Power System Development and Economics

C1
Power system
TECHNICAL
BROCHURE
development and
economics
Closing the gap in understanding

between stakeholders and
electrical energy specialists
Reference: 882
October 2022
TECHNICAL BROCHURE
Closing the gap in understanding

between stakeholders and
electrical energy specialists
WG C1.41
Members
P. SOUTHWELL, Convenor AU T. KILLEN, Secretary AU

C. COTTRELL US O. FROLOVA RU
M. de F. GAMA BR S. GILL UK
S. LAURENT FR J. LAU US
K. LEASK ZA R. MARAIS ZA
S. MARONE US K. NIKISHIN RU
M. NEEDHAM IE J. PALERMO US
R. PARSONS AU S. RAMSAY US
C. RAY UK I. SAAVEDRA DOTE CL
G. SCHNEIDER CA C. TER BRAAK NL
C. VERGINE IT J. WILSON UK
S. ZELTNER DE
Copyright © 2022
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ISBN : 978-2-85873-587-7
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TB 882 - Closing the gap in understanding between stakeholders and electrical energy specialists
Executive Summary
This Technical Brochure (TB) is designed to support energy industry personnel in their efforts to bridge
the gaps in mutual understanding that exist amongst the technical specialists and the various
stakeholders that have a vested interest in the electricity product. Produced by Working Group (WG)
C1.41, the TB also provides practical guidance on how to support effective communication amongst the
parties. The WG recognised that readers of the TB may come from diverse backgrounds with varying
levels of technical expertise and experience with stakeholder engagement. The structure of the brochure
has therefore been designed to guide the reader to their particular areas of interest. Drawing on the
experience of WG members and twenty detailed case studies, the WG identified several tools (See
Chapter 4) that can be used to reduce the gap in understanding amongst the stakeholders. In addition,
a wide range of simple models and analogies are documented that can help explain the various technical
aspects associated with the industry.
In developing the brochure, the WG recognised that it is becoming increasingly more critical to close
the gaps in understanding between the energy personnel and their stakeholders. Global climate change
initiatives have driven a substantial increase in renewable electricity generation, often in a distributed
form. There are now significant numbers of customers who own generation in the form of roof top solar
panels, small scale wind and more recently battery storage, and many more are engaged in energy
efficiency and Demand Side Management programs to save money or reduce CO 2 emissions. Their
requirements for electricity supply are therefore changing.
The nature of interactions between power stations is being changed by large scale renewable projects.
This is often coupled with a need for new transmission or distribution infrastructure. Obtaining approvals
for new infrastructure is often challenging. This can be more difficult where affected parties expect the
new generation to be located closer to loads, therefore reducing the cost of significant network support.
In some cases, where a severe loss of supply has occurred, affected stakeholders may jump to
conclusions as to whether the problem was caused by the introduction of the new power system
dynamic associated with renewables, an unforeseen contingency or a more traditional severe weather
event.
The number of customer-side technologies is increasing at a rapid rate, and so too are the customer’s
opportunities to engage with their energy usage in very different ways. As a result, customers and
stakeholders have shown both a growing awareness of, and concern for, the types of decisions being
made regarding energy supply and delivery. Many more stakeholders are discussing energy issues
and accessing a plethora of information sources. Through technology, they can communicate with other
stakeholders and customers to further their learning. Yet in many cases the level of detailed
understanding, by stakeholders, of the technical challenges facing the power system is limited.
Issues may often be clouded by competing ideologies, political or technology vendor business drivers.
Any or all of these may make it more difficult for the ‘layperson’ or non-technical person (both at the
consumer and business level) to fully understand the range of implications of the stakeholder
perspectives being put forward. It has also become clear that the range of new entrants in the market
often bring perspectives and motivations that are new or different to what utility professionals have
experienced in the past. Bridging the gap in mutual understanding is particularly important where the
evolution of the power system is leading to changes in costs and potentially significant changes in
jurisdictional policy and energy strategy, which impact not only the customers but also the broader
industry environment and economy.
Understanding the various perspectives represented by different stakeholders and how they are similar
and how they differ is useful in bridging the gaps in understanding among them. The figure below shows
the potential complexity of the overlaps of interest or understanding amongst the various stakeholders
3
At the outset of the WG effort, input from industry was that the WG needed to focus on helping energy
specialists find more effective ways to get the utilities’ messages across to stakeholders. This included
improving understanding of the concerns and views of the stakeholders as these may present a barrier
to mutual understanding.
There was a perspective, shared by many on the WG, that the gap in understanding was because of
the inability on the part of the stakeholders to understand the message that was being communicated,
due to the complex nature of the topics in question. The WG recognized this phenomenon and identified
several analogies, examples, and suggestions for the effectively communicating highly technical topics
to lay/non-technical stakeholders.
Beyond that, the WG examined the gaps in understanding amongst the various stakeholders across a
wide range of technical issues related to the power system, its changing nature and how these changes
are developing. The WG reviewed how stakeholders perceive this gap and what is being done across
the world to improve the level of understanding, particularly of the non-technical stakeholders. WG
members have both technical and non-technical backgrounds with the latter having a speciality in
communication and/or stakeholder engagement.
It is important to note that the WG was not trying to define a "good stakeholder engagement process".
Instead, the goal was to make concrete steps towards improving mutual understanding, for both in sector
specialists' understanding of what stakeholders want from them and stakeholder understanding of the
key issues.
The WG recognised that one of the key aspects in closing the gaps in understanding is effective
communication. The WG explored a wide range of practices, tools and techniques in stakeholder
communications and engagement, used across the global energy industry. A broad range of
stakeholders were identified, noting the number and types of active stakeholders continues to grow.
Generalized areas of concern and focus for each of these stakeholder types examined. This picture of
the cross-section of stakeholders helped inform the development of the models and communication
aides included in this TB. In addition, the WG members prepared and analysed 20 separate case
studies from around the globe which highlighted both successful and less than successful efforts in
closing the gaps in understanding.
A key realization, stemming from this work, is for most energy industry leaders to acknowledge that the
utility needs to take full responsibility for effective communication and closing the gaps in understanding.
They are the ones who bear the main consequences of failing to close these gaps.
As a result of the work carried out, in particular the development and analysis of the case studies, the
WG was able to draw several significant conclusions:
 The number and diversity of stakeholders is growing as the power system evolves to incorporate
new technologies and the increasing use of renewables;
 WG members noted that significant value can be gained from new insights obtained by sharing
their experiences and through review and discussion of the case studies;
4
 There is a clear need to simplify the descriptions of technical aspects associated with the
planning, design, construction and operation of power systems to improve understanding across
all technical and non-technical stakeholders;
 Two-way listening and conversation rather than presentation are critical to mutual
understanding, and thus success;
 An examination of the case studies should help readers to understand how the engagements
were undertaken for each example, and what learnings they can apply to their own situation;
 Having ready access to several models that help explain some of the technical aspects
associated with the power system, can be very useful. In addition, the use of accepted industry
definitions can be helpful for effective communication and improved understanding; and
 It was recognised by the WG members that good engagement amongst stakeholders is a critical
factor in the successful development of power systems and the information provided in this TB
has been provided to assist with this important work.
The WG came to the additional conclusion that the gap in understanding can reside in the energy
specialists, the other stakeholders or in both parties and this is influenced by their specific interests.
When we examined what works well and what does not work as well in the case studies, we saw that
listening to stakeholders about what matters to them is an essential aspect of closing the gap in
understanding and improving the probability of a successful project implementation.
The principle finding of the WG is that effective communication with stakeholders is the essential key to
closing the understanding gap. Effective communication happens when there is two-way listening,
effective engagement and consistent follow up actions!
As a result of this finding, the TB also identifies strategies used effectively by utilities in engaging with
and listening to their stakeholders, even under extremely difficult situations, and even in relationships
that have historically been hostile.
The case studies and communication aides should serve readers well as they consider how best to work
with stakeholders to improve the level of mutual understanding.
5
Contents
Executive Summary ............................................................................................................ 3
Figures and Illustrations ..................................................................................................... 9
Tables................................................................................................................................... 9
1. Introduction.............................................................................................................. 10
1.1 Appreciation of Contributors .................................................................................................................. 10
2. Scope........................................................................................................................ 11
3. Work Methodology .................................................................................................. 12

3.1 How to use this Technical Brochure ...................................................................................................... 12
3.2 How the work was organised ................................................................................................................. 13
4. Stakeholder engagement and effective communications ..................................... 15

4.1 The stakeholders ..................................................................................................................................... 15
4.1.1 Overlaps in interest and understanding amongst stakeholders ......................................................... 16
4.2 Methodology for good engagement ....................................................................................................... 17
4.2.1 Requirements for a good relationship with stakeholders.................................................................... 17
4.2.2 Developing trust ................................................................................................................................. 17
4.2.3 Communication during/following power interruption and in planning new projects. ........................... 17
4.2.4 Questions to consider when preparing ahead of any “event/Interaction” ........................................... 17
4.2.5 Preparation for the discussion with the stakeholder ........................................................................... 18
4.3 Recommended communication tools .................................................................................................... 19
5. Key issues facing the energy sector and related case studies ............................ 20
5.1 Impact of renewables .............................................................................................................................. 20
5.2 Major power system disruptions/blackouts .......................................................................................... 20
5.3 Major infrastructure projects .................................................................................................................. 21
5.4 Long term plans ....................................................................................................................................... 21
5.5 Public policy determination and implementation ................................................................................. 21
5.6 Significant technological change ........................................................................................................... 22
6. Key findings—what worked and what didn’t work ................................................ 24

6.1 Group A—the challenges of communicating the impact of renewables to a wide audience ............ 27
6.1.1 General observations from case studies 1 – 6 ................................................................................... 28
6.1.2 Specific gaps for cases 1-6 ................................................................................................................ 28
6.1.3 Key themes and effective practices for engaging and communicating with stakeholders ................. 35
6.2 Group B—Communicating with large groups of stakeholders. .......................................................... 36
6.2.1 Case study 7: Community gain – how TSO’s can work with local groups to identify how the TSO can
invest in the community, as both a benefit to the community and as a host for infrastructure. .......... 37
6.2.2 Case Study 8: Improved customer experience with an improved website and smart-phone app ...... 38
6.2.3 Case Study 9: How electricity partners communicate with many participants who have limited or no
knowledge of the electricity and gas markets. ................................................................................... 39
6.2.4 Case Study 10: Enhanced stakeholder engagement in Great Britain ................................................ 40
6
6.2.5 Key themes and effective practices for engaging and communicating with stakeholders .................. 42
6.3 Group C: Engaging with stakeholders on the need for, benefits and impacts of major transmission
reinforcements......................................................................................................................................... 43
6.3.1 Case Study 11: The Bruce to Milton Transmission Reinforcement Project: ...................................... 44
6.3.2 Case Study 12: Installing HV cables in deep tunnels in London Project ............................................ 48
6.3.3 Case Study 13: Creation of a Working Group to assess the major problems of delays in reinforcing
the main Brazilian network ................................................................................................................. 51
6.3.4 Case Study 14: Jointly developing an electronic catalogue of typical relay protection and automation
schemes for all voltage types ............................................................................................................. 53
6.3.5 Key themes and effective practices for engaging and communicating with stakeholders .................. 53
6.4 Group D: Dealing with poor stakeholder communication and vocal minorities ............................... 54
6.4.1 Specifics gaps for cases 15-20 .......................................................................................................... 55
6.4.2 Key themes and effective practices for engaging and communicating with stakeholders ................. 60
7. Examples of analogies and models used to illustrate technical issues .............. 61

7.1 Introduction .............................................................................................................................................. 61
7.2 Analogies related to power system networks ....................................................................................... 61
7.2.1 Comparing the components of a power system to the ingredients of a cake. .................................... 61
7.2.2 Comparing the components of a power system to an integrated road and truck system. .................. 62
7.2.3 Comparison of electrical system with a road network. ....................................................................... 62
7.2.4 Power flow through network circuits .................................................................................................. 63
7.2.5 Comparing power flow with water ...................................................................................................... 64
7.3 Real and reactive power.......................................................................................................................... 64
7.3.1 Components affecting real and reactive power .................................................................................. 64
7.3.2 A canal boat analogy to explain real and reactive power ................................................................... 66
7.3.3 A mug of beer analogy to explain real, reactive, and apparent power ............................................... 66
7.3.4 Inclined plane analogy to explain real and reactive power ................................................................. 67
7.3.5 A wheelbarrow analogy to explain real and reactive power ............................................................... 67
7.4 Voltage and current ................................................................................................................................. 67
7.4.1 Water level analogy for voltage .......................................................................................................... 68
7.4.2 Children’s slide analogy for voltage and current ................................................................................ 69
7.5 Frequency ................................................................................................................................................ 69
7.5.1 Synchronous and non-synchronous systems .................................................................................... 70
7.5.2 Balancing supply and demand ........................................................................................................... 70
7.5.3 Bathtub analogy ................................................................................................................................. 71
7.5.4 Automobile cruise control analogy ..................................................................................................... 71
7.5.5 Frequency and the sudden loss of generation ................................................................................... 72
7.6 Analogies related to planning standards and criteria .......................................................................... 72
7.6.1 For those familiar with the industry .................................................................................................... 72
7.6.2 For those not familiar with the industry .............................................................................................. 73
7.7 Analogies related to ancillary services .................................................................................................. 73
7.7.1 For those not familiar with the industry: A trucking (lorry) firm can be used as an analogy for ancillary
services.............................................................................................................................................. 73
7.7.2 For those familiar with the industry .................................................................................................... 73
7
7.8 Analogies related to maintenance requirements refurbishment/replacement/decommissioning.... 74

7.8.1 Bridge maintenance analogy ............................................................................................................. 74
7.8.2 Automobile maintenance analogy ...................................................................................................... 74
7.9 Example tutorial ....................................................................................................................................... 75
8. Conclusions ............................................................................................................. 76
Appendix A: Glossary of terms ....................................................................................... 78
Appendix B – The Cake Analogy ...................................................................................... 90
Appendix C – Case Studies listed by group .................................................................... 94

Group A—the challenges of communicating the impact of renewables to a wide audience........................ 94
Group B—Communicating with large groups of stakeholders ....................................................................... 94
Group C: Engagement with stakeholders on the need for, benefits and impacts of major transmission
reinforcements......................................................................................................................................... 94
Group D: Dealing with poor stakeholder communication and vocal minorities ........................................... 95
8
Figures and Illustrations

Figure 1: Using the brochure .................................................................................................. 12
Figure 2: Layout of the Technical Brochure .......................................................................... 13
Figure 3: Venn diagram of overlapping interests ................................................................... 16
Figure 4 Basic elements of the electric power network ........................................................... 63
Figure 5: Water flow analogy for electricity flow ...................................................................... 64
Figure 6: Typical transmission circuit parameters ................................................................... 65
Figure 7: Canal boat analogy for reactive power .................................................................... 66
Figure 8: Reactive power analogy using a pint of beer ........................................................... 66
Figure 9: Reactive power analogy using an inclined plane .................................................... 67
Figure 10: Reactive power analogy using a wheelbarrow ....................................................... 67
Figure 11: Voltage regulation (steady State) ........................................................................... 68
Figure 12: Voltage regulation (Voltage Dips) .......................................................................... 68
Figure 13: Voltage regulation (containment) ........................................................................... 68
Figure 14: Children’s slide analogy for voltage and current ................................................... 69
Figure 15: 50 Hz, 240 V and 60Hz 120 V waveforms ............................................................ 69
Figure 16: Synchronous and non-Synchronous systems ....................................................... 70
Figure 17: non-Synchronous Coupling ................................................................................... 70
Figure 18: Frequency and load/supply balance ...................................................................... 70
Figure 19: Bathtub analogy for balancing supply and demand ............................................... 71
Figure 20: Cruise-control analogy for frequency control ......................................................... 71
Figure 21: Frequency drop after loss of large generator ......................................................... 72
Tables
Table 1: The general types of stakeholders and characteristics that may define them ......... 15
Table 2: Ten general gaps identified and specific examples from the case studies .............. 25
Table 3: Four general gaps identified and seven specific examples from case studies 1-6 .. 27
Table 4: Selected understanding/expectations among stakeholders regarding wind and
solar PV .................................................................................................................. 28
Table 5 Key Learnings from case studies 1-6 about communication ..................................... 35
Table 6 Specific examples from case studies 7-10 related to general gaps identified in
Table 1..................................................................................................................... 36
Table 7 Key Learnings from case studies 7-10 about communication ................................... 43
Table 8 Three general gaps found and nine specific examples from case studies 11-14 ...... 44
Table 9 Key Learnings from case studies 11-14 about communication ................................. 54
Table 10 Six specific examples of Gap 8 from case studies 15-20........................................ 55
Table 11: Key learnings from case studies 15-20 about communication ................................ 60
Table 12 Comparing delivery of electric power and delivery of goods .................................... 62
9
1. Introduction
Global climate change initiatives have driven a substantial increase in renewable electricity generation,
often in a distributed form. There are now significant numbers of customers who own generation in the
form of roof top solar panels, small scale wind and more recently battery storage, to save money or
reduce CO2 emissions. Their requirements for electricity supply are therefore changing and yet the level
of understanding by stakeholders of the technical challenges facing the power system is limited. Further,
the issues of implementation of new solutions or changes to existing solutions are often clouded by
competing ideologies or political drivers, which may make it more difficult for the ‘layperson’ or non-
technical person (both at the consumer and business level) to understand the implications of these
issues. At times too, the electricity industry may struggle to understand the needs, concerns and wants
of an increasingly diverse customer base many of whom are prosumers.
In addition, large scale renewable projects are dramatically changing the nature of interactions between
power stations. While there is usually strong support for these renewable projects, this is less so when
it comes to the need for new transmission or distribution infrastructure. The level of understanding of
the mismatch between generated energy and the diverse load profiles and the consequent need for
storage or other generation support, sometimes from remote sources, is limited. In addition, the new
power system dynamic is creating operational challenges. Where these operational events lead to
significant and sustained loss of supply, there is a tendency for some stakeholders to jump to
conclusions as to whether the problem is caused by the introduction of renewables, an unforeseen
contingency or a more traditional severe weather event.
In this context there is a need to bridge the gap in understanding between the technical specialists and
the various stakeholders that have a vested interest in the electricity product. This is particularly
important where the changes lead to rising costs and potential significant changes in jurisdictional policy
and energy strategy which impact not only the consumer but also the broader industry environment and
economy. In some cases, stakeholder responses are driven by political or more global social and
environmental drivers, such as the current focus on climate change. In these cases, pure technical or
economic arguments may not be sufficient. Clear and responsive communication will therefore be
critical in reducing the gap in understanding amongst this diverse range of stakeholders.
In recognition of the global nature and importance of the above challenges the WG decided that there
was a need to examine the strategies and tools that have been successfully applied to reduce the gap
in understanding amongst the various stakeholders. These aspects are explored in detail in this
Technical Brochure.
1.1 Appreciation of Contributors

The preparation of this Technical Brochure is a result of the voluntary contribution of the WG Members
listed at the front of this document and their various national and corporate supporters and reviewers.
The WG would also like to acknowledge the support of the following:
 Members of the UK sub-group, some of whom were also regular members of the WG.
- Sami Abdelrahman
- Osama Bakhet
- Silan Celik
- Simon Gill
- Shirley Robertson
- Tania Wallis
- John Wilson
 Chiara Giordano, Energy Engineer, mid and long term operational planning expert, Terna Rete
Italia.
The WG would also like to acknowledge and thank Tracey Lawrence of VANRY Associates who kindly
offered to assist with the compilation and final formatting.
10
2. Scope
This Working Group examined the gap in understanding amongst the various stakeholders of a wide
range of technical issues related to the power system, its changing nature and how these changes are
developing. The WG has reviewed how stakeholders perceive this gap and what is being done across
the world to improve the level of understanding, particularly of the non-technical stakeholders. Working
Group members have both technical and non-technical backgrounds with the latter having a speciality
in communication and/or stakeholder engagement.
It is important to note that the WG was not trying to define a "good stakeholder engagement process".
Instead, the goal was to make concrete steps towards identifying how to improve mutual understanding
of key issues between the sector specialists' and stakeholders.
Key activities undertaken by the WG were as follows, they:
 Identified the stakeholders in the case studies and determine which were most
important to different industry sector participants/CIGRE members in different
countries, including:
o Stakeholders they are obliged to communicate with and
o Stakeholders they believe they should be in communication with.
 Defined the communication gap in terms of:
o The communication channels:
 Which channels currently exist between electrical energy specialists and
stakeholders?
 In the opinions of WG members and stakeholders, which of them work well and
or less well; and
 Which channels should be improved or created?
o Content: what information is lacking, or is lacking in ways that can be understood
and used?
 In the opinion of WG members regarding what stakeholders appear to know;
 In the opinion of stakeholders regarding what they would like to learn from
electrical energy specialists;
 Consideration of how to reach agreed positions to ensure consistency; and
 Rather than carry out an industry survey several case studies were considered
and analysed to determine the relative merits of the different approaches to
stakeholder interaction.
11
3. Work Methodology
3.1 How to use this Technical Brochure
The flow diagram (Figure 1 ) illustrates a sequence of steps that are useful to address the gaps in
understanding amongst the stakeholders. The steps also identify the chapters within this Technical
Brochure that contain the relevant details of what can be done or can be taken into consideration.
Figure 1: Using the brochure
12
3.2 How the work was organised

Initially the WG looked at key issues and who the stakeholders were and are. WG members collaborated
to identify current practices and how various tools (Chapter 4.3) are used to achieve successful
engagement with stakeholders. Then the WG collected twenty case studies which covered the key areas
that WG members wished to consider (See Chapter 6). Finally the WG examined the majority of the
selected case studies in more detail. This included, the issues uncovered, the communication gaps
identified, the methods used to address the gaps and an assessment of how successful the work was.
Work was also undertaken to identify models and develop a glossary of terms which may be helpful in
improving communication of complex technical issues.
The diagram in Figure 2 shows the aspects covered by the Technical Brochure and how they
interconnect.
Figure 2: Layout of the Technical Brochure

The WG recognises that the readers of this Technical Brochure may come from diverse backgrounds
with varying levels of technical expertise and experience with stakeholder engagement. The structure
of the Brochure has therefore been designed to guide the reader to their particular area of interest.
Chapter 1 introduces the Technical Brochure (TB) and the WG.
Chapter 2 presents the scope of work undertaken by the WG.
Chapter 3 (this chapter) explains how to use the Brochure depending on the reader’s level of experience
and interest, how the work is organised and the structure of the Technical Brochure.
13
Chapter 4 identifies the stakeholders, and the likely varying levels of understanding and overall
processes and methodologies that have been shown to successfully reduce the gap in understanding
amongst them. It defines a list of tools that can be used to help with communications and recognises
the likely overlaps amongst stakeholders. It includes a useful Venn diagram which represents the
various stakeholders and the many possible relationships and overlaps.
Chapter 5 discusses some of the key issues affecting the power system and how this impacts the
interactions amongst the stakeholders. Topics include, the impact of renewables, major power system
disruptions or blackouts, major infrastructure projects, long term plans, public policy determination and
implementation and significant technological change.
Chapter 6 contains the bulk of the material and examines in detail twenty case studies. The gaps in
understanding are identified and then the processes that were used to bridge the gaps are described
together with the level of success. These case studies are summarised in Appendix C. The case
studies, have been grouped into the following categories:
A. The challenges of communicating the impact of renewables to a wide audience;

B. Communicating with large groups of stakeholders;
C. Engaging with stakeholders on the need for, benefits and impacts of major transmission
reinforcements; and
D. Removing relationship barriers in stakeholder engagement.
Chapter 7 provides a collection of analogies and models that can be used to help explain the various
technical aspects of a power system, including its design and operation.
Chapter 8 provides conclusions.
Appendix A is a glossary which provides definitions of the various technical terms used in the Brochure.
Appendix B presents a ‘Cake Analogy’ to help understand the changing nature of the power system.
Appendix C contains the summary of the case study groupings
14
4. Stakeholder engagement and effective

communications
This Chapter identifies the stakeholders, generalizes about their varying levels of understanding and
describes the likely overlaps amongst these stakeholders (§4.1), presents an overall methodology for
good engagement (§4.2), and lists tools that can be used to help communication (§4.3).
4.1 The stakeholders

The stakeholders involved in utility planning and operation, their key areas of disagreement, and their
gaps in understanding are critical to effective communication. The WG identified a broad list of common
stakeholder types that inevitably involved some generalization, as shown in Table 1.
The table proposes likely areas of focus in finding solutions where gaps in understanding exist. To be
clear, the WG recognised that there are likely to be a number of exceptions to these categorisations so
they are not absolute.
Table 1: The general types of stakeholders and characteristics that may define them
Stakeholder Likely area of focus/required solution

Energy policy decision makers Practical long-term solutions that are economically sound
(including politicians) and supported by the electorate
Government at all levels (Local,
State, Federal)
Regulators Practical long-term solutions that are economically/legally
sound, and determined to be in the broader public interest
Business leaders Solutions that are commercially beneficial for them
Shareholders & investors
Environmental leaders Solutions that meet environmental needs in the short- and
long term
Customers Solutions that are commercially and environmentally
beneficial for them
Landowners Interests can vary, however, solutions that are commercially
and socially beneficial for them
Farmers
Academics Depends on who they are working for
Electrical energy specialists
including:
Engineers
Economists
Scientists
Media Presenting newsworthy stories that engage their audience
Lobby Groups (tend to be Depends on who they are representing
professionals)
Local Action Groups (tend to be
voluntary and community
based-not necessarily
landowners)
Industry partners, including Solutions that are commercially beneficial for them
Associations (business
partners, suppliers,
contractors, professional
15
Stakeholder Likely area of focus/required solution

associations & industry
organisations, industry media)
Internal stakeholders (subsidiaries, Depends on who they are working for and the role they have.
senior managers, employees)
As shown in Table 1, many of the stakeholders may have wide areas of interest, which means they may
need different levels and modes of engagement. This suggests that it may be best to prepare for the
most extreme ends of understanding and then have a methodology for moving between them.
4.1.1 Overlaps in interest and understanding amongst stakeholders

