Legal Support Of Digitalization In The Wholesale Electricity And Capacity Market

 
PIIS231243500022543-5-1
DOI10.18572/2410-4396-2020-4-105-110
Publication type Article
Status Published
Authors
Occupation: Chief Specialist for Contract Management of the Legal Division
Affiliation: Mosenergo PJSC
Address: Russian Federation, Moscow
Journal nameEnergy law forum
EditionIssue 4
Pages105-110
Abstract

The main objective of the electric power industry is to provide for uninterrupted and reliable operation of power systems in order to meet the demand for electric power. The introduction of digital technologies in the wholesale electricity and capacity market is aimed at improving the efficiency, safety and continuity of its operation. The author highlights the features of legal support of digitalization in the wholesale electricity and capacity market, and proposes the possibility of expansion of the experimental legal regime to the wholesale electricity and capacity market. Information security issues are considered taking into account the fact that market participants may suffer not only financial and reputational losses from the implementation of security threats, but also damage to the life and health of people, the environment and the market infrastructure. The author concludes that it is necessary to develop means of legal protection of interests of owners and users of electronic software systems, as well as legal regulation of automated actions carried out in the wholesale electricity and capacity market. The research was carried out with the financial support of the RFBR within scientific project No. 20-311-90034.

Keywordsenergy law, legal regulation in the wholesale electricity and capacity market, digitalization, energy law enforcement
Received06.11.2020
Publication date05.12.2020
Number of characters19872
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1

Introduction

2 The publication of a number of strategic planning documents the implementation of which should lead to an increase in the level of digitalization in the next decade has become the impetus for the comprehensive implementation of information technologies. It is established by Decree of the President of the Russian Federation No. 204 dd. May 07, 2018, that in the course of the implementation the National Program “Digital Economy of the Russian Federation” it is necessary to ensure the system of legal regulation of the digital economy be created by 2024. The trend towards digitalization of the energy industry was also supported in the Energy Strategy of the Russian Federation until 2035.
3 A.G. Lisitsyn-Svetlanov correctly points out that effective legal policy requires a systematic approach that combines the adoption of acts of public and private law, as well as support of the balance of private and public interests by law. Compliance with these conditions is necessary for energy law, which is the central element of regulation in the energy sector. [1] V.V. Romanova in her studies of the energy security legal support notes that the solution of strategic tasks of development of the energy sector needs the development of a legal framework, which will become the basis for the use of digital technologies in accounting of mined, generated, delivered, transferred, transported, stored energy resources, functioning of energy systems and objects, activities and interactions of participants of power markets, contract and disputes regulation, and emphasizes that it would be reasonable to conduct fundamental research of the problems of the legal regulation of the use of digital technology for the development of scientific provisions that will allow for establishment and functioning of the system of legal regulation of the use of digital technologies in the energy sector [2].
4 The departmental project “Digital Power” is being implemented, the FEC Digital Transformation Council was established in 2019, the Ministry of Energy established the Centre of Expertise in Digital Development in the Energy Sector at the beginning of 2020 (the Department of Information Management and FEC Digital Transformation). All this is being done pursuant to the above strategic planning documents of the Ministry of Energy of Russia. The State Information System of the Fuel and Energy Complex (FEC SIS), which was launched in October 2019, is being gradually placed in operation. The Ministry of Communications has presented recommendations on large-scale digital transformation in state corporations and companies with state participation [3], which is especially important for the subjects of the wholesale electricity market.
5 Market participants, in their turn, develop and adopt local regulations on digitalization of activities: The Comprehensive Target Program for the Development of the Unified Information Space of the Gazprom Group, “Digital Transformation 2030” Concept adopted by Rosseti, PJSC, the Unified Digital Strategy by Rosatom State Corporation, the Development Strategy of Inter RAO Group for the period of up to 2025 and with the perspective to 2030. Rosenergoatom Concern, JSC, Inter RAO — Electric Power Plants, JSC, SO UPS, JSC and REC UPS, JSC have established the Digital Power Plants Association [4].
6 Of course, the main task of the electric power industry is to ensure the uninterrupted and reliable operation of the electric power industry in order to meet the demand for electricity, and digitalization serves as a tool for achieving this and other goals and principles of functioning of the electric power industry, stipulated in the industry-specific legislation.
7 The nature of the impact of digitalization on the legal status of participants in legal relations under consideration, the market infrastructure and the energy law enforcement in general [5], as well as the need for a system of legal regulation of the digital economy, determine the relevance of this study.
8 The “digitalization” and “informatization” concepts are firmly established on the pages of scientific research, strategic planning documents, and in regulatory legal acts. These terms have a lot in common and are often used as synonyms, while the legislator gives them an independent meaning [6].
9 Based on the analysis of the effective legislation, the informatization is the process of creating conditions for meeting information needs and exercising rights when using information resources. According to regulatory acts, digitalization has a more modest role, which incorporates switching from an analogue form of information transmission to a digital one. At the same time, the term “digitalization” is more widespread in strategic planning documents. Whatever wordings the legislator uses, digitalization and informatization have one common feature: the implementation of these processes increases the efficiency of activities in the field of application. Given the inconsistency of the legislator in the use of these terms, the concepts of “informatization” and “digitalization” within this article will be interchangeable.

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