Parliament of Romania Chamber of deputies COMMITTEE FOR INFORMATION TECHNOLOGY AND COMMUNICATIONS Third Parliamentary Forum on Shaping the Information Society ICT and the Global Economic crisis:
Current Situation and Future Perspectives 3-5 may 2010 Geneva, Switzerland 1. The global economic crisis and ICT The financial crisis has affected not only financial institutions but also governments at all levels, companies and consumers throughout the world.
The parliaments in Europe and around the world are struggling to counter the effects of one of the worst financial and economic crises for decades, with its severe negative impact on growth, trade, investment and employment across the globe and untold social and human consequences.
In these challenging times of global economic crisis, the extraordinary capacity of ICT to drive growth
but also in sustaining national competitiveness in the medium to long term. 1 2 ICT will continue spreading its revolutionary power to modernize economies
and societies and improve living conditions and opportunities around the world. ICT performance will remain crucial
and social divides within their territories and vis-à-vis more advanced economies. The development of the information society should be considered as a challenge
and opportunity, providing the means for enhancing democratic principles and responding to certain shortcomings and deficits of democratic systems.
Information and Communication Technologies offer great potential for improving democratic practice and participation, transparency, accountability and responsiveness of democratic institutions,
E-democracy can only be an instrument in a democratic environment in which human rights and the rule of law are implemented and observed.
and areas that involve high costs for providing these services, the European commission proposed in 2009, the allocation of 1 billion euro, with the following priority areas:
to stimulate investment in an open and competitive infrastructure for high-speed Internet and related services;
and services (i e. secure Web services in EU) to enjoy high levels of security and confidence, a balanced regulatory framework with well defined rights,
in particular through measures to support skills and accessibility of digital services. C. Granada Strategy for a Digital Europe Another proposal is Granada strategy for a Digital Europe
1. the development of electronic communications infrastructure by stimulating the investment in next generation networks, a European action plan for spectrum and technological neutrality of networks 2. Promoting the use of the Internet,
safety and trust through increased accessibility and electronic integration of all EU citizens, fostering innovation in small companies and protection of personal data. 5 3. European Charter of rights of electronic communications services users,
which will include the rights of all end users of electronic communications services, regardless of the chosen supplier. 4. Market development and digital content.
the management of intellectual property rights and developing a common strategy for e-Government and e-Health services. 5. Strengthening ICT industry and foster its contribution to sustainable development by promoting the research
as for most countries of the world, a strategic sector of the national economy. The scale of investment in this field
especially the rapid expansion and ability to induce a multiplying effect on economic growth, particularly through the great potential of fostering the development of other sectors,
have transformed ICT in the past decades in one of the most important economic engines, both nationally and globally. 1. Government strategy of broadband electronic communications development in Romania for the 2009-2015 period Broadband is a vector of global economic development
and a way to exceed economic crisis by creating jobs. Although the broadband infrastructure in Romania is developed well in major cities due to private investment,
it is poor in rural areas and therefore the priority is to stimulate supply and increase access to broadband communications especially in rural and disadvantaged areas. 6 In terms of competition it should be mentioned that Romania has a particular situation regarding the penetration rate of fixed telephony of only 20
%and this fact affects the broadband market. Therefore, the main goal is to stimulate competition
and to promote the development of mobile broadband as the proper solution for Romania, considering the intense progress of mobile telephony market.
growing the broadband use in the small and medium enterprises, increasing the rate of penetration of electronic communication services for broadband in disadvantaged areas in terms of access
This strategy also has a number of specific objectives such as connecting public institutions (public demand aggregation),
support the small and medium enterprises in training, configuring and implementing infrastructure projects and services, increasing accessibility of services, content and applications development, consumer's education and inclusion of disadvantaged groups of users.
To support the development of broadband infrastructure and services, Ministry of Communications and Information (MCSI) will call on the Structural Funds (figures from approximately 84 million euro).
The implementation pattern was completed with representatives from the European commission. Funds will be designed to cover disadvantaged areas,
where there is no currently Internet service 7 providers. MCSI is the direct beneficiary of the funds.
MCSI promote projects on the development of broadband communications services, especially Internet services. A first step in this direction was made last year by installing 211 hotspots (wireless network providing free Internet service in a public area) in 34 counties.
the electronic communications sector has experienced in recent years, a particularly dynamic progress based on structural investments in established technology development and rapid adoption of innovations.
Thus, users in urban areas have a great diversity of services offered; users in rural areas are facing either the problem of limited choice option,
having access to a single supplier or a limited number of suppliers for most services,
either the lack access to means of communication, where outside the coverage of electronic communications networks.
and mobile networks that can provide services at a fixed point. They will be funded from the universal service fund
or are covered partially with electronic communications services. National Authority for Administration and Communications is obliged to ensure the access to universal service throughout Romania.
