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WP3

Technology Transfer and Policy Support

Start date or Starting Event: 1

 

Objectives

The extent of the vulnerabilities of the regional power infrastructures is highly heterogeneous. The level of integration of the European power network makes the vulnerability of a certain regional grid to a threat for Europe – far beyond the spatial limits of that region.

The problem of heterogeneous grid-security between member states origins partly (not to say mostly) from the regulatory systems of some member states, which are lacking the incorporation of security issues. In these regulatory schemes, network system operators are not provided sufficient incentives for building a secured infrastructure – and are not confronted with penalties if they fail. This leads to a situation, in which investments in the security of the critical infrastructure are not incorporated in incentive mechanisms of the system operators’ – and may therefore be disregarded. This is one of the consequences of ignoring the link between economics and technical aspects of the security of the European power supply on the long-term.

This work package develops the necessary elements of a comprehensive regulatory system that prepares the ground for the needed investments in the network security. The emphasis is placed on elements of a regulatory policy, which can be implemented by all member states without the need for a complete restructuring of their current regulatory framework.

To ensure the consideration of all important aspects of regulatory issues, in particular the perspective of the European Community, the Agency for the Cooperation of Energy Regulators (ACER) has been invited for information exchange with the SESAME project. Since the ACER is not operating so far, a schedule for these information exchange has not yet been established.

 

The main objectives of this WP are:

  • the necessary economic approach for rational decisions regarding investment allocation,
  • the possibilities for authorities to strengthen security of supply in the liberalised electricity market,
  • recommendations for a regulatory and policy framework that fully incorporates security of the electricity grids on the long term.

 

Output of WP3 that is used as input for WP4:

  • Assessment of SES indicators

Output of WP3 that is used as input for WP9:

  • Policy Framework for SES in Europe

 

Description of work

  • Task 3.1 – Assessment of Security of Electricity Supply (SES) indicators in Europe (Leading Partner: HWU)
    This task will assess to the extent possible the leading examples of existing indicators and measures for SES in Europe. This will help in improving these towards developing a set of best practice indicators measures.

  • Task 3.2 – Technology and innovation policy for SES (Leading Partner: HWU)
    In the liberalised electricity market, the regulatory policy of a member state is the main authority that defines whether security of electricity supply becomes a central business objective of the operating TSOs or not. Some European countries have established regulatory systems that set incentives for TSOs to improve the security of supply and penalize their failure (see e.g. the UK). In this work step the current regulatory practice of the EU 27 is analysed regarding where regulation has already reacted to the increasing urgency of protective measures against the new threats and vulnerabilities (analysed in Task 1.2).

  • Task 3.3 – Economics of SES - Investment, regulation, link w. other Critical Infrastructures (CIs) (Leading Partner: HWU)
    This task will aim to define the parameters and develop a framework for economic analysis of SES. In particular emphasis will be put on regulatory incentives, investment issues, and links between the electricity systems and other critical infrastructure. This will be with a view to Task 1.5 (theoretical) and WPs 6 and 7 (practical) the effectiveness of each countermeasure is known. In Task 1.5 the implementation costs of the countermeasures are given. From the tool developed in WP 2, the damage costs of a blackout can be computed.

  • Task 3.4 - Policy Framework for SES in Europe (Leading Partner: HWU)
    The vulnerabilities of national electricity networks, which emerge from a regulatory policy not incorporating supply security sufficiently, harm the security of electricity transmission beyond the national boarders. In this regard, elements of technology and innovation strategy, economic analysis, and regulatory frameworks will be used to offer recommendations for coherent policies and strategies for national and European SES.

 

Deliverables

This Work packages gives 2 deliverables:

  • Del 3.1 – Assessment of SES indicators in Europe
    Report on existing SES indicators and their relevance for the judgment of the current level of security. Set of best practice indicators for detection of erroneous trends in the development of the level of the security of energy supply.
    Security Sensitive: NO

  • Del 3.2 – Best practice policy framework for security of energy supply
    In this work step a number of regulatory instruments for all of Europe is suggested, that guarantee a minimal standard of the incorporation of security issues in the regulatory policies of the member states.
    Security Sensitive: NO