A market-based smart grid approach to increasing power grid capacity without physical grid expansion

Abstract

The continuous increase of competitiveness of renewable energy in combination with the necessity of fossil fuel substitution leads to further electrification of the global energy system and therefore a need for large-scale power grid capacity increase. While physical grid expansion is not feasible for many countries, grid-driven energy management in the Smart Grid often interferes in customer processes and free access to the energy market. The paper solves this dilemma by proposing a market-based load schedule management approach that increases power grid capacity without physical grid expansion. This is achieved by allocating for a certain class of non-critical flexible loads called “conditional loads” the currently unused grid capacity dedicated to ensuring N−1 security of supply whereas this security level remains untouched for all critical processes. The paper discusses the necessary processes and technical and operational requirements to operate such a system.