What is generation adequacy?  

Generation adequacy generally refers to the ability of the electricity system to provide the necessary amount of electricity to customers and checks that there will be a sufficient amount of electricity supply to meet the future demand. 

What does the report propose for generation adequacy?

CEER published a report in March 2014 which reviewed the current and different ways in which different European countries assess generation adequacy.
This latest paper provides some recommendations on aspects of the assessment method which regulators consider as most important.
The recommendations include proposals to better harmonise the different approaches used across Europe, to make more clear who is responsible for what, and to be more transparent about the data and information used for the assessments.

Why is this important for energy customers? What is the impact on energy customers?

The assessment of generation adequacy is important for energy customers because it seeks to ensure that their electricity supply will remain secure and constant. A robust and coherent methodology for calculating adequacy is important to facilitate sufficient future planning to deliver our energy supply. Understanding how our neighbouring countries manage this process can provide useful lessons.
If it is found that there is not an adequate amount of electricity supply to meet the demand, steps can be taken to avoid that customers are not left without electricity.

What is demand-side flexibility?  

CEER’s definition of demand-side flexibility (DSF) is the ability for end-use consumers to change (increase or decrease) their electricity usage from their normal / current consumption pattern in response to market signals (for example, a change in electricity prices).

This flexibility has a value and so can potentially be traded between parties as an alternative to investing in new generation or network reinforcement.

If enabled, DSF offers the potential for more flexible and responsive management of energy across the European electricity network, particularly in terms of balancing supply / demand, increasing the use of renewable energy while ensuring adequate supply, and complementing energy efficiency measures.

What does the report propose for demand-side flexibility?

In November-December 2013, CEER held a public consultation which sought to gather views from a wide-range of stakeholders on the possible benefits and barriers to development of DSF in Europe’s energy networks.

This report aims to build on the results of this consultation in proposing key principles that regulators agree should govern demand-side flexibility as well as taking steps toward securing the necessary market and network arrangements in order for the benefits of DSF to be fully realised.

At a high level, the report recommends that unlocking the value of DSF for consumers will involve:
• Consumers and market participants having access to the necessary information and tools to effectively engage in ‘buying and selling’ flexibility
• Establishing a market free from barriers which promotes equal access to all parties and new entrants, through interoperable standards and arrangements
• A regulatory framework that is flexible enough to adapt in a fast-changing market.

This report provides a basis for energy regulators to build upon and continue their work on DSF in the future.

Why is this important for energy customers? What is the impact on energy customers?

CEER considers that energy customers have an important role to play in the electricity market, and realising the potential of DSF may offer a clear path towards increasing that participation.

DSF has the potential to bring significant benefits to customers, particularly on an engagement / empowerment level; through participating in DSF flexibility arrangements, customers would gain greater control over their own energy consumption and therefore more influence over their energy bills. Similarly, the ability to better balance supply / demand across Europe could have an impact on ensuring overall security of supply and reliability for customers.

What is generation adequacy?  

Generation adequacy generally refers to the ability of the electricity system to provide the necessary amount of electricity to customers and checks that there will be a sufficient amount of electricity supply to meet the future demand. 

What does the report propose for generation adequacy?

This CEER report reviews the current and different ways in which different European countries assess generation adequacy.
More specifically, the report looks at the different parties responsible for assessing generation adequacy, the extent of analyses and the different calculations they use.

Why is this important for energy customers? What is the impact on energy customers?

The assessment of generation adequacy is important for energy customers because it seeks to ensure that their electricity supply will remain secure and constant. A robust and coherent methodology for calculating adequacy is important to facilitate sufficient future planning to deliver our energy supply. Understanding how our neighbouring countries manage this process can provide useful lessons.
If it is found that there is not an adequate amount of electricity supply to meet the demand, steps can be taken to avoid that customers are not left without electricity.

What is a smart grid?  

A smart grid is an electricity network that is designed to help manage different users in an (cost) efficient way, in order to ensure sustainability in our power systems and maintain high levels of quality and security of electricity supply and safety for consumers.

Why are smart grids becoming increasingly necessary?

The increasing number of small generation units and the amount of volatile renewable energy make it necessary to reinforce the future grid. Smart grids are an evolution of the conventional/traditional grids and with technical devices (e.g. communication) and organisational arrangements, a greater use of the existing grid should be possible – no new/additional grids would be necessary. To find out more about how smart grids work, try the interactive games on our energy customers webpage.

What does the report say about smart grids?

This report reviews the different ways in which European countries approach the development of smart grids and the various challenges faced. CEER collected this information through an online questionnaire to its member national regulatory authorities for energy.

This information and review allowed CEER to provide some recommendations to help encourage and improve more efficient, reliable and high-quality electricity networks.

