Modelling Requirements for Least-Cost and Market-Driven Whole-System Analysis

Development of holistic modelling approaches of the whole electricity system chain (generation, transmission, distribution) across both operation and planning time horizons will be essential, as the historical, individual sector centric approaches are no longer sufficient to facilitate cost-effective operation and development of the system.

The whole-electricity system modelling should consider all sectors concurrently as new technologies, such as demand side response or distributed storage will simultaneously impact distribution, transmission and generation sectors. In this context consideration of national level objectives will need to be included in modelling of operation and design of local distribution networks, which is in stark contrast with the established models currently used.

Furthermore, given that substantial asset replacement will take place in the next 20 years, it will be important to replace the incremental, like-with-like network replacement approach, with a whole-system, strategic development paradigm, accounting for the impact of alternative emerging smart grid technologies. It is important to stress that development of whole-electricity system models is in early stage and that there is a very significant scope for further improvements.