesis: It is necessary the design of an IA for
the future DN, which is the one operating in presence of DG connected to the low voltage
(LV) network and under ownership unbundling, to favor its evolution.

1.1.3. Demarcation of the Problem

This thesis is limited to analyze at high-level how the concept of IA can be applied to the
DN operations. Although the terms used refer to general concepts of electricity systems, it
is necessary to constraint the object-under-study to support the assumptions made.

First of all, the analysis will be centered on the information flows in the electricity system.
Specifically, on the information between functional segments to accomplish the
distribution function.

A second consideration is that the vision of the future DN corresponds with the current
visions formulated in Europe. It is of special importance the vision formulated in the
Strategic Deployment Document for Europes Electricity Networks of the Future
(Advisory_Council 2008), specifically regarding Deployment Priority #5: Active
Distribution Networks. This vision depicts the DN in a timeframe of 10 years between
2010 and 2020.

A third consideration is that we will use the specific case of the Netherlands to support
some specific assumptions. This delimitation is useful to give a practical basis to some ideas
and concepts, and, in further research, it may facilitate the validation of the proposed.

A fourth consideration is regarding the technological and institutional context. DG and
unbundling are important events in the Netherlands, and are in an advanced state in this
country compared to other EU countries that are under a similar reform process. For this
reason, these two events are the ones considered in the analysis of the context.

Finally, we will be centered in the low voltage segment of the DN, because deep
differences compared to the present situation are expected there. By now, certain degree of
active management has been deployed up to the medium voltage network, to handle the
already significant amount of DG connected at this level. In contrast, today, at the low
voltage level, there is any system with DG connected
4
, and therefore, there are no active

4
With the exception of test facilities or prototype projects

4
management systems at all, even though many enabling technologies, like smart metering,
are already present.

1.2. Relevance of the Problem

Based on the above description, and on literature on the design of Enterprise Architecture
(Minoli 2008), we can list the following reasons to consider the design of an Information
Architecture:
1) It enables communication among stakeholders;
2) It creates a transferable abstraction of the system and an environment description;
3) It facilitates an early design description;
4) It is an instrument that assists the governance of the transformation process.

In the next paragraphs, these reasons are explained, and it is important to note that these
motivations are interrelated.

It enables communication among stakeholders

Electricity networks are the core of the electricity infrastructure, and therefore the meeting
point of many actors. Indeed, the operation of the network has huge impact on the overall
performance of the industry; therefore, an optimal operation is highly desirable. For
instance, depending on the design of the distribution network, larger entrance of DG could
be favored or prevented; this influences the degree of competitiveness and sustainability of
the overall sector.

An IA may become an accepted representation of required information exchange between
stakeholders to support distribution of electricity. In this case, this accepted representation
would unify visions and concepts. Moreover, it would help the stakeholders to understand
the information present in the system, and use it to take a decision that complies with the
overall strategy of the sector. An accepted representation would also provide useful insights
for policy makers.

It creates a transferable abstraction of the system and an environment description

The final deliverable in the process of developing an IA for the DN is a concrete,
transferable representation of the desired state of the DN in the future. It is important that
this representation is transferable because then many stakeholders can check the adequacy
of the design based on its compliance with defined objectives, interests, and with the
environment. This checking is of vital importance before the actual implementation of
ICT systems is carried out.

It facilitates an early design description

An IA can be used as a guideline for implementing the ICT systems in the electricity
networks. Having a guideline always reduces uncertainty and, therefore, helps in managing
costs. Besides, an early design description is a useful tool for making better decisions
regarding investments or changes in the infrastructure.

It is an instrument that assists the governance of the transformation process


5
It is explained in the previous paragraphs that the IA can enable communication among
stakeholders, can create a valid representation for the desired state on the DN, and can
support investment and implementation decisions. Consequently, the IA can be used as a
roadmap to reach the target state, assist the transformation process, and therefore increase
the possibilities of achieving the visualized DN. This reason is the most important one to
develop an Information-Architecture.

1.3. Research Objective and Research Question

Objective

To apply the IA concept to the analysis of the low voltage electricity distribution network,
when it operates under an environment of ownership unbundling and distributed
generation of electricity.

Research Questions

The main research question to solve in this thesis is:

What high level IA for the electricity distribution networks fulfills the design
requirements imposed by distributed generation and ownership unbundling?

To solve this question, the following sub-questions are formulated:

What are the approaches to describe the technical and institutional characteristics
of electricity networks?
How can the concept of IA be applied for analyzing the information of future
electricity distribution network?
What are the design requirements for an IA that supports the operation of
distribution networks, under the conditions of decentralized generation and
ownership unbundling?
How can an IA for the electricity distribution network, which fulfills the design
requirements imposed by distributed generation and ownership unbundling, be
designed?

1.4. Research Methodology

The methodology used was desk research. The procedure followed during this research is
reproduced in the structure of this thesis, and each chapter answer different sub-questions
posted in this first chapter. First of all, in Chapter 2, we structure the problem based on the
IA concept. Then, in Chapter 3, we provide an overview of the electricity system in order
to illustrate the context of the analysis, and to establish the basic concepts used in further
chapters. In Chapter 4, we elaborate on the necessary elements to be analyzed in order to
conceptualize the information used in the electricity systems. In Chapter 5, we describe the
design process to construct the Information-Architecture. In 0 we present the reflections
on the research done, and we suggest further developments to enhance the analysis. Finally,
in Chapter 7, we conclude, and provide the answer to the main research question.

In the Figure 1 below, we provide a schematic representation of the previously described
outline. The research phases are listed in the fist column; the thesis chapters associated to
each research phases are presented in the second column; finally, the research questions

6
related to the corresponding thesis chapters and research phases are presented in the last
column.

Thesis Chapter Research Question
Problem Description
Information-
Architecture Concept
Overview of the
Electricity System
The Transition in the
Distribution Network
Design of an
Information-
Architecture for the
Distribution Network
Conclusions and
Recommendations
Analysis
Problem formulation
Conceptualization
Conclusions
1
2
3
4
5
6
7
Reflection
How can the concept of Information Architecture
be applied for analyzing the information of future
electricity distribution network?
Research Phase
Process Design
What are the design requirements imposed by
ownership unbundling and distributed generation for
an information-architecture of the electricity
distribution networks?
What are the approaches to describe the technical
and institutional characteristics of electricity
networks?
How can an information-architecture for the
electricity distribution network, which fulfills the
design requirements imposed by distributed
generation and ownership unbundling, be designed?
How is the overall result of this research? Reflection

Figure 1: Thesis Structure

7

Chapter 2. The IA as a Guideline in a Transformation Process


In the future, Distribution Networks (DNs) will need to handle different information and
to integrate ICT to confront the challenges imposed by institutional and technological
changes. This need for including an information layer in the electricity infrastructure
presupposes a transformation of the system. And a useful tool in this transformation is an
Information-Architecture, which is intended to represent the information in the future
distribution infrastructure.

As we can see, we are dealing with a complex problem: how can the concept of IA be applied for
analyzing the information of the future electricity DN? In order to solve this question, we have to
clarify the concept of Information-Architecture, and to situate it among the necessary
elements related to the distribution network transformation process. This helps us to
structure our research, and, that is why, this chapter is considered the conceptualization
phase.

As the concept of IA is not unique and is very abstract, we support its definition with the
explanation of the broader notion of Enterprise Architecture and with the explanation of
Enterprise Architecture Frameworks that support the construction of different
architectures. This will be made in sections 2.1 and 2.2. In the last section, section 2.3, the
general process for constructing an IA is explained, and is linked to the case of the
electricity DN. This section structures our problem under research, and provides a basic
framework illustration on the elements that must be analyzed in subsequent chapters.

2.1. General Concept of Enterprise Architecture

The following definition of Architecture is given by The Open Groups Architectural
Framework (TOGAF):

Architecture has two meanings depending upon its contextual usage: (1) A formal description of a system,
or a detailed plan of the system, at component level to guide its implementation; (2) The structure of
components, their interrelationships, and the principles and guidelines governing their design and evolution
over time.

The concept of Enterprise Architecture, as it name suggests, deals with the description
and structuring of an enterprise, but is mainly focused on the analysis of the Information
and Communication Technology (ICT) systems that supports the activities of that
enterprise.

The concept enterprise-architecture was developed as a management tool that helped to
confront nowadays challenges. For instance, a fast changing environment, and the
inclusion of many stakeholders, usually adds a lot of complexity in the operations of
enterprises. In these circumstances, the function of the enterprise architecture is to
provide insights on the enterprise structure and on the way in which information and ICT
systems can be used to support new functions. Therefore, the enterprise architecture, is a
guideline that helps in the transformation processes that the enterprises require to adapt to
its environment (Op't Land, Proper et al. 2009).


8
In the literature related to enterprise architecture, the enterprise is referred as any
collection of organizations that has a common set of goals (TOGAF 2009). In this thesis,
the aim is to apply the concept of enterprise-architecture to the electricity system case,
where an electricity system can be seen as a collection of many actors that pursue common
goals of affordability, accessibility, acceptability, and reliability of energy provision. Thus, in
this perspective, the electricity system is analogous to an enterprise.

The electricity system is immersed in a changing environment; liberalization processes and
the rapid evolution of technology are driving a transformation. Within this transformation,
integration of ICT systems to facilitate both physical and economical flows is imperative.
An enterprise-architecture would function as a blueprint for integrating necessary ICT to
support electricity system operations.

An enterprise-architecture performs different functions, which can be described
(formulated) in corresponding (sub) architectures: business architecture, information
architecture, (systems/applications) solution architecture, and technology infrastructure
architecture (Minoli 2008). This is represented in Figure 2.
Business
Business Architecture
Information Architecture
Solution Architecture
Technology Architecture
Development and/or
Engineering
Operations
Business Requirements
Architecutres/Roadmaps
Architecture Standards
Design Specs
Engineering Specs
Operational Specs

Figure 2: Positioning of this thesis in the enterprise architecture model.
Figure based on Enterprise Architecture Model (Minoli 2008)

According to (Minoli 2008)the business function is a description of all business elements
and structures that are covered by the enterprise; the information function is a
comprehensive identification of the data, the data flows, and the data interrelations
required to support the business function; the (systems/application) solution function
aims at delivering/supplying computerized ICT systems required to support the plethora of
specific functions needed by the business function; and finally, technology infrastructure
function is the complete technology environment required to support the information
function and the (systems/application) solution function.

The scope of this thesis is limited to develop the enterprise architecture up to the
information function. Therefore, the objective is to identify the data, data flows, and data
interrelations of the DN, and represent them to build an information-architecture.


9
2.2. Enterprise Architecture Frameworks

There is not a unified definition of what an enterprise-architecture is, nor is there a single
method to develop one. Nonetheless, there exist detailed methods and a set of supporting
tools to develop an architecture, which are called architecture frameworks(Minoli 2008).
Architecture frameworks help in different aspects of the creation of an enterprise-
architecture, either by specifying methods to represent the outputs or by guiding the
process to develop them.

Nowadays, there are a many architecture frameworks. The top four enterprise-architecture
methodologies are the Zachman Framework for Enterprise Architectures, The Open
Group Architectural Framework (TOGAF), The Federal Enterprise Architecture, and The
Gartner Methodology (Roger 2007).

In this thesis, we employ the TOGAF framework because it defines a process methodology
which can be directly linked to the definition of enterprise architecture used. This will be
explained in the following paragraphs.

The core of TOGAF is the Architecture Development Method (ADM) which defines a
process to develop an enterprise-architecture; that is, ADM describes how to develop the
business architecture, providing guidelines and best practices, but it doesnt specify the
output to be formulated (Op't Land, Proper et al. 2009).

The TOGAF/ADM cycle is depicted in Figure 3. In this figure, the various phases
composing the development cycle are represented with circles, and these phases can be
applied iteratively depending on management requirements (the core of the cycle,
represented by the central circle). The description of each specific phase can be found in
the Appendix I.

This figure also helps us to position this thesis in one of the phases: the Phase C,
development of the Information Systems Architecture. This phase is elaborated on in
Chapter 5.

As we may observe, there is a direct correspondence between the notion of enterprise
architecture (Figure 2) and the process defined by TOGAF/ADM (Figure 3). This
association is the reason to use TOGAF as the architectural framework in this thesis.




10

Figure 3: ADM Development Cycle (TOGAF 2009)

2.3. The Required Elements to Build the Information Architecture

Regardless of the architectural framework used, according to Opt Land, Proper et al.
(2009), the process of developing an IA requires a shared conceptualization among stake
holders about:

The as-is situation, which is a baseline or reference situation;
A to-be situation, which is a target situation;
Any constraints that should be met;
Purposes of the enterprise architecture.

Translated to our problem under research, the AS-IS situation is the description of the
traditional passive DN (prior liberalization process). The TO-BE situation corresponds to
the future active DN. The constraints that should be met are the requirements imposed by
entrance of DG in the low voltage distribution network and ownership unbundling. Finally,
the main purpose of an IA is to assists the transition from the AS-IS network to the TO-
BE network.

Figure 4 represents the IA role within the problem under research. It schematizes the
necessary elements to be considered to create this architecture. This scheme can be
interpreted as the conceptualization of our problem.


11

Figure 4: Schematic representation of the problem and position of the Information-Architecture

The main elements around the construction of the IA are:

1. The context: It comprises institutional and technological events having direct
impact on the DN. Specifically, the events considered are entrance of DG at the
low voltage level of the DN, and ownership unbundling. This context is the driver
for a transformation of the DN; consequently, these events frame the information
requirements to be fulfilled by the TO-BE DN.
2. The enabling technologies: They are technologies that would make the
implementation of an active network feasible. Among them, Smart Metering is
especially important.
3. The AS-IS situation of the DN is to be a passive network. For this thesis, we
chose this situation that coincides with the traditional design of the electricity
system, in which the distribution network conducts passively the electricity coming
from the transmission network to the end customers, and is vertically integrated in
one utility. Even though this situation is not anymore the nowadays situation, we
use it as the baseline reference because it was a stable situation during a long time.
The characteristics of this as-is situation provide simplicity to the analysis of
information changes.
4. The TO-BE situation of the DN is to be an active network, which is the network
that integrates DG making use of active management, and operates in a fully
unbundled environment. This active management presupposes the inclusion of an
information layer to the AS-IS infrastructure that allows performing informed
decisions, and improving physically and economically the operation of the DN.
Even though the future is uncertain, this is a possibility that is found in the
literature (European_Communities 1995-2009; Advisory_Council 2008; McDonald
2008).


12
From this conceptualization, it is important to remark that the transition comes from the
change in the functions performed, and the way that the critical technical functions are
maintained in the TO-BE situation, in contrast with the AS-IS situation. One major
difference is the information managed, and functions supported by this information.

Besides, the IA is represented as a central element in the conceptual scheme. This is
because the IA is considered to be a guideline for implementing the ICT systems of the
future (TO-BE) DN. As a consequence, the IA forms the foundation for the transition
towards the visualized TO-BE state. The IA should be constructed based on the current
design of the DN (AS-IS situation), and on an accurate conceptualization of the TO-BE
DN. It must be in agreement with the institutional and technical context, and must take
into account the enabling technologies that allow the TO-BE situation.

2.4. Conclusions

How can the concept of Information Architecture be applied for analyzing the information of future
electricity distribution network?

The information architecture concept, understood as an element of an enterprise -
architecture, can be used to conceptualize the relevant information, information flows,
information sources and information interrelations of the electricity DN. To use this
concept, we can picture the electricity system as an enterprise, and the distribution function
as one of the enterprise functions that must be transformed.

To build an information-architecture, there are architecture frameworks that provide
support either by defining the construction process or by defining the output product. The
framework chosen in this thesis is the TOGAF framework, and specifically the ADM
development cycle, which gives recommendations on how to build the information
architecture. This framework was chosen because the process is fully compatible with the
working definition of enterprise architecture used here.

The analysis to build and IA for the future distribution network, should include the next
elements: The context (the drivers for change), the enabling technologies (those that make
the evolution feasible), the AS-IS situation (baseline description of the distribution
network), and the TO-BE situation (target description of the future distribution network).
These elements provide the indispensable insight of the distribution network situation, and
therefore it is possible to deduct the design requirements from them.

By linking the definition of information-architecture, the development process given by
TOGAF/ADM, and the electricity system situation, we can make a conceptualization of
the problem and build an Information-Architecture.

