Grid operators

Grid Operators are faced with unbundling of activities. Furthermore their focus moves from a pure asset and field service oriented company towards a company facing new issues related to renewable energy, such as introduction and roll-out of smart metering. 'Co-generation' also leads to grid load balancing issues.

The increasing share of distributed generation influences the arrangement of the power system and, in combination with regulatory issues, may negatively affect the business of the grid operators. Because distributed generation units are located closer to demand than central generation, increasing distributed generation may result in decreasing revenues for the grid operators, as less transport is needed to deliver the produced electricity to the customer. But is also may lead to increasing costs. Distributed generation units are mostly connected to the distribution network at low voltage levels; sites that were originally not meant to connect power generation facilities. This new situation can create several problems for the distribution networks in terms of stability and power quality. The more distributed generation is connected to a particular distribution network, the greater the challenge.
Therefore, grid operators have to change their business focus in order to keep their business lucrative. Transportation of electricity must not be the only revenue source. There are other activities that create value, and that, at the same time, make grid operators less vulnerable and dependent on one revenue source. By developing new business activities, thereby diversifying the business model, and by changing networks into active networks, the grid operator can overcome the decreasing transport revenues.


Solution map