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Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC [email protected]

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Page 1: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Importance of Standardisation – The

Business Case

DKE 952Dortmund, 26. August, 2003Wolfgang [email protected]

Page 2: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Founded in 1906, the International Electrotechnical Commission prepares and publishes international standards for all electrical, electronic and related technologies. The Commission’s objectives are to:

meet the requirements of the global market efficiently;

ensure primacy and maximum world-wide use of its standards and conformity assessment schemes

assess and improve the quality of products and services covered by its standards

establish the conditions for the interoperability of complex systems

increase the efficiency of industrial processes

contribute to the improvement of human health and safety

contribute to the protection of the environment

The IEC

Page 3: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

WTO and IEC

The World Trade Organisation‘s (WTO)

„Agreement on Technical Barriers to Trade“ (TBT)

makes standardization and theassessment to conformity of standardsan important part of the global trade agenda andcites the IEC As one of themajor partners to establish standards for trade.

Page 4: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

IEC TC 57Power System Control and associated Communications

IEC TC 57Power System Control and associated Communications

Secretary: Dr Andreas Huber(Siemens, Germany)

Chairman: Mr Thierry Lefebvre (EdF, France)

Scope

To prepare international standards for power system control equipment and systems - including EMS, SCADA, Distribution Automation, Teleprotection and associated communications such as power line carrier - used in the planning,

operation and maintenance of electric power systems.

Power systems control comprises control within control centres, RTUs and substations including telecontrol and interfaces to equipment, systems and

databases outside the scope of TC57.

TC 57 consists of 24 P-member and 11 O-member countries

Page 5: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Power Generators 380 / 220 kV and higher

Transmission

Bulk Supply Point 30 kV

Distribution

Grid Supply Point 110 kV

Secondary Distribution

Primary Distribution

Industrial Distribution Urban Distribution

10 kV

Rural Distribution

Control Centres

- Transmission- Distribution- Energy management- Asset management- Trouble call- etc

- transmission- primary- secondary- etc

substations

Standard domain of IEC TC 57

Page 6: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Power System Communication Architecture

CIM - Common Information Model

Administrative Services

OMObject Models

SMService Models

CPCommunication Profiles

CF

LC

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Lan

guag

e

SE

CS

ecur

ity

CN

MN

etw

ork

Ma

nage

men

t

Application DomainCommunicationLevel

Serial interfaces in primary equipment

Primary EquipmentSubstation (PES)

Distributed EnergyResources (DER)

Power Model

SA

SC

AD

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SA

Sw

itch

es

SA

Po

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SA

C/V

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Page 7: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Content

From interfaces to architectures

The notion of Communication Interfaces The development of Communication Interfaces over the time The evolving of Communication Architectures The future seamless Communication Architecture

The importance of international standards for

Economy of countries Multinational vendor corporations Small-to-medium-sized vendor enterprises System operators (users) Energy market participants

Page 8: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

From Standards to Business

Page 9: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

World Electricity Market – 2,385 Billion € 1)

11,5

17,8

4,74,1

38,2

1,33,05,4

6,2

7,8

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% share

Other

Consumer Electronics

Houshold Appliances

Luminaires & Lamps

Medical Systems

Information Technologyand CommunicationsCar Electric & Electronics

Measuring & Automation

Energy & InstallationEquipmentComponents

425 Billion €

112 Billion €

911 Billion €

1) 1999

influences

Page 10: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

12,0

2,0

4,5

5,5

12,5

3,5

2,52,0

2,5 2,5

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

% growth/ a

World Electricity Market – growth rate in %/ a 1)

1) 1999

Other

Consumer Electronics

Houshold Appliances

Luminaires & Lamps

Medical Systems

Information Technologyand CommunicationsCar Electric & Electronics

Measuring & Automation

Energy & InstallationEquipmentComponents

technologicaldrivers active!

oldindustry!

1) 1999

influences

Page 11: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Market share of Measurement & Automation

40 % Automation

25 % Measurement& Controls

20 % Other15 % Sensors& Actors

112 Billion €World-wide /a 1)

1) 1999

2 % Automationsystem operators

2 Billion € /a

influences

Page 12: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Engineering35 %

Hard- and Software10 %

Maintenance25 %

SW Upgrades

30 %

Life-Cycle Cost of Automation Systems 1)

1) Automotive industry45 %

55 %

Too many Interfacesincrease the overall cost!

