5. Scenario Analysis

The performance of TSO-DSO coordination schemes depends on the characteristics of the electricity systems in which regulation reserves can be provided by both transmission and distribution resources. In order to investigate the main aspects influencing TSO-DSO interactions, three detailed electricity scenarios (related to the expected 2030 evolution of Denmark, Italy and Spain) are defined. In particular, these scenarios are designed by assuming various distribution network conditions, determining different volumes of flexibility requested by the DSO in order to carry out local services. Then, the structure of a simulation platform, aimed at testing TSO-DSO coordination schemes, is proposed. It is based on three main blocks, integrating actual market clearing, bidding and dispatching algorithms, together with a simulator for the network and all the physical power resources. Finally, the simulation results are processed by means of a cost-benefit analysis which identified the market architectures providing the highest economic benefits to the system and the main factors that influence the profitability of one TSO-DSO coordination scheme among the others.