Cost-effective strategies for enhancing DSO flexibility: exploring sensor rental and virtual sensors in DLR systems

The increasing importance of flexibility in Distribution System Operators (DSOs) worldwide has become a core focus, particularly in Europe, where the rise of solar power has posed new challenges to grid management. In response to these challenges, many DSOs are investing in Grid Enhancing Technologies (GET), with Dynamic Line Rating (DLR) systems gaining popularity. A reliable DLR system necessitates sensors to monitor the thermal state of conductors, but the high number of sensors required can lead to significant costs. This raises a critical question: how can DSOs reduce the financial burden of implementing DLR systems? This paper explores three potential cost-reduction and cost-reallocation strategies: novel sensors, sensor rental, and virtual sensors. The main advantage of novel sensors is that they focus on accurately measuring a single parameter, making them cheaper to acquire and maintain than conventional sensors. Virtual sensors offer an innovative solution to cost reduction, leveraging artificial intelligence (AI) to train a model over the first year of operation. This training period, which initially deploys physical sensors and combines their data with SCADA systems and weather inputs, paves the way for a more efficient use of resources. The main advantage of sensor rental is the ability to allocate costs over a 5-7-year period, which aligns with DSOs' financial planning horizons, making these strategies not just cost-effective but also practical and manageable. This innovative approach reduces costs and points to a future where technology can be used more effectively in grid management. The paper concludes by presenting compelling financial calculations from a European DLR project. These calculations demonstrate how the different approaches—novel sensors, sensor rental, and virtual sensors—can significantly reduce costs compared to conventional DLR systems. By emphasizing these financial benefits, the paper aims to reassure DSOs about the cost-effectiveness of these strategies. Ultimately, combining these methods offers DSOs a viable pathway to improving grid flexibility while minimizing the financial impact of technological upgrades.