Don‘t forget!

Page 13: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Region

Product

Operation

Vendor

User

Fitting togetherby standardizedInterfaces

Interfaces

Market

Page 14: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Interfaces telecontrol

Serial Link

Application

Communication

Standardisation• Object model• Services• Communication Stack (OSI layer 1-7)

Example IEC 60870-6• Telecontrol CC-CC TASE.2 (MMS)

Example IEC 60870-5• Telecontrol -101, -102, -103, -104

Page 15: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Interfaces in substation

Bus

Application

Communication

Standardisation• Device model• Object model• Services• Communication Stack (OSI layer 1-7)

Example IEC 61850• Substation bus (MMS, ..)• Process bus

Devices(IDEs)

Page 16: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Integration Bus

Standardisation• Object model• Interfaces of Components• Communication Stack (CORBA, DCOM, ...)

Example IEC 61970, 61968 • Integration Bus (IB)• Common Information Model (CIM)

Control centreApplication Software

External systemsApplication Software

IDL

CIM

Interfaces in control centre

Communication(legacy systems

with adapter)

Components(multiple vendors)

Page 17: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Evolving of Communication Architectures

Protocol

IEC 60870-5/101104 (IP routing)

Time 80‘s

IEC 60870-6/TASE.2 (MMS)(IP routing)

Protocol

Application

Objects

Services

Mapping

90‘s

IEC 61850 (MMS, ...)IEC 61970 (CORBA, ..)IEC 61968 (CORBA, ..)

Bus Protocols

Objects

Services

Mapping

00‘s

Page 18: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Object Modelling of IEDs in Substation

Logical Device (vendor specific)

L. Node L. Node

Object

Functional Group

Objects

Services

Mapping

Bus ProtocolsTime 00‘s

ApplicationApplication

Page 19: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Class_Name attribute attribute ... services ...

Real world device(circuit breaker)

Virtual device(circuit breaker)

mapping

Modelling of real world devices

meta data

Page 20: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

The Importance of Meta Data

Bill 1,000

$ ?

€ ?

Page 21: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Future Seamless Communication Architecture

ConventionalWeb-based fixed

Web-based mobile:

anytimeanywhere

a seam

Page 22: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Seamless Definition

• Seamless is defined on the abstract level for interoperability without data format and service conversion and does not exclude physical seams at various system levels if necessary

• A system is seamless if the application layer data model (objects) and abstract services (ACSI, Abstract Communication Service Interface) are used throughout the system within the substation and for telecontrol to the control centre

• This does not exclude different protocol stacks on different system levels the objects and services are mapped to, but the use of the same stack throughout the system simplifies it and allows potential additional cost savings.

Page 23: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Seamless Communication Architecture (1)

Network OSI Layer 1-3(IP)

IED

HV/MVEquipment

IEC 61850 Substation bus 1)

(7/3 layer)

IEC 61850 Process bus 1)

(7/3 layer)

Substation Host(with Proxy)

EngineeringStation

seamlesscoms

:meta data

configuration datareal-time data

UMTS

GPS

Control centre with CIM

Web based mobile access 1)

1) and emergency systemin case of data network or CC failure

radio

1) substation bus / process buscan be identical (flat architecture)

Page 24: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Seamless Communication Architecture (2)

seamlesscoms

:meta data

configuration datareal-time data

Network OSI Layer 1-3(IP)

IED

HV/MVEquipment

IEC 61850 Substation bus 1)

(7/3 layer)

IEC 61850 Process bus 1)

(7/3 layer)

Substation Host(with Proxy)

Control centre with CIM

Remote CCfront end

Other possibility with distributed remote CC front end

internal CC protocol

1) substation bus / process buscan be identical (flat architecture)

Page 25: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Medium life < 20 yearsTechnology

Communication Stack

High life > for everDefinition

„Diamonds of SCADA/EMS“

IEC 60870-6 TASE.2 (MMS, ...) over IPIEC 61850-7 Substation Bus (MMS, ...)IEC 61970 Integration Bus (CORBA, ..)IEC 61968 Integration Bus (CORBA, ..)