Table 1 shows how a reasonable number of different stakeholders might bring various perspectives and
levels of understanding to the discussions. In some cases, issues can overlap and the number of
stakeholders that will take an interest will vary depending on the size of the issue and the breadth and
depth of the impacts.
One way to demonstrate the potential level of overlap and the resulting complexity of the relationships
is to use a Venn diagram like that shown in Figure 3. The figure shows the potential complexity of the
overlaps of interest or understanding amongst the various stakeholders. (The letters A to E represent
the various stakeholders.)
Figure 3: Venn diagram of overlapping interests
Legend:
A- Proponent (Utility)
B- Government
C- Local Resident Group
D- Environmental Stakeholders
E- Contractor/Business Sector
A Venn diagram can be used to represent the various stakeholders involved in any project or dispute.
The Venn diagram can represent the many possible, and complex, relationships and inter-relationships
that may exist with any project or consultation. Such a diagram shows the areas of overlap and the
gaps in interest or understanding amongst the stakeholder groups.
The intersecting areas depict topics/issues that range from bilateral issues (e.g., B-D) to multilateral
issues (e.g., A-B-C-D-E). This kind of diagram, with appropriate labelling, may aid in identifying the
‘gap’ amongst stakeholders for a particular aspect or issue and thereby aid in identifying the best
approach to remedy that gap. For example, if the ‘gap’ is between two technically orientated parties—
e.g., a System Operator and a utility—the discussion can most likely remain at the technical level,
whereas if it is between a utility and a homeowner, the issue may need to be phrased or explained in a
more non-technical and practical way. The diagram may also highlight issues of misunderstanding that
are common to all parties.
16
The point here is that any consultation is likely to be complex and any major issue is likely to impact
several stakeholders who may well have competing goals and outcomes as well as a wide range in
technical understanding.
4.2 Methodology for good engagement

There are many websites and books dedicated to customer/stakeholder engagement. They offer a
range of suggestions and principles for success. These resources describe anywhere from 7 strategies
to more than 20 strategies for successful customer engagement. Some of them are oriented toward
customer sales which are not applicable to the work in the TB. Others are not suited to the kinds of
situations utilities encounter. The WG has used case studies to identified several means of successful
customer engagement.
4.2.1 Requirements for a good relationship with stakeholders

 Start with the customer perspective (ideally both parties need to see the others’ point
of view).
 Open and transparent discussion that is factually based to the extent possible.
 Proponents need to ensure timely and factual responses to stakeholder inquiries. They
should respond to all concerns promptly and over deliver on their promises/assurances.
 Energy solutions that meet customer requirements for reliability and affordability.
 Understand the relationships among stakeholders.
 Allow all who are willing to be involved.
4.2.2 Developing trust

 Start with the customer/stakeholder perspective.
 Be patient, listen and be empathetic to stakeholder needs and positions.
 Have honest, open, and transparent discussions.
 Be consistent and clear.
 Lead the discussion and be proactive—don’t just react to things that have happened.
 Keep the customer/stakeholder informed of potential issues/conflicts etc. as soon as
possible.
 Make clear commitments and keep them.
 Identify and establish relationships with key stakeholders early in the process.
 Get out and talk to stakeholders on their turf.
 Establish long term engagement with representative stakeholders.
 Remain open and transparent throughout the process.
 Accept stakeholders for who they are and accept that they are allowed to have their
views and perspectives even if they don’t make sense to some.
4.2.3 Communication during/following power interruption and in planning new

projects.
The key elements here are to prepare a general plan, in advance, and follow through with stakeholders.
Keeping stakeholders informed and engaged while listening to their concerns is essential.
4.2.4 Questions to consider when preparing ahead of any “event/Interaction”

 What is the desired outcome of the conversation?
 What does success look like? What is ideal? What is acceptable?
17
 What “concerns” do you believe might be active for the stakeholder in general and what
concerns might be activated by initiating this conversation? It is important to spend
some time speculating about this question, mostly to tune up to listening and re-listening
for the stakeholder’s concerns, prior to the conversation with the stakeholder.
o Given what you see as active concerns, what do you propose to be of benefit to the
stakeholder(s)?
o What do you do in the conversation that is responsive to active concerns?
 Who is taking the responsibility to create the relationship with the stakeholder(s)?
o Who is accountable for the successful outcome of the conversation and the desired
results?
o Who will have the conversation with the stakeholder(s)?
 What is each member of the communication team committed to regarding the
stakeholder(s) and their concerns?
o What declaration are you making regarding the stakeholder(s) and the future
relationship?
 What standards, boundaries, and conditions of satisfaction do you have regarding:
o The relationship (the ‘who’)?
 Outcomes to be produced (the ‘what’)?
 Standards around how it is to work (the ‘how’)?
o How the conversation with the stakeholder will transpire (the ‘where’, the ‘when’)?
 Outcomes (the ‘what’)?
 Approaches (the ‘how’)?
 Are you and your team aligned (fully supportive in word, thought, and deed)? Can you
get yourself aligned and maintain alignment with all of the above?
4.2.5 Preparation for the discussion with the stakeholder

 Set aside time for the discussion – ample time, not rushed, with a buffer on both sides
of the discussion.
 What mood would best serve the conversation?
o Curiosity – genuine interest in what the stakeholder sees as possible.
o Are there other moods?
o What will you do to ensure that you are in the best mood to support your desired
conversation?
 What other aspects of your frame of mind should you work on ahead of the
conversation?
o Patience?
o Listening?
o Care?
o Others…?
 Other potentially useful information:
o Examine the environment
 Not just about energy or even the lowest cost of supply
 Look at the whole picture from all stakeholders’ point of view
 Consumer—e.g., save environment, income payback
 System operator—e.g., maintain system security
 Government—e.g., renewables policy, system stability and growth
 Help promote broader thinking:
 Concept
18
o Break down into services/parts

o Analyse how the parts fit together
 Use analogies such as the Cake model, the see-saw and others discussed in
Chapter 7 and Appendix B – The Cake Analogy.
o What is the impact of this proposal on all the parts?
o What is the issue?
o What are the key facts around the project/issue?
o Have stakeholders explain the key facts and how they relate to the issues.
o Get the antagonists to explain each other’s case or key issues.
o If each party can explain the other party’s issues and concerns and the rationale
for those concerns and issues, then presumably this will lead to closing the gap of
understanding. Again, we are not looking to solve issues but to provide better
understanding as a platform/basis for possible problem resolution.
4.3 Recommended communication tools

In reviewing the case studies described in the next chapter, the WG identified Communications
channels/tools available to use that are most likely to resolve the knowledge/understanding gap:
1. Develop simple analogies (see Chapter 7);
2. Establish breakout groups;
3. Create a digital stakeholder engagement platform;
4. Establish long term engagement with representative stakeholders;
5. Enlist a group of rooftop solar owners and facilitate extended engagement with
technical experts, advocates, and an independent chair;
6. Allow all who are willing to be involved;
7. Use simple language (non-techno-speak) in all communication materials;
8. Use multi channels for communications (e.g., printed materials, meetings/workshops,
websites, phone, emails etc);
9. Remain open and transparent throughout the process;
10. Consider how incentives can be used to create a ‘win-win’ for both parties;
11. Use illustrations, diagrams and pictures to improve stakeholder understanding;
12. Accept stakeholders for who they are;
13. Identify any vested interests individual stakeholders may have and whether these
interests may influence their point of view;
14. Employ proactive and reactive ongoing open communication and engagement including
pros, cons and relative costs;
15. Realistically consider what are solutions today vs solutions tomorrow;
16. Use the Glossary and Layperson definitions developed in this TB; and
17. Treat and communicate with the stakeholders as you would with a non-technical,
respected elder.
19
5. Key issues facing the energy sector and related

case studies
This chapter provides a brief overview of some of the key issues facing the energy sector. This sector
is undergoing considerable change as countries attempt to reduce their power system emissions, while
maintaining economic growth and enabling the development of emerging economies. In addition,
modifications, improvements and/or new infrastructure may be needed to ensure the existing systems
maintain reasonable reliability while the changes are implemented. In this context, engaging with the full
range of stakeholders becomes more and more critical. If proponents and affected stakeholders can
reach an appropriate level of understanding, there is a greater chance of achieving timely, appropriate
and cost effective solutions to the range of challenges that the power systems will face now and in the
future. The members of the WG provided twenty case studies and identified six key issues described in
the following sections.
5.1 Impact of renewables

Concerns about climate change impacts have continued to escalate in recent years with more and more
countries committing to very low or zero emissions by 2050. The electric industry now emits about 40%
of the world’s CO2 emission. 1 While the sector’s production is likely to increase significantly if, as
expected, the transport and heating sectors become electrified, the sector’s emission increases will be
moderated by a rapid increase in the installation of renewable generation.
Investment in wind and solar generation across the world has already been very significant, but there is
still a massive challenge to transition the remaining fossil fuelled generation. In a number of countries,
coal and gas remain dominant fuel sources and there are still significant new generating stations being
built using these fuels. In some countries, such as Australia, roof top solar has been a very popular
choice for renewable generation, whereas in other parts of the world such as Europe, large scale wind
farms, which are often off-shore, are being constructed. These kinds of generation impact on the power
flows within the system and can require storage and other technical support to balance supply and
demand.
For the small scale renewable generators such as roof top solar, it is important that all parties understand
the technical challenges and associated costs and benefits that are incurred as the percentage of these
generators increases. For the large scale renewable generators such as off-shore wind farms, there is
a need to ensure that requirements for associated infrastructure and the related costs and benefits are
also well understood by all parties.
Competing ideologies or political drivers can affect how the issues are presented and influence the
understanding of the parties involved. In addition, the new solutions may lead to significant changes to
government policies and energy strategies which have impacts on all stakeholders.
A range of different perspectives can lead to significant misunderstandings, coupled with lobbying efforts
that can either increase the risk of reduced reliability or lead to delays in the installation of the new
generation. The communication challenges in this stakeholder environment are therefore considerable.
5.2 Major power system disruptions/blackouts

The increasing electrification of transport and heating systems is expanding the role of power systems.
Reliable supply of electricity is a normal expectation for modern power systems. Utilities make
significant efforts to provide this, as any prolonged outage can have major economic impacts and can
even affect a country’s reputation. While outages due to major storms can be more easily accepted by
the public, those which occur without a significant nearby weather event are generally not well received.
The rapidly changing nature of the power system, with rapid increases in the level of intermittent
renewable generation, the associated closure of traditional base-load power stations, and a changing
role for storage and new technology, introduces an associated risk to the reliability of supply. Major
investments in new transmission lines, new technologies (such as smart meters and distributed load
control), and large-scale storage are needed to help mitigate the risks as the power system evolves to
its new operating paradigm.
1
. World Nuclear Association, accessed 1 February 2022, https://www.world-nuclear.org/information-library/energy-and-the-
environment/carbon-dioxide-emissions-from-electricity.aspx
20
In the above context, clearly communicating the causes of major outages to the general public,
politicians and major businesses is a critical activity. Failure to do this leads to challenges from various
experts and a loss of confidence in those that are managing the various utilities and the overall power
system. Similarly, justifying new and expensive investments which are simply tied to the new generation
installations and not due to overall load growth can be quite challenging.
Simple and clear communication from recognised and trusted sources is paramount if the explanations
are to be accepted. There is also a need to carefully listen to any challenges to the explanations and
demonstrate that all parties have been heard.
5.3 Major infrastructure projects

Gaining appropriate support for large power system projects such as major transmission lines or fossil-
fuelled power stations has always been challenging, regardless of whether or not the project has a
significant environmental impact. This is particularly so where individuals and nearby communities are
affected.
In recent years, with the concerns about climate change and the accelerated installation of renewables,
there has been a new form of resistance. There is a growing view that the old traditional forms of
transmission and generation are not needed any more and that local generation will suffice. There is
also a view that within established systems, demand will tend to decline and so, there is no need to add
new transmission infrastructure or power stations.
In this context, there is an ongoing challenge to explain how the various components of the power
system support each other as well as how the newcomers to the power system, such as wind and solar
generation, need certain levels of support to reliably supply power. Similarly, there is a growing need
to clearly understand and account for the different perspectives of the various stakeholders. With
growing long-term uncertainty, it is much more challenging to account for the risks associated with 30
to 40 year investments.
5.4 Long term plans

Traditionally, long-term planning for transmission and major new power stations considered 20, 30, or
even 40 year periods. Often, it takes longer to secure approval and construction of transmission lines
than for new power stations. This is due to the need to secure and purchase line easements which can
be difficult in remote areas and almost impossible in heavily built-up areas. In this latter case,
underground cable installations are often required to obtain needed approvals which increase
construction times and greatly increase costs.
The benefit of long-term plans is that required infrastructure can be determined well in advance, allowing
longer periods for consultation and environmental approvals. Such long-term planning has worked well
in the past where load forecasts can be reasonably determined, allowing justification for 30 or 40 year
investments. Lead times of up to 40 years, however, introduce significant uncertainty regarding future
conditions, opening the door for stakeholder doubts.
The nature of these long-term plans is now changing with the advent of large-scale wind and solar power
stations as well as microgrids which can all be developed in shorter periods than traditional generation.
The lower environmental impact of these developments may also provide location flexibility and reveal
more options for transmission infrastructure. In this context, long term plans must allow for more
flexibility and consider a range of scenarios rather than lock-in a particular plan.
Communication with stakeholders now includes an additional level of challenges as each stakeholder
may prefer a different scenario that is more in line with their particular interests. Ensuring that concerns
and opinions of the various stakeholders are (and can be seen to be) considered is critical.
5.5 Public policy determination and implementation

Public policy decisions in relation to electricity are driven by a wide range of factors including
environmental, social, political and economic aspects. Ideally these decisions are made with a full
understanding of the technical challenges, risks and costs of implementing the policies. This may not
always be the case. Concise, easy to understand communication of these challenges to both the
decision makers and their influencers is critical to achieve the optimum end results. These influencers
include regulators, politicians, and utility experts.
21
In recent years, climate-change concerns have driven a global effort to achieve widespread support for
changes that try to reduce the scale of the impact of the energy industry as well as mitigate its overall
climate effects. There is now growing global support for a target of zero emissions by 2050. While this
is a noble goal, in the case of many countries, there is not yet an accompanying plan spelling out how
the country will achieve this goal. While some interim goals have been declared, clear explanations of
how the interim targets will ensure that the end goal will be achieved by 2050 are still to be developed.
In these circumstances, clear and ongoing communications between the energy industry, the policy
decision makers and the broader stakeholder group will be essential, if the best pathway to the goal is
to be achieved.
In some cases, there may not yet be technical solutions or scenarios/outcomes that can economically
deliver the required goals. This will require identifying the areas where targeted research and
investment are needed. Explanation of the reasons for the financial investment as well as ensuring an
understanding of the associated risks and benefits will be critical. This is required at the initial policy
decision points as well as during implementation, as the available technologies change.
While public policies can drive investment in new technologies, they can also lead to supportive
requirements such as energy efficiency standards and pollution regulations. One example is the
proposal to transform the transport industry from fossil fuels to electricity. This change can have a
significant impact on the design and operation of the power systems so it is important that the technical
and economic impacts of this are clearly communicated.
On a lower level, there are many public policy decisions that are made regarding electricity supply that
can be improved with understanding and cooperation amongst the stakeholders. For example, a
decision to move distribution systems to underground power instead of overhead systems may be made
to achieve better social and environmental outcomes. These outcomes can gain greater public support
if there is a shared understanding of the technical and economic challenges as well as the likely
timescale for implementation.
5.6 Significant technological change

Investment in new technologies within the energy industry is at an all-time high. This has been rising
significantly since earlier concerns about climate change were raised more than twenty years ago.
Some of these new and developing technologies include:
 energy efficiency;
 wind generation;
 solar generation;
 storage;
 microgrids;
 smart load control;
 carbon capture;
 nuclear fusion;
 electric vehicles;
 fuel cells;
 hydrogen as a fuel;
 biofuels; and
 improved nuclear fission.
The rate of change of technology has been accelerating for some time. One of the best recent examples
of this relates to computers, the internet, and the gathering and analysis of massive amounts of data.
To some extent, there is an inherent belief that if mankind focusses sufficiently on a technological
challenge, then a solution will be forthcoming. This belief is much stronger if there is a perceived threat
that drives the urgency to develop new solutions. The increasing evidence of human-caused climate
change is providing just such a threat.
The electric power industry is now confronting this challenge and huge investments are being made into
finding the needed solutions. With each investment there comes a challenge to explain the potential
benefits, costs, and risks. In some cases, expectations are much greater than the potential benefits, in
others, benefits may greatly exceed expectations. An example of the former is an expectation that wind
22
and solar can power the world within the next ten to twenty years. An example of the latter is
demonstrated by the accelerated cost reductions of both solar and batteries which have continued to be
significantly lower than forecast.
The application of some of these new technologies in developing economies that have limited access
to electricity will be different from those with well-established power systems. For example, the 900
million or so people across the world that still have no access to electricity may be able to adopt
renewable energy solutions more easily than areas with reliable existing systems that must be replaced
with the new technologies.
For all of the above examples, to varying degrees, there is a need to clearly communicate the potential
benefits and limitations associated with large-scale adoption of these technologies within the electric
power industry. Ideally, community expectations should be matched, or at least be near, what the
industry is able to deliver.
In many cases the technology can be very complex. There is therefore an ongoing need to provide clear
and simple explanations that can be demonstrated with models and analogies that relate to other well
understood existing products and developments. This is a major goal of this TB.
23
6. Key findings—what worked and what didn’t

work
This chapter considers different case studies across several geographical and technical areas in the
energy industry worldwide and some of the key stakeholders involved. Further, these case studies
highlight the myriad of issues the energy sector deals with and the wide range of different stakeholders
it may engage with on the same issue. They are provided by different authors utilising their own
approach and analysis.
While a number of these case studies result in successful outcomes and provide information on the
tools (4.3) and approaches used, the WG considered it important and relevant to also outline some
cases where the ability to “close the gap” in knowledge, acceptance and/or understanding for
stakeholders was neither practicable nor realistically attainable. This is not to say that the engagement
and/or communications approach by the relevant organisation/industry body was necessarily deficient—
but rather acknowledging the complexity and reality associated with engaging with external
stakeholders, many of whom often have different vested interests.
In case studies where many different stakeholders are involved, it may not be possible to achieve total
success. ‘Managing’ expectations (both internal and external) as opposed to ‘meeting’ expectations,
becomes more relevant in these cases.
While building trust and transparency is a core pillar of an engagement strategy with external
stakeholders, it does not necessarily translate into a successful outcome. For example, building a
transmission line easement through several properties may be for the ‘greater good’ of a community,
but those directly impacted may not be happy even if compensated. We need to be realistic about what
our expectations are and where stakeholders’ vested interests lie and not set ourselves up for failure.
In addressing some of the issues outlined above, this chapter examines the communication gaps
amongst various stakeholder groups by referring to some of the case studies. It identifies where there
may be opportunities to implement some of the tools (note: throughout this chapter, reference to ‘tools’
are described in Chapter 4.3) and approaches used in the case studies to reduce the gaps in
understanding between stakeholders and energy specialists.
The WG members identified 20 case studies that address some of the many challenges associated with
communicating technical issues with stakeholders. To aid in the analysis, the 20 case studies were
sorted into four groups: (summarised in Appendix C)
A. The challenges of communicating the impact of renewables to a wide audience (§6.1);
B. Communicating with large groups of stakeholders (§6.2);
C. Engaging with stakeholders on the need for major transmission reinforcements, their benefits,
and impacts (§6.3);
D. Removing relationship barriers in stakeholder engagement: (§6.4). i.e.:
o The impacts of poor engagement and potential remedies; and
o Balancing excessive power of vocal minorities.
The gaps in understanding are presented as applicable to each of these four groups.
These twenty case studies highlighted ten general gaps in understanding. Table 2 lists the gaps and
specific examples of each gap.
24
Table 2: Ten general gaps identified and specific examples from the case studies
Gap in understanding Specific examples from the case studies

1. Understanding the role of  The roles that each party plays in supporting the
the system operator as system operator
project developer and  Understanding the role of EirGrid as project developer
network owner as asset and ESB Networks as asset owner
owner
2. The complexity of system  Complexity of the system regarding frequency,
operation voltage, reliability, and security
 Technical understanding of the impact of plans on the
Network performance, especially capacity
3. The roles of renewable  The roles of renewable generation and existing power
generation and the system components in ensuring the power system
existing power system in remains reliable, safe, and secure
ensuring power system  The impacts of rapidly growing amounts of wind and
reliability, safety, and solar as a proportion of the total generation
security  The expectations of the Traditional Energy System
(TES) and New Entrants (NE) regarding reduction of
technical issues (either financial or technical). NE
expects the TES to solve these issues without their
help
4. The differing expectations  The expectations regarding electricity costs are
of traditional energy different among utility experts, individual customers
systems and new with rooftop PV, and large renewable energy
entrants regarding costs developers
5. Valuing the impact on  The role that renewable generation plays in
wider society of decisions addressing environmental concerns
relating to power system  Understanding of health risks including EMF
planning and operation  Understanding of the context of a project: low
awareness of energy sector operation model and of
the need for the Project.
 Lack of consideration of the impact on wider society of
decisions relating to network business
6. Understanding of  Understanding of economic and technical need
technical need and  Lack of the key knowledge/understanding—low-level
economic justification awareness of the need of the Project for electricity
industry development
 Lack of key knowledge/understanding—low-level (or
lack of) understanding of the context of the project,
low awareness of energy sector operation model, and
of the need for the Project
7. Understanding the  The financial compensation programme developed for
financial compensation a Project needs to be explained
and legal background
25

8. Inadequate customer  Understanding what activities are actively going on
communications with the utility
 Understanding account setup, available programs,
and billing
 Lack of awareness of the need for the Project for long-
term electricity industry development (refurbished
nuclear generation, transition to green energy), and
associated need for extra grid capacity
 Lack of knowledge/understanding—not enough
information (or the existing information is not
structured and clarified) for proper planning and
management process
 Poor communications led to mistrust among most
stakeholders who became distrustful of both
government and the utilities
 Overall communications with stakeholders had been
ad hoc or without format or structure
 Operational failures in the system have undermined
regulator and stakeholder confidence in the utility
leadership and triggered negative assessments about
the utility’s truthfulness
 Coal-based utility with both pro- and anti-coal
stakeholders that faced job loss and economic
impacts from closure decisions. Wide range of
stakeholders with opposing interests
 Oil-based utility facing revenue shortfalls needing to
increase rates and needs government support for
investments to convert to gas-fired in conjunction with
renewables development. Rates are already high,
and many customers are at lower income levels.
Government unwilling to make the difficult decision to
allow rates to increase
9. Understanding  Lack of definite policies from key stakeholders leading
guidelines, policies, and to a lack of investment certainty
codes  Policy and Political Administrative differences
 Lack of clarity in guidelines, policy, and codes of
conduct
 Lack of understanding of how electricity network
companies align business plans with the economic
regulator
 Affected stakeholders are not aware of the basic
decision/management process and how they can
engage their interests
 Affected landowners’ lack of trust in the Company’s
ability to acquire property rights in a fair manner
 (Lack of motivation) The Project does not meet the
financial interest expectations of potentially involved
stakeholders
 (Technical/management issues) The Project’s basic
aspects are not worked out properly
 Due to purchase policies (anti-corruption), exact
architectures of technical solutions cannot be
identified in purchase tender documentation in order to
refrain from limiting the competition
 Local opposition in a few districts have been both
vocal and active resulting in government taking
positions that favour the vocal group at the expense of
the larger society
26

10. Lack of direct user input  The lack of direct input to the network business plans
about network plans by users of those networks
6.1 Group A—the challenges of communicating the impact of

renewables to a wide audience
Case studies 1 – 6 were selected for this group because they present gaps in understanding specifically
related to renewable generation—rooftop PV, large PV farms and wind:
1. South Australian blackout in September 2016, and New South Wales, South Australia blackout
in February 2017;
2. Citizen’s juries on wind farm development in Scotland;
3. Special regional scheme to develop grids to connect renewable energy sources to networks in
France;
4. Use of cake analogy in South Africa (Appendix B) to help explain technical issues associated
with the changing nature of the power system;
5. A special consultation process used in France to design regional schemes for renewable energy
sources; and
6. Residential solar PV uptake in Australia, understanding and anticipating different audiences and
their vested interests.
These six case studies are from four countries that are specifically dealing with the issues of large-scale
connection of solar photo-voltaic (PV) and wind turbines. In the case of solar PV, there is a wide range
of stakeholders from domestic and commercial consumers who have been encouraged to install solar
systems on their roofs, to large solar farms that need to be assessed individually prior to connection,
and wind farms that range in size from a single unit to many located on and offshore. These
stakeholders have diverse perspectives related to their impact on the power system, such as the need
for fast response storage, environmental impacts, and the appropriate levels of subsidy, if any.
These six case studies provide examples of four of the general gaps as shown in Table 3.
Table 3: Four general gaps identified and seven specific examples from case studies 1-6
Gap Specific examples from the case studies

1. Understanding the role of the  The gap in understanding here related to the
system operator as project different capabilities of traditional and renewable
developer and network generation to support system operation and control
owner as asset owner and the role of the system operator (§6.1.2.1)
2. The complexity of system  The complexity of system operation regarding
operation frequency, voltage, reliability, and security
(§6.1.2.2)
3. The roles of renewable  The role that renewable generation plays in
generation and the existing addressing environmental concerns (§6.1.2.3)
power system in ensuring  The role of renewable generation relative to the role
power system reliability, of existing power system components in ensuring
safety, and security the power system remains reliable, safe, and secure
 The impacts of rapidly growing amounts of wind and
solar as a proportion of the total generation
4. The differing expectations of  That new entrants expect the traditional energy
traditional energy systems system to solve the technical issues without help
and new entrants regarding from the new entrants (§6.1.2.4)
costs  Differing expectations of traditional energy systems
and new entrants regarding costs (§6.1.2.5 )
27
6.1.1 General observations from case studies 1 – 6

Making some general assumptions, Table 4 lists selected understanding/expectations held among
stakeholders—traditional energy system, rooftop PV, large solar farms and wind farm developers.
Rooftop solar PV brings in a huge number of domestic and small commercial power customers that
have previously only been consumers of electricity and not generators. Large-scale wind and solar
generators that are generally owned by larger enterprises have their own perspectives.
Table 4: Selected understanding/expectations among stakeholders
regarding wind and solar PV
New entrant (NE)

Traditional energy system
(TES) Rooftop solar PV Wind farm and larger solar installations
Have considerable expertise Have very limited understanding May not have a full understanding of how
and are used to being of the system. the existing power system interacts
responsible for system with intermittent renewable generation.
Do not appreciate the value the
control and operation.
system provides in terms of Do not agree on the value the system
System planners did not expect backup, reliability, security of provides in terms of backup, reliability,
the uptake of wind and solar supply, and administration. security of supply and administration.
to be so great.
Are driven by increasing Are driven by increasing environmental
The system operator needs a environmental concerns, concerns, increasing power costs, and
stable system. increasing power costs, and decreasing costs of wind and solar PV.
decreasing cost of solar PV. Are becoming (or will be soon) storage
Base-load generation is
options such as batteries as their costs
becoming more difficult to Believe they can install batteries
fall.
operate as load factors to save even more.
decrease. Would prefer the government or the
Unaware of potential technical
existing power system owners to
Technical solutions are available issues when they purchased
manage and fund any changes to the
but can be expensive. their systems and believe it is
power system, needed to support the
not their problem.
If energy use on the system NE’s.
reduces, fixed costs will be Expect their electricity costs to be
Expect the costs of renewables to continue
spread over fewer MWh and considerably lower following
to decline.
system costs per MWh will solar installation.
increase.
6.1.2 Specific gaps for cases 1-6

