coordination action – ses6 – ct – 2005 – 020088 eu - fp6 – sustainable energy systems
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A summary of the RELIANCE recommendations Coordination of the European transmission network research activities. Coordination Action – SES6 – CT – 2005 – 020088 EU - FP6 – Sustainable Energy Systems. STATTNET, SINTEF. UoM. ENERGINET.DK. TENNET. SUEZ-TRACTEBEL, ELIA, KUL. FGH, ISET. CEPS. - PowerPoint PPT PresentationTRANSCRIPT
A summary of the RELIANCE recommendationsCoordination of the European transmission network research activities
Coordination Action – SES6 – CT – 2005 – 020088EU - FP6 – Sustainable Energy Systems
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 2
8 TSO’s
1 DS0
1 Power producer
2 Consultants
5 Research Centres and Universities
Consortium
Project duration: 2 years
Project started: Oct 2005
EU funding: 2191 k€TERNA,
FEEM
FGH, ISET
STATTNET,
SINTEF
UoM
ENERGINET.DK
TENNET
ELES
CEPS
SUEZ-TRACTEBEL,
ELIA, KUL
EDF,
TECHNOFI
REE
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 4
Outline
• Technical roadmap
• Organization proposal
• Funding scheme
Summary of the recommendations on R&D activities
Coordination Action – SES6 – CT – 2005 – 020088
EU - FP6 – Sustainable Energy Systems
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 6
• European electrical network deals with complex risks and problems which cannot be solved as a merge of national solutions: European level approach required
• European power system complexity and interdependency increases: new problems will require new solutions
• There are relevant technological gaps and promising new technology opportunities that require RTD investment
Europe needs RTD on Electricity Networks
Why is European RTD on Electricity Networks needed?
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 7
RELIANCE vision• Objectives set by the Green Paper on Energy
– Sustainability, Competitiveness, Security of supply
• How to get there?: RELIANCE orientations
– Optimize reliability
– Increase the integration of the electricity market
– Facilitate massive penetration of RES and DER
– Improve system robustness and resilience
– Achieve a sustainable grid development
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 8
Sustainable grid expansion
Facilitate massive penetration of Renewables
Increased robustness
Integration of European electricity
markets
Increased observability, better understanding and predictability of the power system state
Utilization of active distribution grid
Better and more reliable utilization of
existing grid
Virtual European TSO
Advanced simulation and analysis tools
and methods
Roadmap and projects into 9 coherentRTD areas
Summary of the recommendations on organization
Coordination Action – SES6 – CT – 2005 – 020088
EU - FP6 – Sustainable Energy Systems
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 10
• Existing RTD organizations not designed to manage such complex and intricate RTD pan-European projects
• Existing RTD teams need to work together at EU level to satisfy the most urgent pan-European RTD needs
• Existing R&D financing models are inappropriate at EC level to address the R&D funding requirement
• Heterogeneous legal structures and too restrictive Intellectual Property rights in current proprietary research hamper fast adoption of results in practice
Need to design and fund an ad-hoc European Centre for Electricity Networks (ECEN)
Why a European Centre for Electricity Networks?
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 11
• ECEN's mission:
To design, select, fund and manage joint R&D and innovation projects dealing with the European transmission systems
is not covered by:
– UCTE/NORDEL/ETSO (no common R&D objectives)
– CIGRE (facilitates and develops the exchange of engineering knowledge and information)
Why a new organization?
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 12
• TSOs are in charge of the system operation and are central actors of the transmission system
Main beneficiaries of ECEN results
• TSOs are regulated monopolies not in competition
Favors exchange of information and collaboration
Why are TSOs the core of ECEN?