13
Chapter 3. Overview of the Electricity System


At the end of Chapter 2, the elements facilitating the development of an IA were
presented. However, before elaborating on these elements, is worthy to present a general
overview of the field in which the problem is recognized: the electricity system. With this,
the question to be solved in this chapter is What are the approaches to describe the technical and
institutional characteristics of electricity networks? Presenting the useful approaches to describe
the electricity networks, we can define the basic terms used in the following chapters, and
provide a panorama of the system described.

This chapter is divided in three sections. In section 3.1, the electricity value chain approach
is introduced. In section 3.2, the general structure of a liberalized electricity system is
explained. Finally, in section 3.3 a general description of the regulatory framework in which
the electricity system operates is provided. In this thesis, specific assumptions are based on
the Dutch electricity system; therefore, some comments regarding this system are added.

3.1. The Electricity Value Chain

The electricity sector can be depicted using a value chain approach. In this approach, the
electricity system can be separated in seven fundamental elements: Production, Trade/PRP,
Transmission, Distribution, Metering, Sales, and the final customer. From a regulatory
point of view, these elements are the more granular decomposition of the electricity value
chain, because further separation would imply significant market distortions; therefore,
they can be considered as the basic building blocks for a market design irrespective of
utility jurisdiction (Fens, IJsbrandy et al. 2005).

In the Figure 5 below, we represent the electricity value chain before and after liberalization
of the energy utilities.


Figure 5:The Value Chain Approach and the Liberalisation Process (Fens 2008-2009)

As it can be observed in the previous figure, prior to liberalisation, the electricity utilities
were vertically integrated; this means, that all the functions of the value chain were
performed by one utility company. After the liberalization, the elements of the value chain
are decoupled (or unbundled, see section 4.2.2), mainly to separate the commercial, market
based functions (Production, Trade, Metering and Sales) from the regulated monopolistic
functions (Transmission and Distribution).

14

For the adequate functioning of the energy value chain, three main flows travel across the
entire chain: a physical flow, a monetary flow, and an information flow. The physical flow
starts with the production of electricity and ends with the delivery of electricity at the
customer site. The monetary flow travels in the opposite direction: it starts with the
customer payments, and then covers the upper segments up to the production of
electricity, remunerating the service provided in each segment. The information flow does
not have a defined structure; it is indeed the purpose of this thesis to represent the
information flow under the described conditions. The information flow can be considered
as to be an auxiliary flow in order to maintain the other two main flows: the physical and
the monetary, as it travels between and within the segments of the value chain, facilitating
the proper integration of functions in the value chain. This is represented in Figure 6
below.

Figure 6: Flows within the value Chain (Fens 2008-2009)

3.2. The Technical and Economic Subsystems of the Electricity System

The liberalization process has increased the complexity of the electricity sector. For the
proper operation of an electricity system under this regime, new actors, new transactions,
and new information flows have appeared throughout the entire value chain. De Vries et al.
(2006), describe the basic structure of an electricity system
5
as being composed by a
technical subsystem, an economic subsystem, and a legal framework which regulates both
subsystems and their interactions. In the Appendix II, a conceptual model of the liberalized
electricity system is presented.

The technical subsystem consists of the hardware that physically produces and
transports electric energy to customers, as well as the equipment in which energy is
consumed: power stations, networks, and consumer equipment. It also comprises
the organizations that build, maintain, operate and control the equipment:
producers, system operator, network operators, and consumers.
The core of the economic subsystem is the market, which design varies form
country to country to be an organized wholesale market or an over-the-counter
market. In general, the market includes bilateral contracts and power exchanges.
Also, it includes balancing markets, interconnection and congestion management,
and provision of ancillary services, where it is necessary the participation of the
system operator and the transmission network managers in these activities.

The legal framework exists at different levels. At regional level, the EU imposes
directives (that must be adopted at national level to have effect), regulations (that affect

5
An electric power system is defined as the one controlled by one Transmission System Operator, and
usually coincides with the definition of one control area.

15
directly to actors in the electricity industry), and guidelines (both binding and non-
mandatory). The government, through the regulator, can create rules for the TSO and the
market and network operators (De Vries, De Jong et al. 2006). At national level, in the
Netherlands, the Office of Energy Regulation (Energiekamer) is charged with regulating
the Electricity Act 1998 and Gas Act. This regulatory body comes under the Ministry of
Economic Affairs and operates as a chamber within the Netherlands Competition
Authority (NMa) (Energiekamer 2009). Following the EU Directives, the Dutch energy
market was liberalized on 1
st
of July of 2004, under the Electricity Act 1998. Under Dutch
laws, from 2011 onwards ownership unbundling of both the TSO and DSO networks will
be applied; with this, network operators may not belong to a company that also supplies or
produces energy (EnergieNed and Netbeheer-Netherlands 2008). A scheme of the legal
framework can be found on Appendix II.

As mentioned before, our research takes some assumptions from the specific case of the
Dutch electricity system. Hence, it is worthy to have a general overview of the electricity
industry in this country. A comprehensive description of this system can be found in the
publication from EnergieNed and Netberheer Nederlands (2008). In this thesis, a brief
summary is included in Appendix III.

3.3. Conclusions

What are the approaches to describe the technical and institutional characteristics of electricity networks?

Todays electricity network is under a transition process, both regarding technical and
institutional aspects. A very useful abstraction of the system, that allows us to understand
the situation of the electricity networks at a high level, is the value chain approach. In this
approach the electricity system is broken down in functional segments: production, trade,
transmission, distribution, metering, sales, and consumption. The value chain as a whole
facilitates the flow of electricity (physical flow) and of money (monetary flow). However,
an important difference for the institutional design is the characteristics of the segments in
which competition can be introduced (production, trade, metering, sales) and the ones that
must remain as regulated entities (transmission and distribution).

Another approach to conceptualize how the electricity system works breaks it down in a
physical sub-system and an economic sub-system. Each sub-system is responsible for
maintaining the correspondent electricity flows and economic transactions. It is useful to
notice the difference between these two subsystems, because supporting infrastructure
should be designed taking into account this.

Still, we can associate both approaches by understanding that each segment of the value
chain comprises specific economic and physical elements. For instance, consumption is
performed physically by the load connected to the network, and economically by the
retailers and consumers (customers).

As the functional perspective used in the value chain approach provides a high level of
abstraction adequate to explain the physical and the monetary flow, we assume that is also
useful to explain the third main flow in the system: the information flow. However, in the
value chain representation, only the market actors are considered. Then, the consideration
of the legal framework in the technical-economic approach enriches the information
analysis, as some other institutions (like legislation) are considered. Policy makers and
regulators are also relevant actors in the information exchange.

16
Chapter 4. The Transition in the Distribution Network


In Chapter 2 we presented a conceptual view of the elements to construct the Information-
Architecture. The objective of this chapter is to explain in detail each of these elements,
and, with this, give insights on the problem under research. This chapter forms the first
part of the analysis, and provides the basis to deduct information flows in the electricity
DN in the next chapter. At the end of this chapter we want to understand what the design
requirements for an IA (IA) that supports the operation of distribution networks, under the conditions of
decentralized generation and ownership unbundling are.

For this purpose, this chapter follows the scheme presented in the Figure 4 in the previous
chapter. In section 4.1 we explain the context of the DN. This context encompasses
driving events for the transformation of the DN, and therefore imposes the requirements
to be met in the future DN. In section 4.2, we present the enabling technologies that make
feasible the future vision of the DN. Here, special emphasis is put in the Smart Meter
concept as defined in the Netherlands Technical Agreement (NTA) 8130. In section 4.3 we
provide a description of the AS-IS situation, which corresponds to a passive DN. In
section 4.4 we explain the TO-BE vision for the DN, which is based on the one provided
by the Advisory Council for European Commission, in its Strategic Deployment
Document for Smart Grids.

4.1. Technological and Institutional Context

The first element to analyze is the institutional and technological context that recently
confronts the long-established design of the DN. It is expected that this context impulses a
transition towards a more intelligent
6
electricity network. In this thesis two events are
considered to form the context: the connection of distributed generation (DG) in the low
voltage network, as a technological change, and ownership unbundling, as an institutional
change.

Ownership unbundling and DG may produce important changes in the electricity system,
especially in terms of information. As distribution is an embedded actor in a chain, an
alteration of information in this segment has also repercussions in the entire value chain.
Indeed, the analysis of this information changes is the focus of this thesis.

4.1.1. Distributed Generation

The first important event for the DN is the inclusion of DG in the system. In the case of
the Netherlands, this event is relevant because it had a great expansion during the last
decades
7
, causing that DG accounts for an important portion of the energy production in
this country nowadays.

DG is defined as an electric power source connected directly to the distribution network
or on the customer site of the meter (Ackermann, Andersson et al. 2001). Pepermans,
Driesen et al. (2005), in agreement with the previous definition, identify current generation
technologies that can be used for DG: Reciprocating engines, gas turbines, micro turbines,
fuel cells, photovoltaic, wind, and other renewable (thermal solar, small hydro, geothermal

6
The notion of intelligence will be further elaborated in section 4.4
7
Here, we refer to the large DG, which is the one connected to the medium voltage network

17
and ocean). A detailed description of the DG technologies can be found in the Appendix
III.

Based on the connection point, and the capacity, we can classify DG on two groups:
Large DG: The one connected to the medium voltage (MV) network.
Small DG: The one situated on the customer site of the meter; this is, the DG
connected to the low voltage (LV) network.

At present, only large DG has been significantly integrated in the electricity systems, so
certain degree of automation is already reached to integrate this type of DG. Optimization
processes via forecasts and active control, and the consequent inclusion of information
systems, are becoming usual at the MV level. In contrast, small DG is emerging but still is
not significantly present, and there is almost no active
8
infrastructure at all in the LV
network. Only pilot installations for new control systems like the Am Steinweg
(Germany), Supply Center East (Germany), and the Technology Demonstration
Centre (San Agustin del Guadalix, Spain) are present today (Degner, Schmid et al. 2006).
However, the potential value that new functionalities in the LV network provides strong
incentive to extend the information systems up to this level. For this reason, the focus of
this thesis is the LV segment of the network.

In the Netherlands, the development of DG has been largely achieved by installation of
CHP at industrial sites, connected to the MV network. This type of generation represents a
significant portion of the generation capacity of this country. At the moment, the
Netherlands has a larger share of energy generated in a decentralized way, compared to
other countries in the EU. In 2007, 30.9 billion KWh were produced in cogeneration
plants, this is approximately 26% of the total energy consumed (EnergieNed and
Netbeheer-Netherlands 2008).

Government policies were determinant for the expansion of DG in the Netherlands. The
growth of CHP goes back to the 1970s and 1980s, when connection of industrial CHP to
the electricity grid was allowed without charges, and these industries were provided with
cheap natural gas for cogeneration (Verbong and Geels 2007). From 1989 to 2004, major
changes in the formal rules favored a faster expansion of DG. The Electricity Law at that
time enforced separation of production and distribution, introduced market mechanisms
for the supply side, and created energy distribution companies, which were allowed to
generate electricity on a small scale. DG came mainly from industrial CHP, but also from
district heating and horticulture(Verbong and Geels 2007). Later on, environmental
concerns also promoted CHP diffusion. Dutch policies considered CHP as an important
instrument for CO
2
reductions. In consequence, large part of the energy was produced
outside the centralized scheme, although some difficulties appeared to allow energy
feedback into the grid(Verbong and Geels 2007).

It is important to note, as in the case of the CHP expansion in the Netherlands, the
decisive role that governmental policies and formal rules had in the inclusion of DG in the
electricity system. Current European directives for promoting renewable energy sources
and energy efficiency improvements (i.e. RES directive and CHP directive) suggest the
desirability of expanding DG, and therefore it is likely its inclusion in the LV network in
the future.


8
The notion of active network will be extended in section 4.4

18
In the following paragraphs we explain different impacts that DG may have in the DN.
This analysis is useful to deduct the functionalities that should be added (or kept) in the
future in the DN.

4.1.1.1.Technical Impacts of DG in DN

Because the DN was not designed to accommodate electricity generation, DG may have
different positive or negative impacts on the performance of the DN. This largely depends
on the structure of the distribution system and the characteristics of the DG connected.

The effects of large DG and small DG may be different, and the level of impact varies
depending on the penetration level. As large DG is the one already under higher
development, most of the studies are centered on this type of generation. In the literature,
mainly five effects are analyzed while studying the inclusion of DG into the network:
voltage level, anti-islanding/loss of main protection, fault level, power quality, and network
stability.

The first effect is on the voltage level of the DN, which should be maintained within
certain limits. For instance, in the residential networks in the Netherlands, the voltage
should stay in a range of 230V +/-5% during normal operation (System and Network
Codes developed and uphold by the Energiekamer). Large DG may have significant effects
on the voltage level (Bayod-Rjula ; Hadjsaid, Canard et al. 1999; Pepermans, Driesen et al.
2005; Lopes, Hatziargyriou et al. 2007). This may be alleviated if the generation of power
by DG is smaller than the consumption in this power grid (Landsbergen 2009), or by
upgrading transformers for improved voltage control(Bayod-Rjula). However, in the case
of small DG (specifically mCHP), many studies indicate that large penetration can be
accommodated in the LV network without causing voltage rise effects; only negative
effects are expected if energy is exported during low demand, in rural networks or very
high concentration of mCHP (Landsbergen 2009).

As a result of the concerns on voltage level, we can deduct that this parameter is an
important one to measure in a network with DG connected to it, especially during peak
and low loads. Besides, in order to manage DG, and make the production to follow the
electrical load, it is important to have disaggregated information about the power produced
and the consumption at every moment within the network. These measurements are new
information to be managed in the network.

The second recognized effect is the islanding effect/loss of main (LOM) protection.
Islanding is defined as any situation where a section of electricity network containing
generation becomes physically disconnected from the distribution network or users
distribution network, and one or more generators maintain a supply of electrical energy in
that isolated network (PV-Upsale 2007). This islanding effect can be intentional (when it
is desired a self-sufficient operation) or unintentional (if the network is disconnected
because of a network fault, but the DGs continue operating). Unintentional islanding may
be dangerous and unsafe for personnel, equipment, and may produce problems in overall
operation of the network (Landsbergen 2009).

To prevent unintentional islanding, loss of main protection should be installed in the DN
to prevent DG from accidentally energizing an electrically isolated

section of network.
Nonetheless, it should be considered that disconnection of DG, even if it is as a response
of an electricity fault, may produce other undesirable effects. For instance, protection

19
mechanisms may also brings tripping of heating services (provided by micro CHP) and may
prevent VPP (Virtual Power Plant) operation (Landsbergen 2009). Therefore, it is
important to develop information mechanisms that help on discerning the correct
moments to disconnect and reconnect DG, taking into account the different affected
elements in the network.

The third technical impact is related to the fault level. Protection systems are designed for
specific fault currents. In the MV DN, synchronous and induction generators directly
connected to the grid may significantly affect the network fault levels. Hadjsaid, Canard et
al (1999) explain that the fault current is changed because the rotating generators modify
the characteristics of the distribution network. This change in fault current also affects the
selectivity of protection devices. However, according to Landsbergen (2009), no major
issues regarding fault levels are expected in the LV DN, as power electronic interfaced DG
units and mCHP contribution to fault levels is small.

The fourth technical impact is on power quality. Power quality refers to the degree to
which power characteristics align with the ideal sinusoidal voltage and current waveforms,
with current and voltage in balance. Thus, strictly speaking, power quality encompasses
reliability (Pepermans, Driesen et al. 2005).

The main issues of power quality related to the connection of DG are: voltage unbalance
(produced if a large amount of mCHPs is connected to one phase of the three phase power
system), voltage sags/dips, voltage fluctuation and voltage flicker (may be caused by
start/stop operation of the units), harmonics (produced by converter-based DG), and
transients (Landsbergen 2009). With the use of advanced power electronics (i.e. IGBT
converters, and filters) harmonic issues can be prevented.

The last technical impact is on the network stability. Network stability is the capability of
the system to return to steady state operation when a disturbance or large changes in the
power demand occur. Landsbergen (2009) concludes that mCHP can have negative effects
on the network stability, because these systems are not equipped with voltage and
frequency control, and they contribute very little to the power system inertia. However, it
may only occur if very large amounts of mCHP will be connected and will replace a very
large part of the central power supply.

