Power system development and economics
By Antonio Iliceto, Chair, and Peter Roddy, Secretary
Overview
The Paris Agreement and climate neutrality goals for about the year 2050 are driving energy transition planning in most countries worldwide. Renewable energy-dominated 2050 power systems which serve e-mobility, heat pump and electrified industrial loads much higher than today, are becoming routine study subjects in planning already today. Therefore power system development, investment analysis and asset management, i.e. the Study Committee (SC) C1 scope, are at the heart of planning for and managing this enormous transition that the entire world must go through together, at the same time, with the same goals and challenges. As an example, because of this common global climate and energy transition challenge, cooperation in a global electricity network seems increasingly desirable, and SC C1 is refining its highly successful first global grid feasibility study in a follow-up working group (WG C1.44).
Together with other SCs, SC C1 has described the role of system development and economics in the new CIGRE Green Book future “Electricity Supply Systems of the Future”. Uncertainties play a key role in planning for 2050 climate neutrality, concerning future cost reductions in photovoltaics, onshore and offshore wind energy, electric vehicles, batteries, electrolysers, UHV transmission technology, EHV cables, HVDC systems. The only one certainty is the world’s climate neutrality goal to be attained: whatever scenarios we analyse and however strongly they diverge from each other over coming decades, the goal remains a climate-neutral energy system by mid-century. At least with respect to greenhouse gas emissions, the scenarios need to converge by about 2050 towards zero, even if the exact mix of locally and globally traded electricity, of electric vs. hydrogen-based transport, of thermal or hydrogen-based seasonal storage, of nuclear vs. renewable generation will differ by scenario.
The mission and 2020 progress of SC C1 is very much in line with this important role of power system development & economics for the world’s climate neutrality goals, i.e. to support electricity system planners and asset managers worldwide in anticipating and successfully managing system changes to address emerging needs, opportunities and uncertainties while respecting multiple constraints, starting from reliability of supply and security of operations. SC C1 aims to provide particularly strong value with its recommendations on methods and descriptions of practices during the ongoing electricity system paradigm shift, brought about by the swift introduction of CO2-free renewable energy sources aided by rapid evolution in generation patterns and economics, and also by digitalisation, demand response, and in social, environmental and regulatory frameworks and expectations.
The specific perspective of SC C1 is to show how this paradigm shift can be managed while emphasizing the integrating role of the transmission and distribution networks for the entire system which also includes generation, demand and storage. The system needs to be: planned to deal with the changes; built taking into account economic and public acceptance challenges; and well maintained. Making the most of the change implies supporting customers’ and market participants’ desire to implement innovative solutions and emphasizing opportunities – along with risks – which the changes bring. It also implies anticipating, integrating and supporting progress. Opportunities for improvement relate to e.g. customer empowerment, increased penetration of distributed generation, closer transmission-distribution cooperation, new technologies, and efficiency and sustainability improvements.
The scope of SC C1 work generally includes descriptions of state-of-the-art applied methods and practices for system planning, economics and asset management. To provide value to SC C1’s target audience, the drivers of the ongoing paradigm shift need to also partly drive the methods and practices that SC C1 recommends: smart grids and demand-side response; energy-efficient electrification of heating and transport; generation cost structure changes (from Capex+Opex to Capex only), especially for renewable and variable distributed generation; energy storage and sector coupling options; sustainability policies (e.g. CO2), as well as evolving regulation; and electricity market development and integration.
SC C1 organisation
The four main areas covered by SC C1 are:
- Grid planning
- System economics and business investment
- Interconnections ans Energy Sector Integration
- Asset management
Each area is covered by an C1 member acting as Advisor, and all of them are gathered in a Strategic Advisory Group (SAG), which supports the Chair Antonio Iliceto (IT), together with the Secretary Peter Roddy (UK).
The main sections of this Annual Report describe how SC C1 and its Working Groups (WGs) have addressed in 2021 the effects and the management of the paradigm shifts in each area.
SC C1 now meets twice per year; ideally, once in person and one remotely. In 2021, due to enduring pandemic and travel restrictions, SC C1 meetings were held virtually on:
- 10 February 2021 (43 attendees)
- 24 September 2021 (44 attendees)
Our General Discussion Meeting at the Virtual Centennial Session 2021 (VCS) included:
- Day 1: 18 Prepared Contributions, 1 Keynote address and 2 NGN presentations
- Day 2: 5 keynote addresses, each followed by Q&A, and ending with a panel discussion around the topics covered over both days
Other C1 contributions to the VCS include:
- Climate change tutorial
- Hydrogen supporting the energy transition (joint with C6)
Strategic Plan
The C1 Strategic Plan was published in July 2021.
