This thesis analyses how the Distribution System Operator (DSO) enables the electricity market by enabling the implementation of smart grids. Two example cases of connecting small-scale production and demand response are examined. The DSO has a crucial role in making these functions possible by providing smart electricity meter that is capable of metering and delivering the values reliably on hourly bases. The material for this thesis was mainly collected from the 25 specialist interviews that were executed in Finland and in Sweden.The Nordic electricity market works relatively well and is considered to be an example for the other electricity markets around the world. Smart grids make it possible to improve the functioning even more. The main reason for the interest towards smart girds is that they are considered to be the key to achieve the European Union's environmental 20-20-20 objective.Smart grids create numerous possibilities to develop services and products around them. The roles of the market actors have to be considered carefully. Nevertheless, DSO's role will concentrate more to pure distribution of electricity and ensuring that the development is possible for the other parties. In this way DSO works as a platform and an enabler for the smart grids and this way to the whole electricity market. Developing the distribution network ready for smart grids DSOs need to be allowed to invest to the grid. /Kir11
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