Generic smart grid requirements - Part 2-1: Grid related domains

IEC SRD 62913-2-1 2019 (E) initiates and illustrates the IEC’s systems approach based on Use Cases and involving the identification of generic smart grid requirements for further standardization work for grid related domains – i.e. grid management regrouping: transmission grid management, distribution grid management, microgrids and smart substation automation domains – based on the methods and tools developed in IEC SRD 62913-1.
The Grid management domain groups Use Cases and associated requirements common to the EHV, HV and MV/LV networks operations and the business analysis of the general electric network life cycle. Use Cases specific to parts of the general electric network are described in transmission grid management, distribution grid management, microgrids and smart substation automation clauses.
This document captures possible “common and repeated usage” of a smart grid system, under the format of “Use Cases” with a view to feeding further standardization activities. Use Cases can be described in different ways and can represent competing alternatives. From there, this document derives the common requirements to be considered by these further standardization activities in term of interfaces between actors interacting with the given system.
To this end, Use Case implementations are given for information purposes only. The interface requirements to be considered for later standardization activities are summarized (typically information pieces, communication services and specific non-functional requirements: performance level, security specification, etc.).

General Information

Status
Published
Publication Date
16-May-2019
Current Stage
PPUB - Publication issued
Start Date
17-May-2019
Completion Date
30-May-2019
Ref Project
Standard
IEC SRD 62913-2-1:2019 - Generic smart grid requirements - Part 2-1: Grid related domains
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IEC SRD 62913-2-1 ®
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Generic smart grid requirements –
Part 2-1: Grid related domains
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IEC SRD 62913-2-1 ®
Edition 1.0 2019-05
SYSTEMS
REFERENCE DELIVERABLE
colour
inside
Generic smart grid requirements –

Part 2-1: Grid related domains

INTERNATIONAL
ELECTROTECHNICAL
COMMISSION
ICS 29.020; 29.240; 33.200 ISBN 978-2-8322-6880-3

– 2 – IEC SRD 62913-2-1:2019 © IEC 2019
CONTENTS
FOREWORD . 5
INTRODUCTION . 7
1 Scope . 8
2 Normative references . 8
3 Terms, definitions and abbreviated terms . 9
3.1 Terms and definitions . 9
3.2 Abbreviated terms . 10
4 Grid management . 11
4.1 Purpose and scope . 11
4.1.1 Objective . 11
4.1.2 Informative general context of grid management . 11
4.2 Business analysis . 14
4.2.1 General overview . 14
4.2.2 List of Business Use Cases and Business Roles of the domains . 18
4.2.3 List of System Use Cases and System Roles . 23
4.3 Generic smart grid requirements . 24
4.3.1 Requirements extracted from Use Cases . 24
5 Transmission grid management . 25
5.1 Purpose and scope . 25
5.2 Business analysis . 26
5.2.1 General . 26
5.2.2 List of Business Use Cases and Business Roles of the domains . 26
6 Distribution grid management . 26
6.1 Purpose and scope . 26
6.2 Business analysis . 26
6.2.1 General . 26
6.2.2 Regional options . 26
6.2.3 List of Business Use Cases and Business Roles of the domains . 26
6.2.4 List of System Use Cases and System Roles . 26
6.3 Generic smart grid requirements . 28
7 Microgrids . 29
7.1 Purpose and scope . 29
7.1.1 Objective . 29
7.1.2 General context . 30
7.2 Business analysis . 31
7.2.1 General overview . 31
7.2.2 Isolated microgrids . 32
7.2.3 Facility microgrids . 32
7.2.4 Distribution microgrids . 33
7.2.5 Relation with other domains . 34
7.2.6 List of Business Use Cases and Business Roles of the domain . 34
7.2.7 List of System Use Cases and System Roles . 35
7.3 Generic smart grid requirements . 36
8 Smart substation automation . 38
8.1 Purpose and scope . 38
8.1.1 Objective . 38

8.1.2 General context . 38
8.2 Business analysis . 38
8.2.1 General overview . 38
8.2.2 List of Business Use Cases and Business Roles of the domains . 38
8.2.3 List of System Use Cases and System Roles . 39
8.3 Generic smart grid requirements . 40
Annex A (informative) Links with other TCs and gathered materials . 41
A.1 General . 41
A.2 Distribution grid management . 41
A.2.1 Identified TCs . 41
A.2.2 Liaisons from other TCs contributing to the smart grid requirements of
the domain . 41
Annex B (informative) Use Cases . 42
B.1 Grid management . 42
B.1.1 Business Use Cases . 42
B.2 Distribution grid management . 54
B.2.1 Business Use Cases . 54
B.2.2 System Use Cases . 68
B.3 Microgrids . 101
B.3.1 Business Use Cases . 101
B.4 Smart substation automation . 125
B.4.1 Business Use Cases . 125
Bibliography . 130

