planning new assets. As set out in Fig. 35, this
could be achieved either through formal processes for resource planning and decisionmaking, or through provision of information:
• Formal processes for resource planning and
decision-making have been introduced in
Spain and Ireland by the system operators of
the transmission and distribution systems.
Processes include formal collaboration, with
the TSO and DSOs planning infrastructure
and generation investment together. For
example, in Spain, some regional administrations formed evaluation boards. In these
boards the administration, TSO, DSO and
developers coordinate investment plans and
grid connection requests. The TSO and DSO
analyse and approve investment plans together, thereby minimising network development and project costs and risk. In Ireland,
under the group processing approach,
investment plans of developers are collected
in batches and then submitted to the TSO and
DSO for consideration. The TSO or DSO
then processes the plans that are most suited
to its system. This approach coordinates the
development of the transmission and
distribution systems and efficiently allocates
scarce capacity.
• An alternative approach is to provide adequate information. For example, compulsory
registration in a publicly available database
when applying for planning or grid connection consent would provide investors with an
understanding of the pipeline of future
resources and allow them to evaluate potential investments against the expected system
requirements.
(5) Open-access, public data on system conditions and resources
The development of digital infrastructure is
expanding the amount of data and information
available. Smart meters in buildings track the
profile of energy use every second, offering a
new source of information on energy consumption and user behaviour. In the electricity grid,
sensors and wide area networks monitor grid
reliability, providing real-time information on
network conditions.
Market participants need a degree of access to
market information to facilitate a level playing
field for competition. The Council of European
Energy Regulators, for example, has identified
Fig. 35 A coordinated approach can ensure efficient investment in electricity system resources. Note TSO = transmission system operator; DSO = distribution system operator. Source Vivid Economics
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