Generic smart grid requirements - Part 2-2: Market related domain

IEC SRD 62913-2-2:2019(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 market related domains, based on the methods and tools developed in IEC SRD 62913-1.
It 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 terms 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
Completion Date
17-May-2019
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IEC SRD 62913-2-2
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Generic smart grid requirements –
Part 2-2: Market related domain
IEC SRD 62913-2-2:2019-05(en)
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IEC SRD 62913-2-2
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SYSTEMS
REFERENCE DELIVERABLE
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Generic smart grid requirements –
Part 2-2: Market related domain
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– 2 – IEC SRD 62913-2-2:2019 © IEC 2019
CONTENTS

FOREWORD ........................................................................................................................... 3

INTRODUCTION ..................................................................................................................... 5

1 Scope .............................................................................................................................. 6

2 Normative references ...................................................................................................... 6

3 Terms, definitions and abbreviated terms ........................................................................ 6

3.1 Terms and definitions .............................................................................................. 6

3.2 Abbreviated terms ................................................................................................... 7

4 Market ............................................................................................................................. 8

4.1 Purpose and scope ................................................................................................. 8

4.1.1 Clause objective .............................................................................................. 8

4.1.2 General context ............................................................................................... 8

4.1.3 Overview of electricity market ........................................................................ 10

4.2 Business analysis ................................................................................................. 10

4.2.1 General overview ........................................................................................... 10

4.2.2 List of Business Roles and Business Use Cases of the domain...................... 11

4.2.3 List of System Use Cases and System Roles ................................................. 14

4.3 Generic smart grid requirements ........................................................................... 15

Annex A (informative) Links with other TCs and gathered materials ..................................... 16

A.1 General ................................................................................................................. 16

A.2 Market .................................................................................................................. 16

A.2.1 Identified TCs ................................................................................................ 16

A.2.2 Gathered materials ........................................................................................ 16

Annex B (informative) Use Cases ........................................................................................ 19

B.1 Market .................................................................................................................. 19

B.1.1 Business Use Cases ...................................................................................... 19

Bibliography .......................................................................................................................... 44

Table 1 – Content of IEC SRD 62913-2-2:2019 ....................................................................... 5

Table 2 – Examples of flexibility products based on active demand ....................................... 10

Table 3 – Identified business roles of the domain .................................................................. 12

Table 4 – Business Use Cases of the market related domain ................................................ 14

Table 5 – Identified system Use Cases of the domain ........................................................... 15

Table 6 – Requirements extracted from market Use Cases ................................................... 15

Table B.1 – UC62913-2-2-B001 Deliver services based on data provision ............................ 19

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IEC SRD 62913-2-2:2019 © IEC 2019 – 3 –
INTERNATIONAL ELECTROTECHNICAL COMMISSION
____________
GENERIC SMART GRID REQUIREMENTS –
Part 2-2: Market related domain
FOREWORD

1) The International Electrotechnical Commission (IEC) is a worldwide organization for standardization comprising

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IEC SRD 62913-2-2, 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/88/DTS SyCSmartEnergy/97/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.
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– 4 – IEC SRD 62913-2-2:2019 © IEC 2019

The committee has decided that the contents of this publication will remain unchanged until

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related to the specific publication. At this date, the publication will be
• reconfirmed,
• withdrawn,
• replaced by a revised edition, or
• amended.
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IEC SRD 62913-2-2:2019 © IEC 2019 – 5 –
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 five 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;

IEC SRD 62913 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 grid.
The document for each domain is composed as follows.
• Purpose and scope.

• Business analysis: to address 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, technical committees and gathered materials

(existing standardization documents, user stories, Use Cases and functional architectures).

• Annex B includes a complete description of Use Cases per domain based on IEC 62559-2.

• Bibliography.

The purpose of this document is to define the generic smart grid requirements of the market

related domain, based on the methods and tools developed in IEC SRD 62913-1.

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 62913-2-2:2019
Domain Content Scope
Market Described with 1 business Use Case
and 6 system Use Cases identified
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– 6 – IEC SRD 62913-2-2:2019 © IEC 2019
GENERIC SMART GRID REQUIREMENTS –
Part 2-2: Market related domain
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 market related domains, based on the methods and tools developed

in IEC SRD 62913-1.

