CIGRE Australia member Mark Miller has participated over the last four years in a Joint International Working Group C2/C5.05 which has been considering the work of Market and System Operators.
This joint working group has recently published a technical brochure (626) that considers the evolution, current organisation and future structure of market operators in a number of economies around the world.
In the case of Europe the brochure describes the separate evolution of markets in southern and northern Europe since the early 1990s, initially with development of regional power pools. It then sets out the gradual evolution to market coupling across Western Europe. The brochure also describes the quite different path for market evolution in Great Britain which is now moving towards market coupling with Western Europe.
The brochure considers the long history of a very different path of market evolution in the United States culminating in the development of the independent system operator (IPO) with characteristically tighter coupling between the market and system operator than is typically seen in European markets.
The brochure then sets out the history of electricity market development in eastern Australia and the separate and later market development in the West of the continent.
The brochure also discusses the evolution of the electricity market In Japan where progress has proceeded at a slower pace but in similar direction to that of other markets around the world.
The brochure sets out an interrupted market evolution in Brazil with quite rapid changes in the 1990s but with progress then halted for a decade due to the introduction of extensive restrictions caused by a severe drought.
The final example studied was that of South Africa where there is growing interest in the development of market based systems albeit development here is only in its early stages.
The review has shown how the role of Market Operator has changed due to the impact of market evolution and regulatory drivers in these economies. Of particular note has been the growth in market size with markets merging or coupling through the adoption of common or harmonised market rules and interconnection of regions and systems.
The review confirmed that these markets are currently facing very similar challenges due to growth of intermittent generation, demand side response and the development of the smart grid which will result in yet further market evolution.
This review of the interaction between market and system operations from an international perspective shows that whilst the technical challenges are similar across different power systems the means used to address these challenges can be quite different. It thus provides a useful guide to the types of options that could be available when looking at future market evolution in Australia/New Zealand.
Members can access the full technical brochure from e-cigre for free - here e-cigre