News Brief of 23.3.2017

News from the Greek energy market:

A. Approval of Principles and Rules on the distribution of the Assets-Liabilities and Expenses-Revenue of HEDNO S.A. for the opening of separate financial activity accounts.

RAE issued Decision 121/2017 approving the Principles and Rules on the distribution of the Assets-Liabilities and Expenses-Revenue of HEDNO S.A. that will enable the issue of individual Financial Statements for each of the company’s activities.
Principles and Rules approved by the aforementioned Decision pertain to HEDNO S.A. Financial Statements released in 2016 onwards.

B. Public Consultation on draft Presidential Decree regarding “Types and Content of Land Use”
HEDNO S.A. joined the Public e-consultation organized by the Ministry of Energy for discussing the draft Presidential Decree regarding “Types and Content of Land Use” (A1).

C. Regulatory framework regarding the validity period of electricity generation licenses issued by RES (“old licenses”).
RAE announced Decision 517/2016 on the definition and application of a regulatory framework regarding available options for the extension and renewal of the validity period of electricity generation licenses issued by RES before the application of Law 3468/2006 (“old licenses”), and proceeds with classification of the cases and clarification of the successive procedure (A2).

European news:

Α. EDSO for Smart Grids position paper on the Clean Energy Package (CEP)

Please see below summary of EDSO for Smart Grids position paper on the European Commission’s Clean Energy Package:
 Distribution Network Operators shall continue acting as neutral market intermediaries by supporting customers and ensuring energy security
 Distribution Network Operators must be provided with incentives for ensuring safety and energy quality through the use of flexible tools (instead of network expansion)
 In order to incorporate into the Network renewable energy sources and prosumers, network use rates must reflect costs and take into account individual local network specifications. Subsidy of these charges by other community members must be avoided
 Enabling Distribution Network Operators to develop and operate their own energy storage facilities without interference with the market is key for the security and quality in energy supply
 For successful performance and delivery of their duties, Distribution Network Operators must be able to access and handle all essential data on behalf of the customers
 The delineation of distinct roles and responsibilities for all new bodies operating within the energy market ensures they get a fair share in network charges and the improvement of the system
 The launch of a new DSO body will enhance the Distribution Network Operators’ up-and-coming role and will guarantee its future continuation (attached).

B. Cybersecurity in Europe
The developed interconnection taking place in the European energy grid has led plenty of European countries in the adoption of cybersecurity measures that use a new approach which takes into account the increasing number of RES, the widespread use of electric cars, the new digital infrastructure and the interconnected business technology.

According to a survey conducted by the European Commission in 2016, at least 80% of the companies in Europe have experienced cybersecurity-related incidents. The Commission had taken a series of measures before August 2016, when a new Network and Information Systems (NIS) Directive entered into force ensuring the establishment of computer security incident response teams and the cooperation among all member states.

According to relevant report issued by Eurelectric on December 2016:
 the Directive fails to address a few pressing issues concerning cybersecurity. The biggest challenge is that these investments are accompanied by large investment cycles that can’t keep up with current needs and demands. This is happening because operation-related and information-related technologies are moving at different paces, often resulting in security gaps that can be exploited for malicious purposes. At the same time, ready-made solution packages can fail to respond to the speedy development of the Smart Grid system, while individual solutions can be financially detrimental or technically ineffective.

 the Directive will also play a key role in addressing a few authority issues which block the resolution of problems in the European energy industry. According to the same report, limited cross-border cooperation negatively affects efforts to tackle cybersecurity incidents. Although many Distribution Network Operators are able to deal with such incidents, in many countries, it is not clear which body is responsible for Smart Grid security issues while in others, Regulatory Authorities are not entitled to undertaking such responsibilities.

 National authorities must outline a basic set of security specifications which must be met by all service or equipment providers. At the same time, security certificates must be provided for use by Distribution System Operators in their network. It also notes that several countries (Denmark, Norway, Austria, France, Sweden, Portugal and Germany) have already initiated actions that will enable them to successfully deal with major cybersecurity issues (B3).

Information Document