We invite you to Florence to learn about and discuss the results of the SmartNet project research on the TSO-DSO coordination theme. Each day, different perspectives and interests of the stakeholders will be taken into account by the project team. Join the discussion on Twitter using the hashtag #SmartNetProject.

This 3-day workshop series organised by the Horizon2020 SmartNet project.

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The workshop is free of charge, but registration is required.

Day 1 for TSOs/DSOs

On Wednesday, 24 October 2018 we will present and discuss:

• A critical analysis of the possible modalities of mutual interaction between TSO and DSO for the acquisition of ancillary services from distribution (coordination schemes)
• A cost-benefit analysis of these coordination schemes, allowing to compare ICT deployment costs with benefits in terms of reduction of total system costs for the acquisition of the resources for secondary and tertiary regulation
• An in-depth structure analysis of ancillary services markets highlighting what could be suitable in order to facilitate the participation of resources in distribution allowing them to compete on a level playing field basis with traditional resources located in the transmission system
• Results of scenario analyses at the 2030 time horizon referred to Italy, Denmark and Spain, allowing to get a view on prices trends and networks flows.
• A screening of real-time market-solving algorithms with a view on possible innovative solutions allowing a more efficient clearing procedure and reduced calculation time yet considering nodal detail for T&D networks.
• A thorough analysis of ICT requirements for implementing the studied coordination schemes
• Three pilots studying in detail technological solutions on three “real” cases implemented on the territory.

Day 2 for Regulators

On Thursday, 25 October 2018

• A thorough analysis of TSO-DSO coordination schemes for the acquisition of the ancillary services from distributed energy sources connected to distribution grids
• A cost-benefit analysis of these coordination schemes, allowing to compare ICT deployment costs with benefits in terms of reduction of total system costs for the acquisition of the resources for secondary and tertiary regulation
• An in-depth analysis on how the structure of real-time markets should evolve in order to make it possible for distributed energy sources connected to distribution grids to compete on a level playing field basis with traditional resources located in the transmission system
• An attentive analysis of the regulatory implications to implement the studied TSO-DSO coordination schemes with respect to the evolution of the regulation in Europe and in the three focus countries (Italy, Denmark and Spain)

Day 3 for Utilities and Traders

On Friday, 26 October 2018

• A comprehensive analysis of possible ways to coordinate TSO and DSO between themselves and with the ancillary services markets to allow participation of resources in distribution grids to ancillary services markets
• Scenario analyses at the 2030 time horizon referred to Italy, Denmark and Spain, allowing to get a glance to market prices and dispatching of the single resources.
• Cost-benefit analysis of the studied TSO-DSO coordination schemes, allowing to compare ICT deployment costs with benefits in terms of reduction of total system costs for the acquisition of the resources for secondary and tertiary regulation
• Micro-analysis based on simulation results to assess profitability for the different figures participating in ancillary services markets.

The FSR Energy Innovation Area and the Young Scholars Initiative (YSI) of the Institute for New Economic Thinking (INET) have the pleasure to invite you to participate in the 1st Energy Innovation Academy.

Call for papers

Energy transitions imply disruptive innovations. That drives the Academy’s topics. We aim at discussing industries as complex and evolving systems. We are interested in their dynamics, networks, interactions, and heterogeneity. Our strategy is to bring together scholars from within and outside energy industries to cross-fertilize discussions on energy transition and complex adaptive systems.

We seek contributions from young scholars in all areas of Complexity, Innovation and Institutional Economics. Our aim is to bring together a broad view of technological and institutional aspects in order to apply it to industry transitions.

Scholars may submit an abstract or a complete paper. There are no format or length requirements. If the work is selected, they will be invited to participate and present in the Academy. We will base our selection on all available information – no single factor will be determinant. We seek candidates in terms of their contribution to a diverse research community.