Telecontrol & Bus Protocols

Objects

Services

Mapping

ApplicationAPI

Page 26: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Seamless Objects and Services

IEC 61850-7 Station Bus(7 layer)

Bus Protocols

Mapping

ApplicationAPI

Substation: Station

IEC 61850-7 Process Bus(3 layer)

Bus Protocols

Mapping

ApplicationAPI

Substation: Process

Objects

Services

Control Centre

IEC 61850-7 Station BusIEC 60870-6 TASE.2IEC 61970/61968 Integration Bus / CIM

Bus protocols

Mapping

ApplicationAPI

Ethernet

May bethe same!seamless

Page 27: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Seamless with web-based technologies

Coordinated Communications Seamless Object Model Seamless Virtual Communication Services Independence of Protocol Implementation Eliminating Gateways and Format Conversions

Reduced cost of implementation Reduced cost of Maintenance Reduced cost over the life cycle

seamlesscoms

Web-based mobile

UMTS

GPS

Web-based Intranet

Browser

Page 28: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Example of seamless physical Architecture

Switch 10 Mbit/sSwitch 10 Mbit/sBaycontroller

RelayA

RelayB

Baycontroller

RelayA

RelayB

Switch 10 Mbit/sSwitch 10 Mbit/s

ModernSwitchgear

ModernCT / VT

ModernSwitchgear

ModernCT / VT

RouterRouter

EngineeringSubstationHost with

Proxy

Controlcentre

Switch 10 Mbit/sSwitch 10 Mbit/sBUS

Bay #1 Bay #2

IEC 61850 IEC 61850

IEC 61850for

telecontrol

IEC 61850 IEC 61850

(flat switched Ethernet network)

Same data model, services and protocol mappings

Page 29: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

WIND TURBINE GENERATOR SYSTEMSIEC 61400 Part 25 - Communications for

monitoring and control of wind power plants

communication based on IEC

61850 (i.e. ISO 9506; MMS)

communication based on IEC

61850 (i.e. ISO 9506; MMS)

Seamless also fordecentralised wind power systems

http://www.dispowergen.com

IEC TC 88

IEC TC 57

Page 30: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

DER Distributed energy resources.. . decentralized communications forfuel cells and photo voltaic.

Coming soon ...

communication based on IEC

61850 (i.e. ISO 9506; MMS)

communication based on IEC

61850 (i.e. ISO 9506; MMS)

IEC TC 57

Page 31: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Need for a Security Framework

Holding

Subsidiary #1System Operator Electricity

#2Generation

#4

#5

#n

PublicTelecoms

+Internet

PublicTelecoms

+Internet

ExternalProcess

Net

ExternalProcess

Net

World

OtherSystem Operators

#3System Operator Gas

CorporateNetwork

CorporateNetwork

ProcessNet

ProcessNet

?

?

Page 32: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Vision: Convergence and Seamless ControlConvergenceConvergence

ServicesServices

NetworksNetworks

TerminalsTerminals

MultimediaApplications

InformationTechnologies

&Communications

SeamlessSeamless

ObjectsObjects

ServicesServices

PlatformsPlatforms

Control bang

Seamless Control

Page 33: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

How the economies of countries benefit from international standardisation

- the national macro economic view -

Page 34: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

International standardisation leads to cost savings ofabout 1 % of the gross national product (GNP) 1). This results to world-wide savings of about

20 Million € of the EMS/SCADA market (2 Billion €) 24 Billion € of the electricity product market (2,385 Billion €)

The impact of International Standardization on the economyis greater then of those of patents and licences 1)

Standardisation leads to technology transfer betweenvendors

In the Standardisation process vendors learn of the requirements of users

1) Research result (DIN Berlin, TU Dresden, FhG-ISI Karlsruhe), Germany, 2000

Page 35: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

How multinational vendor corporations benefit from

international standardisation

- the global micro economic view -

Page 36: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Since the middle of the 20th century, growth rates ininternational trade and investment have exceededthose of domestic economies.