Reports issued in 2021
In 2021, SC C1 published Technical Brochure 848 on ‘Planning Coordination between System Operators, Transmitters and Distributors: Frameworks, Methods, and Allocation of Costs and Benefits’. Work was also complete on TB 863, joint with C6, on ‘Multi-energy System Interactions in Distribution Grids’.
TB 848 – WG C1.40 investigated how Independent System Operators (ISOs), Transmission System Operator (TSOs) and Distribution System Operators (DSOs) coordinate their planning processes in response to the ongoing transition of electric distribution systems towards active, two-way systems that incorporate higher quantities of distributed energy resources (“DERs”). WG C1.40 has focused its assessment on specific aspects of planning coordination: electric industry frameworks, planning processes, and the allocation of costs and benefits from planning decisions. Two assessments were conducted: a survey of CIGRÉ members and a literature review. These assessments were also supplemented by expert opinions offered by WG C1.40 members. WG C1.40’s work offers recommendations on best practice for Planners, Regulators, and others, as well as future areas of study.
TB 863 (completed in 2021 but published in early 2022 for editorial pipeline issues) – This TB on multi-energy systems was published by JWG C6/C1.33. Multi-energy systems couple various energy sectors and networks such as electricity, gas, heating, cooling, transport, water, waste, etc. to unlock energy flexibility and provisions for cost-effective operation while realizing low-carbon smart electricity grids. These systems are the key for unlocking new types of energy flexibility as well as techno-economic and environmental opportunities for the future complex energy system.

The Green Book on Asset Management was completed in 2021 and was published by Springer in 2022. The book aims to present all the material related to past and present asset management methodologies and approaches in order to establish a set of references to be used going forward in refining existing or developing new asset management techniques in electric utilities in general. The Green Book is led by editorial team and has a number of contributors, including from other SCs, and includes 21 chapters (450 pages in total).

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Grid Planning
Overview
As highlighted in the overview, system development of a secure, sustainable and affordable power system has become central to the world’s climate neutrality goals. Planning methodologies and evaluation tools continue to evolve in order to live up to the enormous climate change challenge, the many associated uncertainties, but also the great opportunities and benefits which electrification can bring in both emerging and mature economies. Sector coupling with mobility, heating/cooling, smart cities, climate-neutral industries and hydrogen are becoming increasingly important to system planners and to SC C1. There are also institutional (e.g. transmission and distribution operator cooperation) and stakeholder involvement challenges that need to be overcome to deliver the network of the future.
Work in progress
JWG C1/C4.36 reviews large city & metropolitan area power system development trends taking into account new generation, grid and information technologies. Metropolitan areas are increasing in size, population, surface area, political and economic importance. The WG considers new technologies to replace ageing assets rather than replacing assets on a like-for-like basis. This will include cross industry coordination and cooperation considerations, taking into account power flows to and from the distribution network; application of innovative measurement devices; development of electric vehicles; active and reactive power flow control technologies and their increasing automation; economic drivers for large city & metropolitan area development; large scale HV and UHV cable route penetration; rooftop PV penetration etc. Criteria and principles for large cities power system operation and development will be proposed. The TB is scheduled for publication in 2022 but communication with the Russian co-Convenor is problematic due to sanctions.
JWG C6/C1.42 addresses planning tools and methods for systems facing high levels of distributed energy resources. It identifies the impact of large deployments of distributed energy resources (DER) at the distribution level and repercussions on the transmission grid, as well as the tools, methods and benefits of aggregating DER at the distribution and transmission levels. The WG investigates the potential of co-simulation tools allowing the analysis of the impact of distribution-connected DER on the transmission grid considering static and dynamic aspects. It identifies and defines the planning and operation tools required at the distribution and at the transmission levels. The WG surveys distribution and transmission utilities for present practices and additional needs focusing on already known techniques, tools, methods and data for valuing DER and customer flexibility, practices and techniques in developing scenarios, both for transmission and for distribution (where e-mobility presents large uncertainties). The TB is scheduled for publication in 2022.
The aim of WG C1.47 (Energy Sectors Integration and impact on power grids) is to address both the technical, business, economic and regulatory issues for the developing of concrete use cases of energy systems coupling, and assess state-of-the-art research in different countries around the world. The WG will also bridge the gap between academy research and industry on the ESI to reveal the key issues that should be addressed in the future. The TB is scheduled for publication in 2022.
