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Med-TSO releases a report on the key performance indicators of the regional electricity system

Med-TSO releases a report on the key performance indicators of the regional electricity system

Following the program of the Mediterranean Project 2, Med-TSO has released a report on the key performance indicators (KPIs) of the regional electricity system. This work has been carried out by Technical Committee “International Electricity Exchanges”, chaired by Mr. Aziz Ameyoud (OS-Algeria), who explained the activities of the committee in this video interview.

KPIs are usually defined to “measure” how efficient and secure the operation of a power system is, while giving useful information on the provided quality of electrical supply. Based on KPIs, System Operators and interested stakeholders are able to assess power system performances, and improve, if necessary, the reliability of their grids.

The report shows the Key Performance Indicators currently adopted at a national level in Med-TSO countries and how they are applied to assess the technical and economic performance of the power system. The aim of this activity is to progress by sharing data and information between Med-TSO members on the harmonization process across the Mediterranean region.

The identified KPIs are organized into two sections: Transmission System Performance Indicators and Transmission System Availability Indicators.

  • The first subset, Transmission System Performance Indicators, includes a selection of parameters that TSOs normally use for measuring their performances, related to transmission lines or transformers availability, service continuity and voltage profile.
  • The second class of KPIs, Transmission System Availability Indicators, is used to measure the availability of a transmission system by the number of outages and their durations on the High Voltage transmission grid. Availability Indicators are measured in terms of planned or forced outages and according to their duration (transient, short or long outages).

Through the definition of these KPIs, Med-TSO Members are sharing common criteria for measuring performances and availability of their power systems across the Mediterranean region.

Another important piece in the process of building common practices and views for the effective interoperability of the Mediterranean Power System will be achieved with the next release, again in the framework of the Mediterranean Project 2, of a common Web-Platform where Med-TSO members can gather data on cross-border interconnections and share information on the behavior of their power systems. This platform is designed to:
  • collect data related to system performances, also in terms of frequency control;
  • Report on operational procedures adopted in emergency conditions for preventing or limiting the effects of critical security issues.

Furthermore, the implementation of the Web Platform will allow to define and oversee the implementation of regional Key Performance Indicators.

Power System Operation is a complex activity, where TSOs are fully engaged and perform their responsibility. Therefore, coordination in this area is critical and implies the need to exchange data significant for the security of cross-border operation on a regular basis. To this aim, Med-TSO is working to build the necessary mutual trust and common views and achieve, hopefully in the near future, the full interoperability of the Mediterranean Power System.

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Energy Infrastructures for Italy and the Mediterranean: Med-TSO contribution to a study realized by Confindustria Energia

Energy Infrastructures for Italy and the Mediterranean: Med-TSO contribution to a study realized by Confindustria Energia

During the past months, Med-TSO contributed to draft the study Energy Infrastructures for Italy and the Mediterranean, developed by Confindustria Energia (Italian Energy Industry Association) in cooperation with various stakeholders in the energy sector and published at the end of April.

The research analyses the trend and investment programs in Italy between 2018 and 2030 in primary energy infrastructures and the potential of the Italian system for the development of energy projects in the context of enhanced cooperation in the Mediterranean region. The assessments shown in the study were carried out between October 2019 and March 2020, when Italy began its battle against the COVID-19 pandemic, whose consequences on the energy sector are premature to evaluate and which will be integrated as soon as the health and economic situation will have stabilized.
The indications provided represent an objective reference for the next decade, while keeping in mind the possible slowdowns in the implementation of some projects in the short term.

Med-TSO's knowledge and experience have contributed, together with the Observatoire Méditerranéen de l'Energie (OME) and MedReg, the Association of Mediterranean Energy Regulators, to the drafting of chapter 5 "Energy cooperation in the Mediterranean", which provides key elements to stimulate a wider reflection on the importance of Euro-Mediterranean cooperation and on the role that Italy can play on the 2030-2040 horizon. The chapter is enriched with insights on the main energy infrastructures of the region, as well as some regulatory aspects of the energy market.

