Distribution System Operators, Platforms and Markets

The electric industry landscape is changing due to a number of factors including increasing penetration of variable energy resources (VER) at the bulk power system level and distributed energy resources (DERs) at the grid edge. New players are emerging on the scene including prosumers, Aggregators, Community Choice Aggregations (CCAs), microgrid operators, just to name a few. As a result the traditional interactions and interfaces of distribution system operation are changing, vis-à-vis the consumers on the one hand, and with the bulk power/transmission/wholesale market operations on the other. This is leading to expansion of the traditional role and responsibilities of distribution operation, and the need for new processes, procedures, tools and regulatory frameworks to support and structure the emerging high-DER distribution system. The term Distribution System Operator (DSO) is often used to refer to the entity responsible for management of the emerging distribution system under a regulatory framework that facilitates robust distribution-level markets, including peer-to-peer, peer-to-market and third-party (e.g., aggregator) transactive exchanges. The term Distribution System Platform (DSP) is used for the associated hardware/software/communication infrastructure needed for DSO operations.