ISGAN Framework

on Long-term Planning and Implementation of Smart Distribution Grids

This is a knowledge resource developed by ISGAN to support actors involved in the complex endeavor of distribution grid modernization, and to enable the realization of the global policy goals of tripling of renewable energy and significantly enhanced energy efficiency by 2030.

The Knowledge Hub focuses on the process of long-term planning and implementation of distribution grids in the context of high system complexity and multi-dimensional uncertainties. It provides a systematic framework for actors to improve understanding and enhance collaboration on collective challenges.

Grid Planners

With the term Grid Planners we include both:

Technical and executive functions responsible for long-term planning and implementation in Utilities or Distribution System Operator organizations.
Chief executive functions of Utilities or Distribution System Operator organizations, as well as public- and/or private grid owners with grid investment responsibilities of specific distribution grids.

You can find the resources particularly relevant for Grid Planners in the three last phases (Long-Term Planning, Assessment & Decision-Making, and Implementation).

To take a closer look at the actor roles involved in distribution grid planning and implementation, see HERE

On this page ISGAN highlights key aspects specifically relevant for actors directly involved in the long-term planning and implementation of smart distribution grids in Utilities or Distribution System Operators (terminology depends on country context).

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ISGAN Knowledge Hub

Actor Coordination & Collaboration

FRAMEWORK CONDITIONS
enabling a forward-looking planning process

Information & Knowledge Infrastructure

Legal & Governance Framework

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What forms of strategic intelligence are essential for making informed decisions and deploying effective steering mechanisms in distribution grid planning?How can they be realised and what are the related challenges? And what specific knowledge is necessary to conduct thorough needs assessments?

Foresight and Strategic Intelligence play crucial roles in long-term planning of future resilient distribution grids, particularly in uncertain and complex environments like those involved in energy transition and climate change. This phase is critical for ensuring that strategic decisions are based on robust and actionable information, even if accurate predictions of future requirements of grid planning cannot be made.

By systematically incorporating foresight and strategic intelligence, grid planners and the other actor groups can ensure that decisions made today will be resilient, forward-looking, and adaptable to future challenges and opportunities.
The aim is to reach a comprehensive understanding of needs and challenges for future resilient distribution grids and to identify viable pathways.
As groundwork for optimal strategic decision-making, foresight explores potential scenarios and identifies potential futures, allowing decision makers to prepare for a range of options.

Strategic intelligence provides the concrete data and analysis needed to navigate these futures effectively, analyzing trends and drivers about societal, technological, economic, ecological and political context conditions. Key Activities: Data Collection and Analysis: Collect data on future energy trends, demographic changes, and emerging technologies. Scenario Planning: Explore potential scenarios and develop multiple future pathways to anticipate different outcomes and challenges. Stakeholder Engagement: Engage with experts, governments, and other stakeholders to gather insights and perspectives. Outcome: A strategic foresight report that guides decision-making and planning processes.

Who is involved

Key issues to consider

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What strategic decisions are necessary for each actor’s organization that determine how plans are developed? How should those strategic decisions, to establish an adequate framework for long-term planning and implementation, be made and how should they be formulated?

In this phase, each actor’s organization with responsibilities and a mandate to develop long-term grid plans, is advised to come up with a clear strategic position. The strategic decision comprises how the grid development should look like and how to reach a new durable state of the grid in line with its mission. This involved setting strategic priorities, making investment decisions, and ensuring policy compliance.

Each of these actors or actor groups focuses on making informed decisions that will shape the long-term direction of grid development and how it serves the needs of actors at the grid-edge. For each individual actor, it involves analyzing the multiple scenarios and potential pathways from their own perspective and selecting the best course of action to ensure future grid’s resilience, sustainability, and efficiency. Scenarios and pathways towards future smart grids may stem from the outcomes and learnings from the Foresight phase, which profits from understanding between actor groups about shared narratives and can facilitate coordination and cooperation in achieving the strategic goals.

The objective of this phase is to set a clear strategic direction for grid development from the actors’ perspective. Decide on how to prioritize investments and initiatives that align with the organization’s future needs and interests of stakeholders. The strategic decisions are both for the overall network planning (planning what capacity is needed), as well as for the more concrete planning regarding how to realize the access to this capacity. These include resilience criteria and criteria for guaranteeing access to electricity as a universal basic service for all households and businesses. Key Activities: - Identify strategic options: Identify strategic option for developing future smart grids from the perspective of involved actor-organizations, building on the strategic intelligence collected and the foresight results from phase 1, - Multi-Criteria Analysis: Assess alternative planning options based on multiple criteria, including technical, financial, social and policy dimensions. - Risk Assessment: Assess risks and uncertainties associated with various strategic decisions, prepare for resiliency measures or eliminate unviable options. - Policy Alignment: Ensure that decisions align with national and regional energy policies and regulatory frameworks, as well as with other stakeholders. - Strategic guidelines: Develop basic principles and guidelines for the long-term planning process. This involved setting strategic priorities, making investment decisions, and ensuring policy compliance. Outcome: A strategic document or White Paper, which serves as foundation and guidance for strategic and long-term planning of the organization. It should provide in-depth analysis of trends and drivers, identify potential opportunities and threats. Thus, it can help inform the strategic direction and the consequences for the planning process.

