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reports - Summary Report

2021 summary report SAL3 of Project 2.1 “Tools and Models, Including Sector-Specific Ones, for Energy and Electrical Scenarios, Adapted to System Evolution – Analysis of Market and Regulatory Evolution”

reports - Summary Report

2021 summary report SAL3 of Project 2.1 “Tools and Models, Including Sector-Specific Ones, for Energy and Electrical Scenarios, Adapted to System Evolution – Analysis of Market and Regulatory Evolution”

The report summarizes the results achieved in the project’s lines of activity and describes the work carried out in the third and final year. The project primarily supports institutions in the evolution of the national power system (government, regulation, and standardization) by using modeling techniques to develop energy and environmental scenarios, as well as to simulate energy markets and the power system.

The project aims to provide significant support to the governance of the national energy system, the electrical grid, and the electricity markets, making concrete contributions to regulatory, normative, and pre-normative aspects.

In 2021, the third and final year of the project, new scenarios aligned with the goals of the “Fit for 55” package were developed to support the governance of the national energy system. Activities were conducted by participating directly in government working groups (interministerial task forces and with the European Commission). A key aspect of supporting national energy planning and scenarios was the ongoing analysis of the potential deployment of FRNP (renewable energy) generation plants, particularly solar and wind. This work contributed to the “Suitable Areas” working group established by the Ministry of Ecological Transition (MiTE) and involving the Regions.

Regarding energy efficiency in end uses, activities related to the civil (especially addressing energy poverty) and industrial sectors were completed. Notably, for the industrial sector, an assessment was made of the potential impacts of Industry 4.0 on both business competitiveness and sector decarbonization.

In the context of environmental integration scenarios, all methodologies for harmonizing and integrating energy and environmental models were developed, culminating in the creation of a harmonized assessment model available to the public through the SIMBAD-HAM web application. Environmental impacts of energy plans (particularly the National Integrated Energy and Climate Plan, PNIEC) were also evaluated using Life Cycle Assessment (LCA) logic, considering current scenarios and projections for 2030.

The project’s objectives extend beyond developing models, data, and studies for scenario analysis. They also involve applying quantitative analysis skills and tools to assess network development plans, primarily benefiting the regulator or system governance. In 2021, ongoing activities included verifying the techno-economic evaluations of the benefits of major network expansion projects under TERNA’s plan, trans-European interconnections, and distribution network developments.

Another focus of the project is the development and study of electricity markets. A major development analyzed in 2021 was the introduction of the continuous intraday market (SIDC). Analyses were also conducted on the potential for massive participation of Power-to-X energy transformation plants in dispatching markets (MSD), which are expected to provide significant flexibility to electrical systems in the near future.

Finally, the project addresses support for innovative regulation and technical standards (both national and international). Regulatory activities were conducted in support of ARERA and included, for example, innovative methodologies for analyzing operator behavior in the electricity market (REMIT context) and regulatory implications for adapting distribution networks to the growth of distributed generation and the electrification of end-use consumption. On the normative side, the focus was primarily on circular economy issues and contributions to Standardization Bodies and the IEA Bioenergy TCP, addressing regulation of quality and use of waste-derived fuels, and analyzing factors that can facilitate energy recovery and material recycling from waste.

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