The following discussion draws on information from six case studies as a group and identifies the gaps
in understanding. There is then a reference to the individual case studies and the relevance of each
gap.
Examining the case studies, gaps arise between:
Local impacts vs global impacts
Individual impact vs collective / cumulative impact
Historical energy system structures vs transformed energy system structure
Those that bring about change vs those affected by change
Rewards to stakeholders vs value to stakeholders
Perception stated by stakeholders vs information from a trusted source
Lessons from case studies on how gaps were reduced are discussed below. What is clear is that each
situation is unique and requires significant local insight on how to apply the identified tools appropriately.
6.1.2.1 Gap 1: Understanding the role of the system operator as project developer
and network owner as asset owner
The gap in understanding here regarded the different capabilities of traditional and renewable
generation to support system operation and control. In addition, there was confusion about the role of
the system operator. The expectations of rooftop PV owners were to maximize energy savings and
28
reduce their electricity costs, while operators of large renewable resources focused on maximizing their
own revenue and return on investment.
Traditional generators such as coal, nuclear or gas-fired generators have built-in capabilities that provide
ancillary services necessary to ensure the power system operates within technical limits. Ancillary
services can be added to renewable generation or provided separately to support the system and
improvements in technology have reduced their cost. In addition, market mechanisms are now being
put in place to recognise the value of these services, providing an incentive for renewable generation to
add these capabilities. Also, some markets are requiring renewable generation to provide ancillary
services as part of their connection standards. Explaining the need for these to a domestic consumer
that has just installed some roof-top solar can be quite challenging.
The technical issues involved in operating the power system are generally well understood among the
major utilities but less so amongst the new-entrant solar and wind generators. Convincing these new
generators that they are different from the existing traditional generators is challenging. This is often
complicated by the fact that the power system is comfortably able to accept some amount of renewable
generation—at least up to the point where the ancillary services start to be used up. At this point
additional ancillary services need to be provided and discussions tend to focus on the need for these
additional services and their costs.
The communication challenge here is to improve the understanding of the technical components of the
power system, which is addressed in Gap 2. Once a greater understanding of these technical
challenges is achieved, it should be easier to explain the roles that each party plays.
6.1.2.2 Gap 2: The complexity of system operation

The understanding gap here regarded the complexity of system operation in relation to frequency,
voltage, reliability, and security. The Traditional Energy System (TES) was owned, operated, and
managed by the industry to minimize costs while maintaining reliability. Within this system, retail
customers and renewable energy generators operate to maximize their own energy savings and return
on investment.
6.1.2.3 Gap 3: The roles of renewable generation and the existing power system in
ensuring power system reliability, safety, and security
The understanding gap here covered three aspects.
The first aspect regarded the role that renewable generation plays in addressing environmental
concerns related to climate change. About 40% of global CO2 emissions are due to electricity
production, which was the main emitting sector, 2 At the same time, electricity consumption has
increased (world electricity consumption more than tripled between 1980 and 2019)3. Such high growth
is likely to continue in emerging countries and new sectors (e.g., electric vehicles), even if energy
efficiency technologies make it possible to limit this growth. It is therefore important to contain and
reduce emissions from electricity production by increasing the share of carbon-free production,
particularly from renewable energy sources.
Currently, hydropower generation continues to grow in absolute terms but is not always easy to install
with geographical and ecological challenges as well as multiple use-of-water constraints. While it has
been a reliable source and is often dispatchable, bringing many operational advantages to the electrical
system, climate change is affecting water sources from rainfall and snowpack across the world.
Other renewable sources such as solar (photovoltaic and concentrated solar power) and wind, have the
advantage of being less geographically constrained than hydropower in terms of access to the “fuel”.
They have different issues such as intermittency, specific availability (e.g., daylight hours for solar),
limited contribution to system inertia and potential production/consumption misalignment.
Integrating wind and solar generation on a large scale requires different approaches and knowledge to
meet the operational requirements of a power system. The TES providers generally are more
conservative about the role of intermittent generation as they consider the overall impact on the power
2 World Nuclear Association, accessed 1 February 2022, https://www.world-nuclear.org/information-library/energy-and-the-

environment/carbon-dioxide-emissions-from-electricity.aspx
3 https://www.statista.com/statistics/280704/world-power-consumption/
29
system. New Entrant (NE) participants, on the other hand, are more concerned about the overall impact
on the environment and climate and are less concerned about technical system constraints. There are
also concerns regarding the environmental impact on biodiversity of some forms of renewable energy,
such as the impact of wind generation on migratory bird populations. The public and consumers see
renewable energy as an important solution to addressing environmental concerns while the TES
providers can be perceived as reluctant when they raise infrastructure needs and operational
requirements necessary to deliver the expected quality of supply. This gap between understanding the
motivation behind decisions needs to be addressed and the case studies reviewed provided some
insight to approaches and tools that have been used in this regard.
The second aspect regarded the role of renewable generation relative to the role of existing power
system components in ensuring the power system remains reliable, safe, and secure.
The supply of electricity to consumers is undergoing a rapid transition as more and more renewable
generation replaces traditional fossil fuel sources. While large-scale renewable generators are
supplying an increasing amount of the power system’s supply needs, more households, industry, and
businesses are installing their own renewable generation and storage to take control of their electricity
bills.
Large and small–scale renewables offer great opportunities for low-cost, low-emissions energy, but their
uncontrolled and intermittent nature presents challenges in maintaining the security, reliability, and
affordability of the power system. For organisations dealing with this issue, ongoing engagement is
essential in outlining and building understanding of the challenges and opportunities associated with
integrating renewables into the power system.
Some of the case studies in this section deal with this issue. Each case study highlights the need to
ensure proactive (as well as reactive), ongoing communication and engagement with different
audiences. Ensuring open engagement on all the potential solutions and relative risks, opportunities
and costs is essential if trust is to be developed among the parties.
The third aspect regarded the impacts of rapidly growing amounts of wind and solar as a proportion of
the total generation. Global environmental concerns and the reduction of wind and solar prices have
contributed to the rapid increase of wind and solar generation. Both utility and residential scale
generation uptake have far exceeded expectations and estimates are constantly revised upward.
Initially, feed-in tariffs were used as an incentive for consumers and producers to contribute to global
environmental and climate mitigation measures. The initial amounts of new renewable generation had
a limited impact on the collective power system. This reinforced perceptions of individual consumers
and producers that wind and solar had limited grid impact with relatively quick payback times while they
were mitigating global environmental and climate change.
Incremental initial integration is very different from integrating a rapid rate of growth. Using an example
to illustrate, a light rain shower may have limited impact and an umbrella may be an adequate response
to protect you. However, a rapid heavy downpour has a much wider impact and requires a significantly
different defence mitigation for not just you but also where you live and work, e.g., stormwater drains,
special runoff areas and other water defence mechanisms. The collective/cumulative impacts are
seldom seen from the individual perspective. To prepare for such an event, pre-emptive enabling
measures are required. The investment is for the collective user benefits and not necessarily for any
individual.
A power system with a growing proportion of wind and solar generation is very akin to the rainwater
example, above. Introducing rapidly changing new technologies into the historical power system can
be challenging. Much like the above, the grid needs to be redesigned for the new wind and solar
generators which are located on urban rooftops or in large-scale farms where the wind and solar inputs
are optimum and may not be close to existing grids.
Significant grid expansion may be required to integrate these new generation sources. New
transmission and distribution lines may require new rights-of-way, often impacting local communities
that may oppose the development. New grids in remote locations are often weak and cannot
accommodate stable operation of large generation sources at the remote ends. This requires
augmenting the grid with new technologies. Power system control centres are tasked with ensuring the
grid remains stable and may need to be enhanced with new techniques of monitoring and risk
predication technologies for the large variable energy sources, which are weather dependent.
System visibility is key to stable control and operations. The large amounts of wind and solar installed,
both utility scale and rooftop, may have limited visibility for the system operator and have created “blind
30
spots”. Compliance to grid standards to ensure a predictable system response to grid faults is difficult
to ensure with the many types of installed technology that must all work together harmoniously at a
system level.
The connection between the global climate risk and the local grid expansion are often not clear to local
communities. Expanding the grid, new control monitoring, and the system modifications required to
ensure harmonious operation all come at additional costs. Changes in technology and increased
investments impact tariffs and tariff structures. The rapid change has many moving parts and
communication is often challenging.
The changes discussed above will affect the community that uses the system. Blind spots often exist
as each participant has a different view relative to other parties. Better appreciation of each party’s
perspective reduces the gaps and ensures greater system reliability for all.
6.1.2.4 Gap 4: The differing expectations of traditional energy systems and new
entrants regarding costs
The understanding gap here regarded the fact that NEs expect the TES to solve the technical issues
without help from the NE. There are a few reasons why the expectations in relation to resolving the
technical issues are not aligned. The TES service providers have considerable expertise and resources
that have been used in designing, building, and operating the system. They can see the potential
challenges to traditional operating methods as the nature of the power system changes. They are also
often monopolies, which are accustomed to making decisions with oversight by regulators that are
mainly concerned with ensuring costs are efficient and reliability is maintained.
In this environment, the TES service providers often tend to avoid solutions that they see as expensive
and will be less inclined to take risks where new technical solutions are proposed. The NEs, on the
other hand, foresee rapid growth in new technologies and are not convinced that the technical risks are
as significant as those stated by the TES service providers. To some extent this is reinforced by the fact
that the system challenges identified by the TES providers have not been as significant as initially feared.
The NEs also see their solutions as cheaper, partly because they do not always recognise the costs
associated with the ancillary services necessary to manage the power system in its current form.
The NE’s also work within a much shorter time frame than the TES providers. For example, the NEs
have forecast rapid reductions in the prices of both PV cells and batteries as technology has improved.
In contrast the TES providers, who normally make asset investment decisions that have 30 year or more
lifespans, have been much more conservative. These differences in opinion, coupled with views on
perceived vested interests tend to lower the level of trust between the parties.
6.1.2.5 Case 1 – South Australian blackout in September 2016, and New South
Wales, South Australia blackout in February 2017
Case study 1 covers the 2016 blackouts in South Australia and highlights the challenge of
communicating technical and operational constraints that may occur as a result of the rapid increase in
renewable generation. A high level of misunderstanding was complicated further by a lack of easy-to-
understand resources.
For this case study, Gap 3: “The roles of renewable generation and the existing power system in
ensuring power system reliability, safety, and security” is most relevant.
For the 2016 blackouts in South Australia, there were very different perceptions as to their causes.
Some stakeholders said there was too much renewable generation (installed, because the perceived
cost was cheaper) and others that there was insufficient infrastructure (because the installation costs
could not be justified). These were conflicting views and there was not enough understanding or trust
as to who should be believed.
The independent market operator in Australia set about building trust amongst the various stakeholders
by open and transparent energy education and a web site— Energy Live4—to provide information and
4 https://aemo.com.au/en/newsroom/energy-live
31
to own the conversation in the consumer marketplace. There appears to be evidence that this is working
to a degree.
In this case study, tools 3, 7, 9, 11 and 145 were used to bring the parties together and hence improve
the communication among them.
6.1.2.6 Case 2 – Citizen’s juries on wind farm development in Scotland;

In case study 2, wind farm development in Scotland to address global environmental issues, faced
concerns raised by many local community and wilderness organisations. Issues ranged from the
negative visual impact of large-scale wind farms, particularly in very remote areas of Scotland that are
renowned for remote untouched mountain landscapes, to the perceived impact on bird life and noise.
Again, Gap 3 is most relevant for this case study.
In this case, a deliberative process was used to engage citizens on complex public issues to help shrink
the gap in understanding. The engagement process enlisted a group of citizens which included technical
experts and advocates with an independent chair. The process of extended engagement on wind farms
enabled perceptions before and after the engagement to be monitored. The outcome suggests that to
build a nuanced view amongst the local community, a long-term engagement strategy is most effective.
In this example tools 2,3, 5 and 125 were used to shrink the gap of understanding and establish a sense
of trust with the community. This may be enhanced for other large, proposed projects by using tools
4,6,7 and 16, proactively encouraging engagement with the community, and tracking the various
perceptions and concerns.
6.1.2.7 Case 3 – Special regional scheme to develop grids to connect renewable

energy sources to networks in France
Case study 3 describes a special regional scheme to develop grids, in order to connect Renewable
Energy Sources (RES) to the networks, that was agreed to in France. In this case, an iterative approach
was taken over an extended period to demonstrate the grid consequences of the proposed changes
and to share access to information to ensure customers were as well informed as possible. This
promoted better understanding and support for the growth of RES in France.
Gaps 1 (Understanding the role of the system operator as project developer and network owner as asset
owner), 2 (The complexity of system operation), 3 (The roles of renewable generation and the existing
power system in ensuring power system reliability, safety, and security) and 4 (The differing
expectations of traditional energy systems and new entrants regarding costs) are all relevant to this
case study.
The case study illustrates the gap in understanding between the stakeholders regarding the role and
cost of grid expansion against the need for a rapid increase in RES. The examples given illustrate
stakeholder participation to facilitate a regional scheme to develop grids to connect RES to networks.
Key to shrinking the communication gap was to build understanding and find an acceptable consensus
between local councils, producers, the TSO and DSO on grid development. Competing interests often
prevented completely closing the gap. Developing a long-term (10 year) RES penetration perspective
requires an agreed landing point between parties on the network needs, accepted production levels,
renunciation of access areas if some proposed RES generation is too difficult to reach, and cost sharing.
The procedure was framed with legal text providing credibility to the implementation and RES
development needs. Further building of trust and understanding can be developed by continuous review
on an annual basis.
This example used tools 4, 6, 8, 9, 10, 12, 13, 14 and 156. Learnings made across the various areas
described above can also be used to enhance the engagement process.
5 Refer Section 4.3
6 Refer section 4.3
32
6.1.2.8 Case 4 – Use of a cake analogy in South Africa to help explain technical
issues associated with the changing nature of the power system
Case study 4 describes a cake analogy (see appendix B) that was effectively used in South Africa to
help improve the understanding of the roles of various components of a power system. At its highest
level, this analogy compares the power system to a cake. This analogy, emphasises the need to
consider all the ingredients necessary to make the cake, such as flour, sugar, baking powder, etc.
Without the inclusion of all the ingredients in the correct proportions, the cake will not be successful. 7
The case study illustrates Gaps 2 (The complexity of system operation), 3 (The roles of renewable
generation and the existing power system in ensuring power system reliability, safety, and security) and
4 (The differing expectations of traditional energy systems and new entrants regarding costs).
The cake analogy attempts to simplify how the price of electricity has historically been determined and
show why adding new technologies like solar and wind do not affect the price as expected. The analogy
shows how the complexities of the generation (ingredients) and the transmission and distribution (mixing
and baking of the recipe) are combined to give a single simple price for the final product (The Cake) of
power at your home or place of work. Just introducing one or two different new ingredients that cost
less may not result in the same cake at a significantly lower cost. The process leads to new cakes that
have different recipes and different tastes (different quality products) and the old pricing system is no
longer appropriate. What is needed is a new way of pricing these “cakes” and making customers aware
of exactly what kind of product they will get for a certain price.
In the past, the power system was owned and operated as a whole, with customers buying electricity
and generators supplying it. In this sense, it could be compared to making a whole cake. In recent years,
new forms of distributed and large-scale generation, such as photovoltaics and wind, have been
introduced as well as new technologies to help manage the customer load and ensure the power system
operates efficiently. As a result, some of the power system functions that were previously provided by
traditional generation may need to be provided by other means and it is more appropriate now to
consider the essential components that are required to ensure the power system operates reliably and
sustainably.
If agreement regarding the necessary functions of the power system can be reached, each of the parties
can then consider the options to provide the functions. For example, one party may consider fast
batteries providing backup generation and another may consider a fast-start gas turbine more suitable.
The value of these components to provide the necessary functions can also be determined using market
mechanisms or independent reviewers. Agreement on these matters make the negotiations more
economic and less subjective.
In South Africa, the cake analogy has been used very successfully when negotiating with a range of
stakeholders including Regulators and Government officials resulting in a high level of appreciation of
simplifying the key issues and a growing acceptance of the various fixed and variable costs.
This case utilises tools 1, 6, 7, 9, 11, 12, 13, 14 and 15 6 and increases awareness of the complexity
involved, leading to a reduction of the communication gap in future discussions of the environmental
benefit of this form of generation. In addition, many of the models identified in Chapter 7 may prove
useful as analogies to help explain the concepts. There are also technical and simplified definitions in
the Glossary.
6.1.2.9 Case 5 – A special consultation process used in France to design regional

schemes for renewable energy sources
Because of the work described in case study 3, a special consultation process was developed to design
Regional Schemes for RES as described in case study 5.
Gaps 1 (Understanding the role of the system operator as project developer and network owner as asset
owner), 2 (The complexity of system operation), 3 (The roles of renewable generation and the existing
power system in ensuring power system reliability, safety, and security) and 4 (The differing
expectations of traditional energy systems and new entrants regarding costs) are all relevant to this
case study.
7 A detailed description of the cake analogy can be found in Appendix B
33
The study involves an iterative approach with producers to secure location and capacity for RES
projects, while accounting for the consequences for the grid. Schemes have been approved in every
part of France and some network enhancements have been completed. Regionally, better outcomes
were achieved from both an environmental and economic perspective
As for case study 3, this example uses tools 4, 6, 8, 9, 10, 12, 13, 14 and 15 8. However, there is still
some lack of understanding present and more work is required to keep narrowing the gap in
understanding.
6.1.2.10 Case 6 – Residential solar PV uptake in Australia, understanding and

anticipating different audiences and their vested interests
Case study 6 describes the gap in understanding between the users and suppliers of residential solar
PV systems in Australia and the network owners.
Gaps 1 -Understanding the role of the system operator as project developer and network owner as asset
owner, 2-(The complexity of system operation, 3-The roles of renewable generation and the existing
power system in ensuring power system reliability, safety, and security and 4 -The differing expectations
of traditional energy systems and new entrants regarding costs, are all relevant to this case study.
The unexpected, extremely rapid rollout of these residential solar PV systems has exacerbated the
problem with more than 30 %9 of Australian households already having them installed. It demonstrates
that apart from the economic incentives at the time, solar PV was embraced for addressing
environmental concerns. Network owners must take this motivation into account when planning future
networks and operating the existing networks. Users and suppliers, as well as policy makers, need to
be aware that the consequences are not just environmental, but may have a significant network impact.
Several initiatives involving open and collaborative engagements have improved this situation, but
further work is still required.
While system and network planners may not have adequately anticipated such a rapid uptake, policy
makers have further ‘exacerbated’ the issue by providing significant subsidies to consumers and the
price of these systems has fallen significantly.
Noting the vested interests of the stakeholders at play with this case study (i.e., consumers, PV
installers, policy makers, industry players, media, etc.), significant engagement is underway in Australia.
This stakeholder engagement is underpinned by the need to find a balance between facilitating
consumers’ (and others’) desire to install their own PV systems while also building their understanding
of the impact on the power system itself.
Building knowledge and understanding (and ultimately acceptance) of the role and impact of renewables
on the power system requires detailed communications and engagement pre-planning to ensure the
maximum number of possible issues are identified, and plans/responses prepared to address these.
Further, building trust and visibility early in this process with these audiences, as well as understanding
and managing their expectations, is critical in relation to being able to implement any recommendations
successfully. This includes anticipating and accepting that the best technical solutions to ensure system
security and reliability will not always align with the current policy/political/consumer/market
expectations. This requires a ‘trade-off’ in areas such as affordability, reliability, and the pace of delivery
of factors such as emissions targets.
While this challenge is ongoing, there are several initiatives that are proving helpful in bridging the gap
in understanding the technical issues. This has included on-going open engagement and collaboration
through forums, workshops, etc. amongst the various interest groups with the aim of improving trust and
understanding. One example relates to the introduction of a technical solution that benefits both the
solar PV users and the network operators. In this case it was proposed to include preapproved inverter
standards and allow centralised control in an emergency. This enabled the PV system owners to
continue enjoying the benefits of their systems while only being interrupted when necessary to ensure
reliability of the power system.
It was also considered that future changes to inverter capabilities could enable consumers to offer
commercial services into the grid that may reduce the risks of system blackouts and overall costs. When
8 Refer section 4.3
9 https://arena.gov.au/renewable-energy/solar/
34
developing these solutions, it was noted that it is important to also ensure that the media is fully informed.
Otherwise, a positive story with benefits for all can easily turn into a story about “big brother” overriding
the rights of the small consumer.
Understanding of the technical issues has increased through several initiatives including forums and
workshops with open engagement and collaboration. The main purpose has been to improve trust and
understanding amongst the stakeholders. This, in turn, can lead to more meaningful discussions on the
actual cost impact of rapidly deploying solar PV. Further engagement is still required to continue
reducing the in gap in understanding of how the cost of electricity is impacted.
This case study used tools 2, 3, 5, 6, 9 and 14. 10
6.1.3 Key themes and effective practices for engaging and communicating with
stakeholders 11
Table 5 summarizes the steps taken in each of the case studies and the key insights or learnings
gained by the utilities and by the WG team in the post project review.
Table 5 Key Learnings from case studies 1-6 about communication
Case study Key Insights/Learnings
Case 1—Blackout in South Vastly different expectations amongst the stakeholders and a lack of trust in the
Australia validity of information provided led to a range of conflicting views as to the
cause of the blackouts. A targeted approach to build trust by the Independent
Market Operator had reasonable success.
Case 2—Citizen Juries The use of extended engagement with processes that allowed differing views to
be aired and independent experts to provide input helped develop a consensus
view on the way forward.
Case 3—Regional scheme Extensive engagement was used to build understanding and consensus with
to develop grids stakeholders for a ten year plan for the connection of renewables to the grid.
to connect
renewable
resources
Case 4—A cake analogy A simplified model was used to illustrate the complexities of the power system
for the changing and how the various components interact to influence its overall performance.
power system
Case 5—A special Regionally, better outcomes were achieved from both an environmental and
consultation economic perspective by using an iterative approach with producers to secure
process location and capacity for RES projects, while accounting for the consequences
for the grid.
Case 6—Rapid solar PV Diverse and competing interests presented a huge challenge for building trust
uptake in and understanding the perspectives of all the stakeholders. The gap in trust
Australia and understanding was reduced with on-going open engagement and
collaboration utilising forums, workshops, etc. amongst the various interest
groups.
10 Refer section 4.3

11 https://www.ssen-transmission.co.uk/news/news--views/2020/7/ssen-transmission-response-to-ofgem-draft-
determination-of-riio-t2-price-control/
https://www.spenergynetworks.co.uk/userfiles/file/SPEN_RIIO-T2_Business%20Plan_TO-User-Group_Report.pdf
35
6.2 Group B—Communicating with large groups of stakeholders.

While gaps in understanding amongst all stakeholders and electrical specialists are commonplace, there
are specific gaps that apply where electrical specialists need to communicate with large groups of
stakeholders.
Case studies 7 – 10 were selected for this group:
7. Community gain—how TSOs can work with local groups to identify how the TSO can invest in
the community as both a benefit to the community and as a host for infrastructure;
8. Improved customer experience with an improved website and smart-phone app;
9. How electricity partners communicate with a big group of participants who have no or limited
knowledge of the electricity and gas market; and
10. Enhanced stakeholder engagement in Great Britain UK.
The following analyses review these case studies and outline which stakeholder types are affected by
gaps, what the gaps are and how these gaps were addressed. In many cases the gaps in understanding
are like those seen by other types of stakeholders, however, the approaches taken to address the gaps
are aimed at larger groups with complex, often competing, interests.
These four case studies provide examples of eight of the general gaps as shown in Table 6.
Table 6 Specific examples from case studies 7-10 related to general gaps identified in Table 1

1. Understanding the role of the  An Irish project involved a complex organisation that led to
system operator as project confusion regarding the roles of various parties, particularly
developer and network between the TSO (EirGrid) and the Transmission Operator
owner as asset owner (ESB Networks) (§6.2.1.1)
2. The complexity of system  Technical understanding of the impact of plans on the
operation Network, especially capacity (§6.2.3.1)
5. Valuing the impact on wider  Understanding of health risks including EMF. Power lines in
society of decisions relating general, and especially high-voltage lines, attract high levels
to power system planning of misinformation online regarding the health impacts of
and operation EMFs (§6.2.1.2)
 The gap here regarded the lack of consideration of the
impact on wider society of decisions relating to network
business plans (§6.2.4.3)
6. Understanding of technical  The economic justification and technical need behind the
need and economic project needed to be communicated in a way that was clearly
justification understood by large groups who were unsure about the need
for the project and how the project impacted the local area
(§6.2.1.3)
7. Understanding the financial  The financial compensation programme developed for the
compensation and legal project needed to be explained. The gap here regarded
background understanding what financial compensation was available,
the criteria for payment, and how the various schemes were
managed (§6.2.1.4)
8. Inadequate customer  Understanding what utility activities are now underway. The
communications solution was an updated website and improved social media
presence (§6.2.2.1)
 Understanding customer account setup, available programs,
and billing. The solution was an updated website and
improved social media presence (§6.2.4.3)
36