Figure 1 – New smart business processes enhanced by smart grid functions . 14
Figure 2 – Non-exhaustive description of the microgrid domain in the SGAM
architecture . 31
Figure B.1 – Theoretical example of the failure probability of equipment . 44
Figure B.2 – Theoretical example of yield curve probability of failure of equipment
taking into account a poor AHI . 45
Figure B.3 – Utility stakes definition process . 46

Table 1 – Content of IEC SRD 62913-2-1:2019 . 8
Table 2 – Business Roles of the electrical grid-related domains . 18
Table 3 – Identified Business Use Cases of the domain . 20
Table 4 – Identified System Use Cases of the domain . 24
Table 5 – Requirements extracted from grid management Use Cases . 25
Table 6 – System Roles of the domain . 27
Table 7 – Requirements extracted from distribution grid management Use Cases . 28
Table 8 – Business Roles of the domain . 35
Table 9 – Identified Business Use Cases of the domain . 35
Table 10 – Identified System Use Cases of the domain . 36
Table 11 – Requirements extracted from microgrids Use Cases . 36
Table 12 – Business Roles of the domain . 39
Table 13 – Identified Business Use Cases of the domain . 39
Table 14 – Identified System Use Cases of the domain . 40

– 4 – IEC SRD 62913-2-1:2019 © IEC 2019
Table 15 – Requirements extracted from smart substation automation Use Cases . 40
Table B.1 – UC62913-2-1-B001: Carry out definition and optimization of maintenance
and asset renewal priorities programmes . 42
Table B.2 – UC62913-2-1-B007: Operate the MV network in real-time . 55
Table B.3 – UC62913-2-1-B012: Manage faults on the MV network . 64
Table B.4 – UC62913-2-1-S001: Perform centralized voltage control based on state
estimation . 68
Table B.5 – UC62913-2-1-S002: Manage faults on the distribution network using
advanced FLISR system . 82
Table B.6 – UC62913-2-1-B013: Guarantee a continuity in load service by islanding
the microgrid . 101
Table B.7 – UC62913-2-1-B014: Enable automation systems to perform operational
functions in best conditions . 125

INTERNATIONAL ELECTROTECHNICAL COMMISSION
____________
GENERIC SMART GRID REQUIREMENTS –

Part 2-1: Grid related domains

FOREWORD
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patent rights. IEC shall not be held responsible for identifying any or all such patent rights.
IEC SRD 62913-2-1, which is a Systems Reference Deliverable, has been prepared by
IEC systems committee Smart Energy.
The text of this Systems Reference Deliverable is based on the following documents:
Draft SRD Report on voting
SyCSmartEnergy/78/DTS SyCSmartEnergy/96/RVDTS

Full information on the voting for the approval of this Systems Reference Deliverable can be
found in the report on voting indicated in the above table.
This document has been drafted in accordance with the ISO/IEC Directives, Part 2.
A list of all parts in the IEC SRD 62913 series, published under the general title Generic smart
grid requirements, can be found on the IEC website.

– 6 – IEC SRD 62913-2-1:2019 © IEC 2019
The committee has decided that the contents of this publication will remain unchanged until
the stability date indicated on the IEC website under "http://webstore.iec.ch" in the data
related to the specific publication. At this date, the publication will be
• reconfirmed,
• withdrawn,
• replaced by a revised edition, or
• amended.
A bilingual version of this publication may be issued at a later date.