4.1.1.2. Other Impacts of DG in DN

In addition to the technical complications that the connection of DG may bring, there are
other (non-technical) issues that should be taken into account.

First of all, DG has relatively high capital costs per kW installed compared to large central
plants (Strachan and Dowlatabadi 2002; Pepermans, Driesen et al. 2005), but DG
economic performance can be improved when more DG units are installed in the same
region; that is, DG presents economies of geographic concentration (Strachan and
Dowlatabadi 2002).

Besides, large entrance of DG has consequences on Distribution System Operators
(DSOs) revenues and expenditures, and it may cause a change in their business models
(van Werven and Scheepers 2005).On the one hand, DG may reduce the net electricity
flow of the networks, as generation is closer to the end consumer; in this case, DSO could
delay the need for investments in the network (van Werven and Scheepers 2005; Cossent,

20
Gomez et al. 2009). On the other hand, DG may imply higher costs for the DSO, as
network reinforcements may need to be done in the DN in order to provide open access
for DG (van Werven and Scheepers 2005; Lopes, Hatziargyriou et al. 2007)
9
. Here,
information systems should be the reconciling tool for the joint planning of DG and DN
in a way that is beneficial for the overall system.

Finally, DG adds more transactions to the system operation. Van Werven and Scheepers
(2005) depict the transactions in the electricity system in presence of DG, and represent
them by adding a new actor, the DG operator. This new actor has effects in both
physical and economic sub-systems (see section 3.2).

In the physical subsystem, new transactions are present between the DG operator and the
DSO, and between the DG operator and the energy consumers. In the economic
subsystem, economic transactions are present between the DG operator (for large DG or
VPP) and the wholesale market, between the DG operator (large DG or VPP) and the
balancing market, and between the DG operator (especially for small DG) and the
suppliers. van Werven and Scheepers (2005) even suggest the inclusion of DG to provide
ancillary services. The diagrams developed by these authors are added in Appendix V.
These transactions need to be supported by ICT systems.

4.1.2. Ownership Unbundling

The second important event to be analyzed in the context of the DN is ownership
unbundling. This event is relevant in the Netherlands, as it was recently enforced by law.
With this, unbundling in this country is in a more advanced state in comparison with other
EU countries.

As the networks have characteristics of natural monopolies, and they are fundamental to
the well functioning of electricity markets, it desirable to separate their operation from the
operation of competitive commercial segments. The separation between network segments
(transmission and distribution) and the production/trade/metering/sales segments in the
electricity value chain is often referred as unbundling (Knneke and Fens 2007).

There are different degrees of unbundling, depending on the level economic and legal
separation. In increasing order of magnitude, Knneke and Fens (2007), list unbundling
types as follows: administrative unbundling, management unbundling, legal unbundling,
ownership unbundling.

In Europe there is an ongoing debate about the desirability of enforcing ownership
unbundling, which is unbundling type where network operates under different ownership
from production and sales, and thus there is no all-encompassing holding and no shared
operational activities(Knneke and Fens 2007). In the Netherlands, ownership unbundling
has been enforced by law and therefore, separation between distribution and supply
functions in formerly unified companies was carried out (EnergieNed and Netbeheer-
Netherlands 2008). In addition to separation from the competitive segments, strict
definition of the different networks was made.

As unbundling is a recent process, its effects are not still clear. An example of a practical
effect of unbundling observed in the Netherlands is the high political controversy that it

9
The case of network reinforcements mainly refers to the large DG case.

21
brought (Knneke and Fens 2007). Another example is the need to transfer a large amount
of assets from the DN to the Transmission System Operator (TenneT 2008). This
transfer, evidently, brought disturbances for the operation of both utilities.

There are many other theoretical effects of unbundling, and still it is not conclusive if the
benefits exceed the costs. Pollitt ( 2007) discusses different aspects on which unbundling
have an (expected) impact in the overall electricity system: competition, regulation,
privatization, security of supply, transaction costs, costs of capital/investment,
synergy/focus effects, double marginalization, foreign takeovers, and government
intervention.

If we analyze the above mentioned effects, we can deduct that information systems have a
decisive position to determine the overall result of unbundling. For instance, information
systems provide the new means for coordination between actors that were previously
integrated in the value chain. Evidently, the more effective the information systems are to
achieve this coordination, the less the transaction costs to be incurred in the new
unbundled scheme. Another example is related to security of supply, where information
systems are decisive to achieve proper coordination between generators, networks, and
consumers. A third example comes from the benefits that a clear depiction of the
information systems (i.e. by the creation of an Information-Architecture) may bring. A
clear depiction of the information exchange between actors may add transparency to the
system; therefore, reducing regulatory costs.

Another important function that information may perform is to solve the disagreement
between different objectives of different actors in the electricity system. With unbundling,
more independent actors are participating in the provision of energy; for some of them (i.e.
generators and suppliers) competitiveness is a clear policy directive, while for others (i.e.
networks) security of supply is the major concern. Without distorting market functioning,
information should be exchanged among different actors to provide the required overview
of the system.

4.1.3. Relationship between Distributed Generation and Unbundling

From the previous section, we can observe that the inclusion of DG in an unbundled
environment is more difficult. Both DG and unbundling presupposes more transactions
and more actors in the system. This makes a complex system in which conflict of interests
between actors should be solved.

For instance, unbundling is desirable to provide non-discriminatory access for DG;
however, the DSO may have incentives to prevent larger entrance of DG or to participate
in the planning of DG units, which would be a clear interference to the market. DG can be
helpful in reducing line losses, avoiding network reinforcements or extensions, or for
ancillary services (van Werven and Scheepers 2005); however, unbundling prevents DSOs
from owning generation capacity, and therefore, may prevent to take part of the planning
of DG installation. van Werven and Scheepers (2005) suggest that this can be solved if
the DSO gives right financial incentives for installing and operating the DG in the most
beneficial way for the system. A way to do that is to perform centralized controlled (by the
government) active management in the networks.




22
4.2. Enabling Technologies in the TO-BE DN

The second element for analysis is the enabling technologies that allow a different
visualization of the DN in the future. As the focus of this thesis is the information flow in
the TO-BE Active Network, we want to highlight one specific enabling technology, which
extends the possibilities of information exchange in the electricity system towards the
consumption side: the Smart Meter. Other important enabling technologies include
advances in power electronics, energy storage, information and communications
technologies, and forecasting techniques, which we will not treat extensively. All of the
enabling technologies are sources of information that may be worthy to include in the
operation of the DN.

The intention of analyzing these technologies is to understand the type of information that
they handle, and the type of functionalities that they may facilitate.

4.2.1. Smart Metering

In the Netherlands, the functionality of the Smart Meter is specified in the Netherlands
Technical Agreement NTA 8130. We assume that this technical agreement establishes the
characteristics to be installed in the TO-BE DN. The basic installation of this meter is
represented in the Figure 7 below (Netherlands-Standardization-Institute 2007):


Figure 7: Basic Installation of the Meter (Netherlands-Standardization-Institute 2007)
Port 0 is created for communication with external devices during installation or on-site maintenance. P1 is to
connect auxiliary equipment. P2 is the communication port between the metering system and other devises
such as gas and water meters. Port 3 is for communication with the Central Access Server (CAS). Port 4 is for
communication between CAS and service providers, suppliers, grid companies

The metering system specified contemplates the connection of electricity, gas, heat-cold,
and water installations. Evidently, for the purposes of this thesis, we will only consider the
functionalities developed for the electricity equipment (E-metering). However, it is
interesting to notice that the smart meter may become a convergence point for different
infrastructures.

The E-equipment comprises a Measuring and Switching equipment (M&S) and a
communications equipment (SCom). Besides, the meter can control host equipments
that operate in a Master-Slave mode.

23

The meter reads energy in both directions, and associates the corresponding tariff values.
Meter data thus includes daily and monthly meter readings, interval readings and actual
meter readings. It can measure with a time resolution of seconds (time stamp in the form
of yyyy-mm-dd h24:min:sec).

The NTA specifies the information that the meter provide:

Interval Values (register readings): Identifier for the meter from which the
interval values originate; Time stamp of the interval value; Interval value specified
in kWh (three decimals); Indication for energy direction (consumption or
production).The interval has been chosen to be 15 minutes.
Power Quality Information: Identifier for the meter from which the interval
values originate; number of power swells; number of power sags; identification of
the period in which this information has been registered.
Actual voltage information Identifier for the meter from which the actual voltage
originates; time stamp of the actual voltage; actual voltage specified in V (with a
precision of 1 V).
Outages information Identifier for the meter from which the measurements
originate, the number of short power outages (<T seconds). For outages >T
seconds: Outage duration; time stamp of the end of the outage. The electricity
meter shall provide the outage information for each phase.
(dis)connect request is used to remotely (de)activate a meter. Such a request
contains the following parameters: Identifier of the meter, connect or disconnect,
time stamp of connect or disconnect (optional), reason of disconnect, e.g. on
demand, exceed threshold (optional).
The logging information for (dis)connects: Identifier of the meter, position of
the breaker after the (dis)connect
Apply threshold (electricity) logging information: Identifier of the meter; new
threshold value (specified in Amps, no decimals); time stamp of the moment at
which the threshold was applied has been applied; Reason, e.g. on demand,
exceed threshold (in case of disconnect), time stamp of the moment the
(dis)connect has been applied.

The SCom equipment is formed by a communication module, telecom module and data
concentrator, either in modular or integrated parts.

As it can be seen in the metering system, different actors are involved: the consumer, the
Distribution System Operator (DSO), an Independent Service Provider (for other
Services), and a Supply Company. For dealing with different actors, the E-equipment
interacts with a Central Access Server (CAS), which is the equipment and software to
handle requests from Supply Companies and Independent Service Providers. The CAS is
also referred to as the central system for the DSO. In case more DSOs are active each
DSO will employ is own CAS.

The DSO sets configuration parameters of the meter, and manages the communication
links to the Central Access Server (CAS). The meter can communicate with the DSO via
wired or RF technology and is founded on IP. The communication between the meter and
the Central Access Server (CAS) may be via PLC, GPRS, or Ethernet. The Operation
Parameters are set by the Supply Companies. Suppliers and Independent Service Provider
have access to meter data and control commands via the P4.

24

As the CAS is a shared resource, the person or legal entity that controls it can only have
access to the entitled functions. This makes us understand that identification, authorization,
authentication, and encryption aspects are important. These aspects are responsibilities of
the DSO.

In summary, we can say that the Smart Meter provides information regarding energy, times,
tariffs, and identity of infrastructure elements. It also manages control information to
connect and disconnect equipment. The Smart Meter is also a device that allows the
interaction of different infrastructures, and that allow the entrance of external service
providers that may use the data generated and/or concentrated to develop additional
services. An important element in the Smart Meter infrastructure is the Central Access
Server, because it allows the interaction of the different actors requiring data. In this
complex system, the legal arrangements of the data are important, and should be in
agreement with the institutional design; for instance, allocation or responsibilities regarding
ownership and management of data are of high relevance.

4.2.2. Other Enabling Technologies

There are other enabling technologies, including more demand-side resources
10
. However,
we can make a differentiation on the nature of the support that they provide. There are
technologies that directly support the physical and economic flow of electricity, while
others support the information flow, which is an auxiliary flow. Examples of the first type
of enabling technologies are advanced power electronics, energy storage and forecasting
techniques.

Advanced power electronics allows for a more flexible operation, and a higher quality of
supply. They allow the integration of different types of interfaces in the network, and the
variable-speed operation of electric generators and motors. Besides, it makes possible
higher degree of control; for instance, in voltage regulation. Flexible Alternating Current
Transmission Systems (FACTS) are part of power electronics advances, which enhances
the controllability of AC transmission systems.

Energy Storage is another important aspect of the technologies that can contribute for
the TO-BE DN, and it represents a very important strategic value for energy networks in
the future. Nevertheless, at the moment capacity/price ratios do not yet justify abundant
application of electricity storage technologies. Different types of energy storage
technologies exists, including (flow) batteries, flywheels, superconducting magnetic energy
storage, compressed air energy storage, ultra-capacitors, etc (Bayod-Rjula).

Finally, Forecasting Techniques make possible more effective management of renewable
resources that have a variable nature; for instance, wind and solar energy.


10
According to Ackermann et al. Ackermann, T., G. Andersson, et al. (2001). "Distributed generation: A
definition." Electric Power Systems Research 57(3): 195-204., demand-side resources are resources such as
load management systems, which provide energy efficiency options (i.e., to reduce peak electricity demand),
and are not only based on local generation within the electrical system on the customers side of the meter,
but also on means that reduce overall demand. Examples of demand-side resources are smart meters, heat
storage, load limiters, programmable thermostats, etc.


25
The previously described technologies, which are physical and economic facilitators, come
with the need of an ICT infrastructure for its integration. For instance, the additional
control that may be provided by advanced power electronics is useful, only if there is
sufficient information to develop additional functionalities. Energy storage can be
beneficial to the system only if its capabilities are used accordingly to production and
demand needs. Finally, forecasts may improve the planning in the system only if they are
communicated timely and to the correct actors.

For this reason, Information and Communications Technologies are very important,
even though they indirectly support the energy and monetary flow, by supporting the
information flow. ICT create the means for more complicated transactions and interactions
between elements in the system. Wired and wireless technologies provide means for more
innovative applications. Clearly Power Line Communications (PLC) is broadly
contemplated both for the internal communications of the active system, and for providing
additional services, like internet access. In the field of software structures, agent-based
technology provides an option to develop local intelligence and decentralized architectures.

4.3. AS-IS Situation: The Passive Distribution Network

This AS-IS situation is the third element to be analyzed
11
. The electricity infrastructure lived
a period of relative stability before policy measures for sustainable energy and liberalisation
were pursued. This period of stability favoured the evolution of the electricity industry as
we conceived it for a long time: large, integrated utilities in charge of generation, transport
and commercialising energy. That is, in the AS-IS situation, the electricity value chain was
completely integrated into one utility, and the transmission and distribution networks had a
coordinated operation with all the other segments in the value chain.

Following the technical and economic approach (section 3.2) the subsections 4.3.1 and
4.3.2 describe the sub-systems of the AS-IS network. These physical and technical
subsystems are intended to facilitate the physical and monetary flows in the value chain. As
described in previous sections, an information flow appears as an auxiliary flow. The
information in the AS-IS network is described in section 4.3.3

4.3.1. Physical Sub-System of the AS-IS Network

Until now, electricity networks are conceived as the infrastructure that moves electricity
from the generation points to the consumers. Due to economics of scale electricity
generation is performed habitually in large centralized plants. From these places, the
generated electricity needs to be transferred in HV over long distances to HV substations,
making use of high voltages and via overhead lines (as it results more economical and
minimise transport losses); this is called electricity transmission. The transmission grid is
web-like, and is densely connected to achieve redundancy for a high reliability.

From the high voltage substations, electricity is transferred to main distribution substations.
The DN at its interface with the transmission grid has an open web or loop structure.
Here, transmission lines feed the main distribution sub-stations, which step down the
voltage to MV levels. From these sub-stations, the electricity distribution has (or
operates as) a radial structure in which further voltage conversions are done in secondary

11
Probably a more-appropriate name is AS-WAS situation. However, the AS-IS only corresponds to a
reference situation to visualize the intended changes. For this reason, a useful baseline is the passive,
integrated electricity distribution network.

26
substations and LV substations, until the voltages to be supplied to final consumers are
reached. The specific voltages in the DN vary depending on each country (Gomez-
Exposito 2009).

Figure 8 is based on the one presented by (Gomez-Exposito 2009), and illustrates the
previously described electricity networks.


Figure 8: The Electricity System (Gomez-Exposito 2009)

In the Netherlands, the transmission network is defined as comprising the lines of 110 kV
or higher, while the distribution network comprises all the other voltages under this value.
For this thesis, the definition of different voltage levels is presented in the next table:

Transmission National high-voltage network: networks intended to transmit
electricity at a voltage of 220 kV or higher and that are operated as such,
and also cross-border connections with a voltage of 500 kV or higher
Transmission High-voltage network: networks intended to transmit electricity at a
voltage of 110 kV or higher, but lower than 220 kV and that are operated
as such
Distribution Medium-voltage network: networks intended to transmit electricity at a
voltage of 1 kV or higher, but lower than 110 kV and that are operated as
such
Distribution Low-voltage network: networks intended to transmit electricity at a
voltage lower than 1 kV and that are operated as such.

