Distribution System Operator (DSO)

An entity responsible for the planning, operation and optimisation of a Distribution System with high levels of Distributed Energy Resource (DER/CER), Electric Vehicles (EV) and other Flexible Resources. Depending on the DSO model implemented, this may include the following functions:

  1. Implement advanced, scenario-based modelling of DER/CER and EV uptake and operation, bi-directional power flows and Distribution System operations;
  2. Establish Distribution System State Estimation (DSSE) and near real-time Visibility across the network; 
  3. Dynamically manage the network within the technical constraints and hosting capacity of distribution assets, including computation and issuing of Dynamic Operating Envelopes (DOEs);
  4. Advance the transition to more cost and value-reflective pricing in broad-based tariff reform and establish bilateral reserve contracts for short and long-term emergency support of distribution security;
  5. Implement Integrated Distribution Planning (IDP) to medium-long term network requirements, incorporating non-network alternatives;
  6. Actively identify opportunities for aging network assets to be progressively replaced with Microgrid, individual Stand-alone Power Systems and/or grid-connected Energy Storage solutions;
  7. Analysis and evidence-based determination of the temporal and locational value of Electric Products provided by DER/CER to the Distribution System;
  8. Establish and operate a Flexibility Market or Network Services Market that enables more close-coupled ‘market-control’ alignment at the distribution Tier/Layer;
  9. Provide real and near real-time data flows to relevant Distributed Data Sharing Infrastructure(s); and,
  10. Work collaboratively with the Market/System Operator (MSO) across the Transmission-Distribution Interoperability Mechanism (TDIM) relevant to the DSO’s service territory.

In many contexts, the DSO role is likely to emerge through a progressive expansion of the function of Distribution Network Service Providers (DNSP).

Given the fast-evolving nature of power system transformation, the Future Grid Accelerator (FGA) has the status of a perpetual BETA version. Your suggestions for how each concept and definition may be enhanced are very welcome.

All feedback will be reviewed and considered for inclusion in subsequent updates.

Please provide your suggestions to improve to this definition: