APEC Project Database

Project Title

Distribution System Operator as a facilitator for energy transition

Project Year

2023

Project Number

EWG_207_2023A

Project Session

Session 2

Project Type

Standard

Project Status

Completed Project

Project No.

EWG_207_2023A

Project Title

Distribution System Operator as a facilitator for energy transition

Project Status

Completed Project

Fund Account

APEC Support Fund

Sub-fund

ASF: Energy Efficiency, Low Carbon and Energy Resiliency Measures (EELCER)

Project Year

2023

Project Session

Session 2

APEC Funding

98,233

Co-funding Amount

Total Project Value

98,233

Sponsoring Forum

Energy Working Group (EWG)

Topics

Energy; Digital Economy

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE)

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Chile

Co-Sponsoring Economies

Japan; Korea; Peru; Philippines; United States

Expected Start Date

01/01/2024

Expected Completion Date

30/06/2025

Project Proponent Name 1

Danae CANCINO Espinoza

Job Title 1

Electrical Engineer - Regulation Analyst, Sustainable Energies Division

Organization 1

Ministry of Energy, Chile

Telephone 1

+56961773007

Email 1

dcancino@minenergia.cl

Project Proponent Name 2

Adelaida Baeriswyl Concha

Job Title 2

Organization 2

Ministry of Energy, Chile

Telephone 2

Not Applicable

Email 2

abaeriswyl@minenergia.cl

Declaration

Danae CANCINO Espinoza

Project Summary

Given factors such as the massive adoption of distributed generation, electrification of heat, and the expected introduction of batteries and electric vehicles lead to rethinking the regulation of electricity distribution networks, and possibilities of new ways to operate in terms of control over the new distributed generation facilities.

This project aims to organize a two-day seminar focused on the introduction of the figure of the Distributed System Operator (DSO) in economies where is not present, highlighting its benefits and disadvantages, as well as identifying the existing barriers to its implementation. Furthermore, a report with recommendations and main takeaways from the workshop will be prepared.

To achieve this, experts will be presenting and engaging in panel discussions over the course of four 3-hour sessions. The seminar will be held in Chile, and it is expected to be carried out in June 2024.

List of all project outputs

1. Seminar

2. Project Summary Report

Relevance

Benefits to Region: Considering the sustained increase in distributed generation among several economies within the APEC’s member, distribution networks are facing various technical challenges that put at risk their proper functioning. However, restricting the entry of new distributed generation facilities would hinder progress in the decarbonization process aimed at mitigating the effects of climate change. Therefore, distribution networks need to be prepared for future challenges to prevent putting at risk the electricity network; taking account the experience of some European economies, the implementation of a DSO has proven to be one of the necessary steps to achieve a more resilient grid.

Eligibility and Fund Priorities: This project will contribute to achieving APEC’s goal of decarbonizing the energy matrix by increasing the generation capacity of renewable energy facilities. To achieve this, the current electricity grids need to be updated by strengthening the distribution grid where this type of facilities are typically connected to inject energy. Additionally, it would contribute to enhance energy access and network resiliency.

Capacity Building: Currently, economies such as Chile and Peru, present outdated distribution networks that are uncapable to accommodate further distributed generation. This poses a barrier to continue advancing in the decarbonization of the energy generation, in addition to being a risk to the grid’s stability.

Considering that affordable access to clean energy is one of the basic needs to improve the economic and social well-being of the people, which is one of the APEC’s goals for capacity building, this event could present a major contribution to the proper improvement of the networks.

Objectives

The sharing of international experience in the topic would allow to identify the most common technical and regulatory barriers encountered when implementing a Distribution System Operator in distribution networks across different economies, especially in emerging economies as Chile and other APEC members. Moreover, this exercise will provide insights into the best methods for addressing these challenges by analyzing the unique circumstances of the economies looking to implement a DSO, with the objective of achieving a successful outcome.

Alignment

Beneficiaries and Outputs

Outputs

1. Seminar

1. Seminar: The discussion will focus on Distribution System Operators and their role in decarbonization and energy transition, considering, but not limited to, regulatory and technical implementation, key enabling factors, business models, market design, and international experience. It will be an in-person event, held in Santiago, Chile, taking place on October 2024, from 9 am to 5 pm, approximately. The participation of 12 speakers (5 international speakers and 7 from Chile) and an attendance of 50 participants is expected. The target audience includes specialists, researchers, representatives of energy trade associations, professionals from energy companies, policymakers, and authorities, including APEC members. The seminar will be designed as an interactive event, with presentations, discussions, and conversations between participants and speakers. The seminar will not be recorded.

The tentative agenda for each session corresponds to:
a) Day 1:
Session 1: Introduction to distributed generation, its benefits and challenges, and the transition from DNOs to DSOs (three lectures). Session 2: Regulatory schemes for new distributed energy resources and successful experiences around the world (three lectures and a panel discussion).
b) Day 2:
Session 3: Technical challenges to overcome (three lectures and a panel discussion).
Session 4: The new paradigm of distributed energy resources (three lectures and a panel discussion).

This tentative agenda considers the main topics to be addressed in the different sessions; however, it is expected that different perspectives will be included in the workshop, such as how to encourage individuals to pursue education in the field (considering gender gaps in STEM), contribution in making technology more accessible to people, how it can be perceived by the public and how to address possibly issues, etc.

Pre-seminar evaluation: Before the seminar takes place, an online survey will be sent to confirmed attendees, and disaggregating them by gender. The questions will focus on the attendees' knowledge regarding the implementation of a distribution system operator, observed results, topics they consider relevant to address during the event, and what tools they expect to acquire. With this information, modifications can be made to the tentative agenda to align it with the concerns and interests of the attendees.
Tentative questions:
a) If you were attending a seminar on DSO, what kind of information or knowledge would you hope to gain by the end of the event?
b) Can you think of any potential benefits for consumers or communities, particularly for women, in having an efficient distribution system?
c) Are there global best practices that can be applied to different regions, or is DSO implementation highly context-specific? In the first case scenario, what do you consider are the best practices?

Post-event evaluation: To assess the success of the event by presenting valuable insight from participants, disaggregating them by gender. This can be done through a participant survey or a peer review of outputs, intended to gather information on this issue and therewith elaborate a set of recommendations for better policy making on electrical distribution.

This Survey will analyze the common factors needed for developing a strategy for policy-making and technical implementation, and also considering if the workshop has addressed satisfactorily gender issues to the main topic.

2. Summary Report

The report will be prepared by the Chilean Ministry of Energy. The report will be at least 12 pages long of substantive content:
- Table of content.
- Executive Summary.
- Context and presentation.
- Pre-seminar Survey results and analysis.
- Post event evaluation and analysis.
- Best practices and key success factors.
- Summaries of key presentations, discussions and findings from the main event.
- Recommendations for APEC economies in the matter.
- Conclusion.

Outcomes

Insights developed about the best methods of addressing the most common technical and regulatory barriers encountered when implementing a Distribution System Operator in distribution networks across different economies, particularly developing ones, to achieve a successful outcome when adopting one. This will be evaluated through a post-seminar evaluation.
Participants will enhance their technical knowledge on DSO’s implementation. This approach can expedite the energy transition, reinforcing the security and reliability of electricity provision, curbing greenhouse gas emissions, and mitigating the effects of climate change. This will evaluate through a post-seminar survey.
Participants who have the capacity to do so can promote the development of policies and regulations in their respective governments, by enhancing their current policies and regulations considering the experiences of other APEC economies. This is going to be evaluate through a post seminar survey asking about how feasible it is to implement some of the policies adopted by other economies that have successfully developed a DSO.
Participants from the public and private sector can promote new business models and market design in their respective economies, in line with the experiences of other APEC economies. This is going to be evaluate through a post seminar survey asking about how feasible it is to implement different measures adopted by other economies that have successfully developed a DSO.
Recommendations on how to implement best practices on different economies, considering regulatory framework, market design, grid infrastructure, flexibility mechanisms, capacity building, among other key steps. They will provide APEC economies with the knowledge to assess the appropriate way of implementing a DSO. This is going to be assessed through the Summary Report, where each one will be enumerated and developed, so that other economies can fully understand how to implement them.

Beneficiaries

This project will increase the knowledge of DSOs as a solution to outdated distribution networks that are incapable of accommodating the large amount of expected distributed generation. The seminar will be aimed at key actors within the energy sector, who will be involved in the energy transition and may be involved in promoting and implementing a new operator. This includes policymakers, representatives from different distribution companies, and distributed generation companies.

The primary beneficiaries:

Stakeholders involved in governmental decision-making for the energy industry and sustainable development, they will make the most out of the outputs of the project, as these will serve as a robust basis for improving the current regulation of the electric distribution sector for their own economies.

For the private electric sector, this project will provide them with information on how to move into a new business model, how to improve their networks and the end-user experience, the enabling factors they need to continue enhancing the service they provide, and how to overcome barriers according to the international experience. Most of the institutions related to energy, including generation, transmission and distribution companies, have associations that represent them, and the directors of these organizations are going to be invited to participate. In addition, they can help identify individuals in managerial and strategic positions within their respective institutions who have the authority to make the technical and economic decisions required for the electric sector. We will also reach out to the Sustainable Development ABAC Group for suggestions if needed.

Academia and researchers on energy transition, decarbonization and technology, thanks to in-depth exchange with colleagues from other members economies.

Secondary beneficiaries:

People living in the economies that use or implement the project′s recommendations will be considered indirect beneficiaries, as they may benefit from the project through a better quality of electricity service, new market opportunities (as prosumers), managing their own electricity demand, etc.

Dissemination

The optimal means for the dissemination is the electronic publication of the Summary Report, that will be sent to the policy makers of APEC members and other key stakeholders from the energy sector, encouraging them to disseminate the results through their official communication channels. Other organizations, academia and participants involved in the project are also expected to share its outcomes.

The Summary Report, including a summary of the seminar and best practices, will be published on the APEC website.

There is no intention to sell the outputs from this project.

Gender

The Chilean Ministry of Energy has a gender agenda that aims to promote gender parity in the energy industry. During the year 2022, the Ministry officially established the Gender and Human Rights Office, aligning it with the Sustainable Development Goals, which states that the gender perspective in energy-related issues specifically involves increasing female talent in this industry, promoting equity in leadership positions and salaries, and also viewing energy resources as a commodity that all citizens should have equal access to. In 2023, in collaboration with the Ministry of Economy, the Women Add program was launched, which encourages and ensures the participation of women in the energy sector in expert panels, news, and events related to energy issues.

Our goal is to achieve a 50% participation rate across all levels. To accomplish this, we will encourage participating economies to take this into consideration when selecting their representatives, for those attending as participants as well as speakers. The PO is committed to collecting sex-disaggregated data for all speakers and participants (not only those funded by APEC) at the project event. This data will be included when submitting a Completion Report to the Secretariat upon completion of the project, as well as providing guidance to future POs on their gender parity targets.

To promote female attendance, the PO will request the forum PD to contact its members, requesting recommendations for female experts and presenters who can participate in the seminar; using the General Information Circular, economies will be encouraged to nominate 50% of the participants to be women. An email is going to be send to the Chair of the Sustainable Development ABAC Group, to seek suggestions of women speakers and experts.

About Skills, Capacity Building and Health: The seminar will feature experts in the energy sector who will share their knowledge with the attendees. It is expected that at least 50% of the attendees will be women, allowing participants to gain knowledge and skills that can empower them in their respective workplaces. Additionally, the event will be attended by individuals with expertise and other professionals in the field, creating networks that will provide them access to various opportunities, knowledge exchange, among other benefits.

For innovation and technology. For the realization of the seminar, at least 25 women will be invited as attendees. Discussions will focus on topics related to energy, a field currently dominated by men. By providing knowledge about energy, distribution, and system operation, the aim is to encourage women's participation in the field, motivating them to specialize in STEM-related careers, considering science, technology, and engineering are crucial to the energy field. This, in turn, will equip them with the knowledge needed to contribute to the implementation of a DSO in their respective countries.

Five Pillars of the Gender Criteria

Skills, Capacity Building, and Health
Leadership, Voice and Agency
Innovation and Technology

Gender Participation Target Goals

As Participants: Male (50%) Female (50%)
As Speakers: Male (50%) Female (50%)

Work Plan