FSR

At the Energy Infrastructure Forum in Copenhagen, Pradyumna Bhagwat (FSR) spoke to Rosemary Steen (Director External Affairs - Eirgrid) about her thoughts on the topic digitization of the grids.

Digitization would be an enabler for consumer participation but some cyber security threats do exist as was discussed at the Forum. Another valuable insight from the forum was the different experiences of member states with smart meters.

visit the Florence School of Regulation website:

fsr.eui.eu

At the sidelines of the State of the Union 2018, Jean-Michel Glachant (Director FSR) and Catia Bastioli (Chairwoman Terna) discuss the new industrial plan of Terna, the Italian TSO for electricity. The plan foresees a 5.3 billion euro of investment in the 2018-2022 period and is going to focus on sustainability and territories.

Ms Bastioli highlights the importance of a global vision while keeping the “roots” in the local communities and territories. Undeniably, the major obstacle to the energy transition is not the lack of technologies but the limited ability so far to involve regions and communities actively in the transition.

Industrial players and institutions must be transparent, include people and propose solutions that create trust and lead to the regeneration of territories and communities. This move is indispensable to reconcile the needs of the economy and climate with the needs and aspiration of society. Without it, the acceptability and the speed of the energy transition cannot be given for granted.

visit the Florence School of Regulation website:

fsr.eui.eu

Nicolò Rossetto (FSR) and Asta Sihvonen-Punkka (Fingrid) exchange views about the digitalisation of the energy sector. The massive deployment of renewables and advancements in the ICT field are making a deeper digitalisation of the energy sector both possible and increasingly necessary. As a result, it is possible to detect a greater parallel with the telecom sector, especially in terms of cybersecurity challenges. European energy companies are beginning to understand the importance of cybersecurity and are catching up quickly. A regulatory framework is being built, but there is still a lot of work to do to ensure that companies receive the right incentives and properly address the issue of cybersecurity. Sharing experiences and best practices among companies and regulators is vital in this respect.

Nicolò Rossetto (FSR) and Thomas Pearce (NARUC) discuss the issue of cybersecurity in the energy sector. Cybersecurity is attracting growing interest from companies and regulators around the world, largely because the associated costs are increasing and becoming more visible. Special attention from the regulators is then necessary. In the US, the 50 state jurisdictions plus the District of Columbia are putting in place different approaches, while sharing the same goal of enhanced cybersecurity protection for the utility systems they regulate. The differences in their approach often stem from each state's varying regulatory framework: some have vertically integrated utilities, while others introduced unbundling and competition. Furthermore, some states have made more progress, while others are still defining their policy and looking for the best practices around the country. Indeed, both Europe and the US could learn from each other by sharing early experiences and reflections on an issue that is becoming increasingly relevant in the energy sector.

In this podcast, Maria Olczak (FSR) interviews Adina Crisan-Revol (Team Leader at DG ENER, UNIT B1) to discuss the Projects of Common Interests (PCI). Mrs Crisan-Revol explains what the PCI is, and the benefits it brings to the EU energy market and EU consumers.

Since 2013, the PCI list is updated every 2 years. The third list has been proposed by the European Commission in November 2017 and has been already adopted by the Council and the European Parliament. Mrs Crisan-Revol addresses the key changes recently introduced by the European Commission in order to ensure that the third PCI list better aligned with the EU longer-term targets.

Recorded at the Specialised Training on the Regulation of Gas Markets in Florence, 21 March 2018.

At the margins of the World Forum on Energy Regulation (WFER) in Cancun, Jean-Michel Glachant (Florence School of Regulation) interviews Marcelino Madrigal from the Comisión Reguladora de Energía (CRE) about the recent reform of Mexico's energy system. The reform is all-encompassing, covering oil, natural gas and electricity at the same time; it is far-reaching too, because it introduces competition and freedom of choice for consumers. The power sector, for instance, has been unbundled and long-term contracts for the purchase of electricity from renewable sources have been successfully auctioned.

Within this major reform, CRE is performing several important tasks, like defining transmission and distribution tariffs and promoting a competitive retail market, where consumers are empowered. In this transition, Europe is seen as a reference case, in both positive and in negative ways, which emerging countries have to take into consideration, while not forgetting the significant differences in their social and economic context (positive demand growth, high energy losses, vulnerable consumers to protect; etc.).

During the Smartnet Advisory meeting held in Glasgow in January 2018, we had the chance to interview Steven Atkins from the Scottish & Southern Electricity Networks and exchange ideas on the key aspects and links between our project and the SSEN initiatives in the same field.

For more information on the SmartNet Project:

http://smartnet-project.eu/

Given its current carbon intensity, the power industry is particularly sensitive to the reform of the EU Emission Trading Scheme (ETS). Eurelectric, the association representing many of the big players in electricity generation, has a broadly positive view on the reform that has been recently approved by the Council and the European Parliament. Nevertheless, it is interesting to hear that for the largest power producers a price on carbon is not the only important factor that will steer the industry towards full decarbonisation by the middle of the century. Many other issues must be addressed, and the uncertainty that investors are currently facing is particularly important. Investment signals based on long-term electricity purchase agreements could become one of the key pillars of a new market design. Indeed, long-term contracts can efficiently complement short-term flexibility markets and ensure security of supply, decarbonisation and competitiveness for the power sector.

These are exciting times in the role of energy, the way people produce and consume is changing in front of our eyes…” and that’s where Lynne Mc Donald (UK Power Networks), who joined the Advisory Board of the SmartNet Project in Glasgow, sees the benefit of the SmartNet project.

The SmartNet project arises from the need to find answers and propose new practical solutions to the increasing integration of Renewable Energy Sources in the existing electricity transmission network. The subsequent technological (r)evolution is not only affecting the structure of the electricity markets, but also the interactions between TSOs and DSOs.

Learn more on the project here: http://smartnet-project.eu

What lessons from the SmartNet Project? Interviews with the stakeholders #1: Andrew Burgess (CEER, OFGEM)

‘What is interesting of the SmartNet project is that it’s looking at difficult issues in detail and it’s trialling them to see what works’

Highlights from the SmartNet Project Advisory Board (Glasgow - February 2018)

The EU Horizon2020 funded SmartNet project arises from the need to find answers and propose new practical solutions to the increasing integration of Renewable Energy Sources in the existing electricity transmission network. http://smartnet-project.eu/