System Economics & Investments
Overview
The work in this area addresses uncertainties and increasing penetration of renewable energy from the investment viewpoint. Business management involves investment decisions in all aspects of the system, including generation, transmission, distribution, storage, and demand with its flexibility. It complements grid planning with broader analyses of whether and how investments can actually be made, and infrastructure be built, in conjunction with private investors. More specifically, the work in this area describes how investment drivers and decision-making processes are changing, how to communicate with the many relevant stakeholders, and how transmission and distribution investments relate to each other.
Work in progress
WG C1.23 describes transmission investment decision points and trees, by defining target networks at the end of a specified planning period to meet all the necessary criteria and requirements. To account for uncertainty, multiple potential target networks can be generated which further require a number of decision trees. This WG established if and how target networks are being used, and if they are used to generate decision trees and key decision points. In particular, it investigated processes used to determine the timelines of the decision points in the different countries and the methods used. The WG is making a concerted effort to publish its TB in 2022 following a number of interruptions.
JWG C1/C6/CIRED.37 describes optimal transmission and distribution investment decisions under growing uncertainty. Transmission and distribution investment decisions resulting from a planning process require new approaches to deal with growing uncertainties on many parameters incl. new market designs, high penetrations of renewable energy, demand growth and so on. The WG summarizes learnings from several prior SC C1 and C6 WGs. It is now investigating how transmission and distribution planning scenarios are consistently used to ensure holistic investment decisions are made by both TSOs and DSOs. This work was showcased at the e-Session in a joint workshop with C1.39. A full draft of the TB has been reviewed by C1 and publication is imminent.
WG C1.41 aims to close the gap in understanding between stakeholders and electrical energy specialists. With the development of DER, significant numbers of customers are becoming stakeholders in the electrical industry. here is a need to bridge the gap in understanding between the technical specialists and the various stakeholders that have a vested interest in the electricity product. his WG will examine the gap in understanding amongst the various stakeholders of the range of technical issues from a planning perspective related to the changing nature of the power system and how this has developed. It will review how stakeholders perceive this gap and what is being done across the world to improve the level of understanding, particularly of the non-technical stakeholders. The TB is complete and is due to be sent for publication in July 2022.
The main objectives of WG C1.48 are to: (a) collect and analyse numerous studies related to technical and economic aspects of hydrogen supply chain and use, as well as supporting national policies and implementation strategies; (b) present different use cases in industry, transport, heating sectors and as energy storage and other system services including renewable electric energy supply needs, land and water requirements, and (c) recommend technology solutions for grid code compliance and to enable market-based provision of various local and system wide flexibility services by large scale electrolyser plants. Liaison experts from SC C6, B1 and C5 will be invited. The following topics will be explored and elaborated within the working group: Overview of hydrogen supply chain; Forecasting hydrogen demand and a corresponding amount of renewable electric energy supply and installed capacity; Identification and analysis of specific use cases in terms of economic value of green hydrogen; Review of technologies for scaling up electrolyser plant capacity; Evaluate a future role of green hydrogen and its derivatives; Identify region/scenario dependent optimal mix of interconnectors, storage including hydrogen and demand response; and, Overview of governmental policies and implementation strategies in different regions. The TB is scheduled for publication in late 2022.
Energy System Developments and Interconnections
Overview
This area of SC C1 work examines the increasing interdependence and integration faced by system developers, on top of the usual complexity already implicit in grid planning, which arises from the power grid being at the centre of the energy transition towards the climate-neutral energy system, both as a fundamental enabler and as the most impacted element. The new dimensions of system development tackled in this C1 work area are:
- higher interconnection rates between countries and systems, up to continental level and eventually to a global grid (“horizontal” interconnections); besides the traditional hurdles of realizing large technical infrastructures, these cross-border links spanning several jurisdictions face further critical issues in different authorisation patterns and market regulations, assessing and allocating costs and benefits, negotiating partners’ and investors’ roles, and managing international implementation;
- increasing interdependence of transmission and distribution grids, which means that going beyond issues like DER, active distribution grids, radical modification of flow patterns, consumer empowerment, energy communities, planners need to look at the end-to-end electricity system, leading eventually up to a joint transmission and distribution grid planning process (“Vertical” integration); this requires also an organisational and cultural change, since one TSO interfaces often with several or many DSOs, who are themselves undergoing a deep process of modernising their practices on local system development and of evolving towards smart grid operation;
- starting integration with other energy systems (“Sector Coupling”): to achieve global climate change targets, electrification of transport, heating/cooling and industry, fed by CO2-free power generation is a very effective route; therefore several workstreams are starting, in order to assess and capture the benefits of a common planning and a synergistic operation of various energy carriers (including gases and hydrogen), exploiting their respective capacities and complementarities in storing and transporting bulk energy.