It 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 terms 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.).
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
active demand definition

demand offered for the purposes of, but not restricted to, providing active power management,

voltage and frequency regulation and system reserve
3.1.2
aggregation
process of combining data from various sources
[SOURCE: ISO/IEC 29182-2:2013, 2.4.2]
3.1.3
dispatchable generation source

source of electricity that can be dispatched at the request of power grid operators or of the

plant owner
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IEC SRD 62913-2-2:2019 © IEC 2019 – 7 –

Note 1 to entry: That is, generating plants that can be turned on or off, or can adjust their power output according

to an order.
3.1.4
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.
3.1.5
flexibility aggregator

entity that buys and aggregates the flexibility of consumption (demand response) and

distributed generation in order to value them on the market and through the transportation

products (adjustment mechanism, capacity market)

Note 1 to entry: Flexibility aggregator contracts with end-customer directly or through an intermediary like an

energy supplier.
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.
[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 60050-191:1999, 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
CBA Cost Benefit Analysis
EHV Extremely High Voltage
DER Distributed Energy Resources
DR Demand-Response
DSO Distribution System Operator
FCR Frequency Control Reserve
FRR Frequency Restoration Reserve
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– 8 – IEC SRD 62913-2-2:2019 © IEC 2019
HV High Voltage
HVDC High Voltage Direct Current
LV Low Voltage
MV Medium Voltage
RR Restoration Reserve
SGAM Smart Grid Architecture Model
TSO Transmission System Operator
4 Market
4.1 Purpose and scope
4.1.1 Clause objective

The purpose of Clause 4 is to present a business analysis of the market domain in a smart

grid context, and more specifically to describe the smart grid requirements of the domain

using the generic Use Case approach as defined in [1] . This analysis is based on a

European perspective, and will need to be extended to other regions (such as North-American

markets).
4.1.2 General context
4.1.2.1 General
Two technological trends are impacting the electric power system:

• the development of distributed renewable energy sources, which are intermittent;

• the development of smart grid technologies.
4.1.2.2 An electric power system perspective – the need to strengthen the
management of balance between demand and supply through interconnected
transmission grids

The functioning of the electric power system requires maintaining the balance between supply

and demand at any time, in order to avoid situations leading to load shedding or even

blackouts, which could have dramatic economic consequences.

The electric power system, in which balance between demand and supply is managed at the

level of transmission networks by the TSO, provides the following benefits.

• It contributes to ensure security of supply and cost optimization to the benefits of

consumers, by reducing and localizing the impacts of faults and other unexpected events,

and by using the most efficient generation capacities at each synchronous area at first and

if not existing at the national level.

• It offers a better use and increases the value of intermittent renewable energy sources, by

mitigating their variations (see for example North-South grid interconnections in Germany).

• It allows solidarity between regions which have high penetration of distributed renewable

energy sources and others with lower shares of renewable energy sources.

To ensure the reliability of the electric power system, stakeholders can rely on the following

key players:
Numbers in square brackets refer to the Bibliography.
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IEC SRD 62913-2-2:2019 © IEC 2019 – 9 –

• regulated actors, like system and grid operators, who manage the networks and ensure

physical balance between production and consumption in their balancing zone for system

operators;

• deregulated actors (such as suppliers/retailers, flexibility aggregators, producers, or

electricity traders/brokers), who operate within a balancing zone, on which balance

responsible parties have a financial responsibility.
4.1.2.3 Evolutions needed for the electric power system
4.1.2.3.1 A need for more flexibilities

First, the development of renewable energy sources, more particularly wind and solar power,

increases the variability and uncertainties on balance between supply and demand. The

electric power system will need more flexibility to maintain this balance and further face new

challenges.

A global cost benefit analysis (CBA) should be achieved to assess the economic relevance of

the flexibility versus grids developments.
4.1.2.3.2 New constraints in distribution networks

The increased penetration of distributed generation from renewable energy sources into

distribution and transmission networks tends to generate operational problems. The risk to

violate grid operational constraints increases.

Grid operators have traditionally managed these constraints in the long term with network

reinforcement, investments, and in the operational time horizon by switching actions,

emergency control of customers and, if other means fail, by disconnection of less critical

feeders and customers.
Otherwise the result is an uncontrolled wider and longer nonselective blackout.

A more dynamic management of the grid would allow grid operators to optimize network

investments and to reduce the risk of blackouts and a loss or limitation of customers’ physical

access to the market.

With the increasingly dynamic power flows, it also becomes necessary to take into account

the dynamic grid constraints in the electricity markets in a fair and transparent way.

