Interpreting transnational infrastructure vulnerability: European blackout and the historical dynamics of transnational electricity governance

Recent transnational blackouts exposed two radically opposed interpretations of Europe’s electricity infrastructure, which inform recent and ongoing negotiations on transnational electricity governance. To EU policy makers such blackouts revealed the fragility of Europe’s power grids and the need of a more centralized form of governance, thus legitimizing recent EU interventions. Yet to power sector spokespersons, these events confirmed the reliability of transnational power grids and the traditional decentralized governance model: the disturbances were quickly contained and repaired. This paper inquires the historic legacies at work in these conflicting interpretations and associated transnational governance preferences. It traces the power sector’s interpretation to its building of a secure transnational power grid from the 1950s through the era of neoliberalization. Next it places the EU interpretation and associated policy measures against the historical record of EU attempts at transnational infrastructure governance. Uncovering the historical roots and embedding of both interpretations, we conclude that their divergence is of a surprisingly recent date and relates to the current era of security thinking. Finally we recommend transnational, interpretative, and historical analysis to the field of critical infrastructure studies.     

Vulnerability to terrorist attacks in European electricity decarbonisation scenarios: Comparing renewable electricity imports to gas imports

The decarbonised future European electricity system must remain secure: reliable electricity supply is a prerequisite for the functioning of modern society. Scenarios like Desertec, which partially rely on solar power imports from the Middle East and North Africa, may be attractive for decarbonisation, but raise concerns about terrorists interrupting supply by attacking the long, unprotected transmission lines in the Sahara. In this paper, I develop new methods and assess the European vulnerability to terrorist attacks in the Desertec scenario. I compare this to the vulnerability of today's system and a decarbonisation scenario in which Europe relies on gas imports for electricity generation. I show that the vulnerability of both gas and electricity imports is low, but electricity imports are more vulnerable than gas imports, due to their technical characteristics. Gas outages (and, potentially, resulting blackouts) are the very unlikely consequence even of very high-number attacks against the gas import system, whereas short blackouts are the potential consequence of a few attacks against the import electricity lines. As the impacts of all except extreme attacks are limited, terrorists cannot attack energy infrastructure and cause spectacular, fear-creating outages. Both gas and electricity import infrastructure are thus unattractive and unlikely terrorist targets.     

Electricity demand supply analysis: Current status and future prospects for Maharashtra,India

The growth potential of any state is linked with infrastructure and electricity infrastructure is the most important parameter for economic growth. Maharashtra, a prominent state in India consumes 12 per cent of India's electricity. Maharashtra's power sector is facing the electricity deficit and shortage since early 2005. On the other hand, industrial and service sectors are rising in the state. The present paper discusses electricity situational analysis of the state. Electricity demand analysis has been presented and comparison of state electricity demand vis-à-vis Mumbai's demand (state capital) has been carried out for two years. Variation for monthly average demand for two years and load shedding have also been analyzed. Power supply situation analysis and analysis of major power suppliers have been carried out. The State Load Distribution Center data is used to depict the load variation for a typical day. Interventions needed to sustainably meet the growing demands are also discussed.     

Competitiveness assessment of Iran's restructured electricity market

Iran's electricity market was restructured mostly to enhance its production efficiency. Nonetheless, the experience of liberalized electricity markets indicates that market establishment would be insufficient to produce competitive results. To determine whether the restructured market is moving toward competition, this paper assesses production efficiency in Iran's electricity market during high demand periods in 2006 as the first year of the restructured market's performance, and in 2012 as the last year with available data. We compared counterfactual benchmark outcomes to the actual dispatches to determine the production efficiency. Moreover, Iran's power market is a discriminatory, day-ahead auction; therefore, we considered the market design in the competitive benchmark. We found that the production was inefficient in both 2006 and 2012. More importantly, the production in the market is becoming increasingly inefficient over time due to exercising market power and distortion of the market's production by strategic firms. Not only were strategic firms distorting the market's production, but they were also learning to exercise more non-competitive behavior because these firms distorted the production in 2012 eight times more than they did in 2006.     

