The growth in demand for electricity and the increasing penetration of Distributed Energy Resources (DERs) greatly exceed the pace at which Distribution System Operators (DSOs) can install new hardware to enlarge grid capacity. Through its collaboration with Siemens Grid Software, Italian DSO Areti is demonstrating how flexibility management can maximize the stability of the grid while optimizing costly hardware upgrades.

Smart investments for the smart grid

Global demand for electricity is rising rapidly, and the area served by Roman DSO Areti is no exception. Over the next 10 years, Areti anticipates that peak demand will increase by 50% from 2,200 MW to 3,300 MW, a trend driven by the increasing adoption of electric vehicles, heating, and cooking.

Areti could have chosen the traditional approach: invest large sums of capital to ensure enough grid capacity to meet high demand peaks that occur for few hours a year, for example during summer heat waves when air conditioning and heat pumps put the grid under particular stress. Instead, they partnered with Siemens to deploy software that enables them to forecast grid congestion and request flexibility from customers on the low- and medium-voltage grids to avoid forecasted peaks. This innovative approach results in savings of up to €450 million in publicly funded grid hardware expansions and reduces the risk of outages.

Extracting value from data

The complexity of modern grids creates challenges, but it also creates opportunities to manage grids more effectively. Using a digital twin of the grid as their foundation, DSOs can extract value from data that is housed in previously siloed sources such as Geographic Information Systems (GIS), Meter Data Management (MDM) systems, and Advanced Distribution Management Systems (ADMS).

Areti has a long history of leadership in deploying technologies that link Information Technology (IT) with Operational Technology (OT) to enhance grid management. Through the RomeFlex (Reshaping Operational Methods to run grid Flexibility) project, Areti is using software developed by Siemens to forecast grid congestion over a period of hours or days.

The algorithms developed for the RomeFlex project precisely calculate the amount of flexibility required to avoid current and voltage violations and reduce the risk of outages in the medium-voltage and low-voltage networks. Based on this information, Areti procures flexibility services from consumers and producers through a local flexibility market developed for the RomeFlex project. Areti is planning to contract 720 MW of flexibility by 2032 while also investing in grid infrastructure where necessary. This approach allows it to save €450 million in public funds that have the potential to be invested in any number of ways that benefit society while also ensuring higher grid stability and lower outage risk.

Local flexibility markets are just one tool that grid operators can use to reduce the risk of potential congestions. For example, Siemens is currently testing other regulatory tools like Flexible Connection Agreements (FCA) or Operating Envelopes with co-innovation partners in Austria and Norway. This approach leverages DERs to alleviate congestions, particularly for resources under bilateral contracts or FCAs. These resources are required to adhere to the instructions provided by the DSO, as recommended by Siemens algorithms. This demonstrates that Siemens’ Flexibility Management approach is scalable in other countries and even under evolving and differentiated regulatory frameworks.

“The opportunity to work closely with customers to affect change of this magnitude inspires and energizes me. The solution that Areti deployed was tailored to their specific needs and regulatory requirements, but the lessons we have learned from our partnership are incorporated into Siemens software and scaled to benefit DSOs across Europe and beyond.”

About the author:

Filippo Re is a Product Manager for Grid Software at Siemens

Flexibility Management Briefing Paper

This blog post is part of a comprehensive summary paper where Siemens experts reveal how DSOs can enhance grid capacity through flexibility management and Digital Twin-based grid management. Discover success stories from innovative European DSOs who are reducing grid congestion, increasing grid utilization, and connecting customers to the grid faster by leveraging smart software.

Download the full paper on grid flexibility here