Download the full study – Energy Infrastructures for Italy and the Mediterranean

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Med-TSO defines preliminary criteria for the implementation of a Cross Border Cost Allocation process

Aziz Ameyoud (OS - Algeria), Chairman of the Technical Committee "International Electricity Exchanges"

Med-TSO defines preliminary criteria for the implementation of a Cross Border Cost Allocation process

Developed starting from the results of the Cost-Benefit Analysis within the Mediterranean Project 1, the general criteria and main guidelines for a Cross Border Cost Allocation (CBCA) process have been defined by Med-TSO with Deliverable 4.2 in the framework of the ongoing Mediterranean Project 2. This deliverable has been finalized by the Technical Committee “International Electricity Exchanges”, chaired by Mr. Aziz Ameyoud (OS -Algeria), in cooperation with the Technical Committee “Regulation and Institutions”, chaired by Mr. Juan Manuel Rodriguez (REE – Spain), and has been shared with MedReg, the association of Mediterranean Energy Regulators, for achieving a common position for future applications in the Mediterranean context.

The procedure outlined in this report represents a significant step towards completing the entire Cost-Benefit Analysis (CBA) process, aiming at evaluating benefits and costs of the projects studied by Med-TSO, defining also for each of them the relevant potential risks.

The proposed CBCA criteria will be applied for completing the Cost-Benefit Analysis carried out in the “Master Plan of Mediterranean Interconnections 2020” that will be delivered in the third quarter of 2020.

Through the outlined CBCA process, it will be possible to tackle some of the main issues and challenges that may occur while developing new interconnection projects related to:

        -different regulatory frameworks existing in the host countries;
        -need to identify all of the participating countries, i.e. other possible beneficiaries that could join alongside the host countries;
        -level of participation and associated regulations for sharing costs, benefits and risks;
        -uncertainties on the perimeter of interconnection project costs to be shared;
        -criteria for allocating the interconnection capacity and whether or not it has to be based on market rules;
        -finally, additional transmissions costs, including transmission losses and hosting flows.

After careful consideration and planning, it was decided to test these guidelines through a number of pre-selected case study clusters, using two methods of measurement that are strictly in accordance with the recommendations of the European Agency for the Cooperation of Energy Regulator (ACER).

The case study clusters were defined as:

        -Morocco and Portugal
        -Algeria and Spain
        -Tunisia and Italy
        -Egypt and Jordan
        -Greece, Turkey, and Bulgaria

Method 1 uses the net impact of a project, calculated as the project Social Economic Welfare (SEW) minus its associated losses. It defines a threshold of 10% as the sum of all the national net impacts and identifies the countries having a net impact above such a threshold. The possible level of participation is then calculated proportionally to each country excess of net impact over the defined threshold.

Method 2 uses the net impact of a project as the Net Present Value (NPV) at the national perimeter, i.e. NPV of the cash flows associated with Social Economic Welfare, losses, CAPital Expenditures (CAPEX), and OPerational Expenditures (OPEX). The need for contribution or participation by a country is quantified based on the sum of the negative net impacts of the hosting countries.

Findings of the two methods resulted in compatible outcomes in terms of identified participants and quantified level of their participation to costs. However, Method 2 proves to bring in additional information for quantifying compensation, where required. Finally, it should also be noted that in most of the analyzed cases, non-hosting TSOs also qualified as participants as neighboring non-hosting TSOs.

With this CBCA mechanism established and successfully tested, Med-TSO has taken a major step in its efforts to promote the establishment of a harmonized power system across the Mediterranean.

The work carried out so far should be considered as the basis for setting up a transparent and clear framework for evaluating projects and enable cross-border dialogue. Med-TSO will continue working jointly with MedReg on a transparent and competitive regulatory framework with a view to ensuring an interoperated and interconnected electricity market in the Mediterranean region.

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img Mediterranean Project 2 (in progress, 2018 - 2020)
The Mediterranean Project 1 is a first step in the roadmap towards the integration of the regional power systems. After the good results achieved, in the frame of the Mediterranean Project 1, Med-TSO intends to continue, consolidate and improve the activities carried out so far with a new project: the Mediterranean Project 2. The European Union supports Med-TSO with a new grant contract to develop the action plan of this new project from 2018 to 2020.
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In this briefing on the legislative package "Clean Energy for all Europeans" - CE4ALL, the Centre for Mediterranean Integration explores various options for the Southern and Eastern Mediterranean countries to cooperate with European Union Member States. The focus of cooperation options is in the area of deploying renewable energy sources, interconnections and electricity market integration.

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