An overview of the application of Smart Grid concept to distribution networks is covered in this chapter. It begins by outlining the main differences between conventional distribution networks and their counterpart smart distribution networks in Section 8.2. This is followed by explaining as why distribution networks are needed to be smart in Section 8.3. The basic building blocks from which a smart distribution network consists of are then covered under Section 8.4. Finally, the evolvement of conventional distribution networks into smart distribution networks is discussed in Section 8.5. In this context and in order to achieve this objective two EU projects namely, FENIX and ADDRESS have been initiated which are briefly covered respectively in Sections 8.5.1 and 8.5.2. In FENIX project the concept of a VPP has been introduced as way forward to ensure the flexibility of distribution networks with regard to the integration of DER/RES units. The aim of ADDRESS project is to develop a comprehensive commercial and technical framework suitable for the development of “Active Demand”and to exploit its market-based benefits.

Chapter Contents:

• 8.1 Introduction
• 8.2 Smart distribution networks versus conventional distribution networks
• 8.3 Why distribution networks need to be smart?
• 8.4 Basic building blocks of a smart distribution network
• 8.4.1 Agents
• 8.4.2 Characteristics of agents
• 8.4.3 PowerMatch
• 8.4.4 E-terra trade
• 8.4.5 E-terra control
• 8.5 Evolvement of distribution networks into Smart Grids
• 8.5.1 Flexible Electricity Networks to Integrate the eXpected Energy Evolution (FENIX)
• 8.5.1.1 The concept of VPP
• 8.5.1.2 Commercial virtual power plant and the commercial benefits of VPP aggregation
• 8.5.1.3 Technical virtual power plant and system management perspective of VPP
• 8.5.1.4 Large-scale VPP
• 8.5.1.5 Practical implementation of CVPP
• 8.5.2 Active Distribution network with full integration of Demand and distributed energy RESourceS (ADDRESS)
• 8.5.2.1 ADDRESS architecture
• 8.5.2.2 ADDRESS concepts
• 8.5.2.3 ADDRESS participants and the AD services provided to them
• 8.5.2.4 ADDRESS interoperability of data exchanges
• 8.6 Summary
• References

Inspec keywords: distribution networks; smart power grids; power markets

Other keywords: active distribution network with full integration of demand and distributed energy resources; DER-RES units; FENIX project; flexible electricity network to integrate the expected energy evolution; smart grid; ADDRESS project; smart distribution networks; renewable energy sources; market-based benefits; EU projects

Subjects: Power system management, operation and economics; Distribution networks