Considerations for Introducing Distribution System Operators in India

With the advent of Distributed Energy Resources (DERs), the power distribution sector is witnessing immense challenges in both operational and financial aspects. Hence, countries across the globe are embracing the Distribution System Operator (DSO) concept to address these challenges in the backdrop of ambitious net-zero targets. A DSO-like entity is envisaged to gather, process, and facilitate distribution level granular data and execute the control actions for maintaining reliable and economical distribution system operation. This paper has attempted to highlight various DSO functions and their mapping with existing codes and regulations. Different legal and regulatory considerations and four institutional frameworks are discussed for introducing DSOs in India. Three options are evaluated for distribution system operations: System Operations under the Distribution Licensee, System Operations under Sub-SLDC, and System Operations through Statutory Provision. Due to the diversity of distribution models and varying local needs, States will have different motivations for selecting specific DSO options. Since building institutions is a time-consuming process, it is recommended that the implementation of the DSO be approached incrementally and in phases.