4.1.2.3.3 Expected benefits of smart grid technologies on flexibilities and network

management

Furthermore, smart grid technologies, including the deployment of smart metering systems for

residential and business customers and communicating electrical equipment, will enable the

development of further flexibilities and contribute to the reliability and efficiency of the electric

power system.

These flexibilities, which can be defined as a modification of 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, may be traded within the electricity market, to deliver ancillary

services, services to grid operators, for the TSO for balancing purposes, or to allow an

optimization of production costs for instance.
Flexibilities can be incentivized and remunerated by:
• a variation of electricity prices (purchased or supplied),
• a variation of network tariffs,
• a direct compensation for the provider of the flexibility.
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– 10 – IEC SRD 62913-2-2:2019 © IEC 2019

Furthermore, the activation of localized flexibilities (injection or extraction) can allow system

and grid operators to solve specific grid constraints. These local flexibilities, developed by

actors within their balancing zone, impact the balance between supply and demand and

therefore have to be taken into account in its management at a system level.

Table 2 lists some examples of flexibility products based on active demand, as well as their

main characteristics.
Table 2 – Examples of flexibility products based on active demand
Active demand Conditionality Typical example
product

Bi-directional conditional Conditional (real Having the capacity to provide a specified demand

re-profiling option) modification during a given period in a bi-directional range

[y, x] MW, including both demand increase and decrease.
The delivery is called upon by the buyer of the active
demand product (similar to a reserve service).

Conditional re-profiling Conditional (real Having the capacity to provide a specified demand

option) modification during a given period. The delivery is called
upon by the buyer of the active demand product (similar to
a reserve service).

Scheduled re-profiling Unconditional Obligation to provide a specified demand modification

(obligation) (reduction or increase) at a given time to the product
buyer.

The business analysis of the market domain will detail how these flexibilities can be provided

and used by various roles of the electric power system within the electricity market.

4.1.3 Overview of electricity market

The purpose of electricity market is to allow actors of the electric power system to purchase

and sell energy and energy-related products and services. Trading can take place:

• on stock exchanges – such as EPEX Spot for instance;
• via mutual agreement (direct or brokered).

Even though the domain is referred to as “market” in the singular, it is more accurate to speak

about “electricity markets” in the plural. Indeed, separate marketplaces or market mechanisms

with specific sets of rules, roles, and objectives may exist in the same zone and even be

coordinated.

The business analysis of the domain focuses on the flexibility products and services traded

within electricity markets which allow market players to execute/enable their business

processes. These internal processes are out of the scope of this document.
4.2 Business analysis
4.2.1 General overview

The electricity markets are going to have a preponderant place for the whole electric power

system. The development of new electricity usages and the integration of DER need reliable

and efficient market mechanisms. To contribute to the security of the system and to obtain the

best deals between market participants, the development of market facilities, market products

and a better cooperation between actors are required.
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IEC SRD 62913-2-2:2019 © IEC 2019 – 11 –

Flexibility products and services may be traded within existing or new markets and market

mechanisms – depending on various elements such as legal rules, the time scale or

geographic scale.

Here are some major improvements expected for the main domain business roles from the

integration of flexibility products and services within electricity markets.

• End-customers may benefit from better energy supply contracts and reduced electricity

bills if they accept to modulate their consumption and participate in the market (via a

supplier, a flexibility aggregator/operator, or another third party).

• Suppliers will be able to propose to their customers flexible offers and create value with

attractive tariffs, by developing active demand offers combined with competitive tariffs

during off-peak periods and/or less competitive tariffs during peak periods for instance.

This flexibility can create value on energy markets or allow system or grid operators to

solve network constraints. Suppliers may also participate in a capacity market or

mechanism – when such a market/mechanism has been implemented.

• Flexibility aggregators will develop, offer and manage various flexibility products and

stakeholders for grid users (consumers, producers, and/or prosumers), system operators,

or grid operators.

• System operators and grid operators may obtain (new) flexibilities to ensure the network

reliability, plan work programmes and ultimately realize investments – as long as these

flexibilities meet certain requirements according to the legal framework.

• Producers may rely on new levers to sell their production, plan their investments and

works, and self-insure against business risks – by buying flexibilities.

A strong coordination between certain roles will be needed to prevent market side effects and

ensure the overall optimization of the system. More specifically, Transmission system

operators and grid operators may have to re
...

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