DMITRY VASILIEV: DEVELOPING COMPETITION IN THE ELECTRIC POWER MARKET WILL CONTINUE DUE TO SMART ENERGY

In spring 2018, the Government of the Russian Federation approved the Road Map on improving the law and eliminating administrative barriers in order to pursue the National Technological Initiative - its the “Energynet” project

The Road Map develops a model of legal relations actualizing the innovative potential for digital transformation of the electric power industry, which comprises the system of economic and technological incentives – the model of active energy complexes (AEC).

The purpose of such changes is to reduce the energy costs of industrial producers and implementing the high potential of digital technologies, at the same time observing the necessary reliability and safety level of the performance of the entire energy system.

This was the key item on the agenda of the Expert Council of the Energy Committee of the State Duma that discussed the legal status of active energy complexes. The competition body was represented by Head of FAS Department for Regulating the Electric Power Industry, Dmitry Vasiliev.

The concept under discussed specifies that relations between AEC participants are based on the principles of free pricing and do not constitute a subject of tariff regulation.

Dmitry Vasiliev outlined FAS position regarding the concept.

He said: “Implementing the “Energynet” plan in the field of active energy complexes is related to devising technological AEC standards, specifics of their participation under the frame of the Unified Energy System of Russia or technologically isolated territorial electric power systems”.

FAS representative pointed out that the new AEC concept should be considered not only in view of all its details but directly in association with the target model of retail markets that should be of sustainable and log-term nature.

“Under the target model, AECs can be not simply the platforms for implementing cutting-edge digital technologies and energy systems control mechanisms, but also become real players on the wholesale market of electric power and capacity, in some sense, competing for consumers, thus, creating additional incentives to enhance efficiency of large electric energy facilities”, concluded Dmitry Vasiliev.