9. Understanding guidelines,  Lack of definite policies from key stakeholders leading to a
policies, and codes lack of investment certainty (§6.2.3.2)
 Policy and Political Administrative differences (§6.2.3.2)
 Lack of clarity in guidelines, policy, and codes of conduct
 Lack of understanding of how electricity network companies
align business plans with the economic regulator (§6.2.4.2)
10. Lack of direct user input  The understanding gap here regarded the lack of direct input
about network plans to the network business plans by users of those networks
(§6.2.4.3)
6.2.1 Case study 7: Community gain – how TSO’s can work with local groups to
identify how the TSO can invest in the community, as both a benefit to the
community and as a host for infrastructure.12
Communicating with large local groups can be challenging when there is a pressing need to deliver
transmission projects. The Mullingar-Kinnegad project was a 24 km, 110 kV line which was successfully
delivered by EirGrid (Ireland’s TSO) in 2016. The case study introduces us to the concept of Community
Gain. This approach, administered by two independent organisations, provided a community fund for
use by local groups along the line’s path.
6.2.1.1 Gap 1: Understanding the role of the system operator as project developer
and network owner as asset owner
The understanding gap here centred on the role of the Transmission System Operator (TSO) (EirGrid)
as project developer and the Transmission Operator (TO) (ESB Network) as asset owner. The roles
within development programmes can be complex. In dealing with large groups such as landowners it
is important to be very clear about who is doing what. Establishing good working relationships is a very
important step in determining what the gaps in understanding are and how to address them.
It is EirGrid’s role as TSO under the agreed Infrastructure Agreement between TSO and ESN Networks
that EirGrid manage the landowner engagement for new projects. The in-house public relations team
ensured that mass media (local newspapers and local radio), brochures and the project website carried
a consistent message about EirGrid’s role.13
The same message was used during kitchen meetings with landowners and farmers about the project
and on project social media sites (Facebook and YouTube).14 The kitchen meetings established trust
between EirGrid and the local people. Feedback from the kitchen meetings was used by the project
team to understand the local perspectives better and fed into the thinking behind the mass
communications including social media and newspaper adverts etc.
Tools used included 3,4,6.7,8,9,10,11,12,13,14.15
6.2.1.2 Gap 5: Valuing the impact on wider society of decisions relating to power
system planning and operation
The understanding gap here was focused on health risks and EMF. In order to address the gap a high-
quality brochure was developed which included high level but informative diagrams to explain EMF. The
12 Additional sources for Case Study 7 include: EirGrid Mullingar-Kinnegad Project website; Interview with Neil Keegan, Senior
Project Manager 3 March 2021; Interview with Ciaran McNamara, Project Manager 25 January 2021; and Review by David
Martin, In-house Media Manager 8 March 2021.
13 Constraints Study http://www.eirgridgroup.com/site-files/library/EirGrid/Executive%20Summary.pdf
14 Community Fund Youtube Video : https://www.facebook.com/eirgrid/videos/kildare-meath-grid-upgrade-information-

days/667822914441896 Facebook https://www.facebook.com/eirgrid/videos/eirgrid-community-fund-mullingar-kinnegad-
110-kv-project/592934804249612/
37
same graphics were consistently used on a website and linked to social media. During kitchen meetings,
the brochure was an effective tool to address worries held by landowners and community groups. EMF
experts were available to take background EMF readings to demonstrate that the EMF readings in the
house were higher than from the new powerline. The brochure was not technically complex but used
high level graphics to explain basic concepts such as the fact that lines were being upgraded and there
were no additional lines being built as part of the project. The document used plain English principles
to ensure that text was easily understood.
Tools used included 3,4,6,7,8,9,11,12,13,1415
6.2.1.3 Gap 6: Understanding of technical need and economic justification

The gap here arose regarding the economic justification and technical need for the project. To address
the gap, a high-level explanation of the business case was developed by the in-house public relations
team. The case was based around the local security of supply needs, how the quality of electricity
supply directly impacts several industrial sites in the area, as well as prospects for industrial investment
in the area.
Questions related to the technical requirements for overhead versus underground were only dealt with
at a high level in brochures with project managers dealing with more technical questions during
engagement with consultants and other specialists. EirGrid proposed to rationalise the electricity
network in the region and remove some low voltage powerlines which were no longer required, this led
to public buy-in as there were no additional OHL in some regions.
Tools used included 3,4,6.7,8,9,10,11,12,13,1415
6.2.1.4 Gap 7: Understanding the financial compensation and legal background

The financial compensation programme developed for the project needed to be explained. There were
multiple streams that could be accessed by stakeholders—mainly landowners and local community
groups. A gap developed around the understanding of what financial compensation was available, the
criteria for payment, and how the various schemes were managed.
A high-quality brochure was developed for the project that explained a comprehensive compensation
package of proximity payments. This was a specific form of payments made to those properties within
50-200m of the line. It was a distinct form of compensation from other payments which were made to
landowners on whose land pylons were placed.
The Community Fund concept drew significant levels of attention in local media and as a result, local
community groups were a much more significant stakeholder than in other similar projects. The
atmosphere around the project was very positive.
High-quality brochures were developed to explain how the Community Fund scheme worked. It
delivered grants to community groups along the line. These grants were administered through two
independent groups: The Community Foundation for Ireland and Westmeath County Council which
administered the scheme.
A coordinated media approach was taken that ensured the same message and detail regarding the
compensation funds was used on websites and social media. Having such a comprehensive funding
package available meant that new and stronger relationships were developed with large groups
including community activists, local media, and local government. Many of these would not have the
same level of interest in such projects were it not for the presence of the Community Fund in particular.
Tools used included 3,4,6.7,8,9,10,11,12,13,1416
6.2.2 Case Study 8: Improved customer experience with an improved website and
smart-phone app
As the world becomes more and more technology driven, it is extremely critical that utility companies
adapt quickly, otherwise they are likely to be left behind. One of the largest utilities in the US transformed
its customer experience by implementing a new website, a customer communication platform, and a
38
mobile app. The new customer-centric engagement model is driving millions of self-service transactions,
decreasing direct calls by 12%, and continues to grow year on year. 17, 18
Before the upgraded technology platform was developed, the utility had the following gaps when
engaging with their customers and stakeholders.
6.2.2.1 Gap 8: Inadequate customer communications

The understanding gap here covers two aspects. The first considers what utility activities are now
underway. Customers often ask the question: “What are you doing with my money?” With an outdated
website and lack of social media presence, the information received by stakeholder groups must be
presented through direct one-on-one engagement or through externally controlled mediums—local
news channels/websites, in-person meetings, direct phone calls, etc.
To provide great customer service as a utility, it is imperative to communicate activities to stakeholders,
especially the positive things being done to support communities and information on projects to assist
the understanding of various stakeholder groups. Through the creation of a modern website and social
media accounts, utilities can provide this service and reach a wide audience of interested stakeholders.
The second aspect regarded customer account setup, available programs, and billing. Without
integrated systems, a modern website, and a mobile app, customer questions about their account,
advice on what potential cost-saving programs are available to them, provision of real-time information
on their usage, or responses to general billing questions, have to be done via one-on-one
communication.
Today, technology is at the fingertips of nearly everyone. It is becoming an expectation that individuals
can accomplish most, if not all, necessary tasks directly through their mobile devices or computers.
Therefore, having a modern website and mobile app in which customers can create a new account,
access and manage their existing account, learn about different programs that may apply to them, not
only pay but read and understand more about their bill, and engage with the utility instantly for questions
or issues, is critical to creating and maintaining great relationships with customers.
Tools used: 3, 4, 6, 8, 9, 11, 1419
6.2.3 Case Study 9: How electricity partners communicate with many participants
who have limited or no knowledge of the electricity and gas markets.
In the Netherlands decentralized authorities from 30 Regions have come together to form a Regional
Energy Strategy (RES). Many different stakeholder types are involved including municipalities,
provinces, water boards, as well as residents, environmentalists, network operators and the central
government.
The Regions are currently working on the first Regional Energy Strategy 1.0—RES 1.0— that has
specific targets for the period from 2030 to 2050. The 30 Regions are supported by the National
Program RES (NP RES) an independent institute that helps all parties in the process to understand
each option being considered. Some issues that have come up include:
 Reaching a consensus can be challenging because each region has representatives from
diverse backgrounds such as community groups, entrepreneurs, and local residents;
 Very often the interests and perspectives of those involved may be at odds with each other. As
a result, there is no single perfect solution but rather the various groups must work towards a
compromise that each can accept; and
 Goals for sustainable amounts of energy to be generated are weighed against factors such as
feasibility, affordability, spatial integration, and social and administrative support.
17. See: Cognizant—Utility Strides Toward Customer Centricity, https://www.cognizant.com/us/en/case-studies/utility-

company-customer-experience
18. Other examples include:
Top-Rated Websites (per E-Source.com): https://www.evergy.com/, https://www.srpnet.com/,
https://www.comed.com/Pages/default.aspx, and https://www.nvenergy.com/.
Websites Illustrating Ongoing Projects: https://aeptransmission.com/, https://www.transmission.xcelenergy.com/Projects,
https://www.pge.com/en_US/safety/electrical-safety/safety-initiatives/transmission-project-overview.page.
39
6.2.3.1 Gap 2: The complexity of system operation

The understanding gap here regarded insufficient shared insight/understanding about transmission
network capacity as affected by project siting search areas and plans. This, in turn, led to insufficient
certainty for grid operators to make pre-investments, for developers to be able to realize plans, and for
governments in the region to support plans.
In response, the network operators shared their insight with the different stakeholders by producing
brochures with an explanation of the (working of the) grid/system. This gave a better understanding of
the possibilities and the issues. It also helped provide more consistent messaging.
The NP RES has managed to get agreement on a small number of key messages as a first step to
resolving the main issues. This approach also helped improve the level of participation by various
groups, particularly administrators, community/social groups, and investors.20
Tools used: 1,3,7,8,9,11,1619
6.2.3.2 Gap 9: Understanding guidelines, policies, and codes

The understanding gap here covered 3 aspects. The first regarded a lack of definite policies from key
stakeholders leading to a lack of investment certainty for grid operators, developers, and governments.
This uncertainty limits grid operators making pre-investments, developers’ ability to realize plans, and
for governments in the region to support plans.
NP RES, as an independent intermediary party, has managed to gather the most important stakeholders
(including ministries, network operators, regions, other social organizations, energy developers, nature,
and environmental organizations) into WGs to address various subjects, where none existed before.
The WGs—Grid Capacity, Energy, Nature and Landscape, SDE and Social Costs, and Solar on Roofs—
are chaired by an independent chairperson and secretary. The participants also sit in a personal
capacity. The other WGs link up with existing processes as much as possible.
The second aspect regarded policy and political administrative differences, which play a role in many of
these subjects. These issues cannot always be solved within the existing frameworks and
preconditions.
In response, participants worked intensively in a broader more multi-disciplinary team, with experts
developing solutions which may be applicable in the medium and long term. Some topics may emerge
for which there is no possible solution even in the longer term. This is also clarified in the case study.
The third aspect regarded lack of clarity in guidelines, policy and codes of conduct limiting their effect in
the RES. That is why some topics need to be addressed first to advance the overall plan.
There is a need to share knowledge and perspectives to build consensus. While there is already a lot
of information available, it is possible to share even more worthwhile insight into the effects of specific
changes to guidelines, policies, and codes of conduct. The use of regular WG’s will help to scale the
level of proposals and consideration.
Tools used: 2,4,6,7, 8, 9, 10, 11, 12,13,14,15,16, 17, 21
6.2.4 Case Study 10: Enhanced stakeholder engagement in Great Britain

A major challenge for the electricity sector worldwide is ensuring that investment in electricity
transmission and distribution networks delivers a system which meets its consumers’ needs. However,
understanding what those needs are and the associated uncertainty is a major challenge. This
challenge is particularly important given that transmission networks usually form part of the natural
monopoly element of the system. An approach adopted recently in Great Britain developed an
“enhanced stakeholder engagement” process to support the development of electricity network business
20.
More information is available at: https://www.regionale-energiestrategie.nl/default.aspx
40
plans for the RIIO-2 price control period.22, 23 Ofgem, the GB energy regulator, decided to put this in
place to deal with “the increasing scale and pace of change occurring across the energy system”. 24
The proposed framework included:
 A requirement for each network company to set up an engagement group of
users/customers whose role is to engage with the network company throughout the
development of the company’s business plan, challenging them on their assumptions,
outputs and plans for investment. For Transmission Owners (Tos) and the Electricity
System Operator (ESO) these groups are known as User Groups; for Distribution
Network Operators (DNOs) they are known as Customer Engagement Groups.
 A central ‘Challenge Group’ tasked with assessing and reporting on all network
business plans and providing views on the structure of the wider RIIO framework being
led by Ofgem.
 A set of “Open Hearings” to allow public discussion of business plan proposals put
forward by network companies.
6.2.4.1 Gap 5: Valuing the impact on wider society of decisions relating to network
planning and operating
The gap here regarded the lack of consideration of the impact on wider society of decisions relating to
network business plans. Network costs in Great Brittan are paid for through electricity bills, either
directly, or via charges placed on generators. However, networks provide a public good capable of
supporting or creating a barrier to wider societal ambitions such as decarbonisation, economic
development, or reduction of fuel poverty. Whilst the regulator represents consumers when determining
price control decisions, there remains a gap in terms of ensuring wider stakeholders are fully
represented in this area.
In addition to the engagement groups that focused on each network company, Ofgem formed a central,
independent, industry-wide challenge group. This group consisted of senior and experienced
representatives from consumer organisations and experts in regulatory practice from energy and other
sectors. The group reviews and provides comments from all network companies. The group also allows
a broader perspective to be considered. During the development of business plans for electricity
transmission and electricity system operation (and the GB gas networks which were also covered) the
group identified a lack of justification for investment and hence, from their viewpoint, a failure from a
consumer perspective; and an expressed disappointment in the lack of ambition put forward by networks
in supporting delivery of Net Zero by 2050, a key policy ambition for Government within the UK.
The Covid pandemic disrupted the open hearings aspect of the enhanced engagement model which
aimed to provide a degree of full, public open debate and comment on the business plans submitted by
network companies. Open hearings were due to be held in Spring 2020 between the submission of
network companies’ final business plans. Instead, virtual hearings were held in Autumn 2020 well after
Draft Determinations had been published by the regulator and the end of the corresponding consultation
and only weeks before publications of Final Determinations.
Tools used: 2,4,9,1725

The understanding gap here regarded how electricity network companies align business plans with the
economic regulator. The process of developing a network business plan to cover investments in either
transmission or distribution infrastructure over a period of five years is a complex process. It requires
22
. “The Office of Gas and Electricity Market (Ofgem) has implemented RIIO (setting Revenue using Incentives to deliver
Innovations and Outputs) for the incentive-based regulation (IBR) covering the gas and electricity transmission and
distribution network in Great Britain (England, Wales, and Scotland).” Source: https://store.frost.com/incentive-based-
regulation-riio-model-great-britain.html
23
. See: https://www.ofgem.gov.uk/publications-and-updates/riio-2-enhanced-stakeholder-engagement-guidance
24.
Paragraph 1.4: https://www.ofgem.gov.uk/publications/riio-ed2-enhanced-stakeholder-engagement-guidance-version-2
41
detailed knowledge of both the technical engineering of the infrastructure and the technical regulatory
mechanisms used to define allowed revenues.
To address this gap, the transmission user group and the distribution consumer engagement groups
held extended meetings on a regular (usually monthly) basis over several years with a fixed
membership. Membership of these groups included representatives of organizations that connect
directly to the networks such as generators and industry, as well as organizations that represent user
groups such as consumers, businesses, charities supporting households in (fuel) poverty, and
organizations championing environmental issues.
The longitudinal and in-depth engagement between the user group members and the network
companies allowed them to develop a much deeper understanding of the business planning process
and to appreciate, from the perspective of their own organizations, the decisions and trade-offs that are
involved in developing and determining network investment.
6.2.4.3 Gap 10: Lack of direct user input about network plans
The understanding gap here regarded the lack of direct input to the network business plans by users of
those networks. In GB, network companies must commit to the network demands they expect during a
price-control period, and to identify and define these several years in advance of the start of a five-year
price control period. Whilst they often actively engage with stakeholders to identify need, there remains
a gap between stakeholder expectations of what networks will deliver, what network companies plan to
deliver, and what regulators allow to be delivered.
The transmission user-groups and distribution customer engagement groups were asked to challenge
the network companies throughout the business-planning process. Through their in-depth
understanding of the process the network company was going through, the engagement groups were
able to identify and challenge assumptions that the network company were making and to help the
network company to engage appropriately with all stakeholders.
There were clear indications of success. Both network companies and engagement groups themselves
highlighted the value of the system. For example, one Transmission Owner stated that “the contribution
of the User Group was invaluable in strengthening the quality and ambition of our RIIO-T2 Business
Plan” whilst a User Group for another Transmission Owner said “overall, we consider that they [the TO]
has taken a robust approach to engaging stakeholders, which has been thorough and comprehensive. 27
This has evolved very significantly during the development of the Plan, and they have responded
positively to input from the User Group”. 28
stakeholders
Table 7 summarizes the steps taken in each of the case studies and the key insights or learnings gained
by the utilities and by the WG team in the post project review.

27. See: https://www.ssen-transmission.co.uk/news/news--views/2020/7/ssen-transmission-response-to-ofgem-draft-
28. See: https://www.spenergynetworks.co.uk/userfiles/file/SPEN_RIIO-T2_Business%20Plan_TO-User-Group_Report.pdf
42
Case 7 – Community gain –

The Community gain process was administered by two independent
how TSO’s can
organisations with a community fund set up for use by local groups along the
work with local
line’s path. Good working relationships were established, the utility ensured
groups to
consistent messaging across mass media and in meetings with landowners and
identify how the
farmers. This enhanced trust amongst the parties. High level graphics and plain
TSO can invest
English were used to explain basic concepts. Some rationalisation of existing
in the
infrastructure was used to counter the impact of the new line. Grants,
community, as
independently and consistently provided via a Community Foundation helped
both a benefit to
build stronger relationships.
the community
and as a host
for
infrastructure.
Case 8 – Improved Interaction with a wide audience was considerably enhanced by construction of
customer a targeted modern website. Customer information was made readily accessible
experience with via a mobile app, freeing up staff to deal with more complex issues which
an improved needed a one-to-one engagement.
website and
smart-phone
app.
Case 9 – How electricity Here, decentralised authorities with diverse stakeholders came together to form
partners a regional strategy. Brochures were produced to explain the workings of the
communicate grid / system. Guidelines, policies and codes were improved to help with
with many investment certainty. Working Groups with independent chairs and secretaries
participants who were created to address various subjects of concern. Policy and political
have limited or differences were addressed to some degree with multi-disciplinary teams that
no knowledge of included experts.
the electricity and
gas markets.
Case 10 – Enhanced This process was required by the UK regulator, Ofgem, to deal with the
stakeholder increasing scale and pace of change occurring across the energy system. The
engagement in framework included setting up an engagement group with customers, a ‘Central
Great Britain Challenge’ group and a set of ‘Open Hearings’. Regular monthly meetings with
a fixed membership allowed a much deeper understanding of the processes
and where trade-offs were needed. Improved solutions with all parties
highlighting the value of the system demonstrated the success of this process.
To consider wider societal impacts, Ofgem established a process of open
hearings and utilised a separate, independent, industry wide challenge group.
6.3 Group C: Engaging with stakeholders on the need for, benefits and
impacts of major transmission reinforcements
All power grid operators face the need for reinforcements which, depending on the country, involves
attracting suppliers at the bidding stage, understanding the need to obtain new property, gaining the
different types of permissions and other essential operations. Success and duration of such projects
often depends on the level of understanding by the involved stakeholders, the logic of local power sector
functioning, the need for reinforcement projects, the decision-making process, and for the stakeholder
trust of the electricity companies.
43
Case studies 11 – 14 were selected for this group:

11. Explaining the need for the “Bruce to Milton Transmission Reinforcement Project” in Ontario,
Canada and the associated land acquisition compensation policy;
12. Installing HV cables in deep tunnels in London;
13. Creating a Working Group to assess the main problems of delays in reinforcing the main
Brazilian network (230 KV and above); and
14. The joint supplier/customer development of an electronic catalogue of typical relay protection
and automation schemes for all voltage types in Russia.
These case studies show the importance of working systematically with the general public and with
targeted stakeholders, particularly in terms of long-term planning. A communication gap in terms of a
lack of key knowledge and understanding is the most common issue on the project execution stage,
which ends up causing practical difficulties and delays.
These four cases provide examples of three of the general gaps as shown in Table 8.
Table 8 Three general gaps found and nine specific examples from case studies 11-14

6. Understanding of  Low-level of awareness of the need of the project for
technical need and electricity industry development (§6.3.3)
economic justification  Lack of the key knowledge/understanding and low-level of
awareness of the need of the project for electricity industry
development (§6.3.3.1)
8. Inadequate customer  Lack of awareness of the need for the project for long-term
communications electricity industry development (refurbished nuclear
generation, transition to green energy), and associated
need for extra grid capacity) (§6.3.3.2)
 Lack of key knowledge/understanding of the context of the
project including low awareness of the energy sector
operation model and of the need of the project for the city
(environmental benefits) (§6.3.3.2)
 Lack of knowledge/understanding of the information
available and the way it was presented (§6.3.3.2)
9. Understanding  Affected stakeholders were not aware of the basic
guidelines, policies, decision/management process and how they can engage
and codes their interests (§6.3.1.2)
 Affected landowners’ lack of trust in the company’s ability to

acquire property rights for the project in a fair and
reasonable manner (§6.3.3.3)
 Lack of motivation where the project does not meet the

financial interest expectations of potentially involved
stakeholders. And, technical/management issues
(§6.3.3.3)
 Disconnect between the established bidding process and

the needs of local communities (landowners), authorities &
politicians, business, media, engineering companies,
producers & suppliers, and the system operator (§6.3.4.1)
6.3.1 Case Study 11: The Bruce to Milton Transmission Reinforcement Project:
Hydro One is Ontario Canada’s largest electricity transmission and distribution service provider. The
Bruce to Milton Transmission Reinforcement Project is a 176 km, double-circuit, 500 kV line that runs
alongside an existing transmission line corridor between the Bruce Nuclear Generating Station in
Kincardine and Hydro One’s switching station in Milton. The project required expanding the existing
44
corridor that passes through primarily rural (agricultural) areas and relatively small rural residential
communities, affecting over 350 privately held properties.
The plan to build the line was announced in 2007 and was completed in 2012. The transmission line
has the capacity to transmit 3,000 MW of clean, renewable energy. The project was the largest
expansion of Ontario’s electricity transmission system in more than 30 years and, as a result, is a major
addition to the province’s electricity grid. While there were many types of stakeholders involved in this
project (including indigenous peoples), this case study focusses on those landowners whose properties
were affected by the project as well as the elected representatives of those communities.

This understanding gap regarded a lack of awareness of the need for the project for long-term electricity
industry development (refurbished nuclear generation, transition to green energy, and associated need
for extra grid capacity). This resulted from a lack of knowledge about provincial and regional (local)
electricity industry operation and development needs, as well as the split of responsibilities between the
Electricity Transmission Provider and the Provincial Electricity Planning Authority and Operator. There
was confusion amongst affected communities and landowners over “Who-Does-What” in Ontario’s
Electricity Industry.
To address these problems several actions were taken including those described below.
Public information centres
Several public information centres consisting of typically, 3-hour evening sessions were scheduled and
conducted in various local communities along the route of the proposed transmission line. Open to all
interested parties, these centres were staffed by company project staff and contracted consultants. The
information centres were advertised in advance in local/community newspapers and in information
brochures distributed to households and businesses located in proximity to the proposed new
transmission line
At the centres, information about the project was set out in large story boards and maps that showed
detailed information about the project as it related to each property along the proposed project route.
To the extent possible, the narratives were written concisely and in plain language.
Project specific newsletters were mailed periodically to all affected property owners and distributed to
all those living in the vicinity of the project route. The newsletters included general project information,
with a focus on key milestone dates for the project (e.g., proposed route established, regulatory
applications submitted/approved, etc.).
Tools used: 6, 7, 8, 9 11 and 12.29
Provincial Electricity Planning Authority and Operator consultation process
From the Project outset, Hydro One worked together with representatives of the Provincial electricity
transmission system planner operator throughout the early stages of the project consultation process.
The representatives attended government briefings and local public consultation sessions along with
Hydro One representatives. This approach provided a complete picture of the need for the project, viable
and preferred options, etc. These representatives were also available to answer any questions that
affected landowners, their representatives or any other member of the public raised about the project
and associated processes.
Tools used: 4, 7, 9, 11, 12, 13 and 1429
Periodic Project Newsletters
Project newsletters written in plain language were distributed periodically to all landowners located near
the project. The newsletters were also available at the Public Information Centres and on the project
website. A dedicated project telephone line and email address was publicized to ensure landowners
and other stakeholders were informed about the project and to provide responses to all inquiries.
While no formal measures were used to demonstrate that concerns were being addressed, public and
stakeholder attendance at subsequent rounds of public information centres held just prior to project
construction was very low, which was an indication that major concerns were addressed or were being
45
addressed. Using project staff assigned to specific affected landowners very early on in the process
also aided in addressing concerns as these dedicated land agents were available to discuss and
address landowner issues at any time.
Tools used: 8, 9 and 11.
Timely Government Briefings/Updates
Prior to going public with the project, senior project staff from Hydro One along with senior staff from the
Provincial electricity system planner/operator met with local government representatives (both through
Council meetings and less formal meetings) to explain the need for the project and how the company
was planning to engage the local communities. Valuable feedback from local representatives was
acquired and relationships with local representatives were formed through these efforts.
Hydro One also provided regular briefings/updates to provincial and local government representatives
throughout the Project timeline.
Tools used: 4, 7, 9, 11, 12, 13 and 14.30

The gap in understanding here covered two aspects. The first was that the affected stakeholders were
not aware of the basic decision/management process and how they can express their interests. The
second was that affected landowners were not aware of the company’s voluntary land rights acquisition
process and how it compared to the legislated expropriation process.
The response was to establish local Working Groups (WGs). When a local community group raised an
important issue to the community (proximity of a local park to the new transmission line), Hydro One
without hesitation agreed to form a WG comprised of senior project staff and members of the local
community to address the issue. The WG jointly worked through the community’s issues via numerous
face-to-face meetings and reached a mutually agreeable resolution to the issues.
Another WG was formed to address the substantive issue of what constituted fair and reasonable
compensation to owners of property that were impacted by the new transmission line. A description of
this WG and its results are found in the next section.
Tools used: 2, 9, 10, 12 and 1330.
Engagement with landowner representative group to develop land acquisition compensation

principles
A landowner group formed shortly after the pProject went public, representing a significant portion of
the affected landowners along the project route. Their mandate was to ensure fair treatment of
landowners whose lands were required for the new transmission line.
Hydro One’s goal was to develop a compensation policy that would result in early, voluntary
property/property rights acquisition addressing property owner needs by offering choices and financial
incentives not contemplated under the Province’s Expropriations Act.
Senior Hydro One staff met with group representatives to discuss a broad range of property acquisition
matters that would ultimately result in a set of land acquisition compensation principles that would be
used by the Company. The meetings were conducted in an open and transparent manner, with Hydro
One making best efforts to provide the information requested by the landowner group and to answer
their inquiries. These meetings provided the Company with valuable input in the development of its
approach to property/property rights acquisition to support the project.
Hydro One’s Land Acquisition Compensation Principles were made public approximately one year after
the initial meetings with the landowner group. It was Hydro One’s view that these Principles provided a
fair balance between the needs of landowners, Hydro One, and electricity ratepayers in Ontario.
These Principles led to the timely, voluntary acquisition of approximately 95% of the required
properties/property rights.
The success of Hydro One’s Land Acquisition Compensation Principles was evident when the
landowner group withdrew from the regulatory proceeding for the Company to acquire leave to construct
46
the project, indicating that the Company’s release of the Principles were an important step in putting
landowners first.
Tools used: 2, 4, 6, 7, 9, 10, 11, 12, 13 and 14.30
Dedicated Property Agents for each Affected Landowner

Hydro One assigned dedicated property agents to each affected landowner very early on in the process.
These property agents formed relationships with landowners and were available to answer questions
about the Land Acquisition Compensation Principles and other property and project related matters.
They worked to ultimately reach property/property rights agreements with landowners, consistent with
the Principles.
Tools used: 4, 7, 8, 9, 10, 11, 12, 13 and 1431.
Timely escalation process to address any issues raised by landowners

A simple, streamlined issues escalation process was put in place to address concerns raised by affected
landowners, particularly related to land valuation and the determination of fair land rights compensation
based on the Company’s Land Acquisition Compensation Principles. The process involved the Project
Director from the outset, and typically led to issue resolutions in a consistent and timely manner.
Tools used: 9, 12, 13, and 1431
Learnings from the Bruce to Milton Transmission Reinforcement Project:

A key to ensuring stakeholders (and particularly affected landowners) are informed and engaged in the
project planning, consultation, approval, and land acquisition processes, is to reach them very early in
the project rollout, and to remain open, transparent, and responsive throughout the engagement.
Lessons learned on the Bruce to Milton Transmission Reinforcement Project include:
 Consult early in the process
o Consult early with affected landowners, especially those who are most profoundly
affected (i.e., owners of properties that Hydro One needs to purchase in their
entirety for the Project).
o Seek out community leaders and landowner groups early in the process to identify
issues and work cooperatively on solutions. The development of the Company’s
Land Acquisition Compensation Principles attained buy-in from the large landowner
group and was a key factor in the success of the Company’s property/property
rights acquisition program.
 One-to-one contact works best
o Assigning dedicated property agents to each affected property owner early in the
process builds relationships.
o Train all project staff to be aware of how the landowner/stakeholder is receiving the
project information. Attentive listening skills and an empathic approach to all
interactions goes a long way to building strong relationships.
 Principled, Open and Transparent
o While remaining true to project principles (e.g., technical planning, land acquisition,
etc.), it’s important to be open to new ideas and transparent in all project
communications and interactions. Using simplified narratives and language
typically puts landowners and other stakeholders at ease, leading to increased
engagement in interactions with project staff. This meant that Hydro One did their
best to avoid the use of industry jargon, or acronyms that would only be familiar to
those working in the industry. No models were used; however, a common analogy
was a major road system: major highways being like the electrical high voltage
transmission system (high volume/capacity, fewer off ramps, etc.), regional roads
being like the lower voltage transmission system or higher voltage distribution
47
system (lower volume/capacity, more off-ramps), and local roads being like
electrical distribution lines serving specific communities/customers.
 Be Responsive if/when issues arise
o If missteps are made (and this is bound to occur from time to time), react quickly
and decisively to address any issues raised and work cooperatively to reach
resolutions. A timely and consistent issue escalation process goes a long way to
strengthening relationships with affected landowners.
6.3.2 Case Study 12: Installing HV cables in deep tunnels in London Project
This project involved installing 32 km of 400 kV cables in large tunnels across 12 London Boroughs
passing under many properties and private land requiring land agreements, easements, planning
permissions and legal consents. In addition, land purchase for ventilation and safety houses were
required. Once operational, staff were not allowed entry to these, but if access to the tunnel for
maintenance or repairs is needed, then ventilation and staff entry is required, and shafts are provided
for this. Also, design considerations with authorities and companies to route around existing and future
infrastructure were required. Overall, the project required ten years of consultation with all stakeholders.
Early community engagement was critical to gain acceptance of the need for the works and any
disruption that may arise during the construction. Environmental benefits such as living green roof
construction where possible and showing that 98% of the excavated soil would be reused to improve
areas across London was important to get ‘buy-in’ to the project.
This project required significant communication with property owners and others and technical
explanation of why the project was required.

