# Towards Flexible Distribution Systems: Future Adaptive Management Schemes
## 3 Future Adaptive Control and Management Methods  
Future adaptive management methods and compatible flexibility market structures should enable the highest collaborative value of the flexibilities for different stakeholders. From this viewpoint, the location of flexibilities is very important, and it affects, for example, the most feasible use cases and potential restrictions for use of DSO network-connected flexibilities. For instance, the unnecessary transfer of reactive power in distribution networks increases losses and reduces the active power transfer capacity of the lines. In [25], \begin{table}
\begin{tabular}{p{113.8 pt} p{113.8 pt} p{113.8 pt} p{113.8 pt} p{113.8 pt}} \hline \hline
**Stage** & **Adaptive Control and Management Methods** & **Accurate Monitoring of Distribution Networks** & **Advanced ICT-Based Protection and Control Solutions** \\ \hline \multirow{7}{*}{1} & \(\bullet\) & ANM is not very commonly used, only in MV networks with a large amount of DER & & & \\  & \(\bullet\) & Management system can be centralized, distributed (local), or a combination of centralized and distributed in a coordinated way & & & \\  & \(\bullet\) & Requirements such as communication latency may depend on the application and provided flexibility service (for local DSO needs or for TSO needs) & & & \\  & \(\bullet\) & Increased need for adaptive and active network management solutions in distribution networks (these can be integrated as part of centralized/decentralized HV/MV edge-cloud devices) to handle congestions and to enable increased participation of LV network customers to fireability services provision, e.g., through flexibility market places & & & \\  & \(\bullet\) & However, this needs to be performed with a limited number of real-time measurements/information from the state of the network (network) \(\Rightarrow\) New “technical” flexibility enabling solutions are needed & & & \\  & \(\bullet\) & High number of measurements from MV and LV networks for accurate real-time knowledge & & & \\  & \(\bullet\) & AI and ML and satellite data-based solutions to system state-monitoring and fault prediction & & & \\  & \(\bullet\) & Predundant fully digital edge-cloud based centralized/decentralized devices from different vendors at HV/MV substations and also at MV/LV substations with integrated microgrid management system functionalities (but without redundancy or redundancy in HV/MV level edge device) & & & \\ \hline \hline \end{tabular}
\end{table} 
Table 2: The evolution of (10) adaptive control and management methods, (11) accurate monitoring of distribution networks, and (12) advanced ICT-based protection and control solutions during stages 1–3 (see Table 1 and Figure 2). it was suggested to a) use DSO network-connected reactive power resources, which are located close to HV/MV substation to control reactive power flow between MV (DSO) and HV (TSO) networks instead of resources located far away from the HV network connection point (e.g., in LV network) and (b) use reactive power resources connected deeper in the MV or LV network for the provision of local (DSO) flexibility services such as congestion management (thermal capacity) and voltage control. In the use of multiple small-scale, DSO network-connected flexibilities, potential challenges can also be identified. For example, available flexibility may be restricted on three levels:  
1. Distribution network-related limitations (voltage level, thermal capacity of lines and transformers) may affect the capability to participate in system-wide markets (weather, time of day, and year dependent),
2. Household/building/shopping mall/office building, etc. specific customer-related limitations (due to temperature, air-quality, day-light, i.e., dependent on weather and time of day and individual behavior or preferences), e.g., [26] and
3. Local optimization (economical, reliability) targets, for example, microgrid or energy community [27] related limitations.