Co-benefit analysis of incentives for energy generation and storage systems; a multi-stakeholder perspective

In this work, we are analyzing the advantages of energy incentives for all the stakeholders in an energy system. The stakeholders include the government, the energy hub operator, and the energy consumer. Two streams of energy incentives were compared in this work: incentives for renewable energy generation technologies and incentives for energy storage technologies. The first type aims increasing the share of renewable energies in the electricity system while the second type aims development of systems which use clean electricity to replace fossil fuels in other sectors of an energy system such as the transportation, residential and industrial sector. In this work, we are analyzing the advantages of energy incentives for all the stakeholders in an energy system. The stakeholders include the government, the energy hub operator, and the energy consumer. Two streams of energy incentives were compared in this work: incentives for renewable energy generation technologies and incentives for energy storage technologies. The first type aims to increase the share of renewable energies in the electricity system while the second type aims the development of systems which use clean electricity to replace fossil fuels in other sectors of an energy system such as the transportation, residential and industrial sector. The results of the analysis showed that replacing fossil fuel-based electricity generation with wind and solar power is a less expensive way for the energy consumer to reduce GHG emissions (60 and 92 CAD/ tonne CO_2e for wind and solar, respectively) compared to investing on energy storage technologies (225 and 317 CAD/ tonne CO_2e for Power-to-Gas and battery powered forklifts, respectively). However, considering the current Ontario's electricity mix, incentives for the Power-to-Gas and battery powered technologies are less expensive ways to reduce emissions compared to replacing the grid with wind and solar power technologies (1479 and 2418 CAD/ tonne CO_2e for wind and solar, respectively). Our analysis also shows that battery storage and hydrogen storage are complementary technologies for reducing GHG emissions in Ontario.     

Relationship between the economic cost and the reliability of the electric power supply system in city: A case in Shanghai of China

This paper presents a model to quantify the impact of electric power outages on GDP by using Cobb–Douglas production function to develop an economic relationship between the reliability of the electric power supply system and the cost of electric energy unserved. Our findings show that average costs for providing a stable power supply are much lower than disruption costs, which is supported by recurring to the data available of Shanghai. Estimated by using Shanghai’s macroeconomic data of 1990–2006, this relationship indicates that the impact of electricity service disruption on Shanghai’s GDP is about 48.18 × 10⁸ CNY in 2006, matching an alternative “back-of-envelope” estimate of 50.91 × 10⁸ CNY. The estimated costs per kWh unserved are 1.81–10.26 CNY in 1990–2006, mirroring the increasing importance of electricity in the period’s economic development. These results demonstrate the usefulness of our approach for quantifying the reliability benefits of investments in electricity infrastructure.     

On-grid electricity tariffs in China: Development,reform and prospects

With the introduction of market-oriented measures in China's power sector in the mid-1980s, electricity sale prices to the grid companies—on-grid electricity tariffs—became the focus of the energy industry, thus affecting all related stakeholders, including fuel suppliers, power generators and end-use consumers. A number of changes have gradually been undertaken in terms of electricity tariff settings and their implementation to address specific requirements of the expansion of the power industry at each stage of its development. On-grid electricity tariffs had been used as a key lever to attract investment in power generation at an early stage of reform and then to encourage competition in the power industry. In response to the rising concerns about environmental protection and the promotion of clean energy utilisation, tariffs have progressively been developed for renewable electricity generation, which has contributed to massive expansion of the renewable power industry in China. This paper reviews key milestones of the development of on-grid electricity tariffs in China, examines the tariff-setting mechanisms of coal-fired power plants and renewable power generation, analyses the factors associated with the adjustments of the tariff levels and discusses the options for further reform and more effective electricity pricing.     