In this matter, ANCOM launched a public consultation to identify appropriate solutions to eliminate existing disparities between different social groups
and between urban and rural areas and to find the most appropriate methods to ensure access to the entire population to a minimum set of electronic communications services.
There is a similar initiative of public consultation on a European level as to identify the best approach to ensure availability of basic telecommunications services for all EU citizens.
and they guarantee citizens‘access to public telephone networks and services such as basic Internet access. The public consultation is meant to find out
Reactions of consumers, industry stakeholders and policy experts will help the Commission to decide whether to submit new proposals for legislation on universal service obligations in the telecommunications sector by the end of 2010.
The current concept of universal service has been created for traditional telecommunications services, through voice, but is this approach valid in today's dynamic digital environment?
What policy should we have to ensure that people in remote areas and rural or low income people can access
and use basic telecommunications services? Broadband: A comprehensive coverage of broadband is crucial to boost growth and jobs in Europe.
"or open market competition for telecommunications or other policy options would be more effective? A national flexibility and a coordinated approach at EU level:
3. Strategy shift from analog to digital In compliance with its obligations in relations with the European union, the Romanian Government decided to implement digital terrestrial television services nationally
and completing the elimination of analog television services until January 1, 2012. The strategy seeks: Achieving full and effective transition from analogue television services in the UHF frequency band to digital TV services in the DVB-T type and complete cessation of analogue emissions until January 1, 2012;
Establishing procedures for public access to television services and digital media; Identify tools and best intervention measures to encourage switching,
relative to target parties (consumers, equipment manufacturers, broadcasters, potential users of spectrum freed etc.).The balanced development of infrastructure to provide digital television services via terrestrial broadcasts, throughout the country;
10 Implementation of legislative measures necessary to ensure shared use of digital terrestrial broadcasting infrastructure,
Establish general principles for developing a framework capable of developing a friendly environment and competitive market for investment in digital television services, ensuring:
the compliance of pluralistic expression of ideas and opinions in the content of audiovisual media services transmitted by service providers under the jurisdiction of the Romanian audiovisual media, the pluralism of public information sources and a balanced
ratio between program services with national coverage and the local, regional or thematic services Implementation of digital television services DVB-H, DVB-T HD-type and/or other
future technologies, according to market demand for such services. Reducing the negative effects of conversion from analog to digital, having regard to the need for public service television
and competitiveness while maintaining a fair market and the principle of technological neutrality. Presentation of the national radio frequency plan
being composed of representatives of Ministry of Communications and Information, Ministry of Culture, Religious Affairs and National Heritage, Ministry of Finance,
National Broadcasting Council and the ANCOM. 4. E-Romania national strategy E-Romania national strategy aims the state modernization by computerized interaction with citizens and enterprises.
E-Romania strategy includes three types of services: Electronic (e g. start-ups, construction notices, change of address, pay taxes;
To operationalize these services, there is several action directions grouped into 4 categories: A. Government increased capacity to take decisions based on resources offered by Information Society Facilitate obtaining data,
information and updated documents B. Streamline relations with public institutions Increased access to electronic public services Strengthening public confidence in electronic services Ensure protection of personal data Increased performance of public services
and support services for the Information Society Dissemination of public and economic contents Increased use of electronic public services in education Adapting training to the needs of the economy Facilitating access to justice through electronic public services Tourism potential
efficiency of investment in electronic public services Preparation of European and international governance based on electronic public services.
Short and medium term, the strategy seeks to achieve 300 operational electronic services by the end of 2011
equal treatment and fair competition imposed by the national legislative framework. Benefits of Electronic Procurement System also take other values.
Moreover, electronic procurement is useful for small and medium enterprises which can more easily attend public procurement electronically-these structures are particularly important
the economy achieved is approximately 17.2 million RON. The percentage of online procedures carried out by contracting authorities also increased by 500%from 3. 25%to 15
facilitating access to local players of all opportunities available in EU Introduction of detailed statistics available to all users,
which can make comparisons on how the procurement is conducted 15 6. Structural Funds Ministry of Communications
and Information (MCSI) granted a special interest to the initiatives on quickly and efficiently absorption of EU funds and development of integrated services,
and supplementing Government Emergency Ordinance no. 34/2006 concerning the award of public procurement, the public works concession contracts and services concession contracts;
Draft Law to approve Government Emergency Ordinance nr. 113/2009 Payment Services, Legislative proposal establishing a single framework of declarations regarding the nominal amounts due the employees and the general consolidated budget (single desk Law),
-Development-Romania's national platform and the NPS (National Electronic System) by integrating new electronic services,
so that the number of operational services to grow from 16 as they were at the end of 2009 to 150;
This legislative proposal was initiated by the members of Committee for Information technology and Communications in the Chamber of deputies,
after discussions with MCSI representatives and meetings with 18 communications market exponents in order to create the legislative framework for electronic communications network system infrastructure.