IMPORTANT – The 'colour inside' logo on the cover page of this publication indicates
that it contains colours which are considered to be useful for the correct
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colour printer.
INTRODUCTION
Under the general title Generic smart grid requirements, the IEC SRD 62913 series consists
of the following parts:
• Part 1: Specific application of the Use Case methodology for defining generic smart grid
requirements according to the IEC systems approach;
• Part 2 is composed of 5 subparts which refer to the clusters that group several domains:
– Part 2-1: Grid related domains – these include transmission grid management,
distribution grid management, microgrids and smart substation automation;
– Part 2-2: Market related domain;
– Part 2-3: Resources connected to the grid domains – these include bulk generation,
distributed energy resources, smart home / commercial / industrial / DR-customer
energy management, and energy storage;
– Part 2-4: Electric transportation related domain;
The IEC SRD 62913 series refers to 'clusters' of domains for its different parts so as to
provide a neutral term for document management purposes simply because it is necessary to
split in several documents the broad scope of smart energy.
The purpose of the IEC SRD 62913-2 series is to initiate the process of listing, organizing,
making available the Use Cases which carry the smart energy requirements that should be
addressed by the IEC core technical standards. The IEC's systems approach will require
adapted tools and processes to facilitate its implementation, and until they are available to
IEC technical committees, National Committees and experts, the IEC SRD 62913-2 series
should be seen as an illustration and the first stepping stone towards this systems approach
implementation. Referencing, naming and grouping Use Cases or requirements will be further
developed when tools such as IEC Use Case repository are available (using SGAM and other
classification methods). The current content of the IEC SRD 62913-2 series is not exhaustive,
but the current content illustrates the priorities for the smart energy domain at the time of
publication. It is important that the content in terms of Use Cases, roles and requirements
continues to grow to encompass the requirements of the broad smart energy stakeholders
(both within the IEC community and more generally the other market stakeholders).
Use Cases are, for now, classified as follows.
• For business Use Cases: SGAM Domain {G|T|D|DER|CP} (multiple domains possible) /
B_{Business Use case number}/SB_{ sub BUC Use case number/…}
• For system Use Cases: SGAM Domain {G|T|D|DER|CP} (multiple domains possible) / (sub)
Business use Case Ref /S_{ System Use cases number}/SS_{ Sub System Use cases
number/…}
The document for each domain is composed as follows.
• Purpose and scope.
• Business analysis: to address the domain’s strategic goals and principles regarding its
smart grid environment. It also lists business Use Cases and system Use Cases identified,
their associated business roles and system roles (actors) and the simplified role model
highlighting main interactions between actors.
• Generic smart grid requirements: extracted from Use Cases described in Annex B.
• Annex A lists links between domains and technical committees.
• Annex B includes a complete description of Use Cases per domain based on IEC 62559-2.
• Bibliography.
This document is based on the inputs from domain experts as well as existing materials in a
smart grid environment.
– 8 – IEC SRD 62913-2-1:2019 © IEC 2019
GENERIC SMART GRID REQUIREMENTS –

Part 2-1: Grid related domains

1 Scope
This part of IEC SRD 62913 initiates and illustrates the IEC’s systems approach based on
Use Cases and involving the identification of generic smart grid requirements for further
standardization work for grid related domains – i.e. grid management regrouping:
transmission grid management, distribution grid management, microgrids and smart
substation automation domains – based on the methods and tools developed in
IEC SRD 62913-1.
The Grid management domain groups Use Cases and associated requirements common to
the EHV, HV and MV/LV networks operations and the business analysis of the general electric
network life cycle. Use Cases specific to parts of the general electric network are described in
transmission grid management, distribution grid management, microgrids and smart
substation automation clauses.
This document captures possible “common and repeated usage” of a smart grid system, under
the format of “Use Cases” with a view to feeding further standardization activities. Use Cases
can be described in different ways and can represent competing alternatives. From there, this
document derives the common requirements to be considered by these further standardization
activities in term of interfaces between actors interacting with the given system.
To this end, Use Case implementations are given for information purposes only. The interface
requirements to be considered for later standardization activities are summarized (typically
information pieces, communication services and specific non-functional requirements:
performance level, security specification, etc.).
This analysis is based on the business input from domain experts as well as existing material
on grid management in a smart grid environment when relevant. Table 1 highlights the
domains and business Use Cases described in this document.
Table 1 – Content of IEC SRD 62913-2-1:2019
Domain Content Scope
Grid management Described with 1 business Use Case Asset management
Transmission grid n/a
management
Distribution grid Described with 1 business Use Case Network operations in real time using new
management and 2 system Use Cases automations / centralized voltage control
Microgrids Described with 1 business Use Case
Smart substation Described with 1 business Use Case
automation
2 Normative references
There are no normative references in this document.

