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Coordination Action – SES6 – CT – 2005 – 020088 EU - FP6 – Sustainable Energy Systems

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.

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Coordination Action – SES6 – CT – 2005 – 020088 EU - FP6 – Sustainable Energy Systems

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  1. A summary of the RELIANCE recommendationsCoordination of the European transmission network research activities Coordination Action – SES6 – CT – 2005 – 020088 EU - FP6 – Sustainable Energy Systems

  2. STATTNET, SINTEF UoM ENERGINET.DK TENNET SUEZ-TRACTEBEL, ELIA, KUL FGH, ISET CEPS EDF, TECHNOFI ELES TERNA, FEEM REE Consortium • 8 TSO’s • 1 DS0 • 1 Power producer • 2 Consultants • 5 Research Centres and Universities Project duration: 2 years Project started: Oct 2005 EU funding: 2191 k€ Author: K. Karoui on behalf of RELIANCE Consortium

  3. Outline • Technical roadmap • Organization proposal • Funding scheme Author: K. Karoui on behalf of RELIANCE Consortium

  4. Summary of the recommendations on R&D activities Coordination Action – SES6 – CT – 2005 – 020088 EU - FP6 – Sustainable Energy Systems

  5. Why is European RTD on Electricity Networks needed? • 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 interdependencyincreases: 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 Author: K. Karoui on behalf of RELIANCE Consortium

  6. RELIANCE vision • Objectives set by the Green Paperon 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 Author: K. Karoui on behalf of RELIANCE Consortium

  7. Roadmap and projects into 9 coherent RTD areas Facilitate massive penetration of Renewables Utilization of active distribution grid Integration of European electricity markets Advanced simulation and analysis tools and methods Better and more reliable utilization of existing grid Sustainable grid expansion Increased observability, better understanding and predictability of the power system state Increased robustness Virtual European TSO Author: K. Karoui on behalf of RELIANCE Consortium

  8. Summary of the recommendations on organization Coordination Action – SES6 – CT – 2005 – 020088 EU - FP6 – Sustainable Energy Systems

  9. Why a European Centre for Electricity Networks? • 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 inappropriateat 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) Author: K. Karoui on behalf of RELIANCE Consortium

  10. Why a new organization? • 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) Author: K. Karoui on behalf of RELIANCE Consortium

  11. Why are TSOs the core of ECEN? • 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 Author: K. Karoui on behalf of RELIANCE Consortium

  12. ECEN Members and Stakeholders • ECENcore 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 Author: K. Karoui on behalf of RELIANCE Consortium

  13. ECEN Governance Structure General Assembly (EC/TSO/Regulators) Executive Board (Customers/Sector/ TSOs) Project specification Activity plan approval Management Board (Appointed by EB) Stakeholders Advisory Board Project definition Scientific Advisory Board Provider selection/procurement ECEN facilities ECEN staff RTD providers Author: K. Karoui on behalf of RELIANCE Consortium

  14. Summary of the recommendations on funding Coordination Action – SES6 – CT – 2005 – 020088 EU - FP6 – Sustainable Energy Systems

  15. 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 Author: K. Karoui on behalf of RELIANCE Consortium

  16. Solution • Differentiate projects with respect to • Scope (mission critical or local interest) • Initiator (common or individual/subgroup decision) • IPR (open or potentially reserved) Author: K. Karoui on behalf of RELIANCE Consortium

  17. Project categories Activity Plan ECEN inititative Fee financing EXTERNAL PROJECTS PAN-EUROPEAN PROJECTS Project-by-project Stakeholder inititative Individual financing Author: K. Karoui on behalf of RELIANCE Consortium

  18. 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 Author: K. Karoui on behalf of RELIANCE Consortium

  19. What happens with the results? • 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 Author: K. Karoui on behalf of RELIANCE Consortium

  20. 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 Author: K. Karoui on behalf of RELIANCE Consortium

  21. 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. Author: K. Karoui on behalf of RELIANCE Consortium

  22. 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) Author: K. Karoui on behalf of RELIANCE Consortium

  23. Thank you! Any questions? www.ca-reliance.org Author: K. Karoui on behalf of RELIANCE Consortium

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