A further assessment of the Hong Kong Government's proposed post-2008 regulatory regime for local electricity utilities

The current regulatory contract between the Hong Kong Government and the two local power suppliers will expire in 2008. To elicit constructive ways to refine this regulatory contract upon its expiration in two years, the Hong Kong Government recently issued a public consultation paper. An earlier viewpoint by Woo, Horowitz and Tishler (2006) warns that if the proposals provided in this consultation paper are fully adopted, it will do more harm than benefiting the industry. While its concern is valid, that viewpoint has not suggested specific improvements of the existing arrangement, and how incumbent firms’ incentives to invest will not be harmed under the new arrangement. Hence, this viewpoint contributes to Hong Kong electricity policy debate by filling this gap, with the hope of aiding the regulator to better regulate the market in the years after the current contract's expiration.     

What hinder the further development of wind power in China?—A socio-technical barrier study

Promoting wind power is a long-term strategy of China to respond to both energy shortage and environmental pollution. Stimulated by various incentive policies, wind power generation in China has achieved tremendous growth, with the cumulative installed capacity being the largest worldwide for five consecutive years since 2010. However, obstructed by various barriers, wind power provides only 2.6% of national electricity generation in China, despite the strong support from the government. From a socio-technical transition perspective, this paper aims to systematically analyze the barriers hindering the further development of China's wind power. A wind power niche model is established to illustrate the complex interactions among actors in the wind power industry and electricity supply regime. Then, qualitative content analysis is adopted to process the related evidence and data, and four categories of socio-technical barriers are identified, including technology, governance, infrastructure and culture barriers. The study shows that various interrelated barriers form a blocking mechanism which prohibits the further development of wind power in China. Policy suggestions are proposed to eliminate the barriers and further empower the wind power niche. The lesson learned from China can offer useful references for other economies to promote wind power industries of their own.     

Industrial and institutional restructuring of the Russian electricity sector: Status and issues

The reform of the Russian electricity industry represents one of the largest and most technically complex post-Soviet era industrial restructurings. This paper presents the framework, status, and perspectives for the Russian electricity sector liberalisation. Uncertainties regarding the effective implementation of the reform are specifically examined. Ultimately the critical analysis of the reform questions the feasibility and adequacy of the recommended measures in the specific Russian context. Current theories fail to answer a fundamental issue, namely how to promote investment in an obsolete electrical infrastructure and, more generally, whether a pure free market model is compatible with physical constraints posed by the electricity sector. A careless deregulation of the Russian electricity system could hinder the country's stable and sustainable development, as its economy and the population's service have traditionally been closely linked to the electricity industry.     

Chaos in power: Pakistan's electricity crisis

Pakistan is facing a severe electricity crisis due to a persistent and widening gap between demand and available system generating capacity. The worsening of power shortages has become a major political issue, reflecting the hardships for individuals and businesses. It threatens to undermine the credibility and legitimacy of government and to further stress the social fabric of the country. The power crisis did not emerge suddenly. It is the direct result of imprudent and reckless energy policies over the last three decades. These policies have impeded the development of cheap and abundant domestic energy sources. They have also resulted in very inefficient fuel-mix choices, compromising energy and economic security. Pakistan's energy bankruptcy is ultimately due to massive institutional and governance failure. This paper analyzes the problems confronting Pakistan's electricity sector and identifies the key elements of a potential policy response to address the country's severe power crisis.     

How do household characteristics affect appliance usage? Application of conditional demand analysis to Japanese household data

Although both appliance ownership and usage patterns determine residential electricity consumption, it is less known how households actually use their appliances. In this study, we conduct conditional demand analyses to break down total household electricity consumption into a set of demand functions for electricity usage, across 12 appliance categories. We then examine how the socioeconomic characteristics of the households explain their appliance usage. Analysis of micro-level data from the Nation Survey of Family and Expenditure in Japan reveals that the family and income structure of households affect appliance usage. Specifically, we find that the presence of teenagers increases both air conditioner and dishwasher use, labor income and nonlabor income affect microwave usage in different ways, air conditioner usage decreases as the wife's income increases, and microwave usage decreases as the husband's income increases. Furthermore, we find that households use more electricity with new personal computers than old ones; this implies that the replacement of old personal computers increases electricity consumption.     