Work in progress
WG C1.33, formerly convened by the C1 Chair, investigates interface and allocation issues in multi-party and/or cross-jurisdiction interconnections: it addresses the origination and design phase of such projects, focusing on the specific issues arising from the different rules/practices/investors’ policies, to be considered at early stage for the sake of project success. The work analyses real cases to extract the drivers, rationale and criteria of such issues, as well as the solutions adopted; it also describes the business model designed for realising the interconnection project according to the specific needs, in order to infer useful guidelines for project of high complexity. Material and contents for TB has been gathered, and a new co-Convenor/small drafting team needs to be appointed for accomplishing the drafting exercise in order to keep its scheduled publication in 2022.
WG C1.44 builds on the highly successful work of WG C1.35’s global grid feasibility study, to analyse more deeply the impact of large and cheaper storage and the effect of demand response as further elements to be co-optimised together with investments in transmission and in generation, and to begin addressing the necessary trading rules for a global grid. The TB is scheduled for publication in 2022.
The scope of WG C1.45 is twofold:
- Identification of the benefits indicators (economic, social, technical, environmental) associated with an interconnection project. In identifying benefit indicators, the various market and regulatory frameworks worldwide will be considered
- Procedure to quantify the benefit indicators and how to combine them in consistent way when they have different metrics.
The focus is on interconnection reinforcements or on building new interconnections between isolated areas, but, in general, the suggested solution(s) can also be applied to inter-area transmission reinforcements within the same jurisdiction. The concept of “interconnections” does not necessary refer to a cross-border infrastructure. The TB is scheduled for publication in 2023.
Asset Management
Overview
The work in this area addresses emerging issues in asset management related to operational, tactical and strategic aspects, in a context of increasing sophistication of risk and economic modelling and increasing convergence of asset management and planning data and methods. At present there is one WG and also a cross-committee team under C1 leadership, who has developed developing a CIGRE Green Book on Asset Management.
Work in progress
WG C1.43 deals with establishing requirements for asset management platforms that will allow integration of data/information from different sources, will have capability to process data using prescribed algorithms, and will generate the desired outputs. The TB is scheduled for publication in 2022.
WG C1/C4.46 aims to find break-even conditions between preventive, containment and restoration measures and propose guidelines for determining an optimal mix of resilience measures from diverse techniques. The proposed scope will be delivered in three distinct steps: (a) establishing current practices and standards (b) development of a gap analysis and (c) propose opportunities for improving existing planning methods and standards. Major tasks within the stepped delivery approach for the proposed WG include: Build on work done by prior WGs on power system resilience topics; Adapt and document suitable metrics to define power system resilience for interconnected electrical power networks; Review existing planning methods and standards used for power system infrastructure investments; Consider the resilience of power system equipment in view of changing climatic conditions; Investigate the most used system restart techniques; Investigate the concept of flexible grid design; Promote technical papers, technical panel sessions, and workshops on power system resilience planning for a decarbonizing energy sector. Liaison experts from SC C5 have been invited to contribute. The TB is scheduled for publication in 2023.
The intent of JWG B2/C1.86 (Approach for Asset Management of Overhead Transmission Lines) is to recommend a consistent set of requirements for establishing AM for OHTLs, including requirements for an Asset Performance Management (APM) platform capable of extracting the data from a multitude of data sources, have functionality to process these data and generate the required information, and provide users with required outputs. The objective of the currently active WG C1.43 is to assist utilities in identifying overall requirements for such a platform without specifically defining requirements at the asset category level. This JWG will develop a set of APM requirements specifically for OHTLs. The TB is scheduled for publication in 2024.

CIGRE active Working Groups / Call for experts
SC C1 contributions to Technical Council
Participation at CIGRE’s Technical Council has been focused on the development of new way of working in pandemic era, which has particularly affected the work of a world-wide organisation like Cigre. Meetings, Workshop and Tutorials have suddenly switched to web-based tools, with challenging time-zones issues and lack of the networking, which is one fundamental ingredient of professional exchanges at the basis of Cigre workstyle. General Sessions have been held virtual (2020) or in broadcast style (2021), with ever challenging tools and engagements from many members. For the 2022 Session and future ones, a brand new system (ConfTool) has been utilised, and fine tuned with contributions also from SC C1 to make it easier and more trackable the management od the scientific papers and their revision/approval process. The new peer revision process implies much higher engagement of SC members; for this reason and for fostering the creation of new WGs, SC C1 is in favour of enlarging the global number of Committee members, and will endeavour to engage them in Cigre voluntary activities.