3 Terms, definitions and abbreviated terms
3.1 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
ISO and IEC maintain terminological databases for use in standardization at the following
addresses:
• IEC Electropedia: available at http://www.electropedia.org/
• ISO Online browsing platform: available at http://www.iso.org/obp/
3.1.1
flexibility
modification of electricity injection and/or extraction, on an individual or aggregated level, in
reaction to an external signal in order to provide a service within the energy system
Note 1 to entry: This definition is based on Eurelectric, Active Distribution System management. A key tool for the
smooth integration of distributed generation, 2013.
3.1.2
grid
electrical power system through which power is generated, transmitted, and distributed to the
end user
3.1.3
electrical network constraint
network state where the operation requirements are locally not met and which depends on the
split between injection and withdrawal, the network topology and random event in a specific
area of the distribution network (faults, transmission limitation or transmission outage, and
load transfers)
[SOURCE: based on evolvDSO, D2.1 Business Use Cases Definition and Requirements,
2014]
3.1.4
on-load tap-changer
OLTC
switch group allowing transformer tappings to be changed without interrupting the traction
circuits
[SOURCE: IEC 60050-811:2017, 811-29-28]
3.1.5
optimization levers
operational solutions or measures to be used by a system operator to operate its network in
an optimized way
Note 1 to entry: The access and use of optimization levers, especially those related to flexibilities connected to
HV/MV/LV networks, should be coordinated between the system operators operating in the same zone in order to
ensure a technical and economic optimum.
Note 2 to entry: Some levers have a global impact on network operations, while others have a localized impact.
Note 3 to entry: Three categories of levers are defined:
– technical levers (HV or MV network reconfiguration, bus-bar voltage regulation in primary substation, etc.);
– market-based and contracted flexibilities for the system operator needs – to be further defined in close
coordination with transmission grid management, distribution grid management and market domains;
– emergency levers (targeted power limitation, load-shedding, etc.).

– 10 – IEC SRD 62913-2-1:2019 © IEC 2019
Note 4 to entry: Emergency levers are only used if no other optimization levers are available.
Note 5 to entry: Optimization criteria may embrace many criteria, such as OPEX optimization, CAPEX
optimization, customer satisfaction, regulation compliance, environmental impacts, company awareness, etc.
[SOURCE: based on evolvDSO, D2.1 Business Use Cases Definition and Requirements,
2014]
3.1.6
quality of service
collective effect of service performance which determines the degree of satisfaction of a user
of the service
Note 1 to entry: The quality of service is characterized by the combined aspects of service support performance,
service operability performance, serveability performance, service integrity and other factors specific to each
service.
Note 2 to entry: ISO defines "quality" as the ability of a product or service to satisfy user's needs.
[SOURCE: IEC 60050-191:1990, 191-19-01]
3.1.7
security
ability to operate in such a way that credible events do not give
rise to loss of load, stresses of system components beyond their ratings, bus voltages or
system frequency outside tolerances, instability, voltage collapse, or cascading
Note 1 to entry: In the context of smart grid the term ‘security’ may be too vague. In this document it may be
replaced by ‘operational reliability’ or ‘operational security’ to reflect the real practices of, for example, NERC or
ENTSO-E.
[SOURCE: IEC 60050-191:1990/AMD1:1999, 191-21-03]
3.1.8
work programme
schedule for operations related to the creation, maintenance, and repair of network assets on
the transmission or distribution grid
[SOURCE: evolvDSO, D2.1 Business Use Cases Definition and Requirements, 2014]
3.2 Abbreviated terms
BRP Balance Responsible Party
CAPEX CAPital EXpenditure
DER Distributed Energy Resources
DGA Dissolved Gas Analysis
DMS Distribution Management System
DR Demand-Response
DSO Distribution System Operator
EES Electrical Energy Storage
EHV Extremely High Voltage
EV Electric Vehicle
FCR Frequency Control Reserve
FLISR Fault Location, Isolation, and Service Restoration
FPI Fault Passage Identification
FRR Frequency Restoration Reserve
HV High Voltage
HVDC High Voltage Direct Current
IED Intelligent Electronic Device
ICT Information and Communication Technologies
LV Low Voltage
MEMS Microgrid Energy Management System
MV Medium Voltage
OPEX OPerational EXpenditure
RR Restoration Reserve
RTU Remote Terminal Unit
SCADA Supervisory Control And Data Acquisition System
SGAM Smart Grid Architecture Model
TSO Transmission System Operator
4 Grid management
4.1 Purpose and scope
4.1.1 Objective
The purpose Clause 4 is to present a business analysis of the grid management, and more
specifically to describe some smart grid requirements using the Use Case approach as
defined in IEC SRD 62913-1.
This analysis is based on existing materials, including user stories, set of Use Cases, and
architectures.
4.1.2 Informative general context of grid management
4.1.2.1 General context and challenges facing grid management domains
Grid management domains today face several challenges, which tend to significantly change
the way their actors operate. These challenges are the following:
• a continuous growth of the peak load in most countries, both at system and local levels,
and in some cases the increase of the annual demand for electricity;
• the integration of a fast growing number of distributed energy resources (DER), mostly
connected to MV/LV networks, variable and uncertain by nature;
• new and changing usages of electricity, with the development of demand response (DR),
the growth of electric vehicles (EV), the implementation of energy demand management
policies and customer empowerment initiatives;
• the evolution of electricity markets and the creation of new ones, such as flexibility and
ancillary services markets, which tend to operate ever closer to real time;
• modifications in the regulatory frameworks and the strong expectations from regional and
national regulatory authorities, which aim at managing or facilitating these transformations
with the overall goal of promoting a sustainable, secure, and competitive energy supply;
• technological developments and innovations, which represent both opportunities and
constraints for the different actors and stakeholders of the electric power system;
• development of individual and/or collective strategies of electrical grid users (or sets of
electrical grid users) in relation with the electricity management, possibly leading to
unexpected behaviour changes;
• increased cyber-threats impacting the grid operation, made possible by the increased use
of “public” telecommunication means or technologies.

