A market-based smart grid approach to increasing power grid capacity without physical grid expansion
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The continuous increase of competitiveness of renewable energy in combination with the necessity of fossil fuel substitution leads to further electrification of the global energy system and therefore a need for large-scale power grid capacity increase. While physical grid expansion is not feasible for many countries, grid-driven energy management in the Smart Grid often interferes in customer processes and free access to the energy market. The paper solves this dilemma by proposing a market-based load schedule management approach that increases power grid capacity without physical grid expansion. This is achieved by allocating for a certain class of non-critical flexible loads called “conditional loads” the currently unused grid capacity dedicated to ensuring N−1 security of supply whereas this security level remains untouched for all critical processes. The paper discusses the necessary processes and technical and operational requirements to operate such a system.