4.3.1.1. Passive Elements in the Distribution Network


27
In broad terms, electricity networks are constituted by conductors (cables) and other line
equipment. When the conductors are installed in overhead lines, the system also includes
supports and insulators. Also, the conductors can be vested in an underground
construction, where protective coverings for the conductors, ducts and markers are also
installed.

The transmission of electricity is mostly carried out using overhead lines. This requires the
construction of supports that may be towers, poles, or other, which have cross arms and
pole pins to support and separate the conductors. Insulators are non-conductive elements
that isolate the conductors form each other as well as from the pole or tower. Other
smaller elements for refined technical functions like tie wires and connectors are also
present.

Mainly, distribution of electricity is made through underground construction, in which
conductors are buried in the ground. This is more expensive and more difficult to maintain
than conventional overhead lines, but improvements in construction practices have made it
economically possible for urban areas.

In addition to conductor elements and its associated infrastructure, line equipment is
necessary to enable transmission and distribution of electricity. This line equipment
comprises transformers, which perform the step down of voltages, and other elements like
fuses, arresters, voltage regulators, capacitors, switches, and reclosers.

4.3.1.2. Automation Systems

In the AS-IS network, the main objective is to facilitate a reliable supply of energy to the
consumers. For this purpose, in addition to the passive elements, there is a need for
automation systems for managing, controlling and protecting the network.

Automation systems constitute the intelligence of the AS-IS electricity network, and the
information to be handled is mainly intended for this system. This will be further explained
the section 4.3.3, Information in the AS-IS Network, but before that, is important to
understand the functionality and the physical structure of these systems.

At this point, it is important to remark that automation systems constitute the present
intelligence
12
of the AS-IS electricity network. By now, this system is primarily installed in
the transmission network, reaching only the higher voltage parts of the distribution
network.

At the lower voltage consumer end very little intelligence is currently present; however, it is
fair to state that the advent of decentralize generation is cascading down the intelligence
towards the consumer ends. For example, the recent connection of CHP and wind energy
in the MV, requires automation of the system at that level of the DN. Decentralized
generation and other electric loads connected in the LV DN (for instance, the inclusion of
micro-grids, and electric cars) will require further deployment of intelligence at this level
in the DN. This phenomenon, the change in information requirements in the DN, is
precisely the subject of this MSc thesis.

12
Intelligence in this context refers to the capacity of the network to perform informed decisions de Boo,
R. (2008). The Dutch Electricity Sector. Research Assignment. Delft, EWI, Delft University of
Technology. In this particular case of intelligence is interpreted as the functions performed by the
automation systems.

28

Functional Description of the Automation System

According to Strauss (Strauss 2003), the electricity system automation is formed by the
following components: electrical protection, control, measurement, monitoring, and data
communications. The next Figure 9 is based on the representation of this author of the
functional structure of the electricity system automation.


Figure 9: The elements o fan automation system (Strauss 2003)

Strauss (2003), explains the functions of the automation systems as follows. The electrical
protection objective is to look after the personnel and equipment, and to limit the damage
in case of an electrical fault. The control component includes local and remote operation,
and is related to switching operations, bay interlocking, and synchronizing checks. Local
control refers to actions that a device can logically take by itself; remote control is closely
related to the SCADA (Supervisory control and data acquisition) system functions. The
measurement component consists on collecting electrical (voltage, currents, power
factors, etc), analogue (transformer and motors temperatures), and disturbance recordings
in order to make network studies. These measurements provide real-time information, that
is used for the central control, and that is stored in a central database. The monitoring
component consists of collecting information like sequence-of-event recordings, status and
condition of the system including maintenance information, to assist in fault analysis and
therefore improve the efficiency of the electricity system. Finally, the data
communication component is the core of the automation system, as it provides the
means for the other components to function, and to interoperate.

Physical Description of the Automation System

According to Strauss (Strauss 2003) a common basic structure of todays automation
system (installed in a previously unified electricity network comprising transmission and
distribution) is composed by a SCADA system, a communications network, and an object
division. This is represented in the Figure 10 below.

The SCADA system consists on at least one master station, and is the central
control of the automation system, as it receives information from the remote
devices, processes it, and makes decisions;
The communication network provides the channels to ensure that the information
exchanged between different devices arrives in a timely, effectively and error-free
way;
The object division is the input/output part, and the local intelligence. It is
localized in the substations, and therefore, provide remote access to it. We can say
that the object division comprises two parts: 1) the process level, which is formed
by current transformers, voltage transformers, different transducers, etc, and 2) the

29
bay level, which is the local intelligence formed by intelligent electronic devices
(IEDs), microprocessor based relays, remote terminal units (RTUs), and
programmable logic controllers (PLC).


Figure 10: Strauss Basic architecture of the electricity system automation

In general SCADA master stations are installed only in large generation or high-voltage
transmission substations, while smaller distribution substations will only justify a shared
SCADA master. In the latter case, only a SCADA interface is part of the substation control
and automation system. This is exemplified in the next Figure 11:

Figure 11: Representation of the AS-IS Automation System

4.3.2. Economic Sub-System of the AS-IS Network

The AS-IS situation corresponds to an electricity system vertically integrated, where all the
functions are performed by one utility. In this situation, transmission and distribution work
jointly, and they do not need to facilitate competitive activities in the adjacent segments, as
no market mechanisms are introduced in the system. With this, there is any tension

30
between regulated and competitive segments, and the approach is to remunerate the
Distribution System Operator (DSO) is with cost of service or rate of return regulation,
based on actual audited distribution costs (Cossent, Gomez et al. 2009).

Following this reasoning, we can say that in the AS-IS situation, the electricity networks do
not individually support any economic sub-system.

4.3.3. Information in the AS-IS Network

In the AS-IS (distribution) network only physical functions are performed, and the
coordination between segments in the value chain is not necessary because all is operated
as a single unit. In these conditions, the most critical functions
13
are performed by the
automation system, and the information flows important to recognize are the ones related
to this system.

From the functional description of the automation system, we can observe that the
monitoring and measurement components are the sources of information; the control and
electrical protection process this information and operate in consequence of it; the data-
communications component provides the means for information flow. Indeed, the type of
information from the monitoring, measurement, control and electrical protection, will
dictate the necessary structure to deploy the data communications component. For
instance, the communication links, the technology used, etc. depends on the type of
information to be managed. In the case of the AS-IS network, protection of local elements
requires real-time communication in case of a fault, and the response action also should be
communicated as fast as possible; therefore, the adequate infrastructure to support this
information is a dedicated link for signals transmission.

In the AS-IS system, the rules and codes of this information, only depends on the needs
imposed by the physical infrastructure. That is, the standards and codes for the automation
systems are designed based on the needs of the physical sub-system.

4.4. TO-BE Situation: The Active Distribution Network

The TO-BE situation is the fourth element to be analyzed to construct an Information-
Architecture. Environmental concerns, structural changes in the electricity system, and
renewal of network assets are some of the motivations for devising a different electricity
network. In response, several visions have been formulated about the possible futures; we
take one of these visions to conceptualize the TO-BE DN
14
.

The objective of this section is to explain several visions formulated around the future
electricity networks. First, we explain the notion of a smart grid as a generalized notion
existent for the whole sector. Then, we focus on the DN, and we describe three visions. At
the end, we chose one of these visions to form the TO-BE situation for this thesis. This
vision is the active network situation, and we explain more in depth the physical and
economic elements included on it.

4.4.1. The Concept of a Smart Grid


13
The concept of a critical function is provided in the section 5.3.2
14
The TO-BE situation is only a possible situation. This description is not a forecast of the future, but a
target visualization of the network that is useful to construct an information-architecture

31
It is a widespread vision for the electricity networks to become smarter. For instance, in
Europe the approach to this idea is the development of the SmartGrid concept; in US
the approach is named GridWise (Coll-Mayor, Paget et al. 2007).

As a working definition to use in this thesis, we use the definition of a Smart Grid provided
by the Advisory Council of the SmartGrid European Technology Platform
(Advisory_Council 2008) as an electricity network that can intelligently integrate the
actions of all users connected to it- generators, consumers and those that do both- in order
to efficiently deliver sustainable, economic and secure electricity supplies. In this
definition, still the notion of intelligent is not clarified. We use the idea of intelligent
provided by de Boo(2008) as making informed decisions.

The notion of intelligence (used indifferently from smart or wise) also comprises
the inclusion of innovative products and services together with monitoring, control,
communication, and self-healing technologies to facilitate the connection of all types of
generators, to allow consumers to participate in the optimization of the operation of the
system, to provide more information and a choice of supply for the customers, to reduce
the environmental impact, and to enhance the reliability and security of supply levels
(Advisory_Council 2008).

4.4.2. The Visions of a Smart Distribution Network

The additional integration of intelligence on the grid is especially desirable on the
distribution segment, because it is there where less automation infrastructure is developed,
and where more potential changes will take place. For instance, the Advisory Council for
European Commission, in its Strategic Deployment Document for SmartGrids
(Advisory_Council 2008)has considered six priorities; the only segment contemplated in all
of them is the DN.

Because of the important role of DN, three conceptual models of a smart future have
been developed around it: Microgrids, Active Network Supported by ICT, and the Internet
Model (European_Communities 1995-2009).

The first model is the Microgrid. A microgrid is a small-scale power supply that is
designed for a small community; for instance, a housing estate, isolated rural communities,
universities, commercial areas, etc (Abu-Sharkh, Arnold et al. 2006). This concept assumes
a cluster of electrical and thermal loads together with small scale sources of electrical power
and heat (Lasseter 2002). The microgrid is responsible for serving its consumers, and it can
possibly control non-critical loads. Besides, the connection between these locally
constrained networks and the electrical power network is through a well defined and
controlled interface. These characteristics make a microgrid to act as a well behaved load or
generator (Abu-Sharkh, Arnold et al. 2006).

The second model is the Active Network. Active Networks are envisaged as the possible
evolution of current passive distribution networks into one using active management for its
operation. Active Management means real time control and management of Distributed
Generation units and distribution network devices based on real time measurements of
primary system parameters (voltage and current) (Currie, Ault et al. 2004). Also McDonald
(2008) explains that active network management contrasts with the straightforward
connection of distributed generation, and instead aims to integrate it with higher control

32
and coordination for the entire power system operation. He also recognizes active
management to make use of other distributed resources to relieve network constraints.

The third model is the Internet Model. This model extends the concept of an active
network to a global scale but distributes the control around the system. In this view, the
energy could flow from suppliers to customers like data packets do in the Internet
(Tsoukalas and Gao 2008). In this context, like in the internet, the flow of information uses
the concept of distributed control where each node (element) acts autonomously under a
global protocol. As an analogy, in the electricity system every supply point, consumer, and
switching facility corresponds to a node in the network (European_Communities 1995-
2009).

We can see that the three previous models differ on their spatial and time scope. In
terms of spatial scope, Microgrids are conceptualized for small areas independently form
the transmission and DN; Active Networks are conceptualized as an evolution of
nowadays distribution infrastructure; the Internet Model is a joint evolution of
transmission and distribution networks. In terms of the time scope, Microgrids and
Active Networks are visualized in a closer future than the Internet Model. In that sense,
Active Networks and Microgrids might be complementary parts of a near future smart
grid. On the other hand, the Internet Model is a more futuristic view that does not
necessarily come from the evolution of the two previously mentioned models.

The Advisory Council for the European Commission (Advisory_Council 2008) recognizes
the deployment of Active Distribution Networks as a priority in their Strategic Plan for the
Europes Electricity Networks of the Future in a timeline from 2010-2020.

4.4.3. The Active Network

The active term appears in opposition to the traditional conceptualization of a passive
network, in which the power flow is unidirectional from the HV to the LV. The active
nature of the network also contrasts to the so-called fit and forget policy, that consists on
using the former methods to operate the network irrespective if distributed resources are
connected or not. There are some reasons that motivate an active network.

The first reason is to react to the large penetration of DG. McDonald (2008) defends the
relevance of active management methods in the integration of DG, saying that with them
DNs can accommodate about three times more DG connections than equivalent networks
without active management (In this case McDonald refers to DG connected in both MV
and LV). In the section 4.1.1 we explained that some degree of active management is
already present in the MV DN; but it is likely that this intelligence is spread closer to the
end-user if small DG increases its presence in the networks.

The second reason is related to investment in network assets. It would be likely that
network elements need to be reinforced in order to accommodate higher and different
electricity flows. If active management is functioning optimally, the required investments
for upgrading the network may be reduced, because electricity could be administrated in a
way that energy production is closer to the consumers. Moreover, local generation may
support the local network at times of stress on the main grid.


33
The third reason is to allow for new functionalities that may make the demand side more
participative (demand side management), and overall energy distribution more efficient
causing energy savings.

In addition to these three reasons, there are other less generic motivations for having an
active network: the emergence of intelligent building services in both residential and
commercial premises, and to anticipate on wide usage of electrical transportation vehicles
(Advisory_Council 2008). Nonetheless, is out of the scope of this thesis to address these
topics.

For the purposes of this thesis, we will consider the concept of Active Network as the TO-
BE situation of the DN. In the TO-BE DN, we can still recognize the three main flows in
the value chain: physical, monetary and information flows. However, the information flow
in the TO-BE DN acquires higher importance than in the AS-IS situation, given that both
physical and economic sub-systems become more complex. In the next sections, we
describe the physical sub-system, the economic sub-system, and the information flows as
consequences of this new structure.

Although in the common visions about the active network, the issue of unbundling is not
related, in this thesis, the TO-BE situation includes this condition.

4.4.4. Physical Sub-system of the TO-BE DN

The European Communities website, McDonald, and Currie, Ault et al.
(European_Communities 1995-2009; Currie, Ault et al. 2004; McDonald 2008) coincides
on some desired characteristics for the DN.

Different grid design: An Active Network requires novel grid designs; it would
have increased interconnections, opposed to the current mostly linear or radial
structure of the current DN. One important aspect to consider is the bi-directional
nature of the active network design.
More measurement, control and communication facilities: Different
communication technologies might have to be included in order to fulfill different
types of functions. The inclusion of sensor elements and communication links
facilitates to monitor the state of the system, and must be in agreement with the
communication technology used.
More control and management of different elements on the network: Power
flow management, voltage control, power quality management, load management,
demand side management, and fault level control.
Management of different interfaces: Different types of generators (synchronous,
asynchronous, dc) will be connected in the DN; therefore, the management of their
interfaces should be established. Note that all DG will have local interfaces that will
allow adaptation to the AC 50/60 Hz nature of the DN.
Higher protection mechanisms: Faster protection mechanisms and automatic
reconfiguration is necessary to avoid high fault levels and domino effects (the self
healing concept). These mechanisms require handling and processing real-time data
and pervasive communication systems, and even to include network simulation for
fast decisions (the real-time data gathering will require SCADA).
Coordination and interaction over a wider area: The Active Network should be
able to negotiate with neighboring areas for power exchange, it should be

34
coordinated between local control centers, and it should allow for higher
interaction with the customer.
Capability to cope with islanding operation. The Active Network should allow
for the safe operation of the DN in an isolated mode (disconnected from the
transmission grid)

The Advisory Council for the European Commission (Advisory_Council 2008) describes a
typical active distribution networks structure, in which three layers can be recognized: 1)
copper-based energy infrastructure, which is the actual energy grids that must be adapted 2)
a communications layer, that should be implemented above the energy layer in order to
facilitate overall connectivity of elements 3) a software layer that would add new
functionalities and coordinated execution of operations.

The Advisory council also provides a conceptualization of the infrastructure of an Active
Network. This is represented in the figure above. In this figure, we can distinguish two new
aspects regarding the information and communication systems, in general terms:

The automation systems are extended to the edges of the DN, in order to provide
support for the transient operational control. That is, a SCADA-type system is
deployed towards the LV DN. This is represented in the left part of Figure 12, and
it is represented in a more detailed way in the Figure 13
New applications need an additional ICT infrastructure, and this depends on the
speed required for the information flow. For instance governance systems can be
added, and be IP-based. This is represented in the right part of Figure 12.


