Regulatory frameworks for enabling distributed energy resource participation in smart grids

This chapter first briefly outlines a policy framework that has been shaping electricity industry and in particular latest developments that are enabling realisation of low-carbon electricity networks with high levels of renewable generation. It also outlines latest changes that are putting customers at the centre of energy transition, thereby affecting TSO and DSO operation, and opening a question of their better coordination, and thus a need for solutions proposed by and evaluated in the SmartNet project. This chapter also discusses changes that are necessary in the DSO operation to enable better DER integration and discusses results from implementation of five coordination schemes analysed in the SmartNet project. Finally, it discusses general issues that need to be considered when deciding on rules and regulation that will enable shift to systems that will require increased flexibility provided by different technologies and customers.