CLC/TR 50403:2002

Standardization and the liberalization of the energy market

This report aims to define the existing major interactions and to identify aspects suitable for standardization in the near future.

Standardizacija in sprostitev trga z električno energijo

General Information

• Status: Published
• Publication Date: 10-Dec-2002
• Technical Committee: CLC/TC 8X - System aspects of electrical energy supply
• Drafting Committee: IEC/TC 77 - IEC_TC_77
• Parallel Committee: IEC/TC 77 - IEC_TC_77
• Current Stage: 6060 - Document made available - Publishing
• Start Date: 11-Dec-2002
• Completion Date: 11-Dec-2002
• Ref Project: SIST-TP CLC/TR 50403:2005 - Standardization and the liberalization of the energy market

Standards Content (Sample)

SLOVENSKI STANDARD
SIST-TP CLC/TR 50403:2005
01-november-2005
6WDQGDUGL]DFLMDLQVSURVWLWHYWUJD]HOHNWULþQRHQHUJLMR
Standardization and the liberalization of the energy market
Ta slovenski standard je istoveten z: CLC/TR 50403:2002
ICS:
01.120 Standardizacija. Splošna Standardization. General
pravila rules
27.010 Prenos energije in toplote na Energy and heat transfer
splošno engineering in general
SIST-TP CLC/TR 50403:2005 en

2003-01.Slovenski inštitut za standardizacijo. Razmnoževanje celote ali delov tega standarda ni dovoljeno.

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TECHNICAL REPORT CLC/TR 50403
RAPPORT TECHNIQUE
TECHNISCHER BERICHT December 2002
English version
Standardization and the liberalization
of the energy market
This Technical Report was approved by CENELEC on 2002-09-24.

CENELEC members are the national electrotechnical committees of Austria, Belgium, Czech Republic,

Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Luxembourg, Malta,

Netherlands, Norway, Portugal, Slovakia, Spain, Sweden, Switzerland and United Kingdom.

CENELEC
European Committee for Electrotechnical Standardization
Comité Européen de Normalisation Electrotechnique
Europäisches Komitee für Elektrotechnische Normung
Central Secretariat: rue de Stassart 35, B - 1050 Brussels

© 2002 CENELEC - All rights of exploitation in any form and by any means reserved worldwide for CENELEC members.

Ref. No. CLC/TR 50403:2002 E
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Foreword

By decision of the CENELEC Technical Board the recommendations made by CLC/BTWG 110-1 on

the liberalization of the energy market were given the status of a Technical Report on 2002-09-24.

As these recommendations were to be considered of interest for CENELEC and IEC as well, a

similar report was presented to the IEC/SMB meeting end of October 2002.
Contents

Executive summary ................................................................................................................ 3

1 Background................................................................................................................... 4

1.1 Situation in Europe........................................................................................................ 4

1.2 North America - yesterday and today .............................................................................. 5

2 Identification of interactions and aspects suitable for standardization in different areas ..... 6

3 Recommendations for IEC............................................................................................ 10

4 Recommendations for CENELEC.................................................................................10

Annex A - Extract from EU presidency conclusions, European Council 15/16 March 2002....... 11

Annex B - Situation in North America ................................................................................... 13

Figure 1 – Increasing complexity and relations between actors in the electricity supply.............. 4

Table 1 – Identification of interactions and aspects suitable for standardization in

different areas ....................................................................................................................... 9

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Executive summary

Liberalization of the energy market is an ongoing process, changing old interfaces between the

various parties and creating new entities and hence new interfaces. In view of the increasing

complexity in the various relationships standardization has the potential to facilitate and rationalize

the interfaces.

This report aims to define the existing major interactions and to identify aspects suitable for

standardization in the near future.

It is anticipated that the liberalization process will continue to develop and therefore it is

recommended to establish a structure within IEC which will follow the ongoing process and take the

necessary initiatives to create and maintain a system approach covering the whole market from

production at various levels down to the utilization at the costumer level.

Although a major part of the standards are in place, some new fields need to be considered. It is also

felt necessary by the working group to improve the co-ordination between the committees involved

and ensure that all necessary system aspects are covered. In addition to the recommendations to

review or complement the present portfolio of standards a key recommendation is to convert the

present TC 8 into a system committee for electric energy supply system.

It is also recommended that CENELEC should set up a mirror committee to IEC/TC 8 to follow and

complement the IEC work in areas where there is a particular European need. Two of these areas

are identified in the report.
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1 Background
1.1 Situation in Europe

In recent years, the electrical energy sector has seen substantial changes, especially in Europe due to

several legislative and policy initiatives from EU, such as the Directive “concerning common rules

for the internal market in electricity”, published in 1996. Furthermore, other regions of the world

are facing similar changes, in order to attract foreign investors or to create competition in their

national markets.

As a result of this evolving situation, changes in the business definition, new operators and

consequently, new interfaces have arisen.
Producers
Grid >130 kV
HHV Customers and Producers
Regional networks
Local Prod.
70 < U < 130 kV
Local Prod.
HV Customers and Producers
MV Distribution networks
1 < U < 70 kV
MV or HV Customers and Producers
LV Distribution network
< 1 kV
LV Customers and Producers
Figure 1 – Increasing complexity and relations
between actors in the electricity supply

Grid and network operators (transmission and distribution) provide services as monopolies, under

the responsibility of regulators appointed by authorities. In the liberalized market generation and

supply of electric energy will operate in an open market. In this market, rules for access to network

in order to provide proper operation of the electrical system and equitable treatment for all parties

are of high priority. In addition, taking into account the increasing competition amongst electrical

companies, new ways to address customers and new services are offered. The increasing possibility

for consumers to choose from different electricity suppliers, raises practical questions such as

energy-metering and transparency of billing.
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In this changing environment, it is necessary to evaluate how standardization can facilitate and

rationalize these new interfaces.

