Five have become one

13 October 2009


July this year saw the the new European transmission system operators association, ENTSO-E, became fully operational, and also marked the start of a new era, one that will see a dramatic change in the way that the transport and trading of bulk electricity around the European continent is controlled and perhaps provide a model for co-ordinated, more efficient grid operation in the rest of the world. ENTSO-E replaces all former TSO associations in Europe, which have now been formally wound up, and is intended to continue and consolidate their work. It covers 34 countries and 42 TSOs.

The history of ENTSO-E members is for the most part the history of UCTE, which was formed from the TSOs of 24 European countries and covers by far the largest of the co-ordinated grid systems. It has strong electrical links to four neighbouring synchronised systems, NORDTEL (Scandinavia) UKTSOA and ATSOI (the UK and Ireland) and BALTSO (the Baltic states), the four organisations that with UCTE and ETSO (the TSO’s marketing operation) now make up ENTSO-E. UCTE sprang in 1999 from its predecessor UCPTE, which was formed in 1951 and included electricity production companies.

ENTSO-E’s predecessors were voluntary associations formed from a number of vertically integrated companies and despite having no legislative teeth achieved the seamless integration of their regions and created the basis for today’s criteria - codes, voting rules and so on. In the process they achieved a position of great resource and influence despite very small staffing levels (UCTE had a full-time staff of 10) and became the leading authorities in Europe for all operational and technical matters. Goverments deferred to their expertise and political leaders consulted with their chief officers.

The new organisation however will be better resourced. It was brought into existence by the EU’s 3rd Energy Package which gave it a clear mandate to continue to improve the co-operation of the European TSOs and to play a central role in the rule setting process by developing network codes and planning. Central to this ambition is ENTSO-E’s pan-European 10-Year Network Development Plan which must reflect Europe’s energy policy objectives, such as the future development of wind and other renewable energy sources, and its first task of writing Network Codes with binding rules for TSOs and grid users will be crucial to maintaining system reliability and a well functioning electricity market. Work on these new tasks had already started months ahead of the 3rd Package’s schedule which expects them to come into force after the new regulatory agency ACER (Agency for the Co-operation of Energy Regulators) becomes operational in early 2011.

The ENTSO-E structure includes committees for system development, system operations, and market and legal/regulatory frameworks. Its aims include enhancing the integration of the European electricity market, contributing to a sustainable energy environment, and to the secure and reliable operation of the European power transmission system.

On the face of it the difference between this agenda and the aims of UCTE, NORDTEL and the rest might not be too easy to spot. But they are threefold. First, it will provide a single central platform instead of five. Second, where previous associations have been voluntary in nature, this platform has been brought into existence by the legislature of Europe and will be backed by a legal framework. And third, it has been set a number of specific tasks which are themselves mandated by legislation.

And there is one more factor that might be thought significant. It is not entirely chance that the unification of Europe politically has tracked its unification electrically, a process that is now a long step closer to completion. And that is a thought that ought to make Euro-sceptics sit up and take notice.




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