Figure 12: Structure of an Active Network. Modified from (Advisory_Council 2008)


35

Figure 13: Representation of the Automation System in the TO-BE DN. The elements are extended
towards the low voltage network

It is out of the scope of this research to analyze how the information is structured within
the elements connected to the DN; for instance, a microgrid can be considered a load
connected to the DN and we will not explain the IA within it. Besides, from the broad
range of demand side resources, only the Smart Meter will be considered as being part of
the active management system of this network. Demand-side management and self-healing
mechanisms will not be included in our visualization of the active network, even though
their importance is not neglected. It is suggested that these concepts are taken into account
in further research.

4.4.5. Economic Sub-system of the TO-BE DN

In the TO-BE DN not only the physical sub-system has to be adapted to the entrance of
DG and to an unbundled environment, but also the economic sub-system needs to be
adjusted.

In the TO-BE situation, economic transactions are introduced for the overall functioning
of the system and the institutional design in a liberalized market become more complex
(see section 3.2). In this new situation, the role of DSO is to facilitate commercial activities
of the segments linked to it: it needs to favor DG entrance in a way that is beneficial for
the entire system and at the same time work under the institutional arrangements framed
by the unbundled environment.


36
Still, the DN has characteristics of a natural monopoly, and therefore, the DSO should
remain as a regulated entity. However, to act as a market facilitator, the DSO requires an
adjustment of its business philosophy from a passive to an active one, in its business
activities are expanded.

Active management is the tool that the DSO may use to increment its business activities.
For instance, several studies confirm that DG has capabilities to provide additional
network services (two examples of are added in Appendix VI). The DSO may use these
capabilities to improve the economic performance of its business.

Technologies for small DG have a good potential to provide different services. Micro CHP
in high penetrations is able to provide reserve services and network support. Solar PV also
can contribute to provision of reserve, and to provide reactive power in the network
(Degner, Schmid et al. 2006).

Van Werven and Scheepers (2005) suggest that a DSO, in presence of DG, can develop
active management to provide additional reliability, system information, local balancing,
storage, and congestion management. These additional services would bring extra revenue
streams necessary to sustain the DSO business
15
. The diagram developed by these authors
representing the revenue and expenses stream in the DSO is in Appendix VII.

In this change on the economic activities of the DSO, it is worthy to remark the
significance of adequate regulation. Regulation has to incentivize the DSO to increase
efficiency, to maintain a good quality of service, to innovate, and to favor competition
providing a non-discriminatory network access and use. For this, regulation should
contemplate a correct remuneration for the DSO, and to ensure a compatible business
model that does not conflict with the other segments of the value chain. Particularly, the
DSO should receive enough incentives to adopt active management in its operations.

In our case, it is important that to avoid conflicts between DG and DSO. The goals
determined for the DN (to allow non-discriminatory access) and its financial performance
(having more expenses for the inclusion of DG) may contradict, and here, the institutional
design is decisive to solve these conflicts.

In conclusion, the adherence of economic activities produces a need of increasing the
functions and services provided by the DSO. The role of regulation is fundamental for the
correct inclusion of DG, and for the correct compensation of the DN activities.
Institutional arrangements should be adequate to solve the conflict between the regulated
nature of the DN and the competitive nature of the production segment DG.

4.4.6. Information in the TO-BE DN

Both DG and ownership unbundling bring more transactions into the system, and
therefore, they call for more intelligence to manage the network. As a result, information
becomes more important in the TO-BE situation than in the AS-IS situation.

Differently form the case of the AS-IS DN, in addition to the technical functions to
preserve the flow of electricity, the TO-BE DN needs also to support the economic

15
It is, however, questionable if the proposed business model by van Werven and Shceepers (2007) are in
opposition with the strong public utility characteristics of the networks in the Netherlands by Knneke, R.
and T. Fens (2007).

37
transactions brought with the inclusion of market mechanisms. The DN is a regulated
entity but it needs to adequately cope with its adjacent competitive segments. For this
reason, in addition to the traditionally technical functions performed in the AS-IS situation,
the TO-BE DN adds some economic functions (or economic-supporting functions). An
important characteristic in the TO-BE situation is that information should support a higher
number of functions.

A second characteristic in the TO-BE situation is that the inclusion of DG pushes for
more intelligence at the customer end of the network. Automation systems, previously
developed in the transmission network up to the main distribution substations, are likely to
reach the low voltage network. The reason is not only to extend the protection
mechanisms, but to control the elements connected to the network to operate in a more
economic efficient way. Other source of data expected to be installed near the customer is
the Smart Meter, which is clearly an important element in the development of an active
network. This device is able to provide disaggregated information that can be processed to
achieve an active management.

A third characteristic is that the availability of data sources should agree with the presence
of physical and monetary flows, in order to track them. In the AS-IS situation, the
customer is out of the utility, and there is only need of data in an aggregated way. In the
TO-BE situation, the customer becomes somehow part of the utility, and therefore, is
imperative to keep track of specific production/consumption generated on it. This brings
two consequences: the extension of data sources towards the customer
16
, and higher degree
of detail
17
in the data managed.

The information in the TO-BE network is indeed the core part of this thesis. In the
following chapter, this subject will be further developed.

4.5. Conclusions

What are the design requirements imposed by distributed generation for an IA of the electricity distribution
networks?

The design requirements for an IA are deducted under the assumption that the objective is
to represent the information characteristics in a DN that appropriately accommodate DG.

First of all, information should support both physical and economic flows generated by
DG inclusion into the system. Landsbergen (2009) explains that up to approximately 75%
of small DG penetration, there isnt any major technical impact in the network. So, in
principle, for the physical integration, any relevant change in the automation system
infrastructure needs to be done. However, in the economic integration, it is desirable that
DG participates in different markets, and favors a more efficient electricity use for the
overall system. For these activities, information systems do require to be developed.

A second requirement for an IA is that it should allow for a flexible and expandable design.
DG presents economies of geographic concentration, which makes attractive more

16
This is clearly exemplified by the Smart Meter concept, where the production of valuable data is situated in
the customer end of the network.
17
For instance, before, the measurement of energy could be done in a monthly basis, and for some
functions, only regional aggregated indicators were enough. In the TO-BE situation, customer id,
location, time, are important information.

38
installation of DG in the same area, but the process may be gradual. In this sense, the IA
should consider that different levels of DG have different effects; in broad terms, the
higher the levels of DG, the higher the complexity of the information systems that needs
to be integrated.

A third requirement that the IA should consider, especially for the case of a large amount
of DG in one area, is the extension of intelligence towards the edge of the network, and,
the resultant inclusion of new elements at this level. This intelligence comprises the
development of all the areas of the nowadays automation system: control, protection,
monitoring, measurement and communications.
Protection and control: To prevent network stability and unintentional islanding (in
case of large amounts of DG)
Control: For providing ancillary services and participate in balancing markets.
Measurement: For having specific information of the physical state of the DG
installation (i.e. with transducers), for having detailed information of energy
produced/consumed at different times (i.e. with Smart Meter), and for
understanding the interaction with other infrastructures (i.e. with a Smart Meter).
Monitoring and control: to concentrate and interpret the measurements performed,
and to provide governance to the system.
Communications: to establish adequate links to support different types of
transactions; for instance, real-time communications technology for protection
functions and near-real time for economic functions.

A fourth requirement for the IA is that it should contemplate the already existent
infrastructure. The (new) infrastructure supporting economic transactions and the
(previous) one supporting physical transactions should have a coherent interconnection:
the information effects that economic transactions have on the physical sub-system should
be clearly depicted.

Finally, it is important to re-state the importance of policies in the development of large
DG. The IA needs to be designed not only based on physical and economic functionalities,
but also on the institutional agreements around DG. For instance, as policies and
regulation are determinant for the behavior of the DSO, the information exchange between
actors from legal institutions is important to be considered in the architecture.

What are the design requirements imposed by ownership unbundling for an IA of the electricity distribution
network?

Unbundling imposes challenges for the operation of a previously unified entity. The
coordination achieved in the AS-IS situation by a common management, is achieved by
ICT systems in the TO-BE situation. For instance, in the expected business model of an
active DSO, more information need to be exchanged between DSO-DG Operator, DSO-
TSO, DSO-Retailer, and DSO-Customer. Therefore, the first requirement for an IA is to
be comprehensive; that is, it should cover all the relevant segments to which the DN has
physical or economic connections.

Besides, to meet proper coordination, ICT systems should be compatible among the
relevant actors. For instance, metering systems should provide information in a format that
different actors can process and interpret. In other words, interoperability of the systems
deployed by the DSO with the information sources provided by DG, customers, retailers
and TSO should be guaranteed.

39

Moreover, in an unbundled environment, each actor has an independent planning, and
information can help in the compatibility of this planning. For this, information should be
consistent for all the actors.

On the other hand, unbundling is considered beneficial for the electricity sector in the
Netherlands, because it favors the proper operation of competitive segments under a
commodity model and the operation of networks under a public utility model
(Knneke and Fens 2007). Even with this separation, it is expected that the DSO needs to
incorporate more functions to cope with the competitive environment that surrounds it.
To be able to develop more functionalities, the DSO needs more detailed information
regarding energy consumption and production, which by now, is only available in an
aggregated level in terms of time and location. More detailed information of the end part of
the network is needed.

Ownership unbundling also implies that in addition to the required information for its own
functions, each segment in the value chain will need to share information with other actors
to have adequate visibility of the overall system. In our specific case, there should be a
proper differentiation between the information used internally by DSO, and the one that
may be shared with other actors, because the DSO may handle sensitive information for
the market functioning. For instance, rules for access, and use of metering information
should be designed in a way that do not interfere with the proper market functioning.

Lastly, unbundling it is believed to provide economic-efficiency to the system. However, if
the installation of the ICT systems necessary to operate in an unbundled environment is
very expensive, the benefits of unbundling may be covered. The IA should be design in a
way that facilitates a cost-effective deployment of the ICT systems. In general, simplicity is
a consequent desirable characteristic.

40
Chapter 5. Design of the IA for the Distribution Network


This chapter is the second part of the analysis phase of this thesis. In chapter 4, we
explained four elements needed to understand the problem under study: the context
(distributed generation DG and ownership unbundling), the enabling technologies (Smart
meter), the AS-IS distribution network (DN), and the TO-BE DN. This chapter uses the
elements developed in the previous chapter to give a concrete example on how IA may be
depicted. Thus, the main question to solve in this chapter is how can an IA for the electricity
distribution network, which fulfills the design requirements imposed by distributed generation and ownership
unbundling, be designed?

To solve this question, we employ TOGAF/ADM development cycle introduced in
Chapter 2. Accordingly, this chapter is divided in 4 sections, which correspond to the first
four phases of the ADM development cycle. In section 5.1, we describe a preliminary
phase, which aims to provide a description on how the architectural work for the DN
would be done. In section 5.2, we address phase A the Architecture Vision, which is
intended to define the scope, clarify the vision, and to identify the stakeholders. In section
5.3, phase B Business Architecture, we give insights on the baseline and the target
business organization, functions, and information. Finally, in section 5.4, we describe
phase C Information Systems Architecture, where we define the necessary data, and data
sources to support business functions.

5.1. Preliminary Phase

The preliminary phase of the TOGAF/ADM is intended to prepare the enterprise for a
successful architectural work
18
, which is the design of an information-architecture. The
main objective of this phase is to delineate how this design work will be done.

Approach of the Enterprise Architecture

The concept of Enterprise Architecture, as used by TOGAF in the ADM cycle, refers to a
work made for the internal use of an enterprise in order to guide the development of their
ICT assets. Therefore, an important part of the Enterprise-Architecture construction is
devoted to connect the architectural work to the internal organization of the enterprise, in
order to ensure adequate support.

This approach is different from the one suggested in this thesis, in mainly in two aspects:
1) The TO-BE electricity utility is not one enterprise, but a collection of new
organizations that manage the unbundled functional parts of the electricity system. In
other words, the electricity system is not an enterprise, but a complete sector.
2) The design of the Information Architecture intends to contribute to the
development of a whole energy system (for instance, to the national energy system of
the Netherlands), and not necessarily to the internal deployment plans of a distribution
company.


18
In the wording of TOGAF, the architectural work is the project which objective is the design of an
enterprise-architecture. In this case, the architectural work is the design of an IA for the electricity
distribution system (see the definition and purpose of the architectural work).

41
These differences cause discrepancies on the application of ADM development cycle, and
on the scope of the architectural work. For instance, internal specific issues like resources,
approvals, sponsoring, are neglected in the following phases.

Definition and purpose of the architectural work

The architectural work consists on building an IA for an electricity distribution network
(DN). Specific assumptions used for this construction are based the case of the electricity
system in the Netherlands. The IA to be constructed is a high level representation of the
information handled by the electricity system, specifically regarding the distribution
function, which is performed by the Distribution System Operator (DSO).

The IA purpose is to represent the information needed for the adoption of active
management by the DSO. This information is the one required to adjust DSOs activities
to the ongoing process of liberalization and integration of distributed generation in the low
voltage network. Therefore, these two events determine the requirements for the
architecture.

This IA may be useful for policy makers, regulators, and distribution companies to
conceptualize the information changes due to institutional and technological
transformations in the sector.

5.2. Phase A: The Architecture Vision for the Distribution Network

This is the fist phase of the ADM cycle, and the main objective is to define a clear vision
for the architectural work to fulfill the purposes defined in the preliminary phase. In our
case, the architecture vision must mention that the scope is to develop only up to the IA
phase. Other elements of the architectural vision can be deducted from section 2.3.
Important elements to build an architecture vision are:

The business goals
In the case of the electricity industry, the goals are established in the European directives
as to achieve sustainable, secure and competitive energy
(Comission_for_the_European_Communities 2007). Policy makers pursue these goals by
designing the structure of the institutions and rules for the industry.

In the case of the DSO, business goals are imposed directly by policy makers, and
preserved by regulators, as the distribution activity follows the public utility model.
Therefore, the most important goals for the DSO include guaranteeing security of supply,
to maintain a good quality of service, to innovate, and to favor competition by providing a
non-discriminatory network access and use.

The strategic drivers
It is assumed that to achieve the energy policy goals established, ownership unbundling and
large entrance of distributed generation are desirable events, and drivers for change of the
overall system. The main strategic driver of change for the DSO is the need to cope with
these two events.

The principles
These are general rules and guidelines that support the way in which an organization sets
about fulfilling its mission(TOGAF 2009). In the case of the electricity networks, the

42
general rules and guidelines are dictated by the national regulation; therefore, legal
institutions establish how the operation of the DN should be.

Stakeholders: There are the entities with some interest in the development of an IA for
the TO-BE DN. In the strategic development plan for the smart grids (Advisory_Council
2008), for instance, the stakeholders are defined as the prime movers who must make
happen the deployment of active networks. They are the end users and communities
becoming producers and service providers, DSOs and their associations, research
institutions and universities, industry in general (with emphasis on power systems
components industry, which design the enabling technologies for making the active
network feasible).

5.3. Phase B: The Business Architecture of the Distribution Network

The construction of a Business Architecture is the second phase of the ADM cycle. This
phase consists on describing the DSO business, which is embedded on the electricity
utility.

The business architecture includes baseline (AS-IS) and target (TO-BE) organizational,
functional, process, information, and geographic aspects of the electricity system, with
focus on the distribution function. The description provided in Chapter 3 (Overview of the
electricity system) and in sections 4.3 (AS-IS situation) and 4.4 (TO-BE situation) are useful
to define the business architecture.

In the next paragraphs, we present the entities and the functions in the DN. They form the
basic elements for the business description.

5.3.1. Entities that shape the electricity system

The entities are high-level components of the electricity system. To define an entity, it is
useful the functional approach taken in the electricity value chain representation. We can
define an entity as an actor or group of actors performing a similar function in the
electricity industry.

In section 4.3 we described the AS-IS situation of the DN, in which the whole system was
unified, and its main task was facilitating the physical flow of electricity. In this situation the
electricity utility does not integrates consumption on its operations; the customers are
receivers of the services provided by the utility. From this description we can depict the
AS-IS situation as formed by two entities: the vertically integrated utility, and the
consumers. This is illustrated in the Figure 14 below.