The Committee for Information technology and Communications in the Chamber of deputies discussed and elaborated some initiatives in collaboration with the Ministry such as:
Mallorca (where is located the capital of the region, Palma de Mallorca), Menorca, Ibiza, Formentera and Cabrera,
The insularity and lack of soil are peculiarities of the region that marke in a special way its economy.
INE, Eurostat Information Society The Balearic society has tradition in the field of the new Information and Communication Technologies (ICT.
Regional sheets of the New Economy. N-economy. The equipment and use of ICT in households, has increased in Balearic islands in the last years.
Source: Regional sheets of the New Economy. Baleares. N-Economics. June 2012
The Smart Grids Debate in Europe Essential for the transformation of the European energy system, deserving more attention and transparency SEFEP working paper November 2012 Ruggero Schleicher--Tappeser The EU
Smart Grids Debate 2 Table of contents Executive Summary...4 1 Introduction...6 2 Framing the issue:
Why smart grids are important for the transformation of the system 7 3 The debate has reached a new stage the evolution of the smart grid concept...
13 4. 3 Main Stakeholders present in the debates at EU level...17 5 The discussion in EU member states...
working on technology policies with the Institute for Ecological Economics IÖW, in Germany. 1989--2004 he was founder and director of the EURES Institute for Regional Studies in Europe, Freiburg i. Br.
and increased flexibility of demand e--mobility managing a new kind of high-power mobile demand and storage Making grids smarter therefore needs to be considered as a key element of any transition strategy towards renewable electricity.
investments are behind expectations. Involved actors say that fundamental decisions concerning future structures are needed for going ahead.
and transparency of the decision process in a rapidly changing environment. Conclusions The importance of the smart grid debate is being underestimated heavily.
Different groups of stakeholders have different, although mostly not explicit, visions of the future system.
and to a large extent distributed electricity generation with high upfront and no marginal costs into a reliable energy system and energy markets made even more difficult by the accelerated shift of the transport sector to electricity (e--mobility).
While over the last decades the transmission grids and the coordination of large power plants have already become smart with the help of modern information and communication technologies
the different policy threads and forums as well as the active stakeholders in the discussion on smart grids at the EU level,
which stands for the increasing use of new electronic information, communication and control technologies in the rather traditional electricity business.
growing energy demand, globalisation, increasing fossil fuel costs and a new awareness for the risks of nuclear power, the use of renewable energies has been supported by a growing range of stakeholders
Different stakeholders in different countries with different structures of the energy sector emphasise different aspects
which is shorter than the lifetime of conventional energy infrastructure investments, will require considerable and timely efforts.
As in other industries before, the demand for more complex coor--dination and flexibility can be achieved most economically through an extensive use of information and communication technologies.
investments into smart grids whatever might specifically be meant by this are far below expectations, investments into appropriate capacities for balancing fluctuating renewable generation (demand response, storage,
At the same time, smart technologies are used increasingly for ensuring the appropriate communication between the different actors and for coupling the increasingly differentiated markets with the technical energy system.
in addition to copper wires, the different elements and actors of the system will be linked by smart controls and communication.
In principle, this opens The EU Smart Grids Debate 9 opportunities for new and new kinds of actors at all levels of the system.
to support customers in saving energy, to facilitate the use of peak and off-peak tariffs,
Since the nineties large customers with differentiated tariffs have to a large extent been equipped with one or another kind of smart meters.
The up to date largest deployment of smart meters for 30 million customers has been undertaken in Italy between 2000 and 2005.
as well as the real-time management of demand response and storage are becoming important in this context. So-called microgrids can temporarily operate independently from the main grid
and they are capable of managing complex demand systems. Since electricity generation by the consumers themselves is emerging,
and may lead to a boost of investments in these technologies independently from public grid regulations.
This will increase the flexibility of the demand side and will require flexible ad--aptation of public grid tariffs (with the help of smart grid technologies)
Implementing these new concepts in reality is expected to create huge business opportunities. Market reports forecast hundreds of billions of turnover.
and focuses on services and functionalities to be delivered by smart grids. However, the approach is quickly evolving.
investments are behind expectations, and enthusiasm for the envisaged smart--meter rollout is fading14. Equipment vendors, distribution grid operators and electricity retailers are complaining that business cases for smart grid investments are still difficult to be identified
and that missing standards make technical choices risky. Increasingly they are calling for a clarifi--cation or revision of the regulatory framework.
