Executive Summary:
The International Energy Agency's report focuses on the concept of Transmission System Security in competitive electricity markets. The document draws from recent large-scale blackouts across Europe, North America, and Australia to argue that a comprehensive, integrated policy approach is necessary to avoid future preventable power failures.
Key Points:
-
Concepts and Context: The report introduces the challenges facing system security in a more dynamic operating environment due to electricity market reforms. It highlights the need for improvements in legal, regulatory arrangements, system operating practices, and technological advancements.
-
Transmission System Security Case Studies:
- North-Eastern United States and South-Eastern Canada: This case study explores the impact of market reforms on transmission systems, noting that while considerable efforts have been made since significant blackouts in 2003, the development of rules and practices has not kept pace with the evolving market dynamics.
-
Influence of Electricity Markets: Electricity market reforms have led to growing inter-regional trade, creating a more integrated network environment with new real-time challenges for reliable transmission system operation. The report suggests that these operational challenges are intensified as spare transmission capacity is absorbed.
-
Challenges and Solutions:
- Legal and Regulatory Arrangements: The report suggests enhancing clarity in responsibilities and accountabilities and improving enforcement mechanisms. It also calls for a greater emphasis on system-wide preparation to support flexible, integrated real-time system management.
- System Operating Practices: It recommends improvements in real-time coordination, communication, and information exchange, particularly within integrated transmission systems spanning multiple control areas.
- Technology and Training: The report advocates for the full employment of new and existing technology to enhance system operation and the provision of appropriate training to enhance emergency responses. It also highlights the importance of effective asset and vegetation management.
- Market-Based Approaches: The report encourages the use of market-based approaches to complement regulatory arrangements to strengthen transmission system security at a lower cost.
-
Leadership and Coordination: The report underscores the need for governments to provide leadership and drive effective, coordinated processes that address key policy issues in an integrated and comprehensive manner. Collaboration among all stakeholders is essential to mitigate risks and avoid further substantial power failures.