The gap in understanding here regarded a lack of key knowledge/understanding of the context of the
project including low awareness of the energy sector operation model and of the need of the Project for
the City (environmental benefits). Whilst the Project team were able to communicate the importance
and scope of the project, many members of the public typically did not understand the role of National
Grid within the energy sector and the function its assets serve once completed.
To gain support for the project from the key stakeholders, a communication campaign was organised
that outsourced an external communication campaign that included:
 Energy Education Centre;
 City Year Partnership;
 Project Volunteering;
 Project Open Days;
 Flyers/letter drops/newsletters;
 Public information days;
 Local MP visits;
 Information Boards;
 High level programme schematics;
 Videos;
 Letter/leaflet drops;
 Free telephone number;
 Site visits; and
 Facebook & Twitter.
There were several key communication channels accessible to all members of the public:
 Website;
 Twitter;
 Email;
 Hotline; and
48
 Contact board on individual sites.
All communications were outsourced to an external relations company which was managed internally
by National Grid’s external affairs team and operated with the following aims:
 Keep external stakeholders informed on project progress;
 Inform communities of any disruptive works;
 Help stakeholders to understand the need for the critical infrastructure;
 Provide a means to contact the London power tunnels team without overburdening the
day-to-day delivery team; and
 Support National Grid’s ambition to have a welcomed presence in local communities
and fulfil the corporate objectives.
Key stakeholders for the communications team included:

 People who lived and worked near to essential works;
 Community groups;
 Local Authorities;
 Politicians; and
 Media.
Content of communications:
 The communications team worked closely with the project engineers to understand the
technical elements of the project. The information was then translated into plain English
to use in communications materials. Typical examples are given in Chapter 8 of this
report;
 Information was supported by diagrams or infographics, where appropriate to explain
operations;
 Generally, stakeholders were interested in when the works would be done, the level of
impact, what it meant for them and who to call if they had any concerns about the
activity;
 Some required more technical information, but this is because they worked in a similar
industry/role; and
 Where stakeholders required more specialist information, they were referred to a
specialist team.
Contact with local communities and stakeholders included:

 Energy Education Centre—this was a free facility design to help pupil’s understanding
of STEM. The centre received 5000 students over the course of the project. The centre
allowed visitors to stand on a glass floor, gaze 50 m down the shaft, and walk through
a section of the tunnel;
 City Year Partnership—alongside the youth education charity, National Grid delivered
90-minute learning sessions to 20,000 primary school students on topics such as
energy, forces and materials;
 Project Volunteering;
 Project Open Days;
 Flyers/letter drops/newsletters were distributed to surrounding communities;
 Public information days—(at parish groups and resident associations) to allow the
public to talk through plans with members of the project team; and
 Local MP visits - as a matter of courtesy councillors and MPs were engaged at the
earliest opportunity to inform them of the potential effect of the project in the elected
areas.
49
Means of communication:
 Information Boards – a series of information boards were created to communicate the
project in plain English and were shown in consultations and advertised on site
hoarding;
 Typical use of high level programme schematics; and
 Videos worked well to show the underground assets and the construction of certain
components.32
The communication process was based on a culture of learning and listening to what included
stakeholders wanted for example:
 The process used a two-way discussion in which the need was made clear and any
technical reasons for the design explained, and changes were made to the project
where possible to address any concerns from stakeholders. For example, on a cable
route a different route has been agreed to overcome any difficulties, or a different
ventilation/access building chosen, or the route for construction traffic agreed, or
working hours agreed. The stakeholders suggested alternatives that were good and
adopted even if it increased the project cost. Other issues covered included:
o what information is lacking, or is lacking in ways that can be understood and used?
o what stakeholders appear to already know;
o what stakeholders would like to learn from electrical energy specialists;
o the role of the asset; and
o the need for the asset.
 Key communication challenges:

o The team were able to communicate the importance and scope of the project. Many
members of the public typically did not understand the role of National Grid within
the energy sector and the function the assets serve once completed.
o Whilst a robust communication plan was in place, inevitably some members of the
public directly approached the local council or their MP with regards to the project
as opposed to reaching out to the project directly (i.e., project hotline or email
address). Therefore, it was important to maintain regular contact and ongoing
relations with local councils and local politicians.
o It is often difficult to engage with busy Londoners:
Attendance at consultation events was dependent on engagement levels in
community areas, attendance at open days ranged from 3-50 people. Therefore, it
was important to have a suite of channels to engage including letters, events, free
telephone number, the web, the media, etc.
o The number of communication channels increased: in London the stakeholder
audience is diverse in age and ethnicity, therefore there is a need to maintain a
wide variety of communication channels from face-to-face consultations, physical
newsletter creation, to social media posts.
o The project spanned across several communities all with differing cultures and
levels of interest. Many stakeholders spoke English as a second language.
 Channels that worked well: traditional methods, including where stakeholders could
directly receive the information they needed, were most effective:
o Letter/leaflet drops;
o Free telephone number—stakeholders had a direct line to the community relations
team who could deal with any queries of complaints;
o Public information events where members of the project team were on hand to
directly answer questions;
32.
For example, see: http://londonpowertunnels.co.uk/see-our-exciting-project-video/
50
o At a political level, a drip feed of information was carried out to political stakeholders
to coincide with key milestones which generated some interest and briefing
opportunities; and
o Site visits during construction helped to best show some of the technical challenges
faced with the project and working in London which could not be conveyed as well
in writing.
 Channels that were more challenging:

o Facebook—tended to avoid this space. Stakeholders generally make contact if they
have a concern or complaint and managing content in this space could be difficult
as it could be used to promote people’s negative arguments following which it could
be difficult to control; and
o Twitter—used in line with project announcements. Could have been more engaging
and less corporate in this space. Also had limited following and was not the best
tool for local community updates.
 How the implementation of the project responded to feedback:

o At Highbury, stakeholders and the public were heavily involved in design;
o For the piling at Wimbledon, construction methods were changed in response to
community feedback;
o Due to existing issues with access to the site at Hackney, the project used an
entirely new access route;
o At Hurst, a haul road was built in response to feedback from local residents about
the suitability of the existing road, with a bund added to plans in response to one
resident; and
o For Bengeworth Road, the access route, planning process and engagement with
residents all changed to accommodate local preferences.
 Moving forward:
o Look at how content can be improved on social media to encourage larger following
to raise broader interest in the project and National Grid as a whole. This will include
more video content and humanised focus which show cases workforce.
Tools used: 1, 3, 6, 7, 8, 10 and 11.33
6.3.3 Case Study 13: Creation of a Working Group to assess the major problems of
delays in reinforcing the main Brazilian network
In Brazil, the concession of the Main Grid transmission lines (230 kV and above) is granted through a
bidding process (transmission auctions). By 2015, the Brazilian main grid (230 kV and above) faced
problems with its reinforcement projects. Due to lack of bidders for various projects in the 2013, 2014,
and 2015 transmission auctions, implementation of projects was delayed.
This case study demonstrates four specific examples of three general gaps in understanding. These
four examples were dealt with in a coordinated way as described following the description of the three
gaps.
6.3.3.1 Gap 6: Understanding of technical need and economic justification

The gap in understanding here regards the lack of the key knowledge/understanding and low-level of
awareness of the need of the project for electricity industry development. This came from a lack of
available public information to understand the necessity for new transmission projects.
To address the gap there was a need for improved communication between the electricity sector and
stakeholders (entrepreneurs, social and environmental bodies, and society in general) to show how
essential is the transmission system expansion.
51

The gap in understanding here regards the lack of knowledge/understanding of the information available
and the way it was presented. There was not enough information, or the existing information was not
structured and clarified, for a proper planning and management process. There was a slow exchange
of information about future projects (new indigenous lands, archaeological sites not catalogued,
pipelines under study, environmental issues not clarified, etc.) that might interfere with the planned
transmission lines and substations.
There was a need for improvement in communication between federal, state, and municipal planning
bodies, and between the Planning Authority—EPE and National System Operator, ONS—regarding
infrastructure planning. (Note: In Brazil, operation and planning are the responsibility of two different
entities.)

There were two specific gaps in understand in the case. The first was the lack of motivation where the
project does not meet the financial interest expectations of potentially involved stakeholders. The annual
revenues expected by the entrepreneurs were considered insufficient to recover certain costs. It
became clear that the content of the Technical Reports that support the Regulatory Agency (ANEEL) in
the preparation of the Tender Documents for Transmission Auctions needed improvement. These
reports also supported the stakeholders in the bid preparation for the auctions.
The second specific gap involved technical/management issues. The project’s basic aspects were not
worked out properly and the deadline for several projects was too short. There was also a need for
measures aimed at giving greater speed, rationality, and predictability to the environmental permits
process. Communication/prior interaction with the environmental bodies involved also needed
improving.
The coordinated approach to these gaps

Facing the need for improving communication between the electricity sector and stakeholders a
dedicated WG was created.
The main communication channels/tools available to publicize the planned expansion of the Main Grid
that were to be auctioned off were the institutional websites of the Ministry of Mines and Energy (MME),
the Planning Authority (EPE), the Regulatory Agency (ANEEL), and the System Operator (ONS). On
these websites, the information regarding the expansion needs, the description of the transmission
assets as well as the investment estimation and the deadlines for the operation start were available.
These sites were systematically updated over the years to reduce the communication gap with
entrepreneurs and interested parties, offering more information, and making navigation more user-
friendly. Therefore, they encouraged entrepreneurs, associations, and institutions representing various
sectors of society to search for the information on the websites.
Besides, both EPE and ONS provided power flow, short circuit, and stability databases on their websites
so that any stakeholder could access them and make their own analysis. ANEEL provided the schedule
of the next transmission auction and published the technical reports of the planning studies performed
by EPE with detailed information on the projects.
All studies carried out by EPE and ONS were also available for consultation on their respective websites.
EPE also provided “WEBMAP EPE”, which is a map of Brazil with georeferenced information on the
existing and planned transmission systems over the ten-year horizon. Existing and planned power
plants, socio-environmental information (indigenous lands, nature conservation units, etc.) that can be
easily accessed.
Regarding transmission planning, EPE issued a report every six months containing all the planned
reinforcements of the Main Grid (PET/PELP report). The transmission expansion studies already carried
out and the studies scheduled to be carried out in the current year were also available on the EPE
website. These actions reduced the communication gap between the Planning Authority and the various
agents in the sector.
The initiative to hold meetings with environmental agencies or state departments of infrastructure and
development by the beginning of a planning study arose from the need to reduce the communication
gap between the various agents. This was the opportunity to highlight the needs and the importance of
the network expansion and to provide an opportunity to present the recommended solutions, allowing
the information exchange with the various sectors. This reduction in the communication gaps also
52
helped to decrease the risks involved in the process of installing transmission assets. This action still
needs to be intensified since Brazil is a country of continental extent with distinct regional characteristics.
Evidence of improving communication between the MME, the EPE, the ANEEL, and the stakeholders
is implied by the following:
 The increase in the number of bidders in the most recent transmission auctions;
 The significant discounts on tenders offered by the bidders due to reduced uncertainties
regarding the projects' technical and socio-environmental characteristics and related
risks;
 The increase in the number of EPE website hits; and
 The increase in access searches on the Transmission Planning Pages of the EPE
website looking for planning study information.
Tools used: 2, 3, 4, 6, 9, 12, 13, and 14.34
6.3.4 Case Study 14: Jointly developing an electronic catalogue of typical relay
protection and automation schemes for all voltage types
Because direct communications between suppliers and customers (TSO/DSO) were limited before the
end of bidding procedures, and updated to IEC 61850 "ready-to-use" project configurations were not
available, the project development process consumed more time and resources.
On the one hand, the stakeholders responsible for creating new technical solutions were not able to
work closely on the design creation stage before the end of purchase procedures (tender). On the other
hand, before the tender was issued, there were no updates to the IEC 61850 "library" of possible
standards of Protection and Automation Devices (RPA) or Automatic Process Control Systems (APCS)
multi-units preapproved by TSO’s & DSO’s as appropriate for all classes of voltages depending on the
level of digitalisation.
As a result, engineering (design) companies needed to spend much more resources for working out
RPA & APCS multi-units designs for each project. In addition, production facilities had to utilise more
resources for producing a wider range of equipment.

The gap in understanding here regarded a disconnect between the established bidding process and the
needs of local communities (landowners), authorities and politicians, business, media, engineering
companies, producers and suppliers, and the system operator. Due to purchase policies (anti-
corruption), exact architectures of technical solutions were not identified in purchase tender
documentation to not limit the competition. This meant it was not possible to understand the TSO, DSO,
and System Operator’s internal preferences regarding architecture of variable technical solutions.
The solution was to develop a closed list of typical architectures of technical solutions pre-approved by
the Utility and System Operator. A dedicated Working Group was established for all interested
producers. An R&D project was initiated to provide transparent and "ready-to-use" solutions in the
format of a "library" of possible Protection and Automation Devices (RPA) and Automatic Process
Control Systems (APCS) multi-units pre-approved by TSO’s and DSO’s as appropriate for all class of
voltages depending on the level of digitalization according to IEC 61850.
Tools used: 2, 4, 6, 9, 12 and 13. 34
stakeholders
53
Case 11 – The Bruce to Key learnings included: Consult early in the process, one to one contact
Milton works best when working with directly affected property owners.
Transmission Engagement should be principled, open and transparent, and respond
Reinforcement quickly if and when issues arise.
Project.
Case 12 – Installing HV Early engagement at the start of the 10-year consultation process was
cables in deep critical. A communication campaign was used to explain the project and the
tunnels in roles of the parties. A range of communication channels were used.
London. Challenges included explaining the role of National Grid, stakeholders may
not use the offered path to consult, many stakeholders have busy lives with
little time for extensive engagement, the range of stakeholders was diverse.
Leaflet drops, a free phone number, public information events, keeping
political stakeholders informed as needed and site visits during construction
all worked well. Facebook and Twitter were challenging to use.
Case 13 – Creating a WG A dedicated Working Group was created to improve communication
to assess the amongst the stakeholders. Various websites were used and regularly
main problems of updated. An open approach was adopted and all studies were made
delays in available on line. Six monthly reports were made available. Regular
reinforcing the meetings with Government departments ensured improved communication
main Brazilian and engagement.
network (230 KV
and above).
Case 14 –The joint To avoid limiting the available tenders and at the same time ensure
supplier/customer solutions were compatible with Utility requirements, a dedicated Working
development of Group with all interested producers was established. This created an R&D
an electronic project which successfully provided a library of transparent and “ready to
catalogue of use” solutions. This greatly reduced communication road blocks.
typical relay
protection and
automation
schemes for all
voltage types in
Russia.
6.4 Group D: Dealing with poor stakeholder communication and vocal

minorities
This section focuses on the impact of stakeholder relationships on effective communications and the
success of projects and initiatives. The group has a special focus on difficult communication problems.
Case studies 15 – 20 were selected for this Group:
15. How a necessary technological change very badly communicated to the public provoked
rejection by most citizens and impeded implementing a correct public policy in Chile.
16. How engaging with stakeholders may lead to paralysis where society at large suffers (poor
reliability or high-cost electric service) because the interests of a vocal minority block all
progress.
17. How engagement between the Italian TSO, in collaboration with Renewables Grid Initiative
(RGI) and Legambiente, the most widespread Italian environmental NGO, organised two
workshops about community dialogue with different stakeholders.
54
18. How removing relationship barriers between a mid-tier vertically integrated North American
Utility and external stakeholders affected communications and results.
19. How focusing on improving relationships between a vertically integrated North American utility
and external stakeholders as part of the filing of a mandated Integrated Resource Plan, led to
improved results.
20. How leveraging relationships with a utility’s stakeholders in delivering strategic objectives
enabled effective outcomes.
These case studies highlight more than simply getting the utilities’ messages across. They show the
impacts of stakeholder relationships on the ability of the utility to communicate effectively with
stakeholders and to produce effective results in collaboration with or in consultation with stakeholders.
The case studies come from several different countries and encompass a wide range of technical topics.
The technical knowledge and capabilities of the stakeholder groups are varied from non-technical to
highly skilled.
The cases also examine the impact of small but vocal groups on the ability to work effectively with
stakeholders overall. They serve to highlight that working effectively with stakeholders requires both
effective communication of technical topics, and effective relationships with stakeholders, or at a
minimum, effective listening and engagement with stakeholders on what matters to them.
These six case studies provide six specific examples of general Gap 8 as shown in Table 10.
Table 10 Six specific examples of Gap 8 from case studies 15-20

8. Inadequate  Poor communications led to mistrust among most
customer stakeholders, follow-on communications were perceived as
communications inauthentic, and stakeholders were distrustful of both
government and the utilities (§6.4.1.1 )
 Local opposition in a few districts were both vocal and active
resulting in government taking positions that favour the vocal
group at the expense of the larger society (§6.4.1.2)
 Overall communications with stakeholders had been ad hoc
or without format or structure (§6.4.1.3)
 Operational failures in the system undermined regulator and
stakeholder confidence in the utility leadership and triggered
negative assessments about the utility’s truthfulness
(§6.4.1.4)
 Coal based utility with both pro- and anti-coal stakeholders
faced impacts of job loss and the overall economy from
deciding to close coal plants (§6.4.1.5)
 Oil based utility facing revenue shortfalls needs to increase
rates and government support for investments to convert to
gas-fired generation in conjunction with developing
renewable generation (§6.4.1.6)
6.4.1 Specifics gaps for cases 15-20
6.4.1.1 Case 15—Technology change

The Chilean National Energy Commission has implemented a new requirement that electrical power
distribution companies meet new technical performance standards. This requirement includes
provisions to implement Monitoring and Control Systems to oversee performance. This decision came
because of discussions with the Commission regarding needed technical improvements within the
utilities.
The situation appears to have been complicated by ineffective communications with the public leading
to poorly-informed stakeholders engaging in the dialogue. This adversely affected the decision making
leading to opposition from most customers to something that will serve their interests.
55
Apparently, limited consultation with stakeholders led to an unfavourable response as of this writing.
The initial findings seem to indicate that the public are suspicious of the government. The project is still
in development, and it is important that lessons be learnt from progress so far.
Tools used included 1, 6 and 11.35
6.4.1.2 Case 16—Vocal small group impact

In this case in Germany, locals in a few districts within the state of Bavaria opposed important overhead
lines needed to support the safe and reliable operations of the system and the ongoing energy transition.
This led the state government to adopt the arguments of the highly vocal overhead line opponents. The
result was that a Federal German decision to give preference to underground cabling of four corridors
of HVDC North-South lines of 2 GW transfer capacity and over 500 km length which caused severe
increases in the cost of the transmission system and of the overall energy transition. Beneficiaries of
this decision are relatively few (primarily inhabitants in the villages where the overhead lines would have
been visible). The cost impacts are borne by all 82 million citizens, who will pay approximately five or
more times higher costs for the underground lines than the overhead lines. These other stakeholders,
representing a broader cross section of stakeholders across Germany, had little to no voice in this
decision and little to no opportunity for involvement.
The communications with the local groups were not persuasive since the economic impact on them as
individuals was small and costs would be borne by all citizens. There was no framework in place that
could be used in discussions with State or Federal government to compare the costs of undergrounding
the lines to the number of people who were against the proposed new overhead line.
Tools used included 1, 6 and 11.35
6.4.1.3 Case 17—Community dialogue

The Italian TSO was facing concern and opposition regarding new and existing transmission lines, with
a particular concern regarding EMF and visual impact. The TSO examined other methods of engaging
with stakeholders and heard different views.
The Italian TSO worked in collaboration with Renewables Grid Initiative (RGI) and Legambiente, the
most widespread Italian environmental NGO, to organise and execute two workshops and a series of
activities focused on the importance of making all stakeholders aware of the role of grid infrastructure in
the energy transition process. The workshops were set up with different stakeholder groups (local
communities, local authorities, environmental and consumer associations, research institutes ,and
others) and were an opportunity to explain to people with different cultural backgrounds the reasons
why it was necessary to work on the existing grid infrastructure and build new ones.
The main topics discussed were:
 How the grid infrastructure supports the energy transition, and renewable energy source
penetration in particular?
 Why all the new power lines are not underground?
These themes have been discussed and showcased by using different methods such as explaining a
case study or through question and answer sessions. One of the main reasons for the opposition
regarding new and existing transmission lines was the visual impact, therefore the workshops served to
facilitate discussions and to explain how planning criteria influences the choice of underground cable or
overhead lines.
As a result of the workshops and dialogue with the stakeholders, practical proposals were made about
how to find joint solutions to crucial issues such as stakeholder engagement, public consultation,
information about EMF, the role of the TSO, the need for infrastructure and, identifying the contribution
that each different stakeholder group could bring into the process.
Tools utilised included: 1, 2, 4, 6, 7, 9, 11, 12, and 14 36
56
6.4.1.4 Case 18—Operational failures

This North American utility had suffered several underground cable failures that had resulted in manhole
fires/explosions. The regulator initiated an investigation and, because of the investigation, ordered the
utility to form a collaborative group with stakeholders to review the utility operations, asset management
practices, management, and executive oversight. The stakeholders included the regulator’s staff,
several NGOs, the city’s staff (main community served by the utility), large customers, and low-income
advocates. The regulator’s staff hired external consultants with expertise in asset management and
utility operations. The belief on the part of the stakeholders was that the utility was poorly run and that
the failures were the result of poor management.
The utility hired an external facilitator with strong technical expertise in both asset management and
utility operations to organize and facilitate the meetings between the utility and the stakeholders. The
facilitator insisted on open and proactive communication with the stakeholders and worked with the
utility staff to agree that it was acceptable for the stakeholders to have concerns, even if those concerns
were based on incorrect information.
The collaborative established a schedule of monthly meetings in which they would review topics of
concern for the stakeholders in detail. The stakeholders provided input into the areas of concern, or
where they believed they would find evidence of poor management. The facilitator worked with the
stakeholders to clarify the areas of interest and then worked with the utility to support them in preparing
their discussions with the stakeholders. The utility was responsible for all the analysis and development
of the materials. The facilitator reviewed the materials in advance of the meetings from the perspective
of the stakeholders and suggested edits to the utility and discussed ways in which they could address
and discuss highly technical topics with a mixed group of stakeholders.
The utility staff were forthright in sharing information regardless of how it reflected on the utility. They
answered questions in a straightforward manner without becoming defensive. The utility relied on the
facilitator to keep the stakeholders in check if they became offensive or disrespectful. The utility staff
adopted an approach of addressing technical questions by assuming they were speaking with their
grandparents (or other highly respected elder without technical knowledge). The stakeholders found
the answers to be informative and responsive.
Prior to the collaborative, the utility had a reputation for speaking in technical jargon, which was
interpreted as being non-responsive or evasive. The utility staff and the facilitator debriefed after each
meeting; discussing what went well and what the utility staff needed to do differently or more of for the
next meeting. The debrief close after the meeting supported the staff in adopting new approaches to
working with the stakeholders.
Within several months of the initiation of the collaborative, the stakeholders began to have greater trust
and confidence in the utility and in its technical and operational skills. While many of the stakeholders
did not agree with, or like, all the decisions that the utility was taking, they respected that the utility had
a good basis for their decisions. Several of the stakeholders began to declare in other forums that they
believed that the utility is honest and, while they may not like the decisions the utility is taking, they
understand them and will not oppose them.
The dramatic shift in the relationship and level of open and honest communication between the
stakeholders, regulatory staff and the utility were so significant that the regulator required all utilities in
its jurisdiction to go through the same process. Only one of the other utilities followed the pattern of
using an external facilitator and focusing on creating an open and two-way discussion on the topics of
concern to the stakeholders. The second utility to follow this pattern says that favourable outcomes and
strengthened relationships with stakeholders and regulator staff have resulted. The other utilities did not
see favourable results, with the stakeholders remaining concerned regarding the openness and honesty
of the other utilities.
Tools utilised included: 1, 2, 4, 6, 7, 9, 11, 12, 13, 14, 15 and 16 37
6.4.1.5 Case 19—Integrated resource plan