Collaborate,involve, or defend? A critical stakeholder assessment and strategy for the Danish hydrogen electrolysis industry

Denmark's national energy strategy for 2050 calls explicitly for the use of hydrogen to store excess electricity from intermittent wind farms. However, the Danish hydrogen electrolysis industry lacks full knowledge of its stakeholders and business prerequisites needed to achieve its aims. To fill this gap, this study identifies the stakeholders in the Danish energy and electricity industry to find how both industries may benefit from cooperating with each other. The research has been conducted using a newly constructed model for determination of relevant stakeholders, based on their technological and commercial influence on the project. Qualitative interviews are an important part of the model, and have been performed with stakeholders in both industries. The research revealed which stakeholders that were affected and could affect the Danish hydrogen industry both as complementors and competitors. However, we conclude that major uncertainties relate to (1) political decision making, (2) maturity of technologies, (3) stakeholder incentive structures. This study highlights both the complexity and dynamics of a fossil free society especially related to the relationship between technological maturity and stakeholders' choice of strategic action.     

Design for distributed energy resources

The blackout experiences have demonstrated the vulnerability of the interconnected electric power system to grid failure caused by natural disasters and unexpected phenomena. Changes in customer needs, additional stress due to liberalized electricity markets, and a high degree of dependency of today's society on sophisticated technological services also intensify the burden on traditional electric systems and demand for a more reliable and resilient power delivery infrastructure. This paper discusses the design of a restructured electric distribution network that employs a large number of small distributed energy resources (DER) units, which can improve the level of system reliability and provide service differentiations.     

African electricity infrastructure interconnections and electricityexchanges

This paper discusses African electrical energy resources: feasibility studies, interconnection of power systems, the present state of the electric power sector, future expansion of African power systems, and implementation of an African power grid network. It examines involvement of the World Bank with African electricity infrastructure, Grand Inga interconnection projects, the Great Lakes project, and prospects for evaluation of a unified power system in Africa. First, the poorness of African countries and their limited electricity infrastructure is discussed. Objectives for electricity infrastructure development in response to perceived needs is examined and the development challenge for the future, with ways of meeting that challenge defined. Grand Inga interconnections projects are then reviewed. The Democratic Republic of Congo's potential is equivalent to 88400 MW of continuous energy; 42000 MW is located in the Inga region. Development of the Great Lakes interconnected network which links Burundi, Rwanda and Democratic Republic of Congo is also reviewed. The paper discusses existing power systems in Africa and presents the idea of dividing the continent into five main regions of about the same surface area for electricity trade. Feasibility studies of an HVDC line from Democratic Republic of Congo to Egypt and other studies to South Africa and Europe are discussed. A scenario for energy balance for the 2050 is presented, and export of electricity to neighboring continents, mainly Europe, in excess of 200 TWh/year by 2050 is outlined. Implementation of an integrated African grid network is discussed     

Investigating emission regulation policy in the electricity sector: modeling an oligopolistic electricity market under hourly cap-and-trade

Global warming is one of the most alarming phenomena facing our planet today. There is a consensus among scientists that human-induced greenhouse gases (GHGs) should be regulated to slow down the heating of the Earth's oceans and atmosphere. As a major GHG producer, the electricity industry's emissions should be considered in any global emission regulation policy initiative. This paper develops an original equilibrium model for a cap-and-trade emission regulation scheme (CAT) applied to an oligopolistic electricity market. The model accounts for the strategic behavior of power companies under emission regulation and explicitly illustrates how this behavior is influenced by the scheme design. The model respects the electricity sector's emission targets over a commitment interval while accounting for the effect of these targets on the hourly operation of electricity markets, given hourly variations in system demand. Simulation results over different demand levels show that the model of the proposed policy is successful in meeting short-term emission targets by dispatching generation based on privately owned power generating companies' (Gencos') generation costs and emission intensities. The results signify the importance of accounting for the effects of hourly permit trading on hourly market clearing and hourly gaming strategies when studying the allocation of commitment interval permits among Gencos.     

