A GDS is a Closed Distribution System: a private electricity network that distributes power to multiple users within a clearly defined area.
GDSs are common in large industrial environments, such as:
What makes a GDS unique is that it is not a public grid, but privately owned. The owner is responsible for managing and distributing electricity within the site. A GDS typically has one central connection to the public grid and distributes electricity from there to connected users. This offers advantages in efficiency, internal settlement, flexibility and collaboration. In some cases, a GDS is also established to comply with specific exemptions in energy regulation, for example regarding regulated grid access or collective procurement.
In the future, GDS connections—like MLOEAs—can be used to offer flexible capacity on the congestion market, provided they are qualified.
This means that users within a GDS can also contribute to resolving grid congestion, for example via a CSP.