Following the Stockholm EU Summit, the liberalization of the electricity market has become a

highly important political issue, which has been reinforced by the EU Presidency Conclusions, after

the 2002 spring EU Council in Barcelona (see Annex A).

This gives a strategic opportunity for the European electrical energy industry, and also for

CENELEC, as a standardization services provider, to take the lead in contributing to the

liberalization process, in close cooperation with the IEC.

In order to guarantee the effectiveness of the European liberalized system, corresponding to market

and regulatory needs, it is necessary to take into account the different experiences obtained from the

present systems in the different countries.

However, a common approach, stemming from identification of trends, opportunities and state-of-

the-art of the existing standards, leading to harmonized conditions, would clearly benefit European

society in general, the industrial community and consumers.
1.2 North America – yesterday and today

The North American Transmission Grid has been, and continues to be, owned and operated by a

number of different public and private companies in various jurisdictions across the United States

and Canada. In the past, all players were vertically integrated and grid reliability was assured

through the voluntary participation of all members in a standard-setting process. However, the

continuing restructuring process within the industry has raised concerns about its ability to maintain

reliability while also addressing the needs for business standards. The transmission grid is the

‘highway’ by which means electricity can be bought and sold. As more and more markets open to

competition, the need for reliable and fair access to the transmission grid becomes less clear to

govern resulting in imminent implementation of mandatory reliability standards.

In Canada regulation of the electricity industry is primarily in the hands of provincial governments.

The federal regulator (National Energy Board) is responsible for regulating the import and export of

power, but all other regulatory matters are under provincial jurisdiction.
For more details, see Annex B.
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2 Identification of interactions and aspects suitable for standardization in different areas

The table presented below summarizes aspects which may be suitable for standardization. The

headings in the table are expanded below.
Terminology

The terminology can be expected to emerge as the standards develop but it is envisaged that there

will be a need to identify the various participants in the electricity market, the interfaces between

participants and certain aspects of technical detail, for which there are specific meanings in the

particular context of the electricity market.
Quality of supply

Some aspects of quality of supply are covered in the existing standard EN 50160 and there is a

relationship between this standard and EMC standards related to conducted disturbances. It might be

possible to provide more detail for some parts of EN 50160 and to specify performance indicators

covering areas of interest to regulators and consumers.
Security of supply
Under this heading it is possible to consider a wide range of aspects:

- The basic connectivity of the networks, in terms of ability to continue to deliver electricity

following faults or planned outages.

- The ability to match the consumer's demand, with the available generating capacity, both

instantaneously and in terms of longer term changes in electricity usage.

- The operation of networks, especially at the highest voltage levels, in a manner which maintains a

stable set of conditions.

- The possibility of maintaining electricity supply in discrete areas, "islands", following disruption

to interconnected transmission grids and the ability to restore and maintain supplies within these

discrete areas in such cases.
Connection practices

Clarification and standardisation of the basic requirements for connection will support networks to

be planned, designed and constructed to operate economically, securely and safely and to facilitate

the use of the networks by all the interested economic interests.
These connection practices will support the:

- Establishment of technical conditions which facilitate the interfacing of systems at points of entry

to and exit from the networks;

- Formalization of the exchange of system planning data; and provide sufficient information for a

user to assess opportunities for connection and to plan and develop his system so as to be

compatible with the network.
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Measurement

Included in this aspect are the requirements for data exchange protocols and minimum requirements

for billing information provided by electricity suppliers to consumers or between the involved

operators.
Communication
Communication needs between various economic operators arise in terms of:

- The day-to-day operation of the networks, generators and consumer loads, for example for

generator scheduling or switching in networks.

- The essential communication between the various parties to avoid dangerous conditions or in the

event of potentially dangerous incidents.
Network responsibility

Within this context it is possible to envisage addressing best practice in the operation and

maintenance of networks and the necessary elements of operational safety management systems.

Regarding Environmental Safety,
consideration in this context could be given to best practice in respect of:
- spillages of oil and leakage of gas insulation,
- ground excavation for cables and re-instatement,
- public activities near overhead lines,
- security of substations.
Charging mechanisms for use of public networks
Best practice might usefully be codified in terms of:

- the aspects of network design, hardware and operation to be considered in the charging

mechanisms,
- methodologies for recovery of costs,
- openness and clarity of billing processes.
Maintenance

Maintenance in various forms constitutes an essential part of the delivery of electricity and a

substantial part of the costs of operating a network. There might be benefits in establishing best

practice in terms, for example, of:
- frequency and specification of maintenance procedures,
- assessment of public safety in relation to overhead assets.
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Outsourcing of network services

To varying degrees in different countries, deregulation has led to outsourcing of many aspects of the

operation of networks, including cable and overhead line design and installation, substation design

and construction, customer metering, reading of meters and day to day operation and mai

...