The Format

• During mornings, the event will provide presentations on the state of the art of the discipline on a specific topic. At the end of each morning, the workshops will elaborate on specific research questions or methodologies, in the format of a roundtable followed by open Q&A.
• In the afternoons, the academy seminars will take place. They are designed to give attendants the opportunity to present and discuss their own research with experienced mentors and the rest of the participants of the academy.

Practicalities

The list of selected participants will be published on 18 October 2018 and we aim to welcome up to 20 young scholars. YSI will cover accommodation in shared apartments or shared hotel rooms to all selected participants. We expect to support some of the travel costs depending on funds availability.

Webinar Series

In the context of the Energy Innovation Academy, the FSR Energy Innovation Area will organize three webinars during September and October to set the scene and discuss the main topics of the Academy with a wider audience online.

Invited speakers:

• Jose Maria Silveira (Unicamp): Knowledge networks and technological frontiers: where are we, and where do we go to, in bioenergy? Register here
• Javier Prieto (EC) – Smart Specialization
• Daniele Rusolillo (Planet Idea) – Smart Cities

Follow FSR on twitter and join the discussion on #FSREnergyInnovation

For more information, contact the event coordinator: Chiara Canestrini

Energy Storage and Storage facilities play a crucial role in the EU energy system contributing to the seasonal flexibility of the EU energy market and acting as a collateral against potential disruptions in the supply of energy. However, the value of storage has been challenged in recent years. According to the European Commission “Follow-up study to the LNG and storage strategy” this trend is a result of, inter alia, gas consumption’s weakening, narrowing summer/winter spread, converging energy prices across Europe, greater pipeline flexibility and hub liquidity. At the same time, many people agree that storage is becoming more and more important with the increase of intermittent energy from renewable sources in the EU energy mix.

The workshop is divided into two sessions.

The first session deals with the consequences of changing market conditions on the storage market and the adequate market design to flexible resources in order to fully capitalise on their potential.

The second session is devoted to the regulatory options that could be designed to provide the cleanest back-up to cope with the increasing variation of gas flows that the rising share of RES in the energy mix will trigger in the future low carbon energy system. The event will conclude by issuing policy recommendations.

Chairs:

• Andris Piebalgs | Florence School of Regulation / RSCAS / EUI Lubor Veleba | Gas Infrastructure Europe
• Cécile Prévieu | Gas Infrastructure Europe
• Lubor Veleba | Gas Infrastructure Europe

This workshop brought together academia, other stakeholders and senior policy makers from different carbon markets worldwide (California, Canada, China, EU and New Zealand), in a unique process for a fruitful exchange.

A growing number of countries and of sub-national jurisdictions are using carbon markets to implement their Nationally Determined Contributions (NDCs) under the Paris Agreement. Recognising the emerging need to share the experiences on implementation of emissions trading systems to date, and to further promote emissions trading as a cost-effective climate policy tool policymakers, academics and other stakeholders will reflect upon recent developments in carbon markets around the globe and discuss future perspectives of carbon market cooperation. As one specific topic, they will discuss respective experiences with and future perspectives of offsets in carbon markets.

The event was  jointly organised with by DG Climate Action of the European Commission and is part of the so called ‘Florence process’ aimed to stimulate the on-going debate on carbon markets amongst international policymakers and experts.

Workshop by invitation only and held under the Chatham House Rule.

Programme

09:45 – 10:15 Welcome and coffee

10:15 – 10:30 Opening remarks
Brigid Laffan, European University Institute
Jos Delbeke, Senior Adviser for Relations with the Florence European University Institute, European Commission

10:30 – 13:00 Session 1: Current developments in carbon markets and future perspectives in carbon market cooperation

Discussion with the following experts moderated by Dirk Forrister, IETA:
• Robert Stavins, Harvard University
• Dan Dudek, Environmental Defensive Fund
• Lars Zetterberg, IVL Swedish Environmental Research Institute
• Glen Murray, Pembina Institute