Although smaller investments which lead into the direction of smarter grids are happening everywhere, it seems that more fundamental decisions would need to be taken for going ahead.
Across all stakeholders there seems to be a growing acknowledgement that the present definition of roles
The attempts to reorganise revenue flows which would help to fund smart grid investments, to define or restructure responsibilities for data handling, customer contact or local congestion management, easily lead to considerable shifts in technological, commercial and political power between the players involved.
and opportunities and to secure themselves an important role in the emerging new configuration. However, because of the growing complexity of the issue, the high innovation speed of new energy technologies and the large numbers of new entrants in the debate, positions, strategies and possible conflict lines among different
The endeavours are originating from different motives and Commission services: competitive energy markets, efficient use of energy, integration of fluctuating renewables15, consumer protection and data safety, 16 industry development (mainly ICT, electrical equipment, appliances
. thegrandconference. org, http://www. enisa. europa. eu/17 DG Enterprise & Industry: http://ec. europa. eu/enterprise/sectors/electrical/competitiveness/electra/index en. htm, http://ec. europa. eu/enterprise/magazine articles/industrial--policy/article 11038 en
. htm, The EU Smart Grids Debate 14 research18. Important activities can be found in three Directorates--General:
Transport, Regional Policy, Enterprise and Industry, JRC etc..In the last two years, however, there have been considerable efforts for improving coordination.
Under the guidance of a Steering committee composed by representatives from Commission services, the regulators, a wide range of industries and the consumers,
While the mission started from a rather narrow focus on metering and directly grid--related services and functions
and ancillary services (both on the time scale and in the spatial extension) as well as increasingly flexible grid tariffs will ultimately be required to deliver the full potential of Smart Grids.
and a stronger representa--tion of the telecom industry) has been appointed by DG Energy. 25 The updated mandate puts a stronger emphasis on regulatory issues as well as on communication and data handling.
contains two key provisions for demand response: member states have to ensure that (1) demand response be allowed to participate alongside supply in electricity markets
and that (2) grid operators treat demand response providers in a non--discriminatory manner when providing balancing and reserve services.
This is a considerable step forward, since a series of hurdles have prevented demand response measures from competing with the electricity generation. 32 Research activities Another important forum of discussion between a wide range of stakeholders is the Smart Grids
European Technology Platform (Smartgrids ETP) initiated by DG Research. 33 It describes itself as the key European forum for the crystallisation of policy and technology research and development of pathways for the smart grids sector,
--directive--a--positive--step--for--demand--response/33 http://www. smartgrids. eu The EU Smart Grids Debate 17 strong role of storage (European Technology
Members of the Smartgrids ETP represent a wide range of stakeholders. 34 Its mission, however, includes ensuring that the Platform's strategy remains consistent with EU policy.
DG INFSO regularly organises EC--Telecom--Utility workshops. 4. 3 Main Stakeholders present in the debates at EU level In the different boards
and committees of the activities discussed in the previous section a wide range of stakeholders are represented.
SEDC, Smart energy demand coalition, represents a wide variety of industries dedicated to promoting the requirements of demand side programs in the European electricity markets. 46 It is an active organisations specifically addressing SG issues.
Equipment manufacturers T&d Europe, the European Association of the Electricity Transmission and Distribution Equipment and Services Industry
Jessica Stromback The EU Smart Grids Debate 19 ing the necessity of investments in smart grids and transmission.
is an active participant in discussions (http://www. ceced. eu). Implementing demand response would require new equipment functionalities and open new prospects for the sector.
CECED seems to prefer a high degree of local intelligence protecting autonomous decision making and privacy of customers.
http://www. aie. eu/IT and Telecom industry With smart grids the energy sector opens for the logic and the influence of information and communication technologies (ICT).
This is a huge growth opportunity for the corresponding industries offering hardware, software, data handling and communication.
Different smart grid strategies open different opportunities for the various subsectors of the wide range of ICT industries. 47 http://www. tdeurope. eu, position paper on infrastructure
This overview on the major stakeholders involved shows that overall, the directly interested industry is represented very well with the exception of the renewable energy industry
Poland contributes only 1, 7%and Bulgaria 0, 4%.The same holds for the investments:
While Italy invested € 2150 million (mostly smart meters), Germany 228 (mainly integrated systems), France 195 (mainly smart meters), investments in Eastern europe were mostly negligible, with € 3
since weak grids may even open opportunities for leapfrogging heavy wiring efforts by expanding capacities with smart approaches,
as well as those with innovative regulators looking for an intensifications of competition, such as in the UK, in the Netherlands,
the e--Energy programme of the Ministry for Economy 55 has produced a series of pilot projects
while service providers will ensure the contact to customers (Stouge, 2012). Using the heat market as buffer Coupling the electricity market with the heat market plays a central role in the agreed transi--tion strategy.
