Swissgrid is expanding its range of innovative products for the Swiss energy industry: TSO-DSO Coordination is a market-based mechanism that takes advantage of the flexibility of decentralised energy resources. Batteries, heat pumping technology and charging stations are no longer just consumers or producers – they are turned into active grid and ancillary service providers.
TSO-DSO Coordination enables transmission and distribution system operators to procure grid and ancillary services efficiently, securely and in a scalable manner. The integration of photovoltaics, electromobility and heat pumping technology becomes possible thanks to:
Decentralised energy resources such as photovoltaics, heat pumping technology or charging stations for electric vehicles are spreading rapidly. While they support the energy transition, they create challenges at all levels of the transmission and distribution grid. For example, they can lead to localised congestion, voltage violations or imbalances between electricity generation and consumption throughout the entire system.
The «TSO-DSO Coordination (TDC)» project demonstrates how decentralised flexibility can be used to benefit the grid. Resources such as batteries, heat pumping technology and charging stations are controlled so that they can respond to the changing demands of the grid. Flexibility service providers offer this flexibility by storing, consuming or feeding energy into the grid – depending on what is best for grid stability and efficiency.
Distribution system operators and Swissgrid can divide their grid into different local market areas where flexibility can be made use of or limited if necessary. Market optimisation takes account of supply and demand within the limits of the grid. Central optimisation considers the impact of flexibility activation on different grid levels, allows aggregation across different market areas and ensures that activating flexibility does not cause imbalances.
Swissgrid is working with industry partners to drive forward this innovation project, which is now entering the test phase.
Axpo, Azienda Elettrica di Massagno (AEM), CKW, ewz, Groupe E, Primeo Energie, Romande Energie, St.Galler Stadtwerke (sgsw) and Swissgrid worked on TSO-DSO Coordination phase B together from 2023 to December 2024 and enhanced the initial coordination concept from phase A.
The current phase, phase C, is divided into two parts. Firstly, from March 2025 to spring 2026, the coordination concept will be tested using simulations and a pilot project focussing on the processes of distribution system operators. A study will also be carried out on the market potential in Switzerland. This will be followed by preparations for implementation by the spring of 2027.
Other interested aggregators or distribution system operators can get in touch with the contact person and ask to be included in the TDC Consultative Group, which receives updates on the project approximately every 3–4 months.