Consistent with its system planning-related mission, the SC C1 Chair Antonio Iliceto contributed, within the CIGRE Technical Council, in founding a Forum on Hydrogen and holding/organising 3 internal webinars, last one with the testimonial of Entso-E; in this thread, C1 Chair hold also a similar joint webinar for GO15. Recently, this Forum has enlarged is scope to Energy Transition, where C1 still keeps a substantial contribution role.
Antonio Iliceto, C1 Chair, is also the co-Convenor of the WG Initiative for Africa; this WG reports directly to the Technical Council and is in collaboration with World Bank. This initiative aims at disseminating CIGRE knowledge base and support their deployment also for rural electrification in Africa; another aim is to establish new regional Cigre Committees in the main African regions. West Africa has been established already, east Africa is next in the pipeline.
Under the guidance of Keith Bell from C1, the CIGRE policy of Tutorials has not only been updated but also widely applied in the Paris Session and in Symposia.
Virtual Centennial Session 2021, Kyoto 2022, Session 2022 and future work
The Special Reporters for the e-Session 2020 kindly agreed to reprise their role at the Virtual Centennial Session 2021. The C1 Chair, Technical Secretary, and two Special Reporters attended the VCS in person in order to ensure its successful delivery. The C1 tutorial and co-led workshop were well attended and lively interaction took place, considering the remote attendance scheme.
Due to Covid-related travel restrictions, foreigners were unable to attend the CIGRE Conference in Kyoto, Japan. C1 met all of its commitments by finding local representatives to represent C1.
Work is well advanced for Paris 2022; ConfTool was successful used for the management of abstracts and papers. We look forward to a well-attended General Discussion Meeting, Tutorial, Workshop, Poster session and closed Meeting of C1.
Keynote speeches
To disseminate the activities of CIGRE, Chair and members from SC C1 have participated and presented Keynote speeches during:
- Power System Development for a Net Zero Future: Keen, Green and Secure; Dr Charlotte Higgins, C1 UK Regular Member - January 2021
- CIGRE C1 ISRAELI WEBINAR Systems and Grid Planning approaches in age of Renewable Energy & Storage growth; the Euro-Mediterranean perspective; Antonio Iliceto, C1 Chair - June 2021
- 2021 IEEE Jordan International Joint Conference on Electrical Engineering and Information Technology November 2021; MAIN CHALLENGES AHEAD FOR POWER SYSTEM DEVELOPMENT, Antonio Iliceto, C1 Chair
Liaison with other organisations
SC C1 keeps a regular interaction with IEC ACTAD (Advisory Committee for Transmission and Distribution), through the Chair Antonio Iliceto who regularly contributes to meetings (also on behalf of TC Chair) and convenes a Task Force specific on CIGRE Liaison.
SC C1 also keeps regular contacts with ENTSO-E, with which one workshop on hydrogen infrastructures planning has been organised, as well with MedTSO (Association of Mediterranean TSOs), with which the Israeli workshop in June 2021 has been co-organised.
SC C1 has promoted and supported a Memorandum of Understanding with ETIP SNET, the European Platform chaired by European Commission for governing the Innovation priorities and projects.
Awards
CIGRE Technical Council Award 2021
This award is granted to a few CIGRE members as a reward for their active participation in the activities of the technical work of the Study Committees. In 2021, the award was delivered to Juan-Carlos Araneda (CL) in recognition of his outstanding contributions to the life and work of the Study Committee. Juan-Carlos led a C1 Working Group and actively contributed to several other WGs, and also delivered a Tutorial at the online CIGRE Session in Paris in 2020.
CIGRE Pioneer 2020 e-session Achievement Award
The CIGRE Pioneer e-session Achievement award was a special award created to recognize the outstanding efforts of the SC members who contributed to the achievement of the 2020 e-session and/or of the 2021 Session. Awards for C1 “System Development & Economics” was granted to Severine Laurent (FR), Valdson Simoes de Jesus (BR), Mattias Jonsson (SE) and Peter Roddy (GB).
Future meetings and events
- Paris Session, August 2022 (including annual SC C1 meeting), where C1 is involved as Chair of one session of Opening Panel, holding a Tutorial on Global Grids (WG C1.44), and holding two presentations at a joint workshop on long transmission lines.
- Oman Symposium, March 2023, as individual papers
- Cairns/Australia Symposium, September 2023. C1 is in the Organising Committee and there will be a specific C1 related session; C1 yearly meeting in person (plus hybrid) will take place on that occasion.
- Gulf Coordination Council Conference, October 2023
- Paris Session 2024
- Israel, 2025 (to be confirmed)