Expected heavy investment requires new definition of roles All this will only be possible with heavy investments in smartening the grids.
How to organise that these benefits contribute to the return on the initial investment is still an open challenge.
funded by its customers, is directly in charge of research in this field. Important orientation was given by the ecogrid project (Lind, 2009;
e g. controlling demand response at the 58 See also http://www. europeanenergyreview. eu/site/pagina. php?
id=3417&toegang=cfcd208495d565ef66e7dff9f98764 da The EU Smart Grids Debate 24 consumer's premises, simply on the basis of the frequency in the grid, may save expensive communication
Italy The situation in Italy is characterised by a dominant role in generation, distribution and sales of the former national monopoly ENEL with 30 million customers in Italy and 30 million abroad
Effectively, Italy is one of the leading countries concerning smart grid investments. Smart meters Italy has been a pioneer in smartening its grids
Enel deployed smart meters (bidirectional communication, power measurement and management capabilities, software--controllable switch) to all its 30 million customers.
Enel achieved the return on investments (EUR 2, 1 billion) in just four years. Also consumers may save considerably,
and Electrolux for a communications platform for a home area network that will allow for value-added services.
a smart grid approach with new technologies promises to save costs where massive investments in grid infrastructure
the United states where decades of low investment into the grid system have led to a relatively low system reliability compared to Europe as well as China,
India and South korea where grid development has difficulties to keep up with high growth rates of the economies have started to look at smart grid technologies before they were concerned about the transition towards high shares of renewables.
Forecasts concerning smart grid investments vary widely but show the dimensions: while Europe is expected to invest € 56 billion by 2020 (Woods and Gohn, 2011),
but also involving a range of other stakeholders is the Global Smart Grid Federation69 (4) Not to be underestimated are the international standardisation organisations70:
since many years distribution system automation, peak shaving with demand side management, rapid detection and isolation of grid failures,
while supply is already grappling to meet demand, also due to coal shortages. The dimension is huge;
. calling for more competition. In this context, the relatively slow development of international standards seems to favour Chinese companies aiming at conquering international markets starting from a strong and large home base.
start to take the Chinese competition seriously. A number of important recent mergers and acquisitions show the efforts to concentrate forces.
http://www. greentechmedia. com/articles/read/enter--the--dragon--china--and--the--worlds--greatest--smart--grid--opportunity The EU Smart Grids Debate 29 at the EU level.
and communication structures also at lower levels of the system, down to the interface with consumers and even in their own premises,
How will the communication between energy vendors and grid operators be organised? Who will have access to real-time consumption data of the customers?
Will there be distribution--level markets for optimally managing capacities, including the capacities of distribution grids?
not all stakeholders share this vision. When consumers start to produce their own electricity and start to shift their loads so as to maxim--ise their economic advantage,
allow for more demand response reliability and shorter reaction times. The two alternatives might converge in a compromise offering consumers attractive automation options while preserving the freedom of choice however,
Across the large range of different stakeholders different models are being proposed and discussed. One of the hottest issues is who will handle
Europe has to face strong international competition. Joining forces, creating large markets and speeding up the setting of standards might be important for maintaining an influence not only of European industries but also of European political decision making concerning future energy supply.
and transparency of the process Even the stakeholders more directly involved only have started to acknowledge the profound transformation of the energy sector required by the transition to renewable energies,
the difficulty of fully understanding the issues at stake for the own interest group or for society as a whole, by the broad public and also for many of the stakeholders involved cultural gaps between policy and market specialists on one side and technicians
but also difficulties to ensure communication and coordination between different discussion forums and policy processes a lack of transparency concerning the different initiatives and discussions,
of the stakeholders involved and, most important, their positions a difficulty to understand the importance
and the implications of the standards and codes being developed in a range of procedures as well as for many stakeholders the cultural reluctance
and the lack of resources to be involved more in these detailed issues Not all stakeholders are unhappy with this lack of transparency.
transparency of the processes and of the viewpoints of the different stakeholders involved, raising awareness for the issues and interests at stake, facilitating discussions between the different professional, sectoral and national perspectives and cultures
For example the standardisation procedures offer public consultation opportunