Going back to basics: electricity

The presentation started with a short summary of the evolution of the electricity market, starting with the first package with the first set of common rules for the EU internal electricity market presented in 1996. At the time, the electricity sector was handled by vertically integrated utilities, state-owned. There was very little infrastructure for cross-border trade. Things started changing more with the second package which, among other, legally separated TSOs from electricity generation : the unbundling.

Our energy market became more and more detailed, connected, integrated and the process is still going on. Renewable energy transformed the landscape, the balance changed completely bringing the term “ flexibility” of the system at the forefront.

After this introduction, we moved on to how electricity is generated, starting with basics and taking a technology neutrality approach which is needed to understand the energy sector. Details were given on all different ways to produce electricity and their evolution through time. The notions of electric current, voltage, frequency, AC/DC, system efficiency and services as well as N-1 security were all explained to the audience as these are key to understand the complexity of our power system. 

We then turned to the storage of electricity produced. When it comes to electricity storage, there are many options available and in development. Storage can be chemical, electrical, electrochemical, mechanical or thermal. Each technology is different, offers different service and is used in a different timeframe. Storage and batteries is one option to respond to the needs for flexibility of the market. Other options sure as demand-side management, pumped hydro or flexible electricity generation. Our speakers gave us a broad overview of flexibility and energy system integration explaining the different time horizons, the needs and the challenges to flexibility growth.

After explaining the technical and physical reality of electricity generation, storage and transmission, we moved to the economics side. The different needs of consumers, depending on their sizes, the ever-changing demand curve, the optimal dispatch in short and long term were explained by the experts. This deep dive into the market design, the electricity prices and different support mechanisms gave our audience an in-depth economic perspective.

This briefing was an occasion to revisit history and  basic notions that are crucial for shaping the future legislation. Understanding technical boundaries is key to building a sustainable energy system.