– 12 – IEC SRD 62913-2-1:2019 © IEC 2019
These changes and their combination contribute to transform in depth system operators. They
have already started to and will continue to impact their business model and business
processes.
4.1.2.2 The responsibilities of system operators in a changing environment
As indicated above, there are different types of networks: EHV, HV, MV, and LV networks and
different boundaries between voltage levels which vary from country to country and system to
system. MV/LV networks are generally operated with a radial grid topology, while EHV and HV
networks are mainly operated with a mesh grid topology. They are usually operated by
different system operators:
• Transmission system operators generally operate EHV and in some cases HV networks.
• Distribution system operators generally operate MV and LV networks, and potentially HV
networks as well depending on the system.
Concerning the roles, the terms EHV, HV, and MV/LV system operators are used in this
document.
System operators’ responsibilities have fundamentally not been modified by the challenges
facing the electric power system. Their core duties remain to develop, operate and maintain
the network in order to deliver high-quality services to grid users and other stakeholders of
the electric power system, while ensuring safety of people, most efficient use of assets, and
system security. Each system operator remains responsible for managing the constraints of
its own network (voltage regulation, reactive power, power quality, etc.). The coordination of
the frequency remains in the hands of the transmission system operators in close cooperation
with the other TSOs and all other actors connected on the same frequency area. More
recently, the contribution to the transition towards a sustainable economy has emerged as an
additional mission of system operators, along with other actors of the electric power system.
These responsibilities are shared by all system operators and do not vary according to
regional and national regulations or market models – only the way they exercise those may
differ from one country to another and one system operator to another.
However, the challenges previously stated have a strong impact on the capacity of system
operators to carry out their responsibilities. More precisely, they impact the way they design,
operate, and maintain their networks. The integration of variable and uncertain generation
capacities, combined with increased peak demand as well as other key factors, tends to
intensify the need for network reinforcements and add complexity to the supervision and
control of the electrical grid. These consequences may ultimately undermine system operators’
ability to provide electrical grid resiliency, reliability of supply and quality of service in a cost-
effective way.
The impact of these challenges may be different for system operators, depending on the
network(s) they are responsible for managing.
The topology has consequences on the nature and criticality of the impacts induced by the
challenges stated above, but also on the methods and tools used by system operators to
manage their electrical grid.
For instance, the development of electric vehicles and the associated deployment of public
and private EV charging stations will mostly have a significant impact on LV networks, to
which they are connected.
Operational planning activities have already been developed in most systems for HV networks
and implemented by EHV and HV system operator, while they have generally not been
developed for MV/LV networks management.