13:00 – 14:30 Networking lunch

14:30 – 15:30 Session 2: Offsets in carbon markets – taking stock of experience

15:30 – 16:00 Coffee break

16:00 – 17:30 Session 3: Offsets in carbon markets – outlook

Overview by Juerg Fuessler (INFRAS) followed by a discussion with following experts moderated by Franzjosef Schafhausen, General Manager, Energy-Environment-Climate Consulting:
• Jonathan Shopley, Natural Capital Partners
• Stephanie La Hoz Theuer, Independent Consultant
• Pedro Martins Barata, Get2C

17:30 – 17:45 Closing remarks

19:30 Networking dinner
Dinner speech by Robert Stavins, A.J. Meyer Professor of Energy & Economic Development, John F. Kennedy School of Government, Harvard University.

Other workshops of the Florence Process:

Third Carbon Market Workshop, 21 March 2019

First Carbon Market Workshop, 25 September 2017

The SmartNet project is going to complete its activities within the current year. We have always paid a great attention to collect feedbacks and suggestions from the stakeholders’ world and now, six months ahead to the end of the project, on July 20^th we are going to organise a full day workshop in Brussels.

The aim of this Workshop is to provide a detailed dissemination of the results obtained and lessons learned, both from the simulation and cost-benefit analysis on the different coordination schemes, and from the three technological pilots on the three countries (Italy, Denmark and Spain). However, this will also constitute the last opportunity to collect a comprehensive feedback from the stakeholders, which will help us to elaborate the final recommendations and regulatory guidelines.

The location in Brussels should be the most favourable one to collect the most important European stakeholders, representing the manifold viewpoints of the electricity world. A world which is in quick evolution and thus is very interested in a prospect view showing how the system should evolve in the mid-term as far as TSO-DSO interaction is concerned.

Register here

Date: 20 June 2018

Time: 9:00 am – 16.30 pm CEST

Location: VLEVA office: Kortenberglaan 71, 1000 Brussels

Programme:

• Introduction to the SmartNet project (G. Migliavacca – RSE) – 15 minutes
• Five TSO-DSO coordination schemes (H. Gerard – VITO) – 20 minutes
• Real-time market architecture issues (G. Leclerq – N-SIDE) – 20 minutes
• Aggregation models (M. Dzamarija – DTU) – 20 minutes
• The three national simulation scenarios (H. Svendsen – SINTEF) – 20 minutes
• Simulation platform and simulation results (M. Rossi – RSE) – 40 minutes
• Cost-benefit analysis methodology (C. Madina – TECNALIA) – 40 minutes
• Regulatory analysis (I. Kockar – Strathclyde University) – 20 minutes
• Introduction to the three technological project pilots (C. Madina – TECNALIA) – 15 minutes
• Demo Italian Pilot (L. Ortolano – TERNA) – 30 minutes
• Demo Danish Pilot (H. Madsen – DTU) – 30 minutes
• Demo Spanish Pilot (M. Pardo – ENDESA) – 30 minutes
• Debate with the European stakeholders: ideas suggestions in sight of project finalisation – 1 hour

The workshop will assess the renewable gas complex and the path to energy sector decarbonisation, analysing the production value-chains, and discussing the scope of policy and regulatory interventions in support of the widespread use of renewable gas.

The EU’s energy sector is profoundly changing. The forthcoming agreement on the “Clean Energy for all Europeans package” will cement the EU’s commitments under the Paris Agreement and substantially decrease the energy sector’s greenhouse gas emissions, bolstering the sector’s potential to become nearly emission-free by 2050.

The proposal is also leading to serious considerations about the future energy system and challenging the current and future role of gas in the energy system.

Is gas a transitional fuel or it should be a destination fuel?

The answer depends on the wide use of the renewable gas and in particular on the broad development of “green power-to-gas”.

The workshop also aims to develop a policy conclusion for achieving energy sector decarbonisation quickly and efficiently.