Who is involved

Key issues to consider

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By performing a thorough long-term grid planning, considering different possible solutions that can meet the identified grid development needs, the planners provide the foundation for a robust, sustainable grid development given the foresight and strategic intelligence available.

Alternatives to grid-only investments, such as demand- and production-side flexibility and smart-grid technologies, should be considered to ensure cost-efficient grid expansion. Also, sometimes these alternatives are the only realistic possibility to be able to meet the rapid increase of the demand.

By evaluating if potential solutions can comply with technical standards and regulations, the grid planners gain confidence in that the solution they propose for assessment all meet the basic requirement for guaranteeing the expected level of security of supply, power quality and resilience. Key Activities: - Prediction of grid development needs: Often based on scenario analysis, including also already known connection requirements and reinvestment needs - Identify appropriate solutions: Various studies to identify solutions that in an affordable, sustainable and reliable way can meet the identified needs Outcome: A long-term grid development plan which provides the basis for formal reporting, approval and decision making.

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Key issues to consider

What are the key prerequisites for identifying and formulating options in concrete long-term grid planning that align with development needs while adhering to regulatory and organizational frameworks?

Long-term Planning elaborates the concrete long-term grid development plan by preparing one or several technical solutions that meet the identified grid development needs. The solutions must ensure the technical integrity and reliability of the grid as well as compliance with technical standards and regulations. The long-term planning also identifies financial implications of the planned solutions and risks related to the plan. The plan provides the basis for formal reporting, approval and decision making.

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What factors and criteria should be taken into account and how should they be weighed during the assessment and decision-making process of available options? How can a sound assessment and decision-making process be realized and what are the related challenges?

Performing a comprehensive, well-founded ex-ante Assessment of detailed options provides decision makers with the evidence base and Decision Support to be able to initiate the investment and implementation process. The assessment builds on the concrete options, which are prepared in the preceding long-term planning phase.

Since distribution grid development is a crucial part of the infrastructure and play a critical role in the energy transition, it is of utmost importance that the development plans are based on well-founded decisions considering different aspects.

Key factors to consider include economic, social, and environmental dimensions of grid development while also addressing uncertainties, risk and resilience factors.

The criteria to consider in the assessment and how to prioritize between them are important strategic decisions. Key Activities: - Assessment of grid development options: Thorough evaluation of the available options looking at their potential and impact on various criteria and dimensions. Tools for assessment are for example Cost-Benefit analysis tools and Multicriteria analysis. Methods must be available both for traditional grid reinforcement and alternative solutions, and they must be able to be compared in a fair way. - Decision making for implementation: Guidance from strategic decisions should be available on how to weigh and prioritize the criteria during the assessment of available options. - Stakeholder Consideration: How a decision impact various stakeholders should be understood and considered. Outcome: Grid development decision that initiate the investment and implementation process.

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In implementing the chosen option(s) for distribution grid development, what aspects require special attention?

The implementation phase realizes the chosen grid development option(s). The realization contains several substages including the preparation of a more detailed design. The solutions must be
implemented to ensure the technical integrity, resilience and reliability of the grid as well as compliance with technical standards and regulations.

To develop a sustainable distribution grid enabling the grid operators to manage the future challenges it is important to implement resilient solutions suitable to ensure a secure operation
despite foreseen increase of uncertainties.

An enhanced level of digitalization also in the distribution grid provides possibilities to have an improved visualization and control, however it also imposes increased challenges for example in terms of cyber security and personal integrity.

Standard based solutions and procedures are important factors to consider in implementation, to enable future grid development and ensure interoperable and trustworthy solutions. Key Activities: - Secure financing: Ensure that all parts needed in the realization of the solution has a viable financing - Permit-granting process: Prepare and apply for all potential permits required - Detailed design of the solutions: More thorough studies and design work for the solutions which can be technical and/or market based. This includes the design of control, protection and information systems - Contracts and procurement: Prepare contracts and procure material and services required. - Deployment: Plan and execute the solution deployment, which includes approvals at different stages (e.g., Factory acceptance Tests, etc.), personnel and onsite management, documentation and handover of final commissioned installation - Stakeholder Engagement: Engage with relevant stakeholders potentially involved in the selected solution, interaction with stakeholders for permissions, interaction with connected transmission and/or sub transmission grid owners Outcome: Finalized technical and/or market-based solutions in place modernizing the distribution need to meet the identified needs.

Who is involved

Key issues to consider

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The five PHASES of long-term planning

ISGAN Framework