regulated markey scenario Luigi Bisone*, Giuseppe Mauri*, Alessandro Bertani**, Christian D’Adamo*** Fabio Cazzato***, Simone Botton*** CIGRE’ 2006 Session 41 Technical Exhibition Exposition Technique Parigi, 27 Agosto 1 Settembre 2006 * CESI RICERCA ** CESI SpA *** ENEL DISTRIBUZIONE Since electricity market liberalization in 1999, the Italian electric system is facing a growing diffusion of Distributed Generation (DG) in distribution networks. Although generators could be connected to LV, MV or HV voltage levels, the highest growth is expected in MV distribution networks. High penetration of these generators in an electric network designed to be operated as a “passive” load, may produce several problems. However, more than technical concerns: quality of service, economic issues (e.g. investment remuneration) and regulatory aspects seem to be the most important limits to the diffusion of DG. In a liberalized market, the electric market regulation plays a steering role fixing rules and economic criteria for connection and operation of the distribution network. In last years, the Italian electric energy regulatory Authority (AEEG) focused on continuity and quality of supply. Moreover, connection rules and operation criteria both for passive customers and generators have been revised in order to assure third party access to the electric grid. Yet, no clear rules have been established for the operation and management of Distributed Generation and local power flows management. In fact, the Distribution System Operators can not operate DG, dispatch energy and control the loads. For this reason, the operation of “active” networks is difficult as: • power quality could be affected (e.g. voltage regulation, service restoration, automatic faults selection procedures, etc.); • operation and maintenance of islanded networks could be dangerous (e.g. safety concerns). Instead, new opportunities are provided by innovative ICT systems dedicated to DG aggregation and control and electronic metering for all customers. They represent the enabling technologies for local energy dispatching and Demand Side Management actions. Examples of current research in the fields will be presented and possible implementation in distribution networks will be discussed.