Chairs:

• Andris Piebalgs | Florence School of Regulation / RSCAS / EUI
• Albert Bressand | University College London

Download the program here

Register here

The Workshop aims at reviewing the current state of thinking on the economics of cybersecurity in the energy sector; trying to identify how cybersecurity investments should be evaluated from an economic perspective and how their effectiveness measured.

It also assesses whether the current approach to the economic regulation of the energy sector is suitable for addressing cybersecurity and its costs, or whether a new regulatory paradigm is necessary to tackle the upcoming challenges.

With this Workshop, the Florence School of Regulation intends to promote the development of a shared view on possible regulatory paths which can help the energy sector to enter smoothly in the Industry 4.0 age; and contributes to the implementation of the energy sector’s Digital Agenda.

Download the programme

Register here

Background information

The move towards “Industry 4.0” – comprising cyber-physical systems, Internet of Things, cloud computing and cognitive computing – is providing the opportunity to integrate unrelated systems across industry sectors, as well as merging data flows together with new industry operations. The higher level of efficiency and production’s optimisation also results in lower costs for end-consumers.

Digitalisation also created new challenges: moving all systems to cyberspace generated the need to manage risks related to cyber threats and vulnerabilities, which, in highly integrated and digitalised systems, could potentially widespread consequences and affect the entire energy sector, including consumers, if not the economy as a whole. Cybersecurity will, therefore, be implemented both on the Operational Technology and on the Information Technology sides – as they are increasingly interacting and include processes (such as smart metering), that involve millions of remote terminals, all potentially vulnerable to cyber-attacks.

Cybersecurity thus becomes a relevant aspect that should be factored into the economics and regulation of the energy sector. Cybersecurity also represents a cost, spanning across generation, transportation and distribution, which not all market participants are already familiar with. As this cost pertains to most infrastructures, it is necessary to address the way in which cybersecurity and digitalisation may change the economics of the energy sector and markets; also considering that cybersecurity measures might have to be adapted and updated more frequently than infrastructures where they are implemented.

Cybersecurity also introduces new notions divergent from familiar regulatory logic, that might be difficult to incorporate in current regulatory approaches. The novelty of these notions implies that regulators and regulated companies might find it difficult to agree on a common paradigm when considering cybersecurity standards and investments. Cybersecurity expenses might be very significant as they can have both an effect in terms of improving actual security, but also, a deterrence effect.

Lack of established standards may make it difficult for regulators to recognise the importance of cybersecurity factors and the “prudently incurred” costs to address them. Regulators need to develop cybersecurity metrics, establish standards based on these metrics and identify the most appropriate regulatory approach.

This workshop is exclusively open to national regulators, representatives from public bodies and associate & major donors of the FSR Energy area.

The 2018 Policy Advisory Council discusses the most topical regulatory and policy issues, as well as debating the robustness of the latest FSR research.

The Policy Advisory Council discusses the most topical regulatory and policy issues, as well as debating the robustness of the latest FSR research. It gathers renowned academics, experts from leading energy companies (being also FSR-Energy Major Donors), representatives from the European Commission, the Agency for the Cooperation of Energy Regulators (ACER) and National Regulatory Authorities.

The 2018 Policy Advisory Council is divided into three sessions, as follows:

• Session I: TSOs -DSOs Cooperation for Distribution Grid Congestion Management
• Session II: Grid Connection Network Codes for Electricity
• Session III: Renewable Gas

Please note that this is a closed event and participation is by invitation only.

