future(s) of eu tsos
TRANSCRIPT
“Future(s) of EU TSOs”: a conceptual framework… from Florence School
Florence School in Brussels 13 October 2015Luncheon debate “Future(s) of EU TSOs”
Jorge, Vincent & JM > > > (Vasconcelos), (Rious) & (Glachant) @Newes, @Microeconomics & @Florence School
# TSOs tasks?
# Regulation?
# Governance?
Europeanisation of power market
Low carbon economy
Wave of technological innovation
Building a conceptual framework..
NEWES, New Energy Solutions May 22, 2015
CENTRALIZEDEMAND CONTROL
CENTRALIZ . FIRM GEN.
PASSIVE DISTRIB.
GRID
VARIABLE DEMAND
DECENTRALIZEDEMAND
CONTROL
DECENTRALIZ. VARIABLE GEN.
ACTIVE DISTRIB.
GRID
FIRM DEMAND
Ad-hoc transition solutions
New Electricity
Market
System transition is a complexmultivariable process
and many interactions are at play ...
NEWES, New Energy Solutions May 22, 2015
• TSO• DSO• regulators• EC
• regulators• academics
• market agents• governement• regulators• new comers
(ICT)
• government• market agents
energy mix
market
system operatio
n
regulation
1st conceptual scenario: EU, EU
Scenario
Decarb
Integra°
Market structure
System operation
Governance (who in charge of?)
Regulation
Fully Europeanised
Problematic
More
than toda
y
EU-wide integration of centralised resources
European computa° & actions
European tools and markets with EU wide (or Reg.) ISO(s) & TO(s)
Adapted to an investment wave for transmission + cross-border cost allocation+ Eu supervision of Mkt & System operation+Eu Reg. <>NRAs
Function Entity in charge today
In scenarioFunction scope Entity in charge
ConnectionOperation TSO Adapted to EU centralised
(but "flexibilised" RES resources popping?)
ISO(s)
Rules Mostly TSO Mostly ISO(s) ?DSOs?
TRSM Network investment TSOHigher (CrossBorder) investment &use of innovative grid technology
Conception: ISOsImplementation: TOs
1st scenario (EU): system changes…
Scenario
Decarb
Integra°
Market structure
System operation
Governance (who in charge of?)
Regulation
Fully Europea
nised
Problema
tic
More than today
EU-wide ingtegration of centralised resources
European computa° and actions
European tools and markets with EU wide ISO or TSO
Adapted to an investment wave for transmission + cross-border cost allocation
National
decarbonisation
Achieved
As toda
y
Competing centralised & decentralised resources
National & local
TSO managing their gridsDSO managing their grids + T-D coordination needed for cross-network externality
Adapted to an investment wave for MS transmission+T-D interface & smart grids + local market design issue> Coordination system & market
2nd conceptual scenario: MS, MS
Function Entity in charge today
In scenario
Function scope Entity in charge
Connection
Operation TSO Expanding toward Distribution & adapting to new decentralised resources
DSOs
Rules Mostly TSO + DSOs Mostly TSO + DSOs
TRSM Network investment TSOHigher investment & more use of innovative grid technology
TSO
2nd scenario (MS): System changes
Scenario
Decarb
Integra°
Market structure
System operation
Governance (who in charge of?)
Regulation
Fully Europea
nised
Problema
tic
More than today
EU-wide ingtegration of centralised resources
European computa° and actions
European tools and markets with EU wide ISO or TSO
Adapted to an investment wave for transmission + cross-border cost allocation
National decarbonisation
Achieved
As today
Competing centralised & decentralised resources
National and local
TSO managing their gridDSO managing their grid + T-D coordination needed for cross-network externality
Adapted to an investment wave for transmission + generation as main investment driver
Local decar
b
Achieved
Less than toda
y
Mostly or only local resources
Mostly local
DSOs reign? Or Smart Apps??TSO only for last resort actions (balancing or blackstart) in its national scope
*Invest.wave for smart grids, storage-like & smart apps?*Frag. Reg. Frame for local system&market *Mostly T maybe D massive stranded assets
3d conceptual scenario: Local, Local
Function Entity in charge today
In scenario
Function scope Entity in charge
ConnectionOperation TSO
Shifting from T to DDSO
Rules Mostly TSO + DSOs Sharing DSOs / TSO ??TRSM Network investment TSO Shrinking with only
partial renewal TSO? SoS service?
3d scenario (Local): System changes
• I did look only at hardware functions “investment” & “connection”
BUT SOFTWARE IS AS KEY (if not more): • Balancing generation & demand• Managing congestion• Facilitating market trade & exchanges• + Coordinating with all neighbouring TSOs &
DSOs
TSOs other functions: software
Coming: Inconsistency & black holes
• 1- None of 3 scenarii can easily meet Low-Carbon & Low-Cost > ?
• 2- Critical system operations for SECURITY (today MS TSOs) starting to involve somebody’else > ?
• 3- Exis. Legal & regulatory framework has to move to rebuild system & market arrangements incl. coordination & safeguard tools
Concl: (Slow)food for (fast)thought
• 4- Any hybrid path “mixing 3 scenarii” will require many “new” decisions to be taken> “Energy Union” new path ?
• 5- If Exist. 3d Package & Grid Codes keep dominating the scene >> we have serious “governance issues” to be addressed: how to handle interface (MS/EU) & (MS/Local)?
(Slow) food for (fast) thought/ Cted
(6) We face four big governance challenges• How to Regio. & EU. Grid planning; system,
security & market operation? Incl. NRAs?• How to restrain MS SoS, Capacity Mec. &
Energy Mix from breaking any EU frame?• How to bridge MS “2030 NAPs” with grid
planning, system & market operation?• How to host local systems&new local players
in Exist. Multilayer MS/EU framework
(Slow) food for (fast) thought/ Cted
• (7) Today enormous part of Exist. EU framework comes from voluntary & informal cooperation between MS & EU players (from Companies & Stakeholders to NRAs & Commission; + ACER, ENTSO-E, etc)
>> Will this “club of the willing” move fast enough to deliver the tomorrow’s “missing blocks”?
(Slow) food for (fast) thought/ End.
We wonder about the future(s)…
Yes we do…
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