Power system development and economics

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 one example, because of this common global climate and energy transition challenge, cooperation in a global electricity network seems increasingly desirable, and SC C1 is finalising 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 2022 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 and 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 2022 the effects and the management of the paradigm shifts in each area.

SC C1 now meets twice per year; once in person and one remotely:

• 11 March 2022 (43 attendees)
• 01 September 2022 (49 attendees)

At the September meeting, the creation of new WGs was agreed (subject to approval by Technical Council):

• C1.49: Offshore transmission planning
• C1.50: Global sustainable energy system coupling electricity and hydrogen

Our General Discussion Meeting at the Session 2022 included 32 Prepared Contributions, one keynote address, one NGN presentation, and multiple Spontaneous Contributions. Other C1 contributions to the Session include:

• Opening panel session on ‘Sector coupling scenarios’
• Tutorial on the global interconnected and sustainable electricity system (175 attendees)
• Workshop with B1, B2 and B4 on extra-long transmission lines

Strategic Plan

The C1 Strategic Plan was published in July 2021 and updated as part of the CIGRE new Startegic Plan, catering for new trends of an “End-to-End system of systems”, referring to the integration of energy sectors coupled with the eelectricity one (mobility, heating,, hydrogen); also the website description of C1 activities and workplans is being updated accrodingly. Key enhancements implemented since the last revision of the plan include:

• Advanced studies on economic assessment, business models, Cost-Benefit analysis, KPI definition, optimisation metrics in the changing and complex power system 
• Introduction of Hydrogen topic in WGs and papers, as well as in CIGRE TC & SAG Energy Transition
• Introduction of explicit Sector Coupling topics in WGs and papers
• Advanced studies on Global Grids
• Increased emphasis on Flexibility at planning stage
• Increased emphasis on Resilience, at system level
• Increased work on TSO-DSO coordination
• Introduction of explicit / dedicated actions on sustainability of future developments

Reports issued in 2022

In 2022, SC C1 published Technical Brochure 882 on ‘Closing the gap in understanding between stakeholders and electrical energy specialists’. Work was also completed on TB 863, joint with C6, on ‘Multi-energy System Interactions in Distribution Grids’.

Recent years have seen a rapid increase in the number of renewable generators in the form of roof top solar, large scale solar farms, small and large wind farms along with associated new transmission projects. A wide range of customer side technologies are also now available to help customers manage their energy use. Recognising the range of new participants this has created, Working Group C1.41 has produced a Technical Brochure aimed at reducing the gap in understanding between energy personnel and their stakeholders. It draws on a selection of twenty case studies and provides a range of tools and examples to help with this task. One key aim is to facilitate the permitting process for new work in a transparent and constructive way as this is a growing hurdle for grid development.

Multi-energy systems (MES) couple various energy sectors and networks such as electricity, gas, heating, cooling, transport, water, and waste, 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 TB includes a conceptual architecture for MES application, an assessment of the role of aggregators in energy or ancillary services markets, and a summary of the state-of-the-art of system modelling and tools applied for MES from the level of a single building to the level of the neighbourhood, district, city, region or state.

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. A draft TB has been circulated for comment and is scheduled for publication in mid-2023; communication with the Russian co-Convenor is problematic due to international 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 late 2023.

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 late 2023.

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. A draft TB has been circulated for comment and is scheduled for publication in mid-2023, 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 C1.48 - the main objectives 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 have been 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 mid-2023 and will give a Tutorial at Cairns Syposium in Sept 2023.

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, 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 new fresh support from prospective CIGRE young memberis helping to accomplishing the drafting exercise within 2023.

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 mid-2023.

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 late 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 are three WGs.

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. TB 910 has been finalised and is due to be published in August 2023.

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 late 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.

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 of 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.

C1 Chair is CIGRE liason officer in IEC ACTAD (Advisory Committee on T&D within the IEC organisation), in which he is co-Convenor of a specific Task Force on structured exchanges on respective workplans between the two organisations . At yearly meetings (Paris 2022 and Geneva 2023) He has proposed a new structure and memberships supporting the set-up for achieving the assigned goal in an efficient manner. C1 Chair is proposing to extend the same task also to IEEE, taking advantage of a new liason officer from their side.

Regarding IEEE, after a joint meeting in Chicago, C1 is participating in a new collaboration Group, which sahll be set up probably through a MoU with IEEE-PES, on which C1 Chair is also a regular co-author of technical articles.; a first joint endeavour, with C1 contributions, should be a paper on RES penetration and its consequences on power grids.

 C1 is also promotor and contributor to collaboration activities with ETIP SNET, the European platform for coordination of Innovation actions for smart grids. The two organisitions regulary promote respective flagship events, allowing complimentary booth participation. In Paris 2022 General Session, it was also co-organised a workshop on EV and their impact on power grids.

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.The launch of CIGRE Academy is taking place on July 28 and 29 2023 in Tanzania, hosted by Dar es Salaam University , in collaboration with C6; the two Chairs will be present in person and will present in detaile dway the TB 835 on Rural Electrification, carried out by TSC c6 with also a contribution of C1 Chair. The topic is particularly releavnt for African audience. The in person workshop will be also attened on-line by other students, scholars and utilitiies’ engineers from the whole African footprint, aiming as primary target to the widest possible Capacity Building. The workshop will be enriched with ample Q&A sessions, with facilitated networking, and I twill be the occasion to step up with new volounteers te idea of setting up the East African National Committee. The workshop will be opned with a patronage message by CIGRE Secretary General.

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.

Dissemination and Keynote speeches

To disseminate the activities of CIGRE, Chair and members from SC C1 have participated and presented Keynote speeches during:

• Kyoto Symposium, April 2022: C1 organised and chaired one session and led a Tutorial on TSO-DSO coordinated grid planning (C1.40)
• CIGRE SEERC meeting May 2022: Tutorial on Interface & allocation issues for interconnection projects, by C1 Chair.
• Gulf Coordination Council Conference, Oct 2022, intervention on Global Grids, by C1.44 Convenor.
• Oman Symposium, March 2023, as individual papers

Future meetings and events

• Cairns/Australia Symposium, September 2023. C1 is a member of the Organising Committee and there will be a specific C1 related session (25 papers have been accepted), plus a Tutorial on Hydrogen (C1.48) and a full meeting of SC C1.
• Remote meeting of C1, February 2024
• Paris Session 2024
• Israel, 2025 (to be confirmed)

Contact

• Contact of the Chair and/or the Secretary of the Study Committee