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 13
• ECEN core members: European TSOs
• Electricity Sector represented at Executive Board
• Customers represented at Executive Board
• Stakeholders Advisory Board: generators, distributors, traders, consumers, manufacturers…
• Scientific Advisory Board: RTD providers & academics
ECEN Members and Stakeholders
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 14
ECEN Governance Structure
Executive Board(Customers/Sector/ TSOs)
Executive Board(Customers/Sector/ TSOs)
ECEN staff
ECEN staff
ECEN facilitiesECEN facilities
RTDproviders
RTDproviders
General Assembly(EC/TSO/Regulators)General Assembly
(EC/TSO/Regulators)
Stakeholders Advisory BoardStakeholders
Advisory Board
Scientific Advisory Board
Scientific Advisory Board
Activity plan approval
Project definition
Provider selection/procurement
Project specification
Management Board(Appointed by EB)
Management Board(Appointed by EB)
Summary of the recommendations on funding
Coordination Action – SES6 – CT – 2005 – 020088
EU - FP6 – Sustainable Energy Systems
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 16
Challenges for financing
• Diversity in project scope and risk
• Diversity in TSO organizational solutions
• Diversity in national regulation policy
• Risk of adverse selection of projects
• Risk of perverse incentives for participation
Funding principles
Flexibility, Transparency, Longevity
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 17
Solution
• Differentiate projects with respect to
– Scope (mission critical or local interest)
– Initiator (common or individual/subgroup decision)
– IPR (open or potentially reserved)
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 18
Project categories
PAN-EUROPEANPROJECTS
EXTERNAL PROJECTS
Activity PlanECEN inititativeFee financing
Project-by-projectStakeholder inititativeIndividual financing
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 19
Pan European Projects
• Main focus of the Organization: R&D addressing both short- and long-run challenges for the transmission systems
– Integration projects
– Projects addressing system integration and coordination.
– Fundamental research
– Projects involving fundamental research on transmission and the study of long-term developments of the European Transmission system.
– System projects
– Projects addressing common, critical transmission system issues in both operation, technology and management
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 20
• Results of Pan-European projects
– Open access policy
– IPRs belong to the Organization
• Right to patent to control access to the results and exploitation rights
• Members granted an irrevocable non-exclusive license at no cost
– Access rules of patented knowledge set by the Executive Board
Favour fast implementation of innovative ideas
• Results of External projects
– Exploitation rights negotiated on a case by case basis
What happens with the results?
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 21
Core financing
• Activity Plan
– Project portfolio of Pan-European projects
– 3-5 year horizon
– Annual updating/follow-up
• The Activity Plan and the management costs of the Organization are financed through a membership fee
• The TSO is defined as the member
• The fee is paid directly by the member
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 22
Role of regulation
• The membership fee covers ECEN portfolio projects that address long-term system-wide issues, not only with TSO and/or national budget impact. This needs explicit recognition as it is not incentivized under current regulations (Directive 2003).
• Proposal until IEM 3:
– The ECEN membership fee should be considered an eligible and non-controllable cost under any regulation methodology in Good Practice Regulation
– National regulators can adapt the principle to their system in order to create adequate protection from general mechanisms (indexation, performance assessment, etc) in their TSO regulation
• In IEM 3:
– The Pan-European projects are explicitly part of the [joint] TSO task, the monitoring of the progress is part of tasks for the Agency for the Coordination of the European Energy Regulators and the funding for the task is defined as TSO tariffs.
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 24
Conclusion
• Current financing of R&D on electricity networks has been hampered by lack of coordination, transparency, efficiency and anticipation in achieving an integrated power system that can cope with the pan-European challenges
• The financial mechanism for ECEN is designed to be flexible, transparent and guarantees longevity of the research.
– Stakeholder involvement
– Transparency in project and provider selection
– Accountability for project results
– Openness in dissemination of research results
• The financing is compatible with the third package as the “establishment of a common framework to identify, finance and manage research and innovation activities necessary to drive the sound technical development and evolution system" (Explicative memorandum, EC)
Date: 23/10/2007 Author: K. Karoui on behalf of RELIANCE Consortium Page: 27
Thank you!
Any questions?
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