Innovative vendors gain more than 50 % of there sales withproducts < 5 years old and need standards for it

From this follows that standards must keep up with thepace of innovation

Standardisation helps vendors to enter foreign marketsand profit from it.

Page 37: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Developing anticipatory intelligence:

You can acquire information that enables you to anticipate, before other stakeholders, circumstances that have not yet widely manifested themselves.

Page 38: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Using customer networks:

You can identify consumer needs and conceive new products through networking with user representatives on standards committees and this may enhance the market success of new products.

Page 39: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Saving time and money:

One of the goals of standardization is to make design and manufacturing simpler, cleaner, surer.

By using standards, you don’t need to reinvent the wheel every time. Instead, you can focus your efforts on adding something new to the wheel – something that will improve the quality of life and that will contribute to technological progress.

Knowledge about standardization helps to research and invest in the right technology

Page 40: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Improving safety and quality:

Nobody today can pretend to know all there is about a certain technology.

Within IEC working groups you will encounter ideas some of which will be new and valuable, others which may help you to avoid making costly mistakes.

Page 41: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Using IEC international standards saves us time and money in our multi-million dollar transfer of technology project with Indian Railways.

Without IEC standards this project could not have been attempted.

Christian VetterliTechnology Transfer Project Head

ABB

Page 42: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

If customers don’t see the IEC present in the product, Siemens must justify why. The IEC has made globalization possible for Siemens ...

Without IEC standards, prices forSiemens products would be much higher as they would have to adapt to different national requirements around the world.

Gerhard GollerHead of Global Operations for High-Voltage Switchgear

Siemens

Page 43: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

One world One technology One standard

IEC 61850 (substation bus & process bus & telecontrol) for

Electricity nets communications Windmill turbines communications Coming soon ... fuel cells communications

Vendors move to the markets

Page 44: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

How small-to-medium-sizedvendor enterprises benefit from

international standardisation

- the global micro economic view -

Page 45: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Since the middle of the 20th century, growth rates ininternational trade and investment have exceededthose of domestic economies.

Standardisation helps SMEs to enter foreign marketsand profit from it.

Page 46: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

It is the received view that SMEs in technology-intensive industries have little possibility of setting either de jure or de facto standards.

While there may be far fewer de facto standards set by SMEs, nevertheless SMEs have important incentives for participating in international standardization. These incentives have to do with very important benefits related to strategic marketing advantages.

Page 47: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Many new SMEs - particularly the high-tech or internet-related ones - are international right from the beginning, yet these companies often experience substantial problems and high failure rates when trying to penetrate foreign markets.

SMEs must address this from the beginning. One strategy they can use to penetrate successfully is being involved in international standardization.

Page 48: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

SMEs are able to provide third party equipment to systems of big vendors using standardized interfaces

SMEs can act as suppliers of big manufactures

SMEs mostly gain from technology transfer

Page 49: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

How System Operators benefitfrom international standardisation

Page 50: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

ROI driven System Operators

Asset-Management

(ROI) Engineering

Operation PowerSystem Control

Sales (fee of net and system services use)

MarketParticipants

NetCustomers

Vendors

Market rules and codesRegulation

System servicesBalancingMeteringSettlement

ProductsConstructionServices

Fee comparison with other SOs

SCADA/EMS & Control Systems

requirements

standards

Page 51: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Open standardized architectures substantially reduceinstallation time and cost and allow equipment frommultiple vendors within one system.

Answer: Standard support of System integration Interfaces.

Page 52: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Approximately 55 % of the installed cost of utility control systems are associated with system configuration and integration over the life cycle

Answer: Standard support of System migration Configuration Maintenance Conformance tests.

Page 53: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

How market participantsbenefit from international

standardisation

Page 54: Importance of Standardisation – The Business Case DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC wolfgang.maerz@t-online.de

Electronic business language

The function of the liberalized energy market with manymarket participants and more than

1 million transactions per day 1) in Europe relies heavily on electronic communication

Answer: Standard support of Electronic business communication based on ebXML, Wb

Services Energy market specific business language True B2B (not over mail boxes and folders) High security and performance.

Modelling is a regional issue (Europe: ETSO, EFET, ..)1) Study of the EU, 2001