Study on business models of distributed generation in China

Along with the implementation of electricity sales-side reform and incremental power distribution investment liberalization under China’s new round of electricity market reform, the main subjects of distributed generation investment, construction, and operations have become more various, and the approaches as well as the ways that distributed generation takes part in the market have been more flexible. How to operate distributed generation economically and efficiently in this market environment has become an urgent issue to be addressed. Based on the domestic development situation of China’s distributed generation, this paper introduces typical existing business models of distributed generation, and elaborates the correlation between electricity market reform and business models of distributed generation in depth in combination with the contents of electricity market reform. At last, several business models of distributed generation which are feasible to be implemented in China have been proposed under the new electricity market reform based on successful international distributed generation operation experiences in the terms of stimulating stakeholders’ participation in the investment and operations of distributed generation. Characteristics of these recommended models are compared and analyzed as well.     

Levelised costs of Wave and Tidal energy in the UK: Cost competitiveness and the importance of “banded” Renewables Obligation Certificates

In this paper, publicly available cost data are used to calculate the private levelised costs of two marine energy technologies for UK electricity generation: Wave and Tidal Stream power. These estimates are compared to those for ten other electricity generation technologies whose costs were identified by the UK Government (DTI, 2006). Under plausible assumptions for costs and performance, point estimates of the levelised costs of Wave and Tidal Stream generation are £190 and £81/MWh, respectively. Sensitivity analysis shows how these relative private levelised costs calculations are affected by variation in key parameters, specifically the assumed capital costs, fuel costs and the discount rate. We also consider the impact of the introduction of technology-differentiated financial support for renewable energy on the cost competitiveness of Wave and Tidal Stream power. Further, we compare the impact of the current UK government support level to the more generous degree of assistance for marine technologies that is proposed by the Scottish government.     

Household energy mix in Uganda

This paper presents evidence that household energy use in Uganda conforms to the energy ladder theory. As household income increases, solid and transitional fuel use evolves in an inverse U manner, while electricity consumption shows a direct relationship with income. Public infrastructure provision, income, and education are the key variables which can be targeted to reduce household dependence on solid-fuels while increasing non-solid fuel use. While education and public infrastructure have varying impacts on rural and urban households' energy mix, these variables generally reduce rudimentary fuel use and increase modern fuel consumption. Timely investment in electricity infrastructure is necessary to cater for burgeoning electricity demand as households become affluent. Strategies for reforestation, dissemination of improved cookstoves, relieving supply side constraints for modern fuels, and staggered payment options to lower the cost of entry for modern fuels can improve Ugandan households' energy security.     

SmartGrid: Future networks for New Zealand power systems incorporating distributed generation

The concept of intelligent electricity grids, which primarily involves the integration of new information and communication technologies with power transmission lines and distribution cables, is being actively explored in the European Union and the United States. Both developments share common technological developmental goals but also differ distinctly towards the role of distributed generation for their future electrical energy security. This paper looks at options that could find relevance to New Zealand (NZ), in the context of its aspiration of achieving 90% renewable energy electricity generation portfolio by 2025. It also identifies developments in technical standardization and industry investments that facilitate a pathway towards an intelligent or smart grid development for NZ. Some areas where policy can support research in NZ being a “fast adapter” to future grid development are also listed.This paper will help policy makers quickly review developments surrounding SmartGrid and also identify its potential to support NZ Energy Strategy in the electricity infrastructure. This paper will also help researchers and power system stakeholders for identifying international standardization, projects and potential partners in the area of future grid technologies.