Regulation for technology developments in robotics and artificial intelligence is commonly seen as one of the important yet structurally neglected fields in research and political debate. This was highlighted in 2017 by the European Parliament report and a public consultation, indicating that a vast majority of citizens in Europe is regarding those developments as positive innovation fields but where further safeguards and regulations are needed (EP Resolution on Civil Law Rules on Robotics, 2015/2103(INL): Rapporteur Mady Delvaux). The workshop is directed at discussing the state of the art within the field of transportation, supply chain management and logistics as well as evaluating possible actions like regulation, agency- or industry-based approaches for establishing safeguards towards effective but risk-mitigating settings for this sector. This workshop will bring together academics and sector experts to discuss in a roundtable format. Three moderated sessions will address the crucial aspects of

1. the state of the art of AI in transportation, SCM and logistics,
2. the human factor, and
3. future options.

Besides the open discussion regarding this new topic in research and practice, exchange among participants is also aimed at cooperation perspectives like

• possible joint research grant proposals (e.g. HORIZON 2020 or other international calls),
• a topical special issue of Network Industries Quarterly (6/2018, LINK) as contribution option,
• a possible SI for an academic journal as a long-term publication option (e.g. JCRNI, IJL).

Participants from different disciplines in academia, politics, advisory as well as practice are welcome.

Discussions will be moderated by EUI Visiting Fellow Prof Matthias Klumpp and Prof Juan Montero.

For information on registration and participation please contact FSR.Transport@eui.eu 

Organiser: David Kupfer

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RELATED PRESENTATIONS

Welcome & Introduction -MATTHIAS KLUMPP, FOM Essen, Fraunhofer IML, European University Institute; DAVID KUPFER, European University Institute

How AI and robotics help production and SCM today – ALBERTO REGATTIERI, FRANCESCO PILATI, University of Bologna

Requirements of logistics service providers towards IoT and AI – JULIAN SANDERS, Bohnen Logistik

Urban mobility – current and future challenges – ROBERTO MONTEMANNI, IDSIA

Truck driver training in Europe – An Introduction to FutureDRV – JAMES TILLYER, Transformotion UK & FutureDRV Project

Human motivation and AI collaboration – CAROLINE RUINER, Ruhr University Bochum

How to prepare workers for logistics innovations today & tomorrow -DOMINIC LOSKE, Rewe Group

Future options – How might we design cooperation between AI and humans? – MARIE BITTNER, Ruhr University Bochum

Conclusion and Outlook – MATTHIAS KLUMPP, FOM Essen, Fraunhofer IML, European University Institute; CAROLINE RUINER, Ruhr University Bochum

This workshop will examine the reform of the EU ETS and its implications for the energy markets.

The increasing penetration of renewable-based generation in the electricity sector poses challenges to the operation of energy systems. This is happening not only because of the greater variability of some technologies’ generation levels, but also because such generation is promoted through support mechanisms which prevent it from being exposed to market/price signals. While improvements in the design of support mechanisms have been introduced, a shrinking share of generation is fully exposed to market signals/prices.

At the same time, support for renewable-based generation is advocated on the basis that market prices do not currently internalise some of the negative externalities associated with ‘conventional’ electricity generation. One of these externalities is clearly the impact of greenhouse gas (GHG) emissions produced from fossil fuel-based electricity generation.

The EU Emission Trading Scheme (ETS) was introduced in 2005 with the aim to address this market failure, by creating a market for GHG emission allowances (EUAs), hence setting a price for carbon emission reflecting their negative externalities. While the fundamental design of the EU ETS seems appropriate, its implementation has been hindered by the last decade’s economic crises, as well as by the overlapping targets for the different EU environmental policy objectives (energy efficiency, renewables penetration and GHG emission reductions). As a result, EUAs have been traded at lower levels, below those believed to be necessary to promote any fuel/technology switching.

The European Commission is currently revising the EU ETS for the period beyond 2020. This new system includes a new emissions reduction target of 43% by 2030 (compared to 2005 levels) and a cap which will be reduced by a linear reduction factor of 2.2% from 2021 onwards (compared to the current 1.74%). The proposal also includes a set of rules to avoid carbon leakage for sectors facing the highest risk of relocation of  production outside the EU, with a gradual phase-out of free allocation for the less exposed sectors after 2026. The Market Stability Reserve (MSR) mechanism will also be revised.

