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Energy planning: Difference between revisions
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Most societies are deeply dependent on the use of fossil fuel to support the lifestyles of their members. | Most societies are deeply dependent on the use of fossil fuel to support the lifestyles of their members. ~Reducing the use of fossil fuel represents a task of very high technical and social complexity and therefore success in such endeavour requires the use of the Engineer-it [[Chapter 1:Strategies for engineered outcomes|strategies]]. | ||
Actions that governments take to reduce the use of fossil fuels has the greatest potential for reducing their use. It is therefore essential that their policies for energy are engineered. | Actions that governments take to reduce the use of fossil fuels has the greatest potential for reducing their use. It is therefore essential that their policies for energy are engineered. | ||
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Via its role as the Electricity System Operator (ESO), the privately owned National Grid Company (NGC) is required it to ensure that supply meets demand at all times. NGC has responsibility for planning the transmission system but it is not is not responsible for ensuring that future generation capacity requirements are satisfied'''.''' | Via its role as the Electricity System Operator (ESO), the privately owned National Grid Company (NGC) is required it to ensure that supply meets demand at all times. NGC has responsibility for planning the transmission system but it is not is not responsible for ensuring that future generation capacity requirements are satisfied'''.''' | ||
The creation of an FSO will allow transmission and | The creation of an FSO will allow transmission, generation and distribution to be part of an integrated plan where "key strategic decisions will need to be informed by whole-system insight and impartial, technical advice." (BEIS/Ofgem consultation report (p20)) | ||
We assert that changes to the electricity system must be based on system planning rather than on market signals. Such planning implies that: | We assert that changes to the electricity system must be based on system planning rather than on market signals. Such planning implies that: | ||
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*After decisions have been implemented, the system is actively monitored to detect and correct flaws and to continuously improve performance. | *After decisions have been implemented, the system is actively monitored to detect and correct flaws and to continuously improve performance. | ||
The consultation document has a section on Energy Market Design (p39). For example, the Capacity Market for minimising the price of providing power at peak demand is discussed. That provision only addresses the price of one of the features of the system. It is the ''system cos''t that should be minimised; it is the ''system'' that needs to be designed. Under system planning, proposals for what facilities should be built, where they should be built and when they should be built emerge from assessments. Suppliers would bid to provide facilities that had been specified by the FSO to be optimum in the context. Using cost planning strategies, suppliers would be adequately paid, but not overpaid, and customers would not be overcharged. | The consultation document has a section on Energy Market Design (p39). For example, the Capacity Market for minimising the price of providing power at peak demand is discussed. That provision only addresses the price of one of the features of the system. It is the ''system cos''t that should be minimised; it is the ''system'' that needs to be designed. Under system planning, proposals for what facilities should be built, where they should be built and when they should be built emerge from assessments. Suppliers would bid to provide facilities that had been specified by the FSO so as to be optimum in the context. Using cost planning strategies, suppliers would be adequately paid, but not overpaid, and customers would not be overcharged. | ||
Reasons why the electricity system requires to be subject to system planning include: | Reasons why the electricity system requires to be subject to system planning include: | ||
The objectives are dominated by public good issues: the need for reliability, the need to have low emissions. Markets do not address public good issues. | * The objectives are dominated by public good issues: the need for reliability, the need to have low emissions. Markets do not address public good issues. | ||
*It behaves as a ''system'' - as a set of interdependent parts. It should not be compared with car manufacturers competing for market share but with a single car, the parts of which are mutually dependent. | *It behaves as a ''system'' - as a set of interdependent parts. It should not be compared with car manufacturers competing for market share but with a single car, the parts of which are mutually dependent. | ||
*Very effective computational models are available for predicting the behaviour of an electricity system. This modelling is used to ensure that that the system will meet standards for reliability and resilience with respect to: security of generation supply, system inertia, network fault recovery, synchronous generation, reactive power, black start recovery, etc.( | *Very effective computational models are available for predicting the behaviour of an electricity system. This modelling is used to ensure that that the system will meet standards for reliability and resilience with respect to: security of generation supply, system inertia, network fault recovery, synchronous generation, reactive power, black start recovery, etc.(see article on [[Reliability and resilience of the electricity system with high levels of renewables|reliability and resilience]]). The models are key tools that underpin a system design and investment planning processes. | ||
*The system should be classified as safety critical (see 'Duty of care' below) because of the level of harm that would result from a major blackout. | *The system should be classified as safety critical (see 'Duty of care' below) because of the level of harm that would result from a major blackout. | ||