OES-2031 architecture: seven levels of management of the energy system of the future

10.07.2026

 In his personal blog, Serhiy Yermilov – Minister of Fuel and Energy of Ukraine in 2000–2001 and 2002–2004, former Head of the National Agency of Ukraine for Ensuring the Efficient Use of Energy Resources, Honored Power Engineer of Ukraine – continues a series of publications on the future architecture of the Ukrainian energy system. The author consistently builds the concept of a transformational transition from a centralized model to a modern digital energy system based on the principles of Smart Grid.

In the fourth part of the blog, Serhiy Yermilov describes in detail the multi-level architecture of the Unified Energy System of Ukraine in 2031. The author explains how the functions of the transmission system operator and distribution system operators should change, what role microgrids, aggregators and prosumers will play, and why the future energy system should be based on a hierarchical division of functions, digital management and coordination of all its elements.

Logic of the power system architecture,

which does not centralize all decisions, but distributes them by levels

Now, without getting distracted by secondary matters, let’s try to formulate the basic principle:

The Ukrainian Unified Energy System of 2031 is a single integrated cyber-physical energy system built on the principles of Smart Grid, in which centralized system coordination of the TSO is combined with distributed control at the level of the TSO, microgrids, aggregators and active consumers.

This allows us to set the correct architecture.

Level 1. The transmission system operator remains a system integrator

In the new architecture, the role of the TSO does not decrease, but rather becomes more complex. The TSO is responsible for:

• system stability;
• power balance;
• frequency;
• interstate flows;
• integration with ENTSO-E;
• emergency management;
• system reserves;
• critical level cybersecurity.

That is, the dispatching control is not dismantled, its functions are changed and deepened.

Level 2. Distribution system operators become active network operators (Smart Grid)

This is where the greatest transformation will take place.

Functions of the DSO in 2031:

• Active Distribution System Operator;
• Local balancing;
• DER integration;
• Flexibility management;
• Congestion management;
• Local mode forecasting;
• Microgrid coordination;
• Interaction with aggregators.

This requires:

• Integrated distribution network management platform (ADMS);
• Distributed energy resource management system (DERMS);
• Monitoring and assessment of the current network mode (state estimation);
• The operator’s ability to see, control and analyze the state of the electricity network at the distribution level (10/0.4 kV) (observability distribution level);
• digital substations;
• advanced metering infrastructure (AMI).

Level 3. Microgrids as a new functional element (Microgrid).

A microgrid is not an alternative to the UPS, but its structural element.

A microgrid can:

• operate synchronously with the grid;
• balance resources locally;
• optimize its own consumption;
• go to island mode and ensure automatic reconnection to the UPS;
• support critical load.

In normal mode, the microgrid remains part of the UPS. No fragmentation, but rather coordinated integration.

Level 4. Aggregators as a new market institution

Let’s recall one of the main mistakes in the above quote. The aggregator should not be the “single gateway to the main dispatcher”. Its role is different.

The aggregator:

• unifies thousands of small resources;
• forms a managed capacity portfolio;
• participates in the ancillary services market;
• provides flexibility services;
• interacts with TSOs and DSOs through standardized interfaces.

That is, the aggregator is a market intermediary and resource coordinator, not a new dispatching vertical.

Level 5. The prosumer becomes a full-fledged participant in the system

The prosumer can simultaneously: consume; generate; accumulate; sell flexibility services; participate in VPP; provide balancing.

That is, there is a transition from a passive consumer (passive load) to an active grid participant (active grid participant).

Level 6. New telecommunications basis

UES-2031 is no longer just an energy system. It is an energy and information system.

The basis is: SCADA convergence; utility-grade IP/MPLS; IEC 61850; IEC 61970/61968 (CIM); PMU/WAMS; edge computing; distributed telemetry; OT cybersecurity.

In fact, the information infrastructure is becoming as important as power lines and substations.

Level 7.New control logic

This is where, in my opinion, the main difference from the 2021 architecture lies.

It was: centralized decision-making for most decisions.

It becomes: hierarchical distributed decision-making.

For example:

• the inverter regulates reactive power locally;
• BESS stabilizes the local node;
• the microgrid performs its own balancing;
• the OSR eliminates local overloads;
• the OSR maintains the system frequency.

Each level solves its own task.

The future system does not centralize all decisions, but distributes them across levels.

If we briefly describe the concept, it could look like this:

The Unified Energy System of Ukraine in 2031 is a single integrated Smart Grid platform, where TSOs provide system coordination and reliability, DSOs manage active distribution networks, microgrids perform local balancing, aggregators integrate distributed resources, and prosumers become full-fledged participants in the energy market.

Sergiy Yermilov – Minister of Fuel and Energy of Ukraine in 2000–2001 and 2002–2004, former Head of the National Agency of Ukraine for Ensuring the Efficient Use of Energy Resources, Honored Power Engineer of Ukraine