Function Production, Trade, Transmission, Distribution, Metering, Sales Consumption
Entity

Customer

Figure 14: Entities of the system in the AS-IS situation

In the TO-BE situation, the effects of ownership unbundling and DG appear. As described
in section 4.4 these events increase the complexity of the system, and maintaining
economic flows acquires higher importance. From this description, we can deduct that the
relevant entities are the ones composing the electricity value chain: large producers,

43
traders, TSO, DSO, metering service entities, retail companies, and consumers, plus the
DG Operator
19
.

Clearly, the main entity is the DSO, which manages and operates the DN. In the Electricity
Directive (2003/54/EC), a distribution system operator is defined as: () a natural or legal
person responsible for operating, ensuring the maintenance of and, if necessary, developing the distribution system in a
given area and, where applicable, its inter-connections with other systems and for ensuring the long term ability of the
system to meet reasonable demands for the distribution of electricity(van Werven and Scheepers 2005).

In the next figure (Figure 15), we depict the relevant entities:

Function Production Trade Transmission Distribution Metering Sales Consumption
Entity





Consumers

Figure 15: Entities in the system in the TO-BE situation

In contrast to the AS-IS situation, in the TO-BE situation the customer is more
participative in the operations of the system. We could still name a separate entity
customer, but, in this case, the customer performs both consumption and production of
electricity. To agree with the functional approach taken to define entities, we divide the
customer in two: a consumer and a DG Operator
20
. This fact makes the last entity to
be different from the others, this is the reason of representing with a different (a rounded
square) figure these entities in our illustration.

From the previous definition of entity, we can see that as all entities are physically linked,
the boundaries require to be defined by institutional arrangements. These arrangements
should also determine the interaction between entities.

By now, all our analysis contemplates only market actors. In addition to the entities
associated to the value chain functions, in section 4.5, we highlighted the role of the legal
institutions (i.e. regulator) in the TO-BE situation. Therefore, we should consider entities
from this institution in our IA construction. In addition to the regulator, Fens (Fens 2009)
recognizes the government, policy makers, regulator, and an energy data service entity as
relevant entities in his depiction of the IA for the whole sector. These four entities are also
relevant for the case of the DN.

Government: Is the authority of the country. In general terms it has the power to
make and enforce the law.
Policy makers: Design the policies concerning to energy to be followed within the
country.

19
DG Operator controls and aggregates the energy produced by various distributed generators. Strictly,
the operator does not generates electricity, but for simplicity, we can depict is a producer of the
aggregated energy generated by many customers.
20
As the energy produced by one consumer is very small, it is useful to have a DG Operator, who can
manage and make decisions based on information at aggregated level (as suggested by van Werven and
Shceepers van Werven, M. J. N. and M. J. J. Scheepers (2005). "The changing role of distribution system
operators in liberalised and decentralising electricity markets." Proceedings 2005 International Conference on
Future Power Systems..


44
Regulator: Is the entity that monitors the performance of the industry
Energy data service: Is a functional entity in charge of administrating the
data/information. This can be integrated with other functional entities in one
company; for instance, distribution and energy data service can be performed by
the DSO.

5.3.2. Functions in the Distribution Network

To describe the business of electricity distribution, we have to recognize its main functions.
Of special importance is to recognize the functions that are critical for safeguarding its
technical performance, in order to preserve them even in times of change.

This technical performance is expected to include reliability of the service (availability of
energy for al customers connected at every time), safety (that does not put in danger the
users and non-users of the electricity infrastructure), and security of supply (ability of
sustaining the activities in the foreseeable future) (Kunneke, Groenewegen et al. 2009).

Knneke and Groenewegen (2009) mention two important criteria to define the criticality
of the functions:

The technical scope of control. If a function is unique in the system, it is essential
for the overall functioning of the system, and any other element or mechanism
cannot replace its task, then, it can be considered as critical;
The strength of time constraints involved. The shorter and more specific the
times that a function requires to be activated, the more critical the function is.

Knneke en Groenewegen (2009) say that technology imposes critical functions and that
the benign neglect of this issue in reforms of infrastructures is reflected in misalignments of
modes of organization with the requirements of the critical technical functions. This
clearly explains the importance of recognizing the critical technical functions in the DN, as
we are foreseeing that they will suffer important transformations in the coming years.
Besides, the institutional arrangements should be aligned and support this critical functions.

Knneke and Finger (2007), identify the critical technical functions for the overall
electricity system: capacity management (divided in operational, tactical and strategic),
interconnection management, and interoperability management. The overview of
their analysis is presented in the Appendix VIII

From the description made in Chapter 4, we can conclude that in the TO-BE situation,
more functions are required by the DN. The main difference comes from the inclusion of
economic transactions supported by the DN (described in 4.4.5).

The desirability of economic-supporting functions is reflected on an interest to increase
physical infrastructure and to add more technical functions to the operation of the DSO.
For instance, one function to be performed in the TO-BE DN is to incorporate control
systems
21
. By comparing the physical sub-system in the AS-IS network and in the TO-BE
network, we can see that an expected change is the extension of automation systems
towards the end consumer. More control is not required due to the technical impact of

21
To incorporate control systems is the first additional function listed in the table. We use this function to
exemplify how the information in the previous chapter is used to deduct the functionalities in the TO-BE
situation.

45
connecting small DG (as it was explained in section 4.1.1), but is motivated by the
economic-desirability of additional services provided by DG (4.4.5), and by the DG
economics of geographic concentration (4.1.1).

Doing a similar analysis, and based on the critical technical functions for the system
defined by Knneke and Finger (2007), we developed the next table, which makes an
inventory of the functions in the AS-IS and in the TO-BE situation. In this table, criticality
is mainly determined by the strength of time constraints.

Function Description Critical
Provide Electric
Protection
To install overcurrent protection, earth fault
protection, leakage protection differential
protection, systems in the low voltage
distribution network.
YES
Perform Network Studies Analysis of the normal and emergency
operating conditions for quality of supply
reviews. These studies include: Load flow
studies to optimize the distribution network
design, calculate correct fault levels to
determine relay trigger settings, stability
studies for the system.
NO
Execute Corrective
Maintenance
Faster reconfiguration and activities to repair
an outage.
YES
Execute Preventive and
Predictive Maintenance
Applied to network equipment to reduce the
frequency of failures.
YES
Grid development and
planning
Design new connections or enlargement of
the existing ones consistent with existing
demand, estimation of future demand,
residential and industrial developments,
environmental impacts, efficiency plans,
generation facilities installed and design of
the higher voltages grid
YES
Maintain and operate the
physical interconnection
with the TSO
Maintain adequate interconnection with the
transmission network, so the service is
reliable.
YES, as
soon as
DG does
not
account
for the
overall
main
generation
means.
Develop Grid Codes for
connecting users
Suggest the technical requirements to
develop grid connection codes
YES
Metering at substations Metering of interconnection points for flow
control.
NO
Calculation of Use of
System Charges for users
Calculation of energy consumed from the
grid
YES
A
S
-
I
S

D
i
s
t
r
i
b
u
t
i
o
n

N
e
t
w
o
r
k

Calculation of Connection
Charges for users
Calculation of the connection costs for users NO
Incorporate control
systems
Integrate voltage and frequency regulation in
the distribution network
Only with
very large
entrance
of DG
Provide local disturbance
response (Balancing)
To match demand and supply energy locally,
so the need for energy transportation is
4.1.1reduced
Only with
very large
entrance
of DG

T
O
-
B
E

D
i
s
t
r
i
b
u
t
i
o
n

N
e
t
w
o
r
k

Provide Reserve Services Develop the necessary infrastructure to allow Only with

46
for TSO DG (mCHP) providing reserve services for
the TSO
very large
entrance
of DG
Provide ancillary services
(locally or to the TSO)
Develop the infrastructure so DG can
provide compensation for power losses,
frequency control, voltage support, reactive
power, black start.
Only with
very large
entrance
of DG
Provide system
information services
Provide information about the system to DG
Operators and suppliers that is valuable to
improve their operations (i.e. flows in the
network, demand, etc)
NO
Calculation of Use of
System Charges for DG
Calculation of energy injected in the grid NO
Calculation of Connection
Charges for DG
Calculation of connection and
reinforcements needed
NO
Additional Reliability Providing extra reliability to customers with
special needs; for instance, companies in ICT
sector
NO
Planning for new DG Participate in the regulation for Distributed
Generation installation, by communicating
the location and characteristics for these
generators that result optimal for the system,
especially for reducing necessary investments
on the grid.
NO
Maintain interconnection
within the DSO
Design and maintain adequate
interconnection within the distribution
network, so the DG can import energy into
the grid, and this energy can be consumed
locally or exported to the transmission
network. Also to develop adequate
connection/disconnection mechanisms in
case of intentional islanding operation
YES, as
soon as
DG does
not
account
for the
overall
main
generation
means.
Administrate ICT systems
for communicating with
different actors
Administrate the dedicated communication
networks with retailers, consumers, TSO,
metering companies, etc.
YES
Develop Grid Codes for
Distributed Generation
Connected to the low
voltage network
Grid codes specifying type, capacity and
general characteristics of the DG connected.
Also specify technical requirements for
providing local ancillary services; for
instance, automatic voltage regulator,
resynchronization facilities, communication
facilities, etc.
Only with
very large
entrance
of DG
Administrate access to
information systems
Access of detailed information regarding
energy flows, DG production and
consumption
NO
Metering load Monitoring data regarding consumption NO
Metering production of
DG
Monitoring data regarding DG production NO
Figure 16: Functions of the Distribution Network in the AS-IS and in the TO-BE situation

5.4. Phase C: The Information Systems Architecture

The third phase in ADM cycle is Phase C, Information Systems Architecture. This phase
is divided in two: Information-Architecture, and Applications-Architecture. These
architectures analyze functions requiring the support of ICT systems. The main objective
this thesis is to explain the information-architecture; however, some general ideas will be
added to contribute to the Applications Architecture.

47

5.4.1. Information Architecture

The objective of the IA is to define major types and sources of data necessary to support
the business(TOGAF 2009). For this, section 4.2 (enabling technologies), and the
elements and functions defined in section 5.3 (phase B, business architecture) are used.

5.4.1.1. Principles

In the phase A Architecture Vision, some general principles governing the DSO
activities are clarified. For the Information-Architecture, these specific principles should
provide guidance on the use and deployment of all ICT resources and assets across the
enterprise. Here, requirements imposed by DG and ownership unbundling can be applied.

Restating some of the conclusions drawn in the last chapter, we can say that the
Information-Architecture, to cope with DG, should be flexible, expandable, should provide
a connection between physical and economic transactions to conciliate some undesirable
discrepancies. In an unbundled environment, the design should be comprehensive for the
relevant actors, should facilitate interoperability, and should promote information
consistency. It should give more detailed information for the DSO to understand the
behavior of production and consumption, should differentiate the information for internal
use and the one adequate to be released to market actors, and should favor a cost-effective
implementation.

5.4.1.2. Relevant Entities for the Distribution Function

The next elements are the ones to which the DSO exchanges information:

TSO: Manages the transmission network and operates the system for proper match
between generation and load. DN and transmission networks are physically
connected, and therefore is imperative their coordination. In the TO-BE situation,
they need communication for local balancing, ancillary services, and use-of-system
charges functions.
Consumer: It is physically connected to the DN, and its functions are to consume
electricity from the system, and from its own production of energy. The consumer
interacts with the DG Operator, the retailer, with other service providers, and with
the government (Fens 2009).
DG Operator: We consider DG as the one physically connected to the LV DN;
therefore, in the TO-BE situation, each consumer is also a producer of energy.
These DGs are aggregated and coordinated by an additional actor, the DG
Operator, because in this scheme they can provide different services like exporting
electricity back to the grid, and participating in a market under a VPP scheme.
There are different possibilities for vertical integration between this DG Operator
and other entities, but for the purpose of illustrating information flows, we
consider DG Operator as a separate entity that only produces energy.
Retailer: Is the entity in charge of buying energy in the wholesale market and
selling it to the customers. It can also provide additional services, and can be
integrated with other functional entities.
Metering Services Entity: Metering consists of measuring energy at certain points
in the system. Depending on the location of these points, metering generates data
that is owned by different users: In-feed meters are located at production sites, and

48
can be assigned to producers; interconnection-meters are located in the DN for
energy flow control, and generate data for the DSO; usage meters are located at the
end customer site, and the data is owned by retail units. In the DG scheme at LV
level, the Smart-Meter can be considered as both in-feed meter and usage meter.
Regulator: It is an entity form the legal institution and therefore a functional
definition within the physical infrastructure is not possible. We can simplify the
more elaborated nature of this entity by saying that its function is to oversee the
performance of the other entities in the system.

5.4.1.3. Main Data Flows

In the electricity system, the information flow is a supporting flow for the physical
(electricity) and economic (monetary) flows between functional segments. For this reason,
information flows, in broader terms, represents the other main flows, and the entities
associated in the exchange of electricity and/or money. For instance, information to be
exchange includes: prices, power flows, capacity restrictions, dispatch instructions, demand
forecast, load forecasts, intermittent generation forecast, contracted energy, contracted
ancillary services, user identification data, connection identification data, etc. As we can see,
each of these types of information can be categorized as measurements of energy,
economic information, or entity-related information.

The corresponding information sources are metering systems, forecasts studies (i.e.
weather forecasts), network studies, costs from superior grid, grid utilization costs; laws (i.e.
feed-in law, subsidies), and registries (i.e. users registries, connection registries, meter
registries).

It is interesting to mention again here that another difference between the AS-IS and the
TO-BE situation is the level of detail of the data. In the TO-BE situation, the Smart Meter
allows for more detailed information at customer level. This information was obtained only
at aggregated level in the AS-IS situation. In the section 4.3.5, the exact information that
can be obtained from the Smart Meter is provided.

5.4.1.4. Changes in the Information to perform distribution functions

As a result of the technical and institutional changes, the IA between the AS-IS and the
TO-BE DN is different. Here, we illustrate these differences with one example: the
information flow to perform the function of calculation of use-of-system chargers for
users. This example 1) only illustrates the physical flow and the information flow; 2) only
takes into account the flows that are relevant for the DSO; 3) the building blocks are the
entities defined in section 5.3.1

In the next figures (Figure 17 and Figure 18), the physical flows are represented with yellow
arrows, while the information flows are represented with orange arrows. The direction of
the arrow represents the direction in which the information flows. The numbering is used
to explain the different flows, but these flows are not necessarily following that temporal
sequence; for instance, some flows may happen simultaneously.

Information in the AS-IS situation
In the AS-IS situation the overall cost to provide energy was charged to the customers in a
cost-of-service scheme. Here, there was no need to make a differentiation between energy
and transport costs for the customer. The energy was delivered to the customer (1), the

49
measurement of the energy consumed was received by the company (2), and the company
informed the customer the charge for the use of the energy system and energy
consumption (3). This can be visualized in Figure 17:


Figure 17: Information Exchange in the AS-IS situation (energy billing)

Information in the TO-BE situation

In the TO-BE situation, the electricity system is under the condition of presence of
ownership unbundling and DG. This is represented in the Figure 18 below.


Figure 18 Information exchange in the TO-BE situation (Use-of-system charges)

In this diagram we can observe that the metering services provide information about
energy flow from/to transmission network to the DSO (1a), information about energy flow
to the customers to the Retailer (1b), and information about energy injected to the DN to
the DG Operator (1c). It is assumed that DSO has also access to 1b and 1c, information
provided by smart metering at customer sites, and therefore, they can calculate the energy
consumed from the grid, and the energy generated to the grid. As a result, 1b and 1c are
useful to calculate the use-of-system charges which are different depending of the direction
of the energy flow. The use-of-system information is passed to the retailer (2), which
considers this for the overall billing for the customer (3).

Besides, from 1a the use-of-system charges regarding transmission costs can be calculated.
This information should be shared with the TSO (4).

Finally, in all this process for the final billing calculation, the regulator defines the tariffs to
be paid to the DSOs, based on the information of use-of system and other parameters like
quality of service to cover the expenses of the services provided by DSO (5).

Changes in the information
From the previous exercise, we can deduct the main information differences between the
AS-IS and the TO-BE situation of the DN. The first obvious difference is the presence of
more information and the interaction of independent entities. Clearly, information in the
TO-BE situation is more critical to perform a function.