Why is this important for energy customers? What is the impact on energy customers?

The organisational arrangements of the grid are of particular importance and relevance to customers as they will be able to become increasingly involved in the system. For example, through the use of smart tools and the use of information/data (e.g. from smart meters) customers could be able to follow and manage their electricity consumption more actively which could lead to lower costs for the energy system and overall energy bills.

What is continuity of supply?  

Continuity of Supply (CoS) refers to the flow of electrical power through the system into houses and offices, to power appliances and equipment.

Without the correct power level and quality, an electrical device might not work properly, be damaged, or in some cases fail to function at all.

When assessing CoS, we often look at the number and duration of interruptions in order to evaluate the supply of electricity.

What does the report propose for Continuity of Supply?

This paper reviews the continuity of electricity supply, analysing data from 27 European countries and contributes to a better understanding of the quality of electricity supply levels and policy throughout Europe.

How does it work?

The paper acts as an update to CEER’s detailed benchmarking reports on the quality of electricity supply which includes more data than just figures for CoS; the next edition of this full report will be published in 2015. Therefore, this 5.1version aims to provide key data and information on a more regular basis in the interim.

Why is this important for energy customers? What is the impact on energy customers?

Providing updates to important data on the continuity and quality of supply allows regular review of the status of the electricity system and the service provided to consumers.
Changes in supply can impact on energy customers, if low quality and interrupted supply means their household appliances cannot function properly for example.

What are renewable energy sources?  

Renewable energy sources (often referred to as RES) include wind, hydro (water/tidal) and solar power, as well as biomass, biofuel and geothermal energy. These sources of energy are low or zero carbon and therefore offer a more sustainable alternative to traditional fossil fuels (i.e. coal, oil and gas). The development of RES is important for a number of reasons, including meeting Member States' and pan-European carbon reduction targets, encouraging growth in low carbon innovation, goods and services, and contributing to energy security of supply across Europe.

What is the Status Review report?

The CEER Status Review aims to provide an overview of the current national support schemes which are in place in CEER member countries with regards to encouraging the deployment of RES and improvements in energy efficiency. CEER used a questionnaire, circulated to all the National Regulatory Authorities of its member countries, posing questions on the different ways that their country provides support for renewable energy and energy efficiency and/or if there is no such scheme at all.

How do support schemes work?

The purpose of support (or subsidy) schemes is to encourage the take up and deployment of renewable energy generation, energy efficiency and heating/cooling technologies amongst industrial, commercial and residential consumers. Many types of renewable energy technologies are not yet cost-competitive with more traditional, established technologies, hence subsidies are used to support the 'maturing' of these technologies until they reach a point where they can compete alongside more established generation.

Why is this important for energy customers?

Typically, the costs of RES support schemes are financed by energy consumers (e.g. through increased electricity prices or adding charges to energy bills). In some countries, the cost of such support schemes has had a significant impact in the increase of customers' electricity bills. Therefore, understanding the different approaches to RES subsidies can help to inform future support scheme designs, ensuring that costs are minimised and benefits are maximised for consumers.

What is Voltage Quality?  

Voltage quality (also recognised as power quality), determines the technical level of quality of electrical power flowing through the system into houses and offices, to power appliances and equipment. Coordinating and monitoring voltage levels helps to ensure electrical systems function reliably and helps to avoid any disturbances to power supply.
Without the correct power level and quality, an electrical device might not work properly, be damaged, or in some cases fail to function at all.

What does the report propose for Voltage Quality?

This document forms Guidelines of Good Practice (GGP) which are used as a basis for establishing programmes to monitor voltage quality of electricity supply in countries across Europe - not only the CEER Member and Observer countries, but also countries in the wider European continent from the Energy Community.
These GGP are not legally binding, but they are recognised as a useful tool for ensuring compatibility of national laws and practices.

How does it work?

The GGP details the various aspects of electrical voltage which can be used to determine and monitor whether the level of quality is satisfactory for all consumers. It lists technical indicators which can be used in this assessment and also recommends how best to publish and make available to consumers the gathered information. This is essential for ensuring a consistent and safe supply of electricity.

Why is this important for energy customers? What is the impact on energy customers?

When voltage quality is poor, problems can arise in the use of electrical appliances and equipment; lasting damage, reduced efficiency, flickering lights and even explosion or fire. Voltage quality is affected by all the parties connected to the power system; not just within your household or office, even your neighbour or the next town may impact on your electricity supply.
Due to the nature and physics of electricity flows, some disturbances are to be expected but consistent technical monitoring and regulation helps avoid such problems building up.

Regulators use GGP like these to help organise and coordinate their procedure for monitoring voltage quality to ensure that consumers receive a guaranteed, satisfactory and safe level of electricity supply.