Market perspectives on new business models to support the integration of Distributed Generation in the Belgian electricity system

Modern society is undergoing fundamental changes, and so is the supply of electricity. To meet growing energy dependency and address the challenges of global warming and depletion of fossil fuels, the shift toward renewable energy sources has become unavoidable. The top-down paradigm of large centralized conventional power plants dominating the market is gradually replaced by a bottom-up model of Distributed Energy Resources (DER) that are linked together by means of smart grid technologies. Electricity networks need to be expanded, upgraded and modernized. Time is running out and Belgium is no exception to that. This master thesis explores these disruptive changes from a market perspective, with a particular focus on Distributed Generation (DG), its potential evolution and the major challenges for managing its integration in the electricity system. As a response to these challenges, traditional business models related to the physical upgrade of grid infrastructure are outlined. Also, as microgrids and Virtual Power Plants have recently emerged, another question that is at stake is: « To which extent can they support the integration of Distributed Generation in the case of Belgium and how soon will they thrive? ». The thesis aims here at exploring the value microgrids and Virtual Power Plants can leverage, as well as the challenges that must be addressed to enable their emergence and commercial development in Belgium.