The Workshop, jointly organized by the Energy and Climate Areas of the FSR, will consider how the EU ETS might be revised to be able to address the inadequacies in its implementation, and to what extent this revision might result in higher EUA prices. A fundamental step in this process relates to the need of calibrating the EU ETS considering also the interaction with other climate and energy policies. The Workshop will also aim to assess what the implications of such higher EUA prices could be for the electricity market’s prices, as well as investigating to what extent the renewable-based generation would be able to participate in the electricity market without requiring further support.

This workshop is exclusively open to national regulators, representatives from public bodies and associate & major donors of the FSR Energy area.

FSR Regulatory Policy Workshop Series 2017 – 2018: Market Abuse and Abuse of Market Power in Wholesale Energy Markets

The EU Regulation No 1227/2011 on wholesale energy market integrity and transparency (REMIT) has introduced specific obligations and prohibitions to promote the integrity and transparency of trading in wholesale energy products. Specifically, it prohibits market abuse in the forms of market manipulation, attempted market manipulation and insider trading. It also envisages a sector-specific monitoring framework to detect and deter these types of abusive behaviour.

Article 2(2) of REMIT distinguishes four different categories of market manipulation: (i) false/misleading transactions, (ii) price positioning, (iii) transactions involving fictitious devices/deception and (iv) dissemination of false and misleading information.

The Workshop will aim at comparing and contrasting the notion of market manipulation, particularly in the form of price positioning; as well as the notion of abuse of dominant position, mainly in the form of artificial limitations in the production of an energy product. The event will try to identify and assess any overlaps between the two concepts and conclude on how to approach those specific cases in the best way.

Download the programme

This workshop is exclusively open to national regulators, representatives from public bodies and associate & major donors of the FSR Energy area.

Further background information:

Price positioning is defined as securing – or attempting to secure – by a person, or persons acting in collaboration, the price of one or several wholesale energy products at an artificial level – unless the person who entered into the transaction or issued the order to trade establishes that their reasons for doing so are legitimate and that the transaction (or order) to trade conforms to accepted market practices on the wholesale energy market concerned. Transactions involving fictitious devices or deception are those aimed to give false or misleading signals regarding the supply of, demand for, or price of wholesale energy products.

Examples of price positioning practices include those amounting to “abusive squeeze” (also known as “market cornering”), where a party (or parties) with a significant influence over the supply of, or demand for, or delivery mechanisms for a wholesale energy product and/or the underlying product of a derivative contract, exploit a decisive position in order to materially distort the price at which others have to deliver, take delivery or defer delivery of the instrument/product to satisfy their obligations. The European Agency for the Cooperation of Energy Regulators (ACER) notices that the proper interaction of supply and demand can – and often does – lead to market tightness, but that this is not market manipulation in itself. Similarly, having a significant influence does not constitute market manipulation by itself.

Another example of market manipulation in the form of “price positioning” are the “actions undertaken by persons that artificially cause prices to be at a level not justified by market forces of supply and demand, including actual availability of production, storage or transportation capacity, and demand (‘physical withholding’)”. For the actions of a person to have an influence on the market price, such a person should have a “significant influence/decisive position”.

The “significant influence” over the supply of wholesale energy products and the “decisive position” in their markets resemble the notion of “dominant position” referred to in Article 102 of the Treaty on the Functioning of the European Union, prohibiting the abuse of market power.

The notion of abuse of a dominant position in these forms is therefore closely related to the notion of market abuse in the form of market manipulation through price positioning practices. These two notions do not necessarily overlap, and it is clear that market manipulation (under REMIT) takes also forms that do not necessarily involve an abuse of dominant position. Another interesting question is whether all forms of abuse of a dominant position involving an artificial limitation of energy production (e.g. through capacity withholding) also represent market abusive behaviour under REMIT.

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