50
Another difference is an effect of DG: the appearance the DG Operator. The DG
Operator has control over the equipment that is physically installed in the customer sites,
but its management is, possibly, performed by the retailer (although other forms of
integration may exist). This produces more transactions in the system

Another consequence of the entrance of DG is that the physical flow does not necessarily
cross all the segments of the value chain. In this case, there is an important electricity flow
within the customer corresponding to own-use-production. But, in case that production
surpasses consumption, some energy is injected back to the distribution grid. In this
situation, a big difference from the previous situation is that either we have to consider that
the provision of energy is not only in hands of the electricity utility, or that the customer
site forms part of the electricity utility. Institutional arrangements should make clear what
the role of the consumer is in this new scheme.

Besides, it is interesting to note the importance of the metering service entity as a source of
information. It provides the first data to perform this function, and then this data is
processed and passed to the other entities. If we think on many of the other technical
function, the role of the metering service is similar.

Finally, it is interesting to note that there is a difference in the nature of information flows
within market entities (1 to 4) and the formation exchanged in the loop formed by utility-
consumers- regulator( 5). Information flows 1 to 4 is a systematized process that must be
performed in shorter periods of time, while information flow 5 can be a consequence of
negotiations and the periodicity of establishing new tariffs is longer. This difference is not
represented in this figure, but it is important to be taken into account.

5.4.2. Applications Architecture

The objective of the applications architecture is to define what types of applications
systems are relevant to the enterprise, and what those applications need to do to manage
data and to present information to the human and computer actors (TOGAF 2009). As it
was explained in Chapter 2, it is out of the scope of this thesis to analyze the applications
architecture for the DN. However, from analysis of the information, we can provide some
ideas of the desirable components of the ICT system. Figure 19 is a representation of the
high-level characteristics of the ICT infrastructure in the TO-BE DN; this representation is
useful to understand in general the link between the technical functions and the ICT
applications.

Figure 19: Components of the ICT System


51
In the upper part of the figure we can observe two main components: the technical and
the economic components. In the electricity networks, physical and economic flows are
present and they are related; in the same way, the functions for preserving a correct
physical and economic flow in the DN are connected. For instance, if the payment of
network costs is not carried out, provision of energy is unfeasible. In this sense, there
should be a unique supporting information system that takes into account both types of
flows in the system, and the interaction between technical and economic functions.

On the other hand, if criticality is measured in terms of time constraints, functions with an
economic-base are less critical. This produces an important qualitative difference between
the type of information supporting physical flow and the one supporting economic flow:
the information supporting economic (non-critical) functions allows for slight time delay.

From this logic, we can depict the information needs in two categories:
The first category is the information supporting critical functions, which needed
real-time communication of lower level functions. An extension of the SCADA
system deployed at transmission level towards the end-users is an option for this
category.

The second category is the information supporting non-critical functions, where
the communication allows for certain delays, but that is intended for developing
higher level applications. For this information infrastructure, a key element is the
Smart Metering.

As an addition to the representation of the technical and economic supporting applications,
we must take into account the role of institutional arrangements in the design of
information systems. This is represented in the lower part of the figure.

With the inclusion of an information layer (and their increasing relevance in the
functioning of the entire system) specific institutional arrangements for information should
be developed in order to preserve the institutional design of the electricity system.
Information codes that regulate the exchange of information, codes defining data formats,
access rules, and ownership of information should be designed to favor the transformation
of the DN, and to keep coherence with other market and social institutions. For instance,
information codes must be aligned and fame- information systems to reinforce only the
desired effects of unbundling (i.e. diminish the transaction costs and to favor market
functioning). In conclusion, it is very important that the design of technical and economic
supporting infrastructure and the design of institutional information arrangements are
aligned.

5.5. Conclusions

How can an IA for the electricity distribution network, which fulfills the design requirements imposed by
distributed generation and ownership unbundling, be designed?

First of all, it is useful to support the design of an IA with an architecture framework. In
this thesis, we used TOGAF/ADM development cycle as a supporting tool. However, the
concept of Information-Architecture, as employed on this methodology, can not be fully
adapted to the case of the electricity system, because of the difference between the
enterprises scope, taken in architecture frameworks, and the whole sectors scope, needed
for the case of electricity distribution.

52

Based on TOGAF/ADM recommendations, the first step to develop and IA for the DN is
to scope and define the architectural work. This favors in an earlier stage consensus
between relevant actors (DSO, TSO, Metering Services Companies, Retailers, DG
operators, Regulator, etc.) on the development of an Information-Architecture.

The second step is to formulate an architectural vision presenting a clear description of the
IA to be developed. In this vision, goals, general principles, and assumptions have to be
specified. The architectural vision can be confronted to check if there is agreement among
different actors vision about the future system. One initial drawback in formulating a
vision for the electricity sector is that regulated and competitive segments have inherently
different goals. The architectural vision should be formed in a way that discrepancies
between segments are solved.

The third step is to build a Business-Architecture, where abstract ideas from the previous
phases are settled down into a concise depiction of elements and functions relevant for the
operation of the DN. Entities and functions become the building blocks for the
Information-Architecture.

The last step is to develop an Information-Architecture. This architecture is a concrete
representation of the type of information, information flows, and information sources that
the DN needs to support its business functions. The principles that must be followed to
develop the IA are based on the specific requirements imposed by DG and ownership
unbundling (the context). Based on a simple exercise of the depiction of information in the
TO-BE DN, we can say that information flows are more critical, they support higher
number of functions, provide higher degree of detail, and that information sources are
closer to the customers.

Additionally, some ideas for the construction of an ApplicationsArchitecture were
included. The TO-BE information infrastructure should include information supporting
technical transactions, and information supporting economic transactions. These two parts
of the infrastructure are different because the former requires a real-time communication
technology, while the later allows for a delayed in time
22
communications technology.
Evidently, these two parts of should be interconnected reflecting the effects that economic
transactions have on physical transactions. These two components should be aligned with
institutional arrangements created for information.

22
These are technologies where the information suffers latency in the communications mean.

53
Chapter 6. Reflection


In this chapter, we present an assessment of the research performed for this thesis. This
reflection was performed after almost all the analysis was completed, and is intended to
provide insights on the overall result achieved. The main objective of making a reflection is
to deduct what can be learned from the process of making the research itself, and this
knowledge can contribute for a better continuation on this topic.

For this purpose, this chapter is divided in four sections. In section 6.1, we reflect on the
contribution made by this thesis; in section 6.2 we discuss some of the assumptions taken
through this thesis; in section6.3 we mention the main constraints found while doing this
research; and finally, in 6.4 we suggest the further development on this topic.

6.1. Contribution

Independently from specific assumptions made to formulate a vision for the future DN, it
is generally recognized the increasing importance of information on the operations of
electricity networks. This thesis recognizes the value of information in the electricity
infrastructure, and stresses the importance of making an early, high level representation of
this information to assist the transformation of current DN infrastructure.

The representation information used in the future electricity networks is complicated
because there isnt any definitive target structure to follow. Even more, the current system
is changing so fast that is difficult to depict a baseline stable reference. Besides, the
liberalisation of this industry is an ongoing process, and the consequences of adopted
policies are still uncertain. DG is only emerging, and the smart meter characteristics are not
universally agreed In conclusion, the nature of this system is complex: there are many
actors involved, many considerations, and many approaches that can be taken.

This thesis proposed a design process to conceptualize the information in this complex
system. Is not the intention to make an extensive analysis of all the possible elements that
can be included, but to show how under certain assumptions, the representation of
information can be made. For instance, this work can be enriched by including self-healing
concepts, demand side management, other information sources, communication
technologies, data processing techniques, etc. To integrate these concepts, we may follow a
similar approach of analysis as the one developed for the elements in this thesis.

Finally, many ICT advances can be integrated to improve the electricity system, but if there
is not a high-level understanding of the overall system and its information needs, the
adoption of such technologies may not contribute to the achievements of established goals
for the sector, or the potential benefits offered by them may not be fully attained. For
instance, Smart Meters can be installed, and provide economic signals to improve
customers response. However, if the Smart Meter installed in the system is not compatible
with the ICT infrastructure of the DSO, other economic-supporting functions can not be
developed using this technology. Moreover, if the Smart Meter is not designed to
interoperate with the information systems of other infrastructures, a great potential to
develop combined services may be lost. Therefore, this thesis intends to guide the
construction of a high-level Information-Architecture, so the electricity infrastructure can
take the most of adding information infrastructure on its operations.


54
6.2. Assumptions

The terms AS-IS and TO-BE give the impression of a single possible situation in the
present and in the future. However, the situations described under these names are only
based on assumptions.

In the one hand, the AS-IS situation does not corresponds to the present situation of the
electricity system in the Netherlands, but to a situation a decade before. This AS-IS
situation was taken as a reference because it was a stable state of the system. After this
situation, the electricity system has been under a continuous process of transformation;
indeed, the present situation may be considered a transitional stage.

On the other hand, the TO-BE situation is highly uncertain. The TO-BE description given
in this thesis does not pretend to be a forecast, but a description of a feasible future. The
development of a visualization for the future DN was not the scope of this thesis;
therefore, the TO-BE situation is based on ideas found on the literature. It is important to
say that this depiction is not absolute, nor universally accepted.

Even with these limitations, the depiction of and as AS-IS (reference) and a TO-BE (target)
situation is very important to give structure to a complex situation like the case of our
problem under analysis: the transition in the electricity networks.

6.3. Constraints

For the scope defined for this research, desk research methodology was adequate.
However, there were some disadvantages encountered on this methodology: there is a lack
of confrontation with the real actors, and in is possible to incur on a bias produced by the
reachable written (published) information.

Another important constraint was the available time to make this research. Due to this time
constraint, the design process could not be validated. However, further research on this
topic must consider a validation for the ideas presented here. Especially, the TO-BE vision,
the entities, the functions, and the principles followed by the DSO must be confirmed. An
expert validation for the process design of an IA proposed is a good option to perform an
adequate architectural work. A possible questionnaire to perform interviews for validation
was elaborated, and is attached in Appendix IX.

6.4. Further Development

The whole analysis presented in this thesis is more concentrated on the technical
dimension than on the social dimension of the complex problem under analysis.
Confrontation with different actors is likely to reveal additional interesting aspects that
must be considered for the design of an Information-Architecture. Inclusion of other
relevant actors vision on critical functions, information exchange, and future DSO role
would also contribute to a more acceptable design.

After a proper validation, the next step would be to develop an appropriate representation
of the information used by the DSO. In this thesis, the information was only depicted for
one of the functions of the DN, but this exercise has to be replicated on all the other
critical functions deducted. To represent the information considering all the technical
functions is recommended to use a formal methodology that facilitates a clear and simpler

55
depiction. Indeed, there are many architectural frameworks that support an output
development, and they may be used in this step. In this respect, it is necessary to evaluate a
suitable tool to represent the information flows, type of information, and information
sources for this case. Once an appropriate tool is found, all the functions can be integrated
and used as a guideline.

Finally, a scenario analysis may be desirable in order to develop more robust architectural
principles, and, in consequence, a more robust Information-Architecture.

56
Chapter 7. Conclusions and Recommendations


This is the final chapter of this thesis, and the main objective is to summarize the main
findings of this research and to answer to the main research question proposed at the
beginning of this thesis: What high level IA for the electricity distribution networks fulfills the design
requirements imposed by distributed generation and ownership unbundling?

For this objective, this chapter is divided in two. In section 7.1, we present the main
conclusions of the thesis, and in section 7.2 we formulate policy recommendations.

7.1. Conclusions

In following subsections we mention the most important characteristics that have to be
considered for designing a high level IA for the electricity DN.

7.1.1. The Value of an Information Architecture

Many businesses have added ICT systems to their operations as a response to the
increasing need to administrate and use information. This is also the case of electricity
systems, and the use of information will be especially important in the DN in the near
future, because technical and institutional changes are taking place there.

In this situation, an IA for the DN would favor an effective transformation process of this
infrastructure, would facilitate communication among stakeholders, and would contribute
to an adequate integration of ICT.

7.1.2. The Elements to Deduct the Relevant Information in the System

In order to deduct the relevant information flows in the electricity DN (and construct the
Information-Architecture) four elements are important to analyze: the context, which
include technical and institutional changes, the AS-IS situation (a reference description), the
TO-BE situation (the target description), and the enabling technologies.

In this thesis, the relevant context includes the process of ownership unbundling and the
inclusion of DG into the low voltage segment of the DN. The AS-IS situation corresponds
to a passive DN operated by a vertically integrated utility. The TO-BE situation is an active
network which presupposes the inclusion of an information layer in the operations of the
DN. The most important enabling technology is the Smart-Meter, which is an important
source of disaggregated data located close to the customer end.

7.1.3. Using the IA Concept in the Case of the Distribution Network

The concept of IA, within the broader concept of Enterprise Architecture, is directed to
single enterprises. In the case of the DN, it is unavoidable to include in the analysis of
information the interaction among actors across the whole sector. This difference produces
that not all the steps suggested by architectural frameworks like TOGAF/ADM are
possible to be applied.




57
7.1.4. The Design Principles for the IA

An important aspect to consider formulating general design principles for the IA is that the
DN follows a public utility model, but is an enabler of competitive activities. This
characteristic contrasts with the common enterprise notion assumed. Differently from the
case in which information only supports internal processes of an organization, in the case
of the DN, information is intended to diminish discrepancies between commercial and
network activities. Other design principles for the IA come from the analysis of DG and
ownership unbundling.

Regarding DG, the specific technical conditions (i.e. type of technology, amount and
location) determine the additional functions that can be implemented by the DSO, and the
required information infrastructure to support those functions. As a result, an early
planning of the technical characteristics of DG to be installed in a DN is very important to
deduct the information flows that will arise.

Regarding ownership unbundling, we can say that it brings about an increasing dependence
on information by the electricity system. In other words, under the circumstances of
unbundling, the functioning of the system and the achievement of policy goals depends on
the way information is used. Therefore, is important to create information institutional
arrangements that are aligned with desired formal institutions in the electricity sector.

The specific design principles that have to be considered for an IA are:
flexibility and expandability to accommodate different proportions of DG;
unified system to conciliate technical and economic functions, and to include the
effects that economic transactions on physical transactions;
alignment with institutional arrangements;
inclusion of interfaces between relevant entities interacting with the DSO;
interoperability with the information systems of other entities;
consistency on the information for different entities;
contemplates detailed and disaggregated information;
simplicity to facilitate a cost-effective deployment.

7.1.5. Entities as Building Blocks for the Information Architecture

Entities are the first important building blocks for the construction of an IA. In the case of
the DN, and its operation within the electricity system, a functional definition of entities is
useful; that is, to define an entity as an actor or group of actors performing only one task in
the system.

In the first instance, it is important to include entities comprised by market institutions.
These entities are the ones defined with a functional approach. In addition to them, entities
belonging to legal institution should also be taken into account; for instance, policy makers,
regulator and government. It is important to note that the type of information that is
exchanged with these legal entities is different. Finally, entities created for information
administration and management should also be considered.

7.1.6. Functions as Building Blocks for the Information Architecture

Functions are the second type of relevant building blocks for the IA. In contrast with the
AS-IS situation, in the TO-BE situation, the DSO needs to perform more functions.

58

The functions in the AS-IS situation are mainly to preserve the physical flow of electricity
in the system, so, they are more critical in terms of the strength of time constraints. The
functions in the TO-BE situation are the result of economic transactions supported by the
DN. In terms of time constraints, these economic-supporting functions are less critical.

7.1.7. Depiction of Information Used in the Distribution Network

In an IA for the DN is important to clearly represent three main aspects:

Information flows: Movement of information from a generating entity to a
receiving entity;
Information sources: Internal process or devices that generate data;
Type of information: The characteristics of information to be exchanged.

Regarding the type of information, in general we can classify information in three
categories: information related to the physical flow of electricity (i.e. power measurements,
dispatch instructions, generation forecasts, etc), information related to economic flow (i.e.
prices, contracts, etc), and information related to the identity of entities (i.e. customer
identification data, meter ID, etc).

7.1.8. Information Applications

Two important aspects to be considered in the design of information applications: the type
of information exchanged and their criticality of the supported function in terms of time.
These two characteristics determine the type of communications infrastructure to be
deployed. For instance, protection mechanisms need a real-time response, so an extension
of automation system, similar to the one already present at higher voltages, towards the
edge of the DN is likely to occur. On the other hand, economic-transactions do not need
real-time response, so a slower communication technology like IP may install to support
them.

