THE EUROPEAN UNION HAS SET AMBITIOUS GOALS REGARDING BOTH ITS ENERGY AND ITS ENVIRONMENTAL POLICIES, which will require a very strong contribution from the electricity transmission and distribution equipment industry. T&D Europe, the association representing the European T&D industry, was set up in 2008 to provide the sector's expertise into the realization of these goals.

To ensure a secure, sustainable and competitive supply of energy, as decided in its Energy Strategy, the EU needs to focus on the transformation of its electricity networks and to build on an efficient and competitive manufacturing industry. This, in turn, will develop its international success on the innovative technological changes developed and experienced within the EU internal market.

CONFRONTING CHALLENGES

The production, transmission and distribution of electricity is confronted with four key challenges:

1. The need to expand the network and to build new lines, notably to connect new onshore and offshore wind and solar power stations

2. TAKING ACTION

   The need to ensure security and stability of supply by modernizing a network that is both increasingly obsolescent and confronted with new challenges such as natural disasters or terrorist threats

3. The need to improve energy efficiency, using opportunities offered by new technological developments

4. The need to create an intelligent network or Smart Grid capable of managing a multitude of decentralized and fluctuating sources of electricity generation.

To confront these challenges, T&D Europe proposes several actions to be deployed by all stakeholders acting in a coordinated manner:

1. The regulatory framework should focus on the following:

   • The new intelligent network should be strongly overviewed and market operators should coordinate their activities related to the deregulation of the power supply.

   • Policy objectives should not be contradictory. In particular, investments should not be subject to the cost aspect only if the overarching energy and environment goals of the EU are to be met.

   • Investment should be encouraged by security of planning. The long life of equipment (up to 70 years) and the long-term return on investment require stable economic and policy visibility, which is increasingly difficult to obtain. Regulators should guarantee the limitation of long-term risks and provide a favorable background for investments.

   • Overall, the regulatory framework should prepare for the legal, economic and policy background necessary for the move toward intelligent networks.

2. Investment should be deployed in the following areas:

   • Energy efficiency.

     HVDC transmission lines, power factor compensation, Flexible AC Transmission Systems, voltage levels rise, energy-efficient products (such as low-loss transformers), reduction of balancing and reserve power resulting from intelligent network control (virtual power stations and load management) and expansion of the grids.

   • Security of supply.

     Stronger intermeshing of grids (internationally and with redundancy), replacement of overhead lines by cables, improved monitoring and automation (rapid fault locating and fast reaction by remote switching), decentralized power generation with an opportunity for stand-alone operation, innovative power electronic systems.

   • Lighthouse projects.

     • HVDC lines for the transmission of electricity power generated remotely from the load

     • HVDC as basis for the vision of a “super grid” in Europe to handle various renewable generation technologies and thus minimize today's need for back-up power stations

     • Intelligent networks — virtual power stations, load management, dynamic tariffs and smart metering

     • Wide area monitoring and control

     • Decentralized power generation with solar power stations (photovoltaics and self-sufficient buildings).

3. Research, education and training should be further boosted, especially in such areas as energy-storage technologies, electric/plug-in hybrid vehicles, superconductivity and Smart Grid, especially for distribution.

The generational change in the electricity industry and grids in Europe can draw on an efficient and competitive European manufacturing base, ready to contribute to reaching the EU energy and environmental policy goals. T&D Europe regards it as a duty to contribute to efficient power supply and thus to ensure a high standard of living in the future.

Giuliano Monizza (giuliano.monizza@it.abb.com) is a group vice president for ABB, and the speaker and vice president of the executive committee of T&D Europe.