There are many proposed retail strategies on how to transition to the network power network of the future.  So far there has been little technical discussion on what is required from the physical network assets to achieve the end goals. The retail market is where the dollars might be traded, but without a technically capable physical power network to operate on, the retail market will be suspended.

DNSPs must become a facilitator, enabling customers to trade with a physical power network connection and access into the retail market.  Alternatively customers are faced with accepting rising energy costs or disconnect and trade in off grid or local embedded networks with local community agreements.

The DNSPs are well positioned to be an enabler for LV energy trading, facilitating the increased penetration of DERs.  Successful implementation of a LV mesh will keep generation/storage and usage of energy local, smoothing the demand profiles and enabling LV segments to become self-sufficient.  By not requiring the bulk transfer of energy and trading of neighbouring LV segments the LV mesh can enable a true dynamic micro grid operation. The existing DNSP HV assets will transition to supply the balance of energy.  The real value in future DNSP networks is in the customer connections and enabling them to trade their investment in their DERs.

The concepts of system fault levels/inertia/synchronism will not exist in a usable form within a DER network.  Communications based distributed protection and control schemes will be required to detect faulted network segments and provide remote control.  Existing smart meter and smart kiosk programs in pipeline have the ability to provide the information and network control required with minimal investment. 

Successful implementation of LV mesh networks will allow it to be operated entirely on the embedded DERs alone and facilitate dynamic islanded micro grid operation.