Although different functions require different types of ICT infrastructure, a coherent
interconnection between all the functions is crucial. The interaction between physical and
economic transactions should be considered in a single information system. This is because
information is the way to achieve an adequate governance of the entire system.

At the same time, information and institutional arrangements should be aligned, in a way
that they properly steer the transformation of the networks towards the fulfillment of goals
established for the sector.

7.2. Recommendations

7.2.1. General Recommendations for the Development of an Information-
Architecture

Architectural frameworks provide valuable orientation for the development of an IA.
However, these frameworks are directed to a different type of enterprises, so not all the
recommended steps can be applied to the DN case. Best practices taken from experiences
in similar industries (i.e. network infrastructures) would provide additional valuable insights
for the electricity system, so further research on these practices is recommended.

59

A process-defining framework, like TOGAF was used to in this thesis. A complementary
use of an output-defining framework is recommended. A suitable technique to represent
information should to keep the relevant aspects of the electricity networks (i.e. keep the
characteristics explained in section 7.1.7)

Finally, a robust development of an IA requires that principles, visions and building blocks
are confronted with different actors: DSO, TSO, Metering Services, Retailers, DG
operator, and Regulator.

7.2.2. Recommendation for DSOs

The first immediate recommendation is to develop an IA because it brings the next
benefits:
Better understanding of the drivers for change, and of the internal functions that
need to be developed.
Better understanding on the characteristics that information should have in order
to preserve at maximum the critical technical functions.
Improved communication between the DSO and regulator, so the later can better
understand the interaction between the former and other actors in the industry.
Identification of information resources for internal use and information resources
to be shared with other actors.
A guideline that orientate better investments
Support for a more cost-effective ICT system deployment

A second recommendation is to make a general planning of the DG to be installed in the
LV network. This is important because it determines the necessary information
infrastructure, and the possibilities to develop additional functions.

A third recommendation is to use the IA to enhance communication with the regulator,
and to develop jointly adequate information institution arrangements for the whole sector.

A fourth recommendation is to share the development of an IA with the relevant entities,
so consequent information systems will help to diminish the existent conflict between
activities of the DSO and competitive segments.

A fifth recommendation is to make use of the IA for the management of information. As
information is not a tangible resource, its management can be complex, moreover if it is a
necessary resource to be share among different actors. In this case a depiction of
information is the way to improve the efficiency of its use, and avoid counter effects of
including it in the operation of the network. For instance, the benefits of unbundling can
be obscured by installation of expensive ICT systems that does not perform coordination
in a proper way, and if security of supply is highly affected. Information systems may make
the system more prone to failures if the security is not appropriately designed. Bad usage of
information may distort the market functioning if sensitive information is not adequately
regulated. In all this cases, a depiction of the possibilities before the implementation of the
systems may help to anticipate future problems.

A final recommendation is to use the IA to design ways of improving and optimizing ICT
resources that are used for communication between entities in the system. For instance, if
huge amount of information need to be exchanged with a specific actor, a common

60
database could simplify the transactions; if large amount of information needs to be
analyzed but not stored, specific processing techniques can be adopted, etc.

7.2.3. Recommendation for Policy Makers and Regulators

The first recommendation is to develop institutional arrangements for information aligned
with policy goals formulated for the sector. Participation on the development of an IA
would be a worthy activity to develop consistent information codes.

A second recommendation is related to the definition of entities. Regulators should clearly
define the role of customers within the electricity utility. A clear definition of this role
would bring a better integration of DG in the operations of the system. The clearer the
definition of entities, the simpler the identification of information links, and the simpler the
development of rules for information.

A third recommendation is related to Smart Metering. As showed in the analysis, a source
of information with the potential of providing higher level of detail, and closer to the
customer interface is required. The Smart Meter provides this valuable source of
information, and therefore proper access rules and ways of usage of this device should be
defined. Besides, communication links between Smart Meters and entities that may be
benefit from the usage of this data should be planned.

A fourth recommendation is to use the IA to standardize the information exchange.
Standardization will help on reducing the transaction costs produced by unbundling.

A final recommendation is that an IA should be the base to develop information
institutional arrangements that reinforces formal institutions formed around the electricity
system. For instance, information should support the desired market development in the
sector.


61


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Appendix I. The ADM Development Cycle

In TOGAF (TOGAF 2009), each phase of the ADM development cycle is described as
follows:

The Preliminary Phase describes the preparation and initiation activities required to
prepare to meet the business directive for new enterprise architecture, including the
definition of an Organization-Specific Architecture framework and the definition of
principles.

Phase A: Architecture Vision describes the initial phase of an architecture
development cycle. It includes information about defining the scope, identifying
the stakeholders, creating the Architecture Vision, and obtaining approvals.
Phase B: Business Architecture describes the development of a Business
Architecture to support an agreed Architecture Vision.
Phase C: Information Systems Architectures describes the development of
Information Systems Architectures for an architecture project, including the
development of Data and Application Architectures.
Phase D: Technology Architecture describes the development of the
Technology Architecture for an architecture project.
Phase E: Opportunities & Solutions conducts initial implementation planning
and the identification of deliver y vehicles for the architecture defined in the
previous phases.
Phase F: Migration Planning addresses the formulation of a set of detailed
sequence of transition architectures with a supporting Implementation and
Migration Plan.
Phase G: Implementation Governance provides an architectural oversight of
the implementation.
Phase H: Architecture Change Management establishes procedures for
managing change to the new architecture.
Requirements Management examines the process of managing architecture
requirements throughout the ADM.


Appendix II. Institutional Design of the Liberalised Electricity System

Technical and Economic Subsystem Representation

Conceptual Model of a Single Power Electric System (De Vries, De Jong et al. 2006)

Regulatory Framework


The legal framework (De Vries, De Jong et al. 2006)


Appendix III. General Description of the Electricity System in the Netherlands

Power Generation
In 2007, 121.5 billions KWh of electricity were produced in the Netherlands (EnergieNed
and Netbeheer-Netherlands 2008). The large energy production companies are Essent
(with 20% of market share), Electrabel Netherland (20%ms), Nuon (20%ms) (Baarsma, de
Nooij et al. 2007). Other smaller producers account for approximately 20% of the market
share, and the rest of the energy come from imports (approx. 20%)(Baarsma, de Nooij et
al. 2007).

Energy Networks
The Transmission System Operator is TenneT T.S.O. B.V.
The Distribution System Operators are RENDO Netwerken, Cogas Infra en beheer,
Liander (formerly Continuon Network), Stedin (Formerly Eneco Network), Westland
Infra, ONS Netbeheer (from March 1, 2007 part of Stedin), Delta Network, NRE
Network, Enexis (formerly Essent Network)(NMa 2009).

The Energy Market
Approximately, 85% of the electricity in the Netherlands is traded in the bilateral market
(de Vries, Correlj et al. 2007). However, increasingly, trading of electricity takes place in
the Amsterdam Power Exchange (APX), the Dutch energy exchange.

Energy Retailers
Historically, before the onset of liberalisation and the accompanying unbundling, the
retailing companies (Essent, ContinuonNuon, and Eneco) were part of distribution
companies. Now, there is an increasing appearance of new market participants as Oxxio
(Baarsma, de Nooij et al. 2007).

Consumers
Approximately 50 large consumers are connected to the transmission grid, while all the
other end users (companies and households) are connected to the distribution grid
(Baarsma, de Nooij et al. 2007). The household market is responsible for approximately
22% of electricity consumption, while industrial users consume 32% (EnergieNed and
Netbeheer-Netherlands 2008).



Appendix IV. Technical Characteristics of the Distributed Generation Technologies

Type Connection
point
Technology Application
Range
Application Other
Information
Reciprocating
Engines
Diesel: 20kWe10+Mwe(2)

Gas: 5kWe5+Mwe(2)
CHP, Emergency
or standby
services
By far most
common
technology below
1MWe
Gas Turbines 120MWe(2)

CHP
Micro Turbines 30kWe200kWe(2)
35kWe1MWe(3)
Power
generation,
possible with
CHP added

Fuel Cells MCFC 50kWe1+MWe (2),
250kWe2MW e(3)
PAFC: 200kWe2MWe
PEMFC: 1kWe250kWe (3)
SOFC: 1kWe5MWe (3)
CHP, power
generation and
transport use
Only PAFC is
currently
commercially
available
Wind 200W3MW(3)
Photovoltaic 20+kW(3) Every range
possible when
using more cells
Large
(5kW-
20MW)
MV Network
(1kV-110kV)
Other Renewable Solar Thermal solar
Small hydro
Geothermal
Solar
Micro-Turbines Small-scale applications up to
1kWe
Domestic scale
CHP (mCHP)

Fuel Cell
1
Domestic scale
CHP(mCHP)

Internal
Combustion
Engine
1

Domestic scale
CHP(mCHP)

Stirling Engine
1
Domestic scale
CHP

Small
(<5kW)
LV Network
(<1kV)
Photovoltaic 1+kW(2) Household and
small commercial
applications
Every range
possible when
using more cells
1. (Abu-Sharkh, Arnold et al. 2006)
2. IEA, 2002. Distributed Generation in Liberalised Electricity Markets, Paris, p. 128.
3. (Ackermann, Andersson et al. 2001)



Appendix V. Transactions in the Electricity System with the Presence of
Distributed Generation

Figure 20: Transactions within the electricity market in presence of distributed generation including
the Balancing Market (van Werven and Scheepers 2005)


Figure 21: Overview of the transactions in the electricity market including the balancing and the
ancillary services market



Appendix VI. Analysis of the DG Capabilities to Provide Network Services


In the Final Public Report of Dispower (Degner, Schmid et al. 2006), a summary of DG
capabilities to provide ancillary services are presented. This summary is presented in the
next table:




Also van Werven and Scheepers (van Werven and Scheepers 2005) present the possible
suppliers of ancillary services on a distribution level.




Appendix VII. Business Model in the TO-BE DN


Figure 22: Business model of the TO-BE DN. The DSO creates new revenue sources and reduces
expenditures through active network management


Appendix VIII. Critical Technical Functions of the Electricity System




Appendix IX. Questionnaire for Validation

Questionnaire for the Distribution System Operator

Entities
1) In a high level, I visualized the DN to be composed by the next entities: Large producers,
traders, TSO, DSO, Metering Services Companies, Retail Companies, and consumers. With
which entities needs the DSO communication and/or exchange of information for its
operations?



Is there any relevant entity missing? __________________________________________

2) What kind of information do you exchange with other entities of the electricity system?
a. TSO_______________________________________________________
b. Metering___________________________________________________
c. Retail______________________________________________________
d. Consumers__________________________________________________
e. Regulator___________________________________________________
3) How do you communicate with other entities of the electricity system?
a. TSO_______________________________________________________
b. Metering___________________________________________________
c. Retail______________________________________________________
d. Consumers__________________________________________________
e. Regulator___________________________________________________

4) What information do you have to communicate and receive from the TSO?
____________________________________________________________________________
________________________________________________________________
5) Do you perform metering activities?_______ What information do you get from these
activities?__________________________________________________________________
____________________________________________________________
6) Do you have information about the users connected to the DN?__________ What kind of
information?________________________________________________________How do
you use this information/ What for do you store this information?
_______________________________________________
7) Do you have information about the retailing companies that serve the customer connected to
the DN? ________. How do you use this information?
___________________________________________________________________
8) Do you exchange information with retailing companies? ______________What type of
information?

AS-IS functions of the DN

9) What are the main functions performed by DN companies; for instance, what are the main
departments in the company?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________
10) What functions are considered to be critical in the company?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________


11) What type of information is considered to be critical in the company?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________

Context

12) There are a lot of expected changes in the electricity system driven by environmental and
economical concerns. For instance, in Europe Energy policies are driving the development of
new policies, new technologies, and new institutions. In your opinion, what are the major
changes affecting the DSO business now?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________

13) What are the major challenges that the Distribution Network will face in the future (2010-
2020)?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________

Small Distributed Generation

14) It is expected that in the future, distributed generation is connected to the low voltage grids.
Which technologies do you consider will be dominant in the future?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________
15) Do you think that the connection of distributed generation the low voltage network will affect
the operations of the Distribution Network? __________In which way?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________
16) What do you think should be adapted in the future (2010-2010) in the distribution network in
order to favor distributed generation in the LV?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________

Ownership Unbundling

17) Wet Onafhankelijk Netberheer 2008 gave the legal basis for unbundling. What effects has had
this law in the operation of the distribution networks?
18) Have any internal changes taken place in the distribution company due to this law?
__________ what kind of changes?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________

Smart Metering
19) Are you familiar with the NTA 8130, the Dutch Smart Meter Standard?
______________________________________________________________________
20) What benefits do you think that the inclusion of Smart Meter into the system can bring for the
DN Company?


____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________
21) What problems or drawback do you think the inclusion of Smart Meter into the system can
bring for the DN Company?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________
22) What information provided by a Smart Meter can be useful for the distribution network?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________

TO-BE functions of the DN

23) What kind of information would be desirable to be available for the DN in the future to
improve its operations?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________
24) What innovation projects are you investing in?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________
25) Do you think that protections systems like the ones installed in the transmission network will
need to be installed in the low voltage distribution network?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________
26) Do you think that in the future, with a large inclusion of DG in the low voltage networks, the
distribution network will need to integrate control systems (i.e. frequency and voltage
regulation)?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________
27) Do you expect important grid reinforcements in the future?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________
28) Do you think that the way in which connection and use-of-system charges to remunerate the
DSO are correctly established? If not, how can this be improved?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________

29) Do you think that the DSO need to be active in the distributed generation (in low voltage
network) planning? How can the DSO achieve this?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________

30) What do you think is the main information required to connect distributed generation in the
low voltage network?
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________



31) The next table makes and inventory of current and future services (functions) that may be
provided by the distribution network. Please mark the functions that you consider are
provided now and the ones that will be provided by the distribution network in the future.
Add if any relevant function is missing.

Function Example Are
provided
Will be
provided
Provide Electric Protection Overcurrent protection, fault protection,
differential protection, etc.

Perform Network Studies Load flow studies to optimize the distribution
network, calculate the correct fault levels,
stability studies

Execute Corrective
Maintenance
Repairing after a network failure or an outage
Execute Preventive and
Predictive Maintenance
Applied to network equipment to reduce the
frequency of failures

Invest in grid reinforcements
Maintain and operate the
physical interconnection with
the TSO

Develop Grid Codes for
connecting users
Suggest the technical requirements to develop
grid connection codes

Meter voltage at substations
Include control systems Voltage and frequency regulation
Provide local disturbance
response (Balancing)
To match demand and supply energy locally,
so the need for energy transportation is
reduced

Provide Reserve Services for
TSO
Develop the necessary infrastructure to allow
DG (mCHP) to provide reserve services for
the TSO

Provide ancillary services
(locally or to the TSO)
Develop the infrastructure so DG can
provide compensation for power losses,
frequency control, voltage support, reactive
power, black start.

System information Services Provide information about the system to DG
Operators and suppliers that is valuable to
improve its operations (i.e. flows in the
network, demand, etc)

Calculation of Use of System
Charges for users
Calculation of energy consumed from the
grid

Calculation of Connection
Charges for users
Calculation of the connection costs itself
Calculation of Use of System
Charges for DG
Calculation of energy injected in the grid
Calculation of Connection
Charges for DG
Calculation of connection and reinforcements
needed

Additional Reliability Providing extra reliability to customers with
special needs; for instance, companies in ICT
sector

Planning for new DG Communicating location and characteristics,
as it can substitute investment in the grid.
Participating in regulation of DG

Interconnection within the
DSO, so DG can export
energy

Administrating ICT systems
for communicating with
different actors
Dedicated communication networks with
retailers, consumers, TSO, etc



Develop Grid Codes for
Distributed Generation
Connected to the low voltage
network
Grid codes specifying type, capacity and
general characteristics of the DG connected

Administrate the access to
information systems
Access of detailed information regarding
energy flows, DG production and
consumption

Specify and plan DG
characteristics for providing
Ancillary Services
Development of technical requirements for
the DG connected to the grid. For example,
automatic voltage regulators,
resynchronization facilities, communication
facilities

Metering load Monitoring the data regarding consumption
Metering production of DG Monitoring the data regarding consumption
Other: