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Recommendations

GCC Cigre 15th Seminar

Restructuring and Deregulation of Electricity Sectors

29-30th November 2006

Final Recommendations

 

1. GCC countries have taken major steps towards restructuring and deregulation of their electricity sectors. The regularity framework of the GCC countries needs to pave the way for the private sector for IPPs competition and transmission grid open access for power wheeling.

2. In order to ensure the proper functionality of the restructured Electricity Sector in the GCC, appropriate structural, institutional, and operational framework shall suit the GCC conditions and not replicate other countries.

3. The role of the Electricity Sector Regulator shall be set properly to protect the interest of the market and promote efficient and competitive activities, which requires the proper development and deployment of the Regulatory Code.

4. The roles and responsibilities of the Transmission System Operators and the Market operator shall be clearly defined and separated from the influence and ownership of Market players in order to ensure fair and competitive operation of the system and the market and to avoid conflict of interest.

5. Applying advanced planning tools is highly recommended for the GCC interconnection grids in view of its potential expansion, transfer capacity and the real time trading possibility between the interconnected partners, in order to optimize protective systems and address Reactive Power Management aspects.

6. The evolution of a Regional Electricity Market is seen as the eventual result of the integration of individual market, which will require the establishment of common System Operations Codes and Market Trading Rules.

7. The evolution of Electricity Markets emphasizes the need for training electricity sector personnel in the operational and economic concepts of the Power Market.

8. The success of the interconnected GCC System and integrated market will need proper attention to the security of interconnections and internal transmission capacities to avoid Transmission Congestion.

9. Sufficient ancillary services shall be ensured to be available and allocated properly between interconnected GCC systems to maintain high reliability of the interconnected grid.

10.Transmission System Operators (TSOs) need to adopt new evaluation methods, practices and standards to properly evaluate the complexities under restructured Power Systems to ensure security and reliability of supplies.

11.Power quality requirements shall be given utmost attention under de-regulated electricity sectors. Power quality and reliability standard, requirements, and rules must be established and applied as part of the National Grid Codes as well as the GCC Interconnection in order to meets customers’ needs and expectations.

12. The tariff structure under the new re-structured electricity sector shall consider creation of rates that promote Power Quality standards and provide compensation for power quality falling outside of the specified levels.

13. Attention shall be given to the impact of Non-Utility Generators such as Independent Power Producers (IPP) and Distributed Generators (DG) on system operation and stability under the deregulated environment.

 

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