Community DSO: a community-led approach to smart local energy systems

Energy communities offer opportunities for customers to increase the value of system decentralisation, however they can be complex to establish and need to align with network needs for broader system benefit. Alongside this, the rapid deployment of low carbon technologies (LCTs) presents a challenge for network companies in operating and balancing electricity networks. The Community Distribution System Operator (Community DSO) concept proposes a solution to this complexity by engaging with LCTs within energy community “cells”. Each cell, based around a physical section of the network, manages loads at a local level. Community DSO could therefore create mutual value for both distribution network operators (DNOs) and the communities connected to their low voltage (LV) networks. For communities, this value is likely to be indirect, and could be very significant. For example, Community DSO might be a key enabler of local decarbonisation. The direct value to the DNO will be created through deferring and even avoiding the need for LV network reinforcement. Community DSO seeks to maximise this by encouraging high levels of participation in local flexibility that benefits both the network and community.