Similar to the Electricity System Operator (ESO) but more local. The DSO distributes Power to residential areas and businesses in their are of operation. They manage the Energy System in their local area.
Distribution Network Operators (DNO’s) are quickly evolving into Distribution System Operators (DSO’s). This is because they are taking on new responsibilities based on innovations, whereby DNO’s are transitioning from providing power from traditional power stations to more Distributed Energy Resources (DER’s), such as wind, PV, Hydro etc.
This approach has an emphasis on flexibility. DSO’s are expected to provide more power in a more flexible way, moving away from the previous paradigm of network structures based on a managing a few central power stations. This approach also depends on power being used more locally, by consumers closer to the generators.
DSO’s primary concern is demand satisfaction - ensuring enough power is generated that each consumer has access to it when it’s needed.
This change in energy generation presents some opportunities for communities:
- Engagement with the development of the energy system
- Smarter system using new technology
- New income streams
- Access to other markets
- Local energy market (peer-to-peer energy market)
- Faster and cheaper connections
- More information