A vertically integrated utility was planning for its mandatory stakeholder engagement in support of its
Integrated Resource Plan (IRP). The utility has a large fleet of coal-fired generation that it remains
dependent on for economic energy. The IRP, in this jurisdiction is a 20-year resource plan, conducted
57
every three years. Engaging with stakeholders is required, but the level of engagement is not specified.
This utility, in the past, had simply done one meeting with stakeholders to discuss the results. This
approach led to the stakeholders raising objections with the regulator and intervening in all hearings
related to the IRP and all hearings related to the implementation of actions stemming from the IRP.
Having seen more favourable results from stakeholder processes undertaken by other utilities, this utility
decided on a proactive stakeholder engagement process. This included a year-long plan of multiple
meetings with stakeholders to allow them to engage and be informed at each stage of the project and
throughout all the key analyses.
The stakeholder group included several highly vocal environmental groups, renewables advocates,
renewables developers, the regional coal lobby, low-income advocates, minority advocates, powerplant
worker union representatives, regulator staff, and representatives from neighbouring utilities. The
stakeholders held widely differing views on what the “right” mix of resources should be, ranging from
shutting all coal plants immediately to keeping all coal plants operational for the next 20 years. The
stakeholders were active in social media and held press conferences about the utility and its plans from
the early stages of the stakeholder engagement process.
The utility hired an external facilitator with strong expertise in utility systems and a track record of working
with conflicting views. The facilitator’s role was to ensure that the conversation focused on the concerns
of the stakeholders and remained objective and fair. The facilitator also supported the utility by reviewing
material in advance and providing input to the utility on how to address topics and how to present
complicated analysis and results. The utility adopted the approach of treating all the stakeholders as
having valid concerns, even if the fact base being used differed from that of the utility. “Concerns are
concerns, even when they are not informed by facts. It is still ok for the stakeholders to have these
concerns.”
The utility used the first meeting to work with the stakeholders to lay out a schedule for the year that
would allow the stakeholders to provide input into each of the critical stages of the analysis before it was
undertaken. At the outset of the process, the utility identified the decision-making criteria it intended to
use for the IRP and provided the stakeholders a clear understanding of the regulatory requirements that
the utility was required to use in conducting the IRP. The regulatory requirements did not allow the utility
to simply choose anything it wanted. This framing of the regulatory requirements was revisited at each
meeting as a reminder to the stakeholders of the goals of the IRP and the latitude (or lack of latitude)
that the regulator allowed the utility in conducting the IRP.
The utility expanded the analytical frameworks and inputs to address concerns or requests from the
stakeholders. In this way the stakeholders had input into the analysis and could then see the impacts
in the results. The utility recognized the wide disparity in technical understanding between the
stakeholders and took several steps to ensure that non-technical stakeholders did not get lost in the
conversations. The first was to rely on the facilitator to ask questions any time the facilitator thought
that some of the stakeholders did not understand the topic. The facilitator would ask questions designed
to increase the understanding, and to signal the presenters that they were talking above the level of
some of the stakeholders. The second step for the utility was to speak to the stakeholders (present,
answer questions, and provide explanations) as they would a respected member of their family, who is
not technical.
In subsequent meetings the utility staff asked for greater input into the model inputs and asked
stakeholders to identify scenarios and alternatives that they would like to see analysed.
The utility staff and the facilitator debriefed after each meeting, discussing what went well and what the
utility staff needed to do differently or more of for the next meeting. The debrief after the meeting
supported the staff in adopting new approaches to working with the stakeholders.
The overall effort was successful. While many of the stakeholders were not happy with the results, they
respected the process and regarded the utility as being fair and honest. The regulator staff was highly
complementary of the process and the utility’s conduct throughout the engagement process. When the
IRP was filed with the regulator, there were no objections and no intervenors.
The utility concluded that the costs for holding the series of stakeholder meetings was less than it had
spent in fighting previous opposition efforts in its former mode of conducting IRPs. It also led to several
side engagements with different stakeholder groups on several matters that were resolved quickly and
effectively and led to several joint stakeholder/utility initiatives at both the regulatory and legislative level.
The results of the process were significant enough that one of the neighbouring utilities adopted the
entire format and approach for its IRP stakeholder process (same regulatory jurisdiction and many of
the same stakeholders).
58
Tools used included: 1, 2, 4, 6, 7, 9, 11, 12, 13, 14, 15 and 16 38
6.4.1.6 Case 20—Rate increase and fuel switching

The utility serves an Island country with wide economic diversity among its customers/population. Like
most island utilities it relies on fuel imports (oil) and, as a result, rates are higher than they would be on
the mainland. Historically the utility has had adverse relationships with the regulator and government
and was not well regarded by many of its customers.
The existing rate structure had left the utility in a position where it could not recover appropriate fuel
costs and as a result it was losing money at a significant rate. The utility recognized that it needed a
rate increase to remain solvent, while at the same time, the regulator and the government were calling
for rate decreases and greater investment on the part of the shareholders. The discussions between
the utility, regulator and the government were characterized as “cordially disrespectful”.
The utility’s customers were seeking greater renewables and access to cleaner less costly fuels. The
utility recognized that bringing LNG to the island would allow it to reduce fuel costs significantly. It would
also allow fuel switching for many of the industrial customers, as well as large commercial customers.
The utility undertook a process to identify each of the key stakeholders/groups related to both the rate
increase and the need to bring LNG to the island. It spent time identifying what mattered to each of the
stakeholders/groups and how the utility and its proposals could help address those concerns. The utility
recognized that many of the stakeholders did not trust the utility or its leadership. The utility began
identifying the network of relationships that it had that could reach each of the critical
stakeholders/groups. As an example, one of the key government officials did not trust the utility but did
trust the head of the utility workers union. The utility was then able to identify appropriate paths to each
of the stakeholders to open communication and offer its ideas.
The utility leadership developed a clear understanding of its needs and the value, as they saw it, for
each of the stakeholder groups. They also focused on what mattered to the stakeholders and accepted
those as valid concerns. In the past they might not have accepted things such as wanting to be re-
elected, or wanting to increase business margins, as acceptable concerns.
The utility leadership (as a group and on an individual basis) met with each of the key
stakeholders/groups multiple times to discuss their proposal and listen to the input and suggestions of
the stakeholders. This process was carried out over several months, with a clear deadline driven by
insolvency.
Through this process they gained a clearer understanding of what mattered to each of the stakeholders
and gained valuable insights into different, more effective approaches they could take in each of their
objectives.
The result was that the utility was successful in both efforts. They were able to get a rate increase and
restructure the rates such that they were not at risk of fuel cost increases in the future. The insights
they gained in working with the stakeholders resulted in the rate increase having little impact on the
customers as the new fuel sources would be significantly less costly and, as a result, the customers
would see a reduction in the fuel component of their bills. The LNG facility improved the Island’s
economy bringing new construction jobs as well as an expansion of the industrial and commercial
sectors.
Tools used included: 1, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, and 15 39
59
stakeholders 40
Table 11: Key learnings from case studies 15-20 about communication
Case 15—Technology Early effective engagement did not happen. Stakeholders/ customers made up
change their minds based on inaccurate/ incomplete information.
Case 16—Vocal small Early effective engagement with key stakeholders and decision makers did not
group impact happen. Small vocal group was able to drive their narrative/ agenda at the
expense of the wider society.
Case 17—Community Early direct engagement with stakeholders and two-way communications
dialogue produced effective results in getting the utility’s messages across. Objective
facilitation can be useful.
Case 18—Operational Open and transparent communications, while uncomfortable at first, led to
failures effective results in building trust with a wide range of stakeholders that has
endured and simplifies communications on all matters between the utility and
this broad group of stakeholders. Objective facilitation can be useful.
Case 19—Integrated Open and transparent communications, while uncomfortable at first, led to
resource plan effective results in building trust with a wide range of stakeholders that has
endured and simplifies communications on all matters between the utility and
this broad group of stakeholders. Objective facilitation can be useful. This
utility’s engagement model is being repeated by other utilities in the same
region with similar success
Case 20—Rate increase Direct open communication with key stakeholders focused on their specific
and fuel interests and how they are impacted by the utility’s proposal, changes how the
switching messages are heard. Recognize that stakeholders have interests that may not
be the same as the utility’s and are valid, nonetheless. Objective facilitation can
be helpful.
40 https://www.ssen-transmission.co.uk/news/news--views/2020/7/ssen-transmission-response-to-ofgem-draft-
https://www.spenergynetworks.co.uk/userfiles/file/SPEN_RIIO-T2_Business%20Plan_TO-User-Group_Report.pdf
60
7. Examples of analogies and models used to

illustrate technical issues
7.1 Introduction
In communicating technical issues to non-technical people, it is sometimes helpful to use analogies.
The complexity of the analogies can vary depending on the knowledge that the stakeholder has of the
issues. However, it is usually best to "keep it simple".
It can also serve us well to remember that much of the confusion by other stakeholders and the public
comes from certain artifices that we, engineers, use that make our work easier. The essentials of our
work are voltage, current, and frequency. We use concepts like phasors, vars, power factors or complex
math (P + iQ), and our many acronyms to make it easier for our work but these can be confusing to
others.
In considering the models below we may need various levels of simplicity/complexity depending on the
audience:
 A politician or regulator who has some connection with energy policy will be in a different
place than the average politician;
 Major news organizations have reporters who specialize in energy matters; and
 A large industrial customer or regulator may understand more than most others.
However, all these groups have limited/selective understanding of the issues. We should also
remember that there are different understandings even within the power engineering community—a
protection engineer will have different scope and understanding than a communications engineer or a
system planning engineer.
We must balance our tendency as engineers to make things complicated and then feel we need to
dumb-down to our audience. Such an attitude can be demeaning and seem elitist to the exact people
we are trying to educate/inform. We should use easy/plain language and examples to communicate. It
can be useful to step outside our usual power-system expertise—and especially jargon—to put things
into real world experiences that people can understand. In this context, it is useful to consider examples
with actual electrical devices as well as non-technical examples. The challenge is to constantly try to
think of a variety of ways to explain phenomena and problems. A mistake that we may also make is to
assume that everyone knows or has some partial basic knowledge.
Addressing this challenge can ultimately improve our understanding of these issues. An inability to
explain problems simply, may be because our own understanding of the subject is not complete.
Electricity is part of the phenomena of our universe—like fire and gravity—while humans may make and
control it, its essence is part of the natural world.
7.2 Analogies related to power system networks

7.2.1 Comparing the components of a power system to the ingredients of a cake.
The power system was originally conceived as an integrated whole, with customers buying electricity,
generators supplying it, and transmission and distribution networks delivering it. In recent years, power
system restructuring, new forms of distributed and large-scale generation, such as photovoltaics and
wind, as well as new technologies to help manage the customer load and ensure the power system
operates efficiently have been introduced. As a result, some aspects of the power system that had been
provided by traditional generation may be supplied from other sources. Therefore, it is now important to
focus on the essential components that are needed to ensure the power system operates reliably and
sustainably.
This analogy demonstrates the importance of considering all the ingredients necessary to make the
cake, such as flour, sugar, baking powder etc. Without the inclusion of all the ingredients in the correct
proportions, the cake will not be successful. The analogy is fully explained in Appendix B.
61
7.2.2 Comparing the components of a power system to an integrated road and truck
system.
Consider a truck (lorry) that delivers necessary materials:
 Compared to an isolated electric system — if there’s only one truck and one road then
all the truck/lorry needs is an engine, body, accelerator, and brakes. Just the basics.
This would be comparable to a single generator connected to an isolated load—like a
backup generator at a hotel or hospital; and
 Compared to a networked electric system — if a truck/lorry is part of a network of
multiple roads, trucks, and customers, it needs more. Now we also need steering,
cruise control (for constant speed), turn signals, brake lights, a radio (for dispatch
instructions), satellite navigation etc. These are all necessary to work safely as part of
this larger network. Most of these elements map directly to power system functions.
7.2.3 Comparison of electrical system with a road network.

In many ways the electric transmission network is like the network of roads and highways/motorways.
Long distance travel and the movement of bulk goods occurs on the major highways/motorways.
Ultimately, goods move to businesses and homes via local roads. Moving these goods from the
highways/motorways transitions to the local road network at interchanges/junctions.
In the electric transmission network bulk power moves over long distances on the extra high voltage
(EHV) and high voltage (HV) networks, like goods moving on the highways/motorways. As with the
road network, moving electric power to businesses and homes transitions from the EHV/HV network to
the lower voltage distribution network through substations. The lower voltages of the distribution
network are better suited for delivery to these customers. These substations are like the
highway/motorway interchanges/junctions.
Table 12 compares delivering goods via the road network with the delivery of electric power via the
transmission/distribution network.
Table 12 Comparing delivery of electric power and delivery of goods
Electric power delivery Road network delivery

Generation produces electric power Factories produce goods
Transporting the bulk supply of electric power uses Transporting the bulk supply of goods uses the
the EHV and HV transmission network. highway/motorway network.
Delivering electric power to homes and businesses Delivering goods to homes and businesses,
transitions to the lower voltage distribution at transitions to the local road network at
substations. interchanges/junctions.
Figure 4 below shows the basic elements of electric power delivery from the bulk transmission network
at 100,000 volts and higher to businesses and homes through the lower voltages of the distribution
network.41
41 Figure from: Wikipedia, Electric Power Transmission, accessed 8 June 2022,

https://en.wikipedia.org/wiki/Electric_power_transmission.
62
Figure 4 Basic elements of the electric power network
7.2.4 Power flow through network circuits

Power will flow from its source to where it is needed through a network of circuits. This can be likened
to many cars driving from one location to another over a road network. The routes they take will depend
on the type of road available. While most drivers will use the main road and motorway, there will be
some who choose to take lesser routes. Similarly, power flows in varying amounts over all the available
circuits in the network.
The main factors affecting the road network flow are where drivers live, where they work, and the routes
available to them. The flow over the network can be adjusted by adding new or upgrading existing
roads, blocking some routes, or introducing obstacles such as stop signs or speed bumps.
The same is true of electric networks. Generators are analogous to population centres where people
live and the routes people take to work are like the transmission and distribution circuits that connect
generators to loads. New circuits or upgrading existing circuits will add to the networks’ capacity.
Routes can be blocked by opening a circuit. And certain specialized devices can be used as obstacles
to power flow.42
TenneT has developed an analogy/model to explain the complexities of high-voltage grids to non-
technical stakeholders. This is on the TenneT website: 43
https://www.tennet.eu/our-key-tasks/innovations/powerflow-simulator/
Used successfully with ministers, civil servants, members of parliament and others—you can also
explain complicated things with it like bidding zones.
42
. A device called a quad booster or phase shifting transformer can move power away from overloaded circuits to another
part of the network where there is spare circuit capacity. Think of it like a police officer directing traffic away from
congested roads to another road that is not congested.
43.
While the simulation does not meet n-1 criteria, it does demonstrate how power flows among the various available routes.
63
7.2.5 Comparing power flow with water

Perhaps one of the oldest analogies uses water.
The water analogy is especially useful when applied Figure 5: Water flow analogy for electricity
to DC circuits. It can also be used with AC circuits flow
by substituting impedance for resistance. However,
there is no place for frequency.
In this analogy as shown in Figure 5:44
 The wires or circuits are like the pipes;
 Current is the rate of water flow;
 Voltage is the water pressure applied;
 Load is the water wheel;
 Generation is the pump that increases
the pressure and causes the water flow;
and
 Resistance (or impedance) is the size of
pipes (smaller pipes are more resistant).
7.3 Real and reactive power

Reactive power (vars) may be the most challenging thing to explain. Note that power engineers are the
only ones who use the term “vars”. This is because we assume a constant system frequency which
allows us to use certain mathematical artifices regarding real and reactive power.
The issue arises because of the way in which inductive and capacitive elements of the electric system
respond to varying voltage and current. If the load is purely inductive or capacitive, then for two quarters
of each cycle exactly as much energy flows in as flows back out. 45 There is no net energy flow over
each half cycle. In an AC power system, inductive and capacitive elements briefly store and release
energy every 0.010 seconds (at 50 Hz) or 0.0085 seconds (at 60 Hz).
Practical loads have resistance as well as inductance, or capacitance, so both active and reactive power
will flow to normal loads. The largest share of power system loads are motors and transformers which
are largely inductive loads.
In electric power systems the inductance and capacitance of the system itself are also import factors.
The AC transmission and distribution systems are both inductive and capacitive. The capacitive effect
is fixed by the voltage level and the physical geometry of the line design. While inductance for a circuit
is fixed, its impact increases as the loading on the circuit increases. The net outcome is that during light
loads the system capacitive effect dominates and during heavy loads the inductive effect dominates.
7.3.1 Components affecting real and reactive power

Wikipedia discusses the relationship between real and reactive power:
In a simple alternating current (AC) circuit consisting of a source and a linear time-invariant load,
both the current and voltage are sinusoidal at the same frequency. If the load is purely resistive,
the two quantities reverse their polarity at the same time. At every instant the product of voltage
and current is positive or zero, the result being that the direction of energy flow does not reverse.
In this case, only active power is transferred.
If the load is purely reactive, then the voltage and current are 90 degrees out of phase. For two
quarters of each cycle, the product of voltage and current is positive, but for the other two
quarters, the product is negative, indicating that on average, exactly as much energy flows into
the load as flows back out. There is no net energy flow over each half cycle. In this case, only
reactive power flows: there is no net transfer of energy to the load; however, electrical power
44.
Taggart, David F., Reactive Power and Voltage Stabilization, 16 February 2013, accessed 26 March 2021,
https://www.slideshare.net/lightspeed65/voltage-stability-and-reactive-power-in-the-pv-industry
45
Portions of the paragraph are adapted from the Wikipedia article on AC Power, https://en.wikipedia.org/wiki/AC_power,
accessed 25 March 2021.
64
does flow along the wires and returns by flowing in reverse along the same wires. The current
required for this reactive power flow dissipates energy in the line resistance, even if the ideal
load device consumes no energy itself. Practical loads have resistance as well as inductance,
or capacitance, so both active and reactive powers will flow to normal loads…
…Conventionally, capacitors are treated as if they generate reactive power, and inductors are
treated as if they consume it. If a capacitor and an inductor are placed in parallel, then the
currents flowing through the capacitor and the inductor tend to cancel rather than add. This is
the fundamental mechanism for controlling the power factor in electric power transmission;
capacitors (or inductors) are inserted in a circuit to partially compensate for reactive power
'consumed' ('generated') by the load. Purely capacitive circuits supply reactive power with the
current waveform leading the voltage waveform by 90 degrees, while purely inductive circuits
absorb reactive power with the current waveform lagging the voltage waveform by 90 degrees.
The result of this is that capacitive and inductive circuit elements tend to cancel each other out. 46
The power system voltage at any point depends on the level of balance of reactive power supply and
demand. Reactive power supply increases voltage and reactive power absorption decreases voltage.
Reactive power can be supplied or absorbed by network elements, generators, and demand depending
on their electrical characteristics and behaviour, typical circuit parameters are shown in Figure 6, below.
Figure 6: Typical transmission circuit parameters
The impact of each element in supplying or absorbing reactive power will vary according to the type of
circuit:
 Overhead circuits have relatively balanced inductance (X) and capacitance (C);
 Underground and submarine cables have very high relative capacitance (C); and
 All power transmission circuits have very low resistance (R).
The net effect of a circuit in producing or absorbing reactive power is:

 Overhead circuits:
o Under light loading they produce reactive power;
o Under moderate loading reactive and inductive power tend to be in balance;
o Under heavy loading they absorb reactive power; and
 Cables always produce reactive power regardless of the loading level.
When power flows are heavy, electricity networks tend to absorb reactive power. This means that
additional sources of reactive power supply are required to maintain voltages at the correct level. When
power flows are light, electricity networks tend to produce reactive power where additional sources are
needed to absorb reactive power.
46
. Wikipedia, AC Power, Active, reactive, apparent, and complex power in sinusoidal steady-state,
https://en.wikipedia.org/wiki/AC_power#Reactive_power, acessed19 December 2021.
65
Consumer demand can also generate or absorb reactive power. This depends on the type of load and
its behaviour. Reactive power demand continuously fluctuates throughout the day according to
consumers’ needs and must be continuously addressed in real-time.
7.3.2 A canal boat analogy to explain real and reactive power

In this example, a donkey is pulling a barge along a canal as shown Figure 7: Canal boat analogy
in Figure 7.47 The real power moves the barge forward the reactive for reactive power
power is the force in the barge’s rudder keeping the barge away from
the bank.
Why do we need vars? We need them to support the magnetic fields
that so many devices need to work.
7.3.3 A mug of beer analogy to explain real, reactive, and apparent power
This example uses a pint of beer as shown in Figure 8: Reactive power analogy using a pint of beer
Figure 8.48
Real power (Watts) is the beer—what you pay
for.
Reactive (vars) is the foam—what comes from
pouring the beer.
Apparent power (VA) is the entire mug.
47
. Naveen, Venkata Satya and Manoj Kumar, A Presentation on Reactive Compensation, 1 April 2014, page 5, accessed 26
March 2021, https://www.slideshare.net/NaveenKssvs/reactive-power-compensation-33009860.
48.
Electronics Tutorials, Reactive Power, accessed 26 March 2021,
https://www.electronics-tutorials.ws/accircuits/reactive-power.html.
66
7.3.4 Inclined plane analogy to explain real and reactive power

Suppose men must push a large ball from one side of an
inclined plane to another (A to B) as shown in Figure 9.49 The
active power needed is the same as if the plane were level,
but a man must be set aside to keep the ball on a straight
path to adjust for gravity pushing the ball down the inclined
plane. This means there is a loss of capacity since this man
cannot be used for pushing.
Figure 9: Reactive power analogy

using an inclined plane
7.3.5 A wheelbarrow analogy to explain real and

reactive power
Suppose someone uses a wheelbarrow to move a load from one place
to another as shown in Figure 10.50 The work that needs to be done is
moving the load—the real work/power. One must lift the handles on a
wheelbarrow to move it so more effort is required than just pushing the
load. The effort to push is like real power, the lifting effort like reactive
power, and the total effort is like apparent power.
Figure 10: Reactive power

analogy using a wheelbarrow
7.4 Voltage and current

The transmission system is operated so that voltage levels remain within the normal operating ranges
defined within the Grid Code, and operating criteria. The normal ranges are typically ±5% at 200 kV and
above and ±10% at lower transmission voltages. The ranges for distribution networks are defined in the
Distribution Code.
The narrow ranges of acceptable voltages are needed for two general reasons. First all the power
system equipment is designed to operate within these ranges. Device insulation is designed to
withstand certain voltage levels for long periods, and protective equipment, like circuit breakers, are set
to operate within these ranges. If voltages become too high insulation may breakdown causing short
circuits and damage to equipment. If voltage get too low, then current levels will increase (to maintain
power requirements) and may overheat and damage equipment.
Second, if the voltages get too low—below about 90% of nominal—the system will struggle to raise the
voltage. If the voltage falls even lower, it will become impossible to raise it and a blackout will occur.
Voltage is a localised property of the system which means that requirements vary from one region to
another. These requirements are determined by the configuration of the local network and the behaviour
of generation and demand in that part of the network in real-time.
Voltage can be visualised as the water level in a tank as discussed next.
49.
Leonardo Energy Minute Lectures, Four Analogies to Explain Reactive Power, accessed 26 March 2021,
https://www.slideshare.net/sustenergy/reactive-power.
50
. Mohan, M. Murali and Dy. Suptd, Generator Protection—Loss of Excitation, 5 August 2013, accessed 26 March 2021,
https://de.slideshare.net/mmuralintpc/loss-of-excitation.
67
7.4.1 Water level analogy for voltage

Voltage can be visualised as the water level in a tank. Taps are used to regulate the water level by
maintaining a constant flow in and out of the tank. The taps controlling inflow represent reactive power
generation. The taps controlling outflow represent reactive power absorption. Depending on the
technology, each tap will have different capabilities. Some may contribute a large flow and others
contribute a small flow. Some can automatically respond to changes in the water level immediately
whereas others respond slowly. Some can open gradually whereas others can only be fully on or fully
off.
A single tank has been shown for simplicity; however, the whole system could be visualised as several
interconnected tanks which represent different voltage levels and regions. The three stages below refer
to the different aspects of voltage management which have been assessed.
Voltage regulation (steady state). While there is water flowing in and out of the tank, the overall water
level is maintained. Generators, consumer loads and network elements all contribute reactive power
generation or absorption. A large tank with taps which can respond quickly represents a strong system
where sudden disturbances to the water level will have less impact and may be quickly addressed.
Figure 11: Voltage regulation (steady State)
Voltage dips. A disturbance such as an electrical fault occurs which is represented by a hole in the
tank, causing the water level to drop rapidly. To prevent the tank from running dry, taps need to respond
quickly and change their flows.
Figure 12: Voltage regulation (Voltage Dips)
Voltage containment. A protection system has been activated to isolate the hole from the rest of the
tank. This allows the water level in the remainder of the tank to recover. The configuration of available
taps has changed, as a portion of the network has now been separated. The remaining taps must alter
their flows as quickly as they can to restore the original water level without rising too high or remaining
too low. This action addresses the imbalance of reactive power by changing the levels of reactive
generation and absorption.
Figure 13: Voltage regulation (containment)
To manage voltage, we use a mixture of static and dynamic voltage control devices.
68
Static voltage control devices provide a fixed offset in reactive power. This includes network
components such as shunt reactors and mechanically switched capacitors. They can be represented
as taps which can only be fully on or fully off in the water tank analogy.
Dynamic voltage control devices can modify their behaviour according to the voltage level and provide
a variable amount of reactive power. They can be represented as taps which can change their flows in
response to a disturbance. Typical dynamic voltage control devices include generators, synchronous
compensators, static synchronous compensators (STATCOMs) and static var compensators (SVCs).
7.4.2 Children’s slide analogy for voltage and current