4.1.2.3 The current design of electricity networks, its limits, and new possibilities
EHV, HV and MV/LV system operators have historically designed and operated their network
according to a “networks follow demand” paradigm, by delivering energy flows in one direction
from EHV centralized generations to the end users. Up until now, EHV, HV and MV/LV system
operators prevented local constraints (function of protection systems, overcurrent, voltage
limits) and congestions by planning network investments and adjusting the configuration of
the electrical grid, in order to accommodate energy flows and meet peak loads. This method
is known as the “fit and forget” approach as potential operational problems are solved in the
planning phase.
Nonetheless, increased penetration of DER – which are in majority connected to the MV/LV
network –, the rise of peak demand, and the development of new usages such as demand
response programmes or electric vehicles, contribute to dramatically transform the power grid.
Power flows are indeed operating in two directions and between a growing number of
connected actors and devices. They become as a result less predictable. If the “network
follows demand” approach does not require sophisticated control and supervision systems, it
implies substantial network investments to integrate high shares of variable generation/load
capacities and absorb peak demand, which constitutes one of the major drivers for network
costs. With the transformations previously stated, connection costs and delays will potentially
significantly rise as the extension and the maintenance of the networks are becoming more
complex. Besides, the variability of power flows will increase the need for improved real-time
monitoring and control tools. Such investments will turn out to be too heavy to be borne by
system operators, customers, or decentralized producers.
Besides, constraints will occur more frequently, and are likely to be more critical and more
complex to manage at both local and system levels (Eurelectric, 2013, ENTSO-E). More
particularly, the occurrence, duration, and depth of faults, variations in voltage, and network
perturbations such as flickers will continuously increase. Congestions or bottlenecks, which
may lead to generation feed-in or supply interruptions, will also appear more frequently. The
growing number and diversity of production and consumption installations connected to the
MV/LV grid will heighten the variability of power flows and increase the system frequency
variability. Ensuring grid connection and access and restoring power supply after a fault on
the network will therefore become more complex and require more precaution and time.
As traditional means will no longer be technically sufficient or economically viable, EHV, HV
and MV/LV system operators need to find new solutions to continue ensuring quality and
security of supply at an affordable cost and in a non-discriminating way. In addition to
necessary investments on the network, the transformations previously stated urge the need
for the development of a more active system management approach. This approach, opposed
to the purely passive one previously described or a ‘reactive’ one consisting of managing
problems only in the operational phase, would allow for interaction between the network’s
different timeframes (Eurelectric, 2013):
• planning and connection, with a range of network planning and access options enabling
EHV, HV and MV/LV system operators to optimize their investments and the most efficient
use of network assets – including decisions regarding asset renewal priorities and
maintenance programmes optimization;
• operational planning, with technical tools allowing EHV, HV and MV/LV system operators
to prepare network operations in advance;
• real-time operations, with the optimization of demand and generation management and
improved handling of emergency and fault situations;
• evaluation and ex-post control, to facilitate electricity markets via data management and
provision, but also to improve network planning and operation processes using processed
data.
It includes business Use Cases and system Use Cases related to:
• the long-term planning and development of the electricity system, including connection
and access;
– 14 – IEC SRD 62913-2-1:2019 © IEC 2019
• the operational planning and scheduling of the electricity system, across all voltage levels;
• the operation and maintenance of the electricity system;
• the facilitation of electricity markets, which will be described within the market domain in
close coordination with the transmission and distribution grid management domains;
• new connection (generation, consumption, high-voltage direct current (HVDC));
• emergency and restoration of supply;
• load, frequency control and reserve.
Microgrids and private networks are out of the scope of the domain. They are considered in
the microgrids domain.
4.2 Business analysis
4.2.1 General overview
4.2.1.1 General
The transition from passive to active networks relies on the deployment of smart grid
technologies including smart metering systems, as well as on the modification of existing
roles and business processes of the EHV, HV and MV/LV system operators. Such evolutions
will also tend to modify the relations between EHV, HV and MV/LV system operators as well
as the other actors of the electric power system, such as grid users, regulators, balance
responsible parties, retailers, or flexibility operators.
This new approach and associated smart grid solutions offer new solutions (distribution grid
management (DGM) functions, monitoring and control capabilities) for system operators to
further optimize the management and operation of their grid as described in Figure 1. They
could be considered in some cases as cost-effective complement levers to traditional
investment strategies – with the goal of bringing value for the society and taking into account
global cost-benefits analysis – and may be used to improve grid reliability of supply and
quality of service while optimizing network investments without de-optimizing the global
network chain.
SOURCE: evolvDSO, 2014.
Figure 1 – New smart business processes enhanced by smart grid functions

The path towards an active approach includes the following opportunities:
• the improvement of network planning, operation and maintenance processes, in order to
optimize network investments;
• the intensified cooperation between EHV, HV and MV/LV system operators, as well as
generators, consumers, contractors, manufacturers and retailers throughout market
mechanisms as much as possible;
• the need to contract and activate flexibilities at different timeframes to optimize network
design and operations and solve specific electrical network constraints – in coordination
with existing market principles/rules and in a neutral and transparent way;
• the ability to facilitate a
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