Voltage and current may be thought of as like children on a Figure 14: Children’s slide
playground slide as shown in Figure 14. The steepness (and analogy for voltage and current
height) of the slide is like voltage—a steeper slide lets the children
go faster so more children can slide per hour—like a higher
voltage. And the number of children using the slide is like the
current—more children are like more current.
Regarding acceptable voltage ranges, if the slide is too steep for
its basic design, children (and adults) will be injured. If the slide
has little slope, no sliding will take place. Too many children on
the slide can become dangerous for the children and could even
break the slide—kind of like an overloaded circuit.
7.5 Frequency
All conventional generating units rotate at 3,000 rpm, equivalent
Figure 15: 50 Hz, 240 V and 60Hz
to 50 Hertz (Hz) or 3,600 rpm, equivalent to 60 Hz. The utility
120 V waveforms
frequency, line frequency, or mains frequency is the nominal
frequency of the oscillations of alternating current, measured in
Hertz (Hz), in a synchronous grid transmitted from a power
station to end-users.51 In large parts of the world this is 50 Hz,
although in the Americas and parts of Asia it is typically 60 Hz.
Figure 15 shows typical waveforms for 50 Hz and 60 Hz systems.
In practice, the exact frequency of the grid varies around the
nominal frequency, slowing down when the grid is heavily loaded,
and speeding up when lightly loaded.
Utility frequency matters because power systems use very advanced generators and other equipment
designed to operate efficiently at a given frequency. This increases the efficiency and reduces the costs
of the equipment. In the 140 years of power equipment development this has been refined so that the
equipment is designed to work within a very narrow frequency band.
51
. Adapted from Wikipedia, Utility Frequency, https://en.wikipedia.org/wiki/Utility_frequency, accessed 29 March 2021.
69
7.5.1 Synchronous and non-synchronous systems

Directly connected rotating
machines can be visualised as a
chain that connects two conveyor
belts that represent a synchronous
generator and the power system.
In this analogy, a change in the
speed of one conveyor belt will
affect the other.
Figure 16: Synchronous and non-
Synchronous systems
Machines not directly connected

can be visualised as a roller that
allows the transfer of power
(represented by boxes)
between the two belts without
the generator and the power
system having to be connected
and moving at the same speed
where a change in the speed of
one conveyor belt will not affect
the other.
Figure 17: non-Synchronous
Coupling
7.5.2 Balancing supply and demand

As shown in Figure 18, frequency is an indicator of
the balance of supply and demand.52 If demand
exceeds supply the frequency will fall and the Figure 18: Frequency and load/supply
system will slow down. If supply is greater than balance
demand the frequency will go up and the system
will speed up.
When generation and demand are balanced,
frequency remains constant. When there is a
power shortage, for example due to a loss of
generation, the power shortage is supplied from
the energy stored in the rotating masses of
machines that are directly coupled to the system. This slows these machines down and, consequently,
reduces the system frequency. When there is a power surplus, the opposite action causes frequency
to rise.
52.
Australian Energy Market Operator, Energy 101—Frequency, accessed 29 March 2021,
https://www.aemo.com.au/learn/energy-explained/energy-101/energy-explained-frequency.
70
7.5.3 Bathtub analogy

An analogy for balancing supply and demand like a bathtub. Figure 19 illustrates this analogy for a
60 Hz system.53 Consider a bath with the plug out and the tap running. Imagine trying to keep a
constant level of water in the bath which is like trying to keep a particular frequency in a power system.
The water coming into the tub is like generation supplying the system. The open drain is like load that
is using the supply. Too much water coming in and the water level (frequency) rises, too much
draining and the water level (frequency) drops.
Figure 19: Bathtub analogy for balancing supply and demand
7.5.4 Automobile cruise control analogy

In a power system a subset of generators provides frequency
control—called primary frequency control. The goal is to Figure 20: Cruise-control analogy
maintain the 50 Hz or 60 Hz frequency. This is like an for frequency control
automobile’s cruise control. As conditions change the cruise
control increases or decreases the engine’s power. Figure 20
shows this concept for a car going uphill and downhill. This is
the same principle used for primary frequency control. These
generators increase or decrease their output to maintain
system frequency.
There is additional discussion of frequency control and various
other ancillary services in §7.7, below.54
53. Eto, Joseph, et. al., Use of Frequency Response Metrics to Assess the Planning and Operating Requirements for Reliable
Integration of Variable Renewable Generation.
https://www.researchgate.net/publication/238059009_Use_of_Frequency_Response_Metrics_to_Assess_the_Planning_and_Operating_Requirements_for_Reliable_Integration_o
f_Variable_Renewable_Generation/citation/download , accessed 1 April 2021.
54.
wikiHow, How to Hypermile, https://www.wikihow.com/Hypermile, accessed 2 April 2021.
71
7.5.5 Frequency and the sudden loss of generation

Figure 21 shows how the Figure 21: Frequency drop after loss of large generator
frequency can drop (and
recover) after the loss of
a large generator.55
Think of a car on cruise
control suddenly coming
to a very steep hill. The
car will start slowing right
away (in the first few
seconds) but will not
come close to stopping.
This is because the car is
heavy and moving at a
high speed - it has intertia.
After a second or two the accelerator of the car increases power. On this very steep hill, that will not be
enough, so the car shifts into a lower gear allowing the speed to increase. If the hill is very steep and
very tall it may take a few minutes to get back up to the set speed.
Referring to Figure 21, IR is the inertial response of the spinning generators in the system—like the
inertia of the car going up the hill. After a few seconds various controls on generators start providing
PFR (primary frequency response)—like the cruise control increasing power. As other generators
increase output over the next 10-20 minutes the frequency returns to normal.
Figure 21 can also show (rate of change of frequency (RoCoF). The RoCoF is the downward slope of
the frequency in the green area in the figure. The rate at which frequency changes following a loss of
generation or demand depends on the total amount of rotating inertia in the system from rotating masses
which are synchronised to the system. When inertia is high, more energy is stored in rotating masses
and the frequency change is slower. System inertia is the aggregated inertia of all the rotating machines
(generators and motors) that are directly connected to the system.
7.6 Analogies related to planning standards and criteria

7.6.1 For those familiar with the industry
Utilities set up planning and operating criteria to balance cost and reliability. Generally, an electric power
system is more reliable when investing more in electric network infrastructure. These criteria vary from
system to system depending on the local economy and historical practices. Cigre Technical Brochure
715, The Future of Reliability addresses the issue:56
In everyday terms, risk is the likelihood that something will happen that causes damage,
injury, or loss. Stating this a bit more analytically, risk is the combination of two things:
first, the likelihood that something will happen; and second, the consequences if it does. 57
In the context of electric system reliability, risk is the likelihood that an operating event will
reduce the reliability of the power system to the point that the consequences are
unacceptable.
Utilities translate events into contingencies, and acceptable consequences into acceptable
performance. In the context of the power system reliability, risk has two parts: the chance
that a future event will jeopardize reliability, and the consequences once that event
happens. Utilities refer to such future events as contingencies. In its broadest power
55.
Rahmann, Claudia; Castillo, Alfredo. 2014. “Fast Frequency Response Capability of Photovoltaic Power Plants: The
Necessity of New Grid Requirements and Definitions”, Energies 7, no. 10: 6306-6322. https://doi.org/10.3390/en7106306,
accessed 3 April 2021.
56
. Cigre Technical Brochure 715, The Future of Reliability – Definition of Reliability in Light of New Developments in Various
Devices and Services Which Offer Customers and System Operators New Levels of Flexibility, Working Group C1.27,
January 2018, pages 12-13.
57.
Adapted from, NERC, Reliability Concepts, 12 December 2007, pages 10 and 17.
72
system definition, a contingency is an event that could occur in the future that should be
prepared for.
System planners use reliability criteria to judge the acceptability of various plans and
options. The criteria are tests or measures of system performance used to balance cost
and reliability. Reliability planning criteria and indices are used to guide investments that
balance system supply and load, and provide an adequate transmission system. They are
used in both operation and planning—but they are different in important ways that are not
discussed here.
7.6.2 For those not familiar with the industry

System planning criteria have three parts:
1. The conditions and assumptions being considered—e.g. load level, generation
scenario, conditions on the transmission system, escalation, costs, etc.;
2. The manner used to test if the assumed conditions will perform acceptably—e.g. loss
of generation, transmission, system faults, fuel shortages, etc.; and
3. The measure of acceptable performance—e.g. component loading, voltages, stability
limits, allowable loss of customer load, probability measures, etc.58
7.7 Analogies related to ancillary services

The power industry uses the term ancillary services to describe “the specialty services and functions
provided by the electric grid that facilitate and support the continuous flow of electricity so that supply
will continually meet demand.”59 Traditionally, generators inherently supplied ancillary services as part
of their normal operation, however, the steadily increasing share of intermittent generation, and smart
grid technologies, that do not inherently provide ancillary services has complicated system operation.
As a result, the transition to power markets has included markets for various ancillary services to allow
system operators to provide operating reserves, maintain voltage, frequency, and stability, and to
restore the system following a system outage or blackout.
7.7.1 For those not familiar with the industry: A trucking (lorry) firm can be used as
an analogy for ancillary services
To understand ancillary services, consider a truck (lorry) that delivers necessary materials. The basic
function of the truck is to deliver goods from suppliers to customers. This is like real power (MW) in a
power system.
If there were only one truck and one road between the supplier and customer then all it needs is an
engine, body, accelerator, and brakes. Just the basics. This would be comparable to a single generator
connected to an isolated load—like a backup generator at a hotel.
If, however, the truck is part of a network of multiple roads, trucks, and customers, it needs more. Now
we need steering, cruise control, turn signals, brake lights, a radio (for dispatch instructions), sat nav,
mirrors, a horn, etc. These are all necessary to operate safely as part of this larger network.
These other requirements are like the ancillary services in electric utility markets. These services cause
some added equipment and operating costs, but the network will not work without them.
7.7.2 For those familiar with the industry

For this group there is a problem in calling them "ancillary" because it means auxiliary, supplemental,
or assisting. Ancillary does not imply “necessary”. Within the industry it is understood that ancillary
services are necessary services. This has caused some confusion with the public, so some parts of the
world are using the “complimentary services” or other terms to clarify that these services are necessary
for the proper operation of the network.
58. CIGRE Technical Brochure 715, The Future of Reliability–Definition of Reliability in Light of New Developments in Various
Devices and Services Which Offer Customers and System Operators New Levels of Flexibility, Working Group C1.27,
January 2018, pages 12-13.
59. Wikipedia, Ancillary Services, https://en.wikipedia.org/wiki/Ancillary_services_(electric_power), accessed 4 April 2021.
73
Ancillary services include a variety of necessary operations beyond generation and transmission to keep
the grid stable and secure. Examples of these services include:
 Spinning reserves—these are generators that are connected and running (spinning) and
prepared to increase (or decrease) their output to keep a constant system frequency (see §7.5,
above). With our truck analogy, these would be trucks that are ready for immediate use if
needed.
 Operating reserves include spinning reserves but add generators that can start, synchronize
with the network, and deliver output within 10-20 minutes.60 These would be like trucks that are
available but must wait some time for a driver to begin operation.
 Regulating reserve is the ability of a generator to automatically adjust its output on a second-
by-second basis to keep system frequency constant. As discussed above (§7.5), this is how
load and generation are balanced. This is like the truck’s cruise control that matches the motor
output to changing conditions to hold a steady speed.
 Automatic generation control is the ability of a generator to increase or decrease power as
instructed from the operating centre. Such instructions typically call for slight changes in output
every few seconds. In The trucking example this would be like a driver getting instructions over
the radio about a new package to pick up.
 Black start is the ability of a generator to start operation without power from the network following
a blackout or similar event. This is trivial in our trucking analogy because all trucks have a
battery used to start their engines.
In power systems most generators require an outside power source to start various pumps,
fans, motors, and other equipment before producing any output. Some generators have
installed equipment that allows them to start without an outside power source. These units can
supply black start (or system-black) ancillary service.
 There are several other ancillary services that do not lend themselves to the truck analogy.
o Voltage regulation is the ability to help control voltage in the transmission or distribution
networks, all conventional generators and most wind and solar generation can supply
voltage regulation. There are also various other devices that can control voltage such as
transformers.
o Frequency regulation is the ability to help control frequency in the power system. This
comes from spinning reserves, operating reserves, and regulating reserves as discussed
above.
o Fast frequency response is generally faster than the spinning reserves and are supplied by
power electronic devices.
7.8 Analogies related to maintenance requirements refurbishment/-

replacement/decommissioning
7.8.1 Bridge maintenance analogy
When discussing why we are rebuilding transmission facilities that are still in working order, it is useful
to compare the transmission system to bridges. With a bridge, you do not wait until it collapses to
replace it. You perform detailed assessments on the bridge as it ages and make engineering decisions
taking into account safety, age/performance of the asset, maintenance costs, costs of a full rebuild, etc.
This same approach is applied to electric system equipment including transmission lines and substation
equipment.
7.8.2 Automobile maintenance analogy

Comparing maintenance of a transformer with maintenance of a car. This example relates to the
relevance of the visual condition of certain transmission assets (e.g. Super Grid Transformers or Circuit
Breakers). An equipment owner will see a transformer which is leaking oil or is visibly rusty as being in
60.
The time requirement varies among power systems around the world.
74
'poor' condition and so either should have been replaced or should be a candidate for replacement.
They must also consider the internal condition of the asset – the most important issue.
We can use a car as an analogy for the transmission asset. If a car is leaking oil, then you may top it up
from time to time and, if the leak does not increase or the low oil alarm appear, then the car will carry
on running. Alternatively, you may need to undertake maintenance on the car (replace a seal or a
gasket) but it is not an indication that the car is old and needs replacing. Similarly with rust, a car may
be rusty, but if the structural integrity of the car is sound then there is often no need to undertake major
refurbishment or replacement of the car.
Failure of transmission facilities are important to avoid. Power system asset owners usually use
sophisticated monitoring techniques to evaluate the condition of their equipment. Combining this
monitoring with historical records allows them to predict equipment conditions so they can make better
repair/replace decisions. Car owners have similar decisions regarding such components as tires,
brakes, batteries, etc. There also comes a time when a car must be replaced.
7.9 Example tutorial

As the independent system and market operator in Australia the Australian Energy Market Operator
(AEMO), like other independent system operators around the world, is a not-for-profit entity that does
not own any generation or transmission facilities. These organizations have no vested commercial or
political interest in their systems. Their goals are keeping the lights on and markets running efficiently.
The AEMO has developed various examples used in communicating with technical and non-technical
stakeholders including:
 A 'Learning Academy' 61website that provides a range of online courses – many of which are
targeted at your ‘average’ consumer (but also tailored courses for industry experts/participants);
 AEMO’s 'Energy Explained'62 section has a number of fact sheets written specifically for non-
technical audiences - covering areas such as how Electricity and Gas Markets work; system
strength; load shedding; frequency control; etc;
 AEMO also produces resources for journalists and analysts 63 ahead of each summer peak
period on the east coast of Australia. (These work well for media, in particular); and
 Under the AEMO 'Newsroom'64 there are a number of ‘Energy 101’ podcasts, videos and articles
that have resonated well with the ‘general’ public as they are designed to be easy-to-digest and
understand in a complex industry.
61 https://www.aemo.com.au/learn
62 https://www.aemo.com.au/learn/energy-explained
63 https://www.aemo.com.au/newsroom/news-updates/fact-sheets-updated-in-preparation-for-summer
64 https://www.aemo.com.au/newsroom
75
8. Conclusions
In developing the brochure, the WG recognized that it is becoming increasingly critical to close the gaps
in understanding between energy personnel and other stakeholders. The rate of change in technologies,
combined with a dramatic increase in customer and stakeholder awareness and involvement in energy
policy matters have resulted in increased engagement on the part of customers and stakeholders. The
technical challenges are growing in number and are increasingly more complex. The need to be able to
have meaningful conversations with customers and stakeholders, to increase the mutual understanding,
and arrive at sound decisions that all parties can accept, has become an essential requirement for
utilities.
At the outset of the WG effort, much of the input from industry was that the WG needed to focus on
helping energy specialists find more effective ways to get the utilities’ messages across to stakeholders.
There was a perspective, shared by many, that the gap in understanding was because of the
stakeholders inability to understand the message that was being communicated, due to the complex
nature of the topics in question. The WG recognised that some of the communication gap problems lay
with utility personnel. The WG provided suggestions to help address this phenomenon and identified
several analogies, examples, and suggestions for communication of highly technical topics effectively
to lay/non-technical stakeholders. The WG also recognized that this alone was not sufficient in
supporting the needs of energy professionals.
As a result, the WG examined the gaps in understanding amongst the various stakeholders across a
wide range of technical issues related to the power system, its changing nature and how these changers
are developing. The WG members reviewed how stakeholders perceive this gap and what is being done
across the world to improve the level of understanding, particularly of the non-technical stakeholders.
WG members have both technical and non-technical backgrounds with the latter having a speciality in
communication and/or stakeholder engagement.
The WG recognized that one of the keys in closing the gaps in understanding is effective
communications. The WG explored a wide range of practices, tools and techniques in stakeholder
communications and engagement, used across the global energy industry. The WG created a picture
of the cross-section of stakeholders and their likely perspectives and concerns. This helped inform the
development of the models and communications aides included in this TB.
A key conclusion, stemming from this work, is for most energy industry leaders to acknowledge that the
utility needs to take full responsibility for the effective communications and closing the gaps in
understanding. While it may be easier to remain frustrated with the lack of understanding on the part of
customers and stakeholders, it is in the interest of the utility and their professionals to take the steps
necessary to bridge the gap in understanding. The utilities are often the party who bear the main
consequences of failing to close the gaps.
As a result of the work carried out, particularly in developing and analysing the case studies, the WG
was able to draw several significant conclusions:
 The number and diversity of stakeholders is growing as the power system evolves to incorporate
new technologies and the increasing use of renewables;
 WG members gained new insights by sharing their experiences and through review and
discussion of the case studies;
 There is a clear need to simplify the technical issues to improve understanding among all
technical and non-technical stakeholders;
 Two-way listening and conversation rather than presentation are critical to mutual
understanding, and thus success;
 The case study discussions should support and help readers understand how the engagements
were undertaken for each example, and what learnings they can apply in their own work;
 Having ready access to several models and analogies to help explain some of the technical
aspects associated with the power system, is useful and necessary. In addition, accepted
definitions of the various terms used in the industry can be used in support of effective
communications and improving understanding; and
 Having good engagement amongst stakeholders is a critical factor in the successful
development of power systems and the information provided in this TB has been provided to
assist with this important work.
76
The WG came to the additional conclusion that the gaps in understanding can reside in the energy
specialists, the other stakeholders or in both parties and this is influenced by their specific interests.
When the WG examined what worked well and what did not work as well in the case studies, it was
clear that listening to stakeholders about what matters to them is an essential aspect of closing the gap
in understanding and improving the probability of a successful project implementation.
The principle finding of the WG is that effective two-way communications with stakeholders (with very
good listening on the part of the utility professionals) is the essential key to closing the understanding
gap. Effective communication happens when there is two-way listening, effective engagement and
consistent follow up actions!
As a result of this finding, the TB also identified strategies used effectively by utilities in engaging with
and listening to their stakeholders, even under extremely difficult situations, and even in relationships
that have historically been hostile.
77
Appendix A: Glossary of terms

Term Definition
Alternating Current [AC] A periodic current the average value of which over a period is zero.
(Amps) The term refers to a current that reverses at regularly recurring
intervals of time and that has alternatively positive and negative value.
Ancillary Services All services required for the secure operation of a transmission system
including those in generating plants and distribution systems.
Examples include frequency regulation, voltage support, and provision
of reserve plant for a contingency event.
Automatic generation control The automatic regulation of the power output of electric generators
(AGC) within a prescribed area in response to change in system frequency, or
tie-line loading, so as to maintain the scheduled system frequency, or
the established interchange with other areas within predetermined
limits.
Available Margin The difference between available resources and net internal demand,
expressed as a percent of available resources. This is the capacity
available to cover random factors such as forced outages of
generating equipment, demand forecast errors, weather extremes, and
capacity service schedule slippages.
Available Reserves Generating capacity owned or contracted that is realizable at short

notice to meet increases in demand or losses in generation that are
not forecast.
Average Demand The electric energy delivered over any interval of time as determined
by dividing the total energy by the units of time in the interval.
Avoided Cost The cost which a utility would otherwise incur to provide its own
generation sources if other options such as purchase from non-utility
sources were not available.
Baseload Capacity Minimum amount of capacity used to serve an essentially constant

level of customer demand. Baseload generating units typically operate
whenever they are available, and they generally have a capacity factor
that is above 60%.
Billing Demand The demand that is used to determine the demand charges in
accordance with the provisions of a rate schedule or contract.
Black Start capability Restarting generation units following a black system condition.
Black System The absence of voltage on all or a significant part of the transmission
system or within a region following a major supply disruption, affecting
one or more power stations and a significant number of customers.
Blackout Unplanned loss of power to an area or region.
Bulk Electric System The aggregate of electric generating plants, transmission lines, and
related equipment of a power system; the term may refer to the fact
that within one electric utility or within a group of utilities transmission
lines are interconnected.
Bulk Power System An interconnected system for the movement or transfer electric energy
in bulk on transmission levels.
Capacity The rated continuous load-carrying ability, expressed in megawatts

(MW) or megavolt-amperes (MVA) of generation, transmission, or
other electrical equipment.
78
Term Definition
Capacity Margin The difference between installed generating capacity and peak load, in
relation to the installed generating capacity. When expressed as a
percentage of peak load it is often referred to as plant margin (see also
generation reserve).
Co-generation A generating installation that produces electrical energy and some

other form of useful energy (steam, heat etc) for industrial or
commercial heating or cooling purposes.
Commercial In Confidence Sensitive information that an individual or business shares with

another party in confidence. Therefore, the person receiving this
information is obligated to not disclose or use that information without
consent.
Commercial Information Information that can be used in the marketplace.
Conductor A substance or material that allows electrons, or electrical current, to

flow through it.
Connection assets Those components of a transmission or distribution system which are

specifically used to provide connection between separate entities or to
a customer or generator.
Constrained Off In respect to a generating unit, the state where, due to a constraint on
a network the output of that generating unit is limited below the level to
which it would otherwise have been dispatched.
Constraint, constrained. A limitation on the capability of a network, load or a generating unit

preventing it from either transferring, consuming or generating the level
of electrical power which would otherwise be available if the limitation
was removed.
Contestable In relation to transmission services or distribution services, a service

which is permitted by the laws of the relevant participating jurisdiction
to be provided by more than one network service provider as a
contestable service or on a competitive basis.
Contingency An unexpected event usually the loss of one or more elements in the
system. A single contingency refers to one element. A multiple
contingency refers to more than one element simultaneously.
Contract Demand The amount of capacity that a supplier agrees to make available for
delivery to a particular entity and which the entity agrees to purchase.
Cost Based Pricing Transmission pricing based upon cost elements.
Cost Reflective network A cost allocation method which reflects the value of assets used to
pricing provide transmission or distribution services to network users.
Credible contingency A contingency event, the occurrence of which is reasonably possible in

event the surrounding circumstances.
Critical single credible Examples typically include the unexpected automatic or manual
contingency event disconnection of one operating generating unit, or the unexpected
disconnection of one major item of transmission plant (e.g.
transmission line, transformer or reactive plant) other than as a result
of a three phase electrical fault.
Current The movement or flow of electricity through a conductor.
Curtailment A reduction in the scheduled capacity or energy delivery.
Decommission, decommit To disconnect from a network and remove from service.
79
Term Definition
Demand The rate at which electric energy is delivered to or by a system or part

of a system, generally expressed in kilowatts or megawatts, at a given
instant or averaged over any designated interval of time. Demand
should not be confused with load.
Demand Charge That portion of the charge for electric service based upon a customer’s
demand.
Demand Side Management The term for all activities or programs undertaken by an electric system
or its customers to influence the amount or timing of electricity use.
Direct (DC) Current Electric current flowing in only one direction.
Distributed Control system A control system in which significant parts of the control process are
decentralized.
Distributed Generation An electrical grid where multiple small sources contribute energy,
instead of relatively few large central generating stations.
Distribution The function of distribution is the transport of electrical energy from

transmission network (or from generation within the distribution
network) to the final customer.
Distribution System A distribution network, together with the connection assets associated
with the distribution network, which is connected to another
transmission or distribution system.
DSO Distribution system operator.
Economic Dispatch The distribution of total generation requirements among alternative

generator sources for optimum system economy with due
consideration of both incremental generating costs and incremental
transmission costs.
EMF Electric and Magnetic Field Electric and magnetic fields (EMFs) are invisible areas of energy, often
referred to as Radiation, that are associated with the use of electrical
power and various forms of natural and man-made lighting. EMFs are
typically grouped into one of two categories by their frequency:
Non-ionizing: low-level radiation which is generally perceived as
harmless to humans
Ionizing: high-level radiation which has the potential for cellular and
DNA damage
Electric Power Distribution In an electric grid, the network that brings power from a substation or
bulk supply to individual customers.
Electric System The generation, transmission, distribution, and other facilities, operated
as an electric utility or a portion thereof.
Electric System Losses Total electric energy losses in the electric system. The losses consist
of transmission, transformation and distribution losses between supply
sources and delivery points. Electric energy is lost primarily due to
heating of transmission and distribution elements.
Electrical Energy The generation or use of electric power by a device during a period of
time, expressed in kilowatt-hours (kWh), megawatt hours (MWh) or
gigawatt hours (GWh).
Electrical Grid (Power Grid) A geographically distributed system to connect source and users of
electric power.
80
Term Definition
Electrical Technologist A specialist in applying electrical theory and technique to practical

problems.
Embedded generating unit A generating unit connected within a distribution network and not
having direct access to the transmission network.
Energy Demand Managment A system to adjust energy demand to reduce costs.
Energy management System A system designed to ensure safety, security, and reliability to an
electrical network.
Fault An event occurring on an electric system such as a short circuit, a

broken wire, or an intermittent connection.
Fault Outage Period when equipment is switched out of service by the automatic
opening of a circuit breaker initiated by protection responding to a fault.
Firm Capacity Capacity that is as firm as the seller’s native load unless modified by
contract. Associated energy may or may not be taken at option of
purchaser. Supporting reserve is carried by the seller.
Forced Outage The removal from service availability of a generating unit, transmission
line, or other facility for emergency reasons or a condition in which the
equipment is unavailable due to unanticipated failure.
Forecast Predicted demand for electric power. A forecast may be short term
(e.g. 15 minutes) for system operation purposes, long-term (e.g., five
to 20 years) for generation planning purposes, or for any range in
between. A forecast may include peak demand, energy, reactive
power, or demand profile. A forecast may be made for total system
demand, transmission loading, substation/feeder loading, individual
customer demand, or appliance demand.
Frequency Refers to the number of times per second that the voltage of an
alternating current system varies from positive polarity to negative
polarity and back to positive, each such variation being called a cycle,
with frequency being measured in cycles per second or Hertz (Hz).
Frequency Regulation The ability of a Control Area to assist the interconnected system in
maintaining scheduled frequency. This assistance can include both
turbine governor response and automatic generation control.
Frequency Response The ability of a system or elements of the system to react or respond
to a change in system frequency.
Generation The function of generation is the conversion of primary energy into

electrical energy. This function includes the construction and operation
of power stations and the procurement or harnessing of the primary
energy.
Generation reserves Generation capacity in excess of peak demand.
Grid A system of interconnected power lines and generators that is

managed so that the generators are dispatched as needed to meet the
requirements of the customers connected to the grid at various points.
Grid Energy Storage Any system tied to an electrical grid that stores electrical energy at low
demand times and releases it to meet peak loads; it might be a
centralized station like a pumped-storage hydroelectric plant, or might
be distributed over many customer sites such as by the use of electric
vehicle batteries.
81
Term Definition
Hedging Procedure for systematic reduction or elimination of risks associated

with future price fluctuations of a particular commodity. The party
seeking to reduce its risk pays a fixed, up-front fee to another party
which agrees to perform some action in the future at the discretion of
the first party and thus assumes all or a portion of the risks that the first
party would otherwise have to bear.
High voltage Any voltage at which safety concerns apply; in some contexts,
anything over 100 volts may be a high voltage; in electric power
transmission, voltages over 66,000 volts are considered "high voltage."
HVDC High Voltage Direct Current.
Incremental Additions Additions, improvements or capital betterments (including

interconnection facilities) to a member's/members' electric
transmission system reasonably required for the purpose of increasing
transmission capacity to accommodate a transmission service request
of another member.
Incremental Cost A transmitting member's actual cost per unit of rated capacity of
transmission facilities added or upgraded to meet a request for firm
transmission service from a requesting member.
Independent system An operating organization not owning facilities with responsibility for
Operator [ISO] the reliable and economic operation of a system.
Installed Reserve Installed generating capacity owned or contracted for in excess of

peak demand, expressed as a percent of peak demand. (Sometimes
referred to as plant margin.)
Insulator Any material that will not allow electricity to easily flow through.
Interconnected transmission That portion of each member's transmission system utilized for bulk
power transactions, generally at voltages of 115 kV and higher.
systems
Interconnection The facilities that connect two electric systems or control areas.
International Electrotechnical An international standards organization devoted to electrical

Commission (IEC) standards; most countries are members.
Interruptible load A load which is able to be disconnected, either manually or

automatically initiated, to assist the restoration or control of the power
system frequency to cater for a power system contingency event or
shortages of supply.
Investor Owned Utility Utility owned by private investors. In an investor owned company
officers make decisions and are responsible for their actions to the
board of directors and the shareholders.
Island A portion of a power system or several power systems that is

electrically separated from the interconnection due to the
disconnection of transmission system elements.
Kilowatt (kW) A unit for measuring electrical energy. (Demand)
Kilowatt Hour (kWh) One kilowatt of electrical energy produced or used in one hour.
(Energy)
Least Cost Planning Utility expansion planning, taking equal account of generating plant
and demand-side investments.
82
Term Definition
Licence A license is an authorization issued by a regulator to a company

allowing to install a generation, transmission or distribution facility or
system carry on a business which is part of the electricity supply.
Lightning A flash of light caused by an atmospheric electrical discharge between

two clouds, or between a cloud and the earth.
Lightning Arrestor A device used to protect an electrical component from over-voltage.
Load The amount of electric power required or delivered at any specified

point or points on a system (sometimes referred to as demand).
Load A connection point or defined set of connection points at which

electrical power is delivered to a person or to another network or the
amount of electrical power delivered at a specific connection point, or
aggregated over a defined set of connection points.
Load Factor The sum of all hourly loads in a given period divided by the peak
hourly load multiplied by the number of hours in the period.
Load Following An electric system’s process of regulating its generation to follow the
changes in its customers’ demand.
Load Management Any strategy for altering the operation of customer loads so as to
reduce peak demand on an electrical grid.
Load Shedding Disconnecting or interrupting the electrical supply to a customer load

by the utility, usually to mitigate the effects of generating capacity
deficiencies or transmission limitations.
Mains Electricity Commercial electric power, purchased from an off-site source shared
by many consumers. Regional supplies vary in voltage, frequency, and
technical standards.
Maintenance outage The planned removal of an electrical facility from service to perform
work on that facility so it can continue to adequately perform its system
function.
Major disturbance Loss of supply to end use customers which exceeds one system
minute, or a major variation in frequency or voltage outside limits
declared to customers. The specific indices may vary from utility to
utility. (One system minute is the equivalent in energy to an
interruption of the total system load for one minute at the time of
annual peak load.)
Marginal Cost Pricing Pricing based on the additional cost needed to supply an infinitesimally
small increment of power/energy etc. – today usually calculated with
replacement cost of capacity investments.
Maximum Demand The highest amount of electrical power delivered, or forecast to be

delivered, in a defined period (day, week, month, season or year).
Megawatt One million watts.
MP Member of Parliament
Name Plate Capacity The design power output of a generator, at specified temperature rise.
Nameplate Rating The maximum continuous output, consumption or throughput, in MW,

MVAR or MVA of an item of equipment as specified by the
manufacturer.
83
Term Definition
Network Capability The capability of the network or part of the network to transfer
electricity from one location to another.
Network Losses Energy losses incurred in the transfer of electricity over a transmission
network or distribution network.
New Entrant A Recent participant to that sector who has not previously been
involved.
Nodal Pricing Pricing often based on approximate power flow calculations, that
assigns different energy or capacity prices at different nodes in a
network.
Off-Peak energy Electrical energy supplied during a period of relatively low system
demands as specified by the supplier.
Operating Procedures A set of policies, practices, or system adjustments that may be

automatically or manually implemented by the system operator, within
a specified time frame, to maintain the operational integrity of the
interconnected electric systems. Actions or system adjustments may
be implemented in anticipation of or following a system contingency
(facility outage) or system disturbance.
Opportunity Cost Extra costs incurred to accommodate a wheeling or transit request

from a third party, resulting from the need to change system dispatch
from minimum cost or from restrictions in interchanges with other
systems.
Original Cost All historical costs associated with the acquisition of an asset.
Overhead Line Outside plant run on poles or other structures; power transmission or
telecommunication wires.
Peak Demand The highest electric requirement occurring in a given period (e.g. an
hour, a day, month, season or year). For an electric system, it is equal
to the sum of the metered net outputs of all generators within a system
and the metered line flows in the system, less the metered line flows
out of the system.
Peak Energy Electrical energy supplied during a period of relatively high system
demands as specified by the supplier.
Peaking Capacity Capacity used to serve peak demand. Peaking generating units
operate a limited number of hours per year, and their capacity factor is
normally less than 20%.
Planned Outage The removal of a unit from service to perform work on specific
components that is scheduled well in advance and has a
predetermined duration (e.g. nuclear refuelling, annual overhaul,
inspections, testing).
Power Grid An interconnected network of generators, transmission lines, and

apparatus for reliable and economic transmission and utilization of
electric power.
Power Plant A facility that converts other energy forms into electric power.
Power Pool Two or more interconnected electric systems planned and operated to
supply power for their combined demand requirements.
Power Quality Conformance of an electrical power supply with its specifications.
84
Term Definition
Power Storage A facility that changes electric power into some form that can be stored
and usefully reconverted back to electric power, for example, pumped
storage or battery systems.
Power Supply A subsystem of a computer or other electronic device that turns

electric power from a wall plug or batteries into a form suitable for use
by the system.
Power System A network including associated generation and transmission and

distribution networks for the supply of electricity, operated as an
integrated arrangement.
Power System Demand The total load (in MW) supplied from the power system.
Privatisation Sale of the property and facilities of a utility owned by federal, state or
municipal government agencies to private shareholders.
Prosumers someone who both produces and consumes energy
Protection System The electrical and mechanical devices (from measured process
variables to protective action system input terminals) involved in
generating those signals associated with the protective functions.
Ramp Rate The rate of change over time of electricity produced from a generating
unit.
Reactive Power The portion of electricity that establishes and sustains the electric and
magnetic fields of alternating current equipment. Reactive power must
be supplied to most types of magnetic equipment, such as motors and
transformers. It also must supply the reactive losses on transmission
facilities. Reactive power is provided by generators, synchronous
condensers, or electrostatic equipment, such as capacitors and directly
influences the electric system voltage.
Real (Active) Power The portion of power that averaged over a complete cycle of the AC
waveform results in net transfer of energy in one direction.
Reclose The automatic closing of a circuit breaker following its opening

because the detection of a fault. A reclose is initiated after a pre-set
delay on the presumption that the fault was transient.
Regulating Capacity Generating capacity under automatic control capable of maintaining

system frequency and tie line loads within acceptable deviations from
schedules (see control area).
Regulator Independent organisation responsible for oversight of the operation of

the industry sector.
Reliability The probability of a system, device, plant or equipment performing its

function adequately for the period of time intended, under the
operating conditions encountered.
Reliable operating state The power system is operating with all parameters within the normal
ranges of tolerance, can sustain any predicted event without
disruption, and has adequate short and medium reserves to meet the
forecast load.
Renewable energy Renewable energy, often referred to as clean energy comes from
natural sources or processes that are constantly replenished. For
example, sunlight or wind keep shining and blowing, even if their
availability depends on time and weather.
85
Term Definition
Replacement Cost The amount the asset in question would cost today or in the future.
Resource Planning Planning of generating as well as demand side management

resources to meet forecast demand.
Rolled in costs/pricing Average costs (e.g. per MW of transmission capacity) of all

transmission. Pricing facilities regardless of voltage level or type of
facilities, such as lines, transformers, circuit breakers, etc.
Roof top solar Solar photovoltaic panels installed on the flat or inclined roof of a
building.
SCADA Systems Supervisory Control And Data Acquisition. A Computer system used
to remotely monitor and control substation equipment.
Secure Operating State The power system is in a satisfactory operating state and system can
be promptly returned to a satisfactory operating state following the
occurrence of a single credible contingency event with the frequency,
voltage and thermal loading remaining within the operational frequency
tolerance band. This may vary amongst utilities.
Security The ability of the electric system to withstand sudden disturbances

such as electric short circuits or unanticipated loss of system elements.
Shadow price The amount derived from the solution to a mathematical optimization
problem which measures the change in the objective function that will
result from a unit change in the right-hand side of one of the
constraints of the mathematical optimization problem. It can be used to
measure marginal cost if the objective function is the cost for which the
marginal cost is sought and the right-hand side of the relevant
constraint is a measure of the service provided or the output of goods
produced.
Single circuit line A power line built on its own individual towers or poles.
Solar Energy Energy produced by the sun’s light or heat.
Spinning Reserve The amount of unloaded generating capacity, on units that are in the
generating mode and connected to the interconnected system, which
can be fully applied in 10 minutes or less.
Spinning Reserve The difference between the capability and actual output of generating
units which are operating and connected to the electrical network.
Spot Price The price for electricity in a trading interval at a regional reference
node or a connection point.
Stakeholder A stakeholder is a party that has an interest in a project or outcome

and can either affect or be affected by the project.
STEM Science Technology Engineering and Mathematics.
Stranded Costs Increases in costs or loss of revenue incurred by a utility when

customers switch to buying power from other suppliers.
Stranded Fixed Costs Costs associated with investments or other unavoidable fixed costs
made to provide service to a (normally wholesale) customer which has
ceased to be a customer before the end of the useful life of such
investments. Such costs remain stranded fixed costs only until such
time as additional customer load is acquired to render the investments
and other unavoidable fixed costs in question necessary to provide
service to the then aggregate load of the utility, and the additional
86
Term Definition
customer load pays a sufficiently high price to replace the revenue lost
from the customer which ceased to be a customer.
Stranded Investment Refers to the cost of existing equipment of facilities that are no longer
needed after one or more customers stop buying power from the local
utility. Stranded investments may also refer to the cost of equipment of
facilities (not necessarily existing, a future investment may become
stranded) which are no longer needed because of a decision or action
of another participant in the electricity market.
Substation An electrical facility where transformers lower high transmission

voltages to be distributed to customers.
Sunk Cost In economics, a sunk cost is a cost that has already been incurred,
and therefore cannot be avoided by any strategy going forward.
Supply Sale of electricity to an end-user.
Surge Protection The measures taken to protect machines and apparatus from transient
over-voltages.
Switchgear An array of switches, circuit breakers and related apparatus for power
distribution.
Switchyard The connection point of a generating unit into the network, generally
involving the ability to connect the generating unit to one or more
outgoing network circuits.
Also, the outdoor component of a substation.
synchronization Aligning the timing of two or more sources, such as synchronizing a

generator before connecting it to a grid.
System Control Centre The facility used by the system operator for directing the minute-to-
minute operation of the power system (typically the transmission
system and generation dispatch).
System Operator A “control area” consists of many generators (which may include
independent power producers), many customers with deliveries from
many suppliers and a high voltage transmission network where such
an area is provided with the control means and monitoring equipment
to offset the mismatches between generation and demand and control
the power flows. These activities are under the responsibility of the
system operator, through its dispatching centre(s).
Tariff A document, approved by the responsible, regulatory agency, listing

the terms and conditions, including a schedule of prices, under which
utility services will be provided.
Technical Brochure (TB) The end result of a CIGRE WG – the published outcome of the work.
TES Traditional Energy System.
Thermal Rating The maximum amount of electrical current that a transmission line or
electrical facility can conduct over a specified time period before it
sustains permanent damage by overheating or before it violates public
safety requirements.
Third party access Access of third parties to the transmission and/or distribution network
of an electric utility for the purpose of wheeling.
Three Phase Supply Delivery via 3 active and 1 neutral conductors.
87
Term Definition
Transformer An electrical device that will raise or lower electricity’s voltage and
current.
Transient Stability A condition that exists in a power system if after a periodic

disturbance, the system regains steady-state stability.
Transmission The function of transmission is the transfer of electrical energy in bulk

from generation or import sources to the distribution level and to
reduce the investment in generating capacity. This function also
includes transfer of electrical energy between electricity grids or control
areas.
Transmission provider Any public utility that owns, operates, or controls facilities used for the
transmission of electric energy in interstate commerce.
Transmission System A network of transmission lines and the switching stations and
substations to which the lines are connected.
Transmission system Operator The transmission system operator [TSO] is responsible for provision of
(TSO) a reliable transmission service and day-to-day operation of the total
integrated power system. This is similar to the independent system
operator [ISO], but a TSO may own the transmission facilities, and
may not be responsible for economic operation. (Someone else may
set the rules for dispatch, and these may not necessarily be
economic.)
Turbine-generator A large fan(s) that is coupled to a generator field. This turbine (fan) is
put into motion by the force of water, steam, or hot exhaust gases that
rotate the turbine.
Unbundling Separation of generation, transmission and distribution operations.

This may be done by establishing separate management, accounting
and cost responsibility procedures or by establishing separate
companies.
Utility an organization supplying the community with electricity, gas, water, or

sewerage.
Vehicle to Grid A concept to use electric vehicle batteries as a form of grid energy
storage.
Vertically integrated An owner and operator of a power system including generation,

transmission and distribution that has the responsibility for the
adequacy and reliability of its system to all the customers served by it.
Virtual Power Plant A strategy for managing a collection of disparate power sources,
interconnected with a communications network, as if they were a
single centralized power plant.
Volt The unit of measurement of force used to produce an electric current.
Voltage Control The control of transmission voltage through adjustments in generator

reactive output and transformer taps, and by switching capacitors and
inductors on the transmission and distribution systems.
Voltage Regulation A measure of how a source maintains its output voltage for varying
load.
Watt A unit for measuring electric power.
WG Working Group
88
Term Definition
Wholesale Power market The purchase and sale of electricity from generators to resellers along
with the ancillary services needed to maintain reliability and power
quality at the transmission level.
Wind Farm An array of two or more wind turbines, usually sharing a substation.
Wind Power Generation of electricity (sometimes mechanical power) from wind.
Wind turbine A machine that uses energy from the wind and transfers the motion to
an electric generator.
Working Group (WG) Name CIGRE uses to identify a group working together to develop a
Technical Brochure (TB).
89
Appendix B – The Cake Analogy

Cake Shop Analogy for Power System Operations
The customer is the most important actor in the electricity industry as they are the only actor that pays
for the product, all the other actors add costs to the product. One of the main considerations for the
industry is, does the customer understand the product values when considering the impact of new
technologies when all they really want is for the final product (electricity) to be available when they need
it at a price that they can appreciate the value of. To try to have more meaningful discussions between
the customers and the producers, the analogy of a Cake Shop was used to better appreciate what the
product values actually are. This analogy was introduced in South Africa.
The most important component or characteristic values of the electricity product that a customer requires
or is interested in can be broken down as follows:
1. Convenience: Must be available whenever and wherever (i.e. maintained, refurbished and
expanded) and the actual technology is irrelevant;
2. Continuity: Must be reliable (i.e. the supply is secure and adequate);
3. Consistency: Quality of supply must be good (i.e. Frequency, Voltage, System Strength);
4. Cost: Should be acceptable, predictable, efficient and transparent;
5. Choice: There must be options and value for the options; and
6. Consciousness: Sustainability is now a more and more important consideration.
Electricity is a multitude of customer value products bundled into a single product, referred to in the
analogy as the “6C Product,” with a single measure of delivered energy, the kWh.
The traditional technology generation (i.e. coal, gas, nuclear, hydro
and pumped storage) inherently combines the first five C’s for the
power system service requirements and to a lesser extent the 6th C
of Consciousness, which is based more on the increasing demand
by the customer for overall sustainability than a power system need.
The 6C Product needs to be delivered when required as shown by
the red line profile in the diagram.
To operate the power system and deliver the C6 Product, a number
of generation services are required. The first four can be considered to be the fundamental
requirements, namely Voltage, Frequency, System Strength and Synchronising Power. Without these
services in place no power can be delivered. The fifth service needed is the actual Energy that needs
to be delivered to the customer. To meet the varying demand, the ability for Dispatched Ramping is
required to follow the changing demand. Finally the Peak Capacity is required to be able to meet the
instantaneous maximum demand expected from the customer.
Any combination of the traditional technology generation can meet the 6C
Product value requirements to different degrees and, most importantly, provide
the same product at the same quality. There is a level playing field for
optimisation and a “Levelized Cost of Electricity” (LCOE) can be calculated per
generation type. This includes the initial capital, discount rate, costs of
continuous operation, fuel, and maintenance. This can then be applied to any
generation mix to give standard costs for the delivered 6C Product in terms of
R/MWh (where R is the local currency - Rands). The bundled service in the
same measurement unit is represented by the red arrow.
The process of delivering the 6C Product for the power system is illustrated
below. In Stage 1 the four fundamental services need to be in place to provide
the base. Then the Energy, Dispatched Ramping and Peak Capacity services
must be provided to meet the red demand curve. Any combination is possible
and because they provide the same product a levelized cost optimisation
exercise can be done as shown in Stage 2. The optimised result from using traditional technologies is
three bands that are referred to as Base Load, Mid Merit and Peaking generation as indicated in Stage
3. Note that this does not mean these three bands of generation are required to operate a power system,
but rather these have evolved from optimising the traditional technologies.
90
In the analogy, the parallel example of the Cake Shop is considered where the red line represents the
customer demand for “C6 Cakes”. To meet this need, the Cake Shop has a variety of 6C Cakes which
are “ready-made” with all the ingredients (services) mixed in as shown below in Stage 1. These have a
single measurement value expressed in R/kg, and a “Levelized Cost of Cake” (LCOC) can be calculated.
The various size cakes can now be optimised to determine the optimal mixes to meet the demand as
shown in Stage 2 below. As in the power system the Cake Shop ends up with three bands of cakes,
namely Base Load, Mid Merit and Peaking, under Stage 3 to supply the red demand curve.
The introduction of new generation technology results in the unbundling of the value services provided
to the power system. For example, wind and solar PV are efficient at producing energy, but not at
providing the other required services such as Peaking Capacity or the fundamental services. Services
are now separated into discrete elements but are priced in the same measurement unit of the product,
namely R/MWh. However, they do not deliver the required 6C Product of electricity. In order to provide
the 6C Product the power system operator needs to combine the new technologies with other
components to provide the missing value for the 6C product.
In the Cake Shop example this can be compared to now purchasing separate ingredients which are also
costed by weight, i.e. R/kg, but they do not provide the required 6C Cakes on their own. The Cake Shop
now needs to mix the ingredients and bake the C6 Cakes themselves. As the same unit for
measurement is used there can be some confusion by comparing the cost of the ingredients with the
“ready-made” cake costs. The Cake Shop Baker (the System Operator) may find that there are
inadequate ingredients or over-valued ingredients which results in insufficient ingredients to make the
needed C6 Cakes. The Cake Shop is then unable to supply the customers, as illustrated below.
91
This does not imply that the new technologies(ingredients) are either good or bad, just that they have to
be considered differently than is currently done. In order to meet the demand for the 6C Product, the
new technologies (ingredients) need to be valued in a combined or stacked approach with other
technologies to provide a set of stacked services that can help meet the 6C requirements of the
customer. This can also mean using traditional technology (ready-made cakes) in combination with new
technologies (ingredients) to supply the customer with the required 6C Product, as shown below.
The objective of the Cake Shop analogy is to demonstrate that the LCOE is not just the cost of energy,
but the provision of a 6C electricity product, despite both being valued in R/MWh. Similarly, the
measurement unit for the ready-mixed cake and the flour are the same, but only one provides the final
product. The issue is that the same unit of measurement can be used for inappropriate comparisons,
leading to inappropriate expectations. The analogy also tries to show that the traditional bands of
generation (base load, mid merit and peaking) are not necessarily the critical requirements to operate a
power system (or provide cakes for the Cake Shop). This can be summed up in the diagram below.
92
As the Baker in the Cake Shop, the System Operator needs to combine the traditional technologies
(ready-mixed) with stacked new technologies (mixing and baking of ingredients) to best meet the desired
values of the customer demand. This analogy helps customers to better visualise the impact of new
technologies on the power system. Understanding that a combination of technologies is required to
deliver the desired 6C electricity product can improve the dialogue regarding what is required and what
the implication on the electricity tariffs will be.
93
Appendix C – Case Studies listed by group

Group A—the challenges of communicating the impact of renewables to a wide audience
Section 6.1
Case The Case Study
Study #
1 South Australian blackout in September 2016, and New South Wales, South Australia
blackout in February 2017.
2 Citizen's juries on wind farm development in Scotland.
3 Special regional scheme to develop grids to connect renewable energy sources to
networks in France.
4 Use of cake analogy in South Africa to help explain technical issues associated with the
changing nature of the power system.
5 A special consultation process used in France to design regional schemes for
renewable energy sources.
6 Residential solar PV uptake in Australia, understanding and anticipating different
audiences and their vested interests.
Group B—Communicating with large groups of stakeholders

Section 6.2
Case The Case Study
Study #
7 Community gain—how TSOs can work with local groups to identify how the TSO can
invest in the community as both a benefit to the community and as a host for
infrastructure.
8 Improved customer experience with an improved website and smart-phone app.
9 How electricity partners communicate with a big group of participants who have no or
limited knowledge of the electricity and gas market.
10 Enhanced stakeholder engagement in Great Britain UK.
Group C: Engagement with stakeholders on the need for, benefits and impacts of major
transmission reinforcements
Section 6.3
Case The Case Study
Study #
11 Explaining the need for the “Bruce to Milton Transmission Reinforcement Project” in
Ontario, Canada, and developing the associated land acquisition compensation policy.
12 Installing HV cables in deep tunnels in London.
13 Creating a WG to assess the main problems of delays in reinforcing the main Brazilian
network (230 KV and above).
14 The joint supplier/customer development of an electronic catalogue of typical relay
protection and automation schemes for all voltage types in Russia.
94
Group D: Dealing with poor stakeholder communication and vocal minorities

Section 6.4
Case The Case Study
Study #
15 How a necessary technological change, very badly communicated to the public,
provoked rejection by most citizens and impeded implementing a correct public policy in
Chile.
16 How engaging with stakeholders may lead to paralysis where society at large suffers
(poor reliability or high-cost electric service) because the interests of a vocal minority
block all progress.
17 How engagement between the Italian TSO, in collaboration with WWF Legambiente ,
organized three workshops about community dialogue with different stakeholders.
18 How removing relationship barriers between a mid-tier vertically integrated North
American Utility and external stakeholders affected communications and results.
19 How focusing on improving relationships between a vertically integrated North American
utility and external stakeholders as part of the filing of a mandated Integrated Resource
Plan, led to improved results.
20 How leveraging relationships with a utility’s stakeholders in delivering strategic
objectives enabled effective outcomes.
95
ISBN : 978-2-85873-587-7
TECHNICAL BROCHURES
©2022 - CIGRE
Reference 882 - October 2022

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C1

Closing the gap in understanding

Closing the gap in understanding

P. SOUTHWELL, Convenor AU T. KILLEN, Secretary AU

Figures and Illustrations ..................................................................................................... 9

3. Work Methodology .................................................................................................. 12

4. Stakeholder engagement and effective communications ..................................... 15

6. Key findings—what worked and what didn’t work ................................................ 24

7. Examples of analogies and models used to illustrate technical issues .............. 61

7.8 Analogies related to maintenance requirements refurbishment/replacement/decommissioning.... 74

Appendix A: Glossary of terms ....................................................................................... 78

Appendix B – The Cake Analogy ...................................................................................... 90

Appendix C – Case Studies listed by group .................................................................... 94

Figures and Illustrations

1.1 Appreciation of Contributors

Figure 1: Using the brochure

3.2 How the work was organised

Figure 2: Layout of the Technical Brochure

A. The challenges of communicating the impact of renewables to a wide audience;

4. Stakeholder engagement and effective

4.1 The stakeholders

Stakeholder Likely area of focus/required solution

Stakeholder Likely area of focus/required solution

4.1.1 Overlaps in interest and understanding amongst stakeholders

4.2 Methodology for good engagement

4.2.1 Requirements for a good relationship with stakeholders

4.2.2 Developing trust

4.2.3 Communication during/following power interruption and in planning new

4.2.4 Questions to consider when preparing ahead of any “event/Interaction”

4.2.5 Preparation for the discussion with the stakeholder

o Break down into services/parts

4.3 Recommended communication tools

5. Key issues facing the energy sector and related

5.1 Impact of renewables

5.2 Major power system disruptions/blackouts

5.3 Major infrastructure projects

5.4 Long term plans

5.5 Public policy determination and implementation

5.6 Significant technological change

6. Key findings—what worked and what didn’t

Gap in understanding Specific examples from the case studies

Gap in understanding Specific examples from the case studies

Gap in understanding Specific examples from the case studies

6.1 Group A—the challenges of communicating the impact of

Gap Specific examples from the case studies

6.1.1 General observations from case studies 1 – 6

New entrant (NE)

6.1.2 Specific gaps for cases 1-6

6.1.2.2 Gap 2: The complexity of system operation

2 World Nuclear Association, accessed 1 February 2022, https://www.world-nuclear.org/information-library/energy-and-the-

6.1.2.6 Case 2 – Citizen’s juries on wind farm development in Scotland;

6.1.2.7 Case 3 – Special regional scheme to develop grids to connect renewable

5 Refer Section 4.3

6 Refer section 4.3

6.1.2.9 Case 5 – A special consultation process used in France to design regional

7 A detailed description of the cake analogy can be found in Appendix B

6.1.2.10 Case 6 – Residential solar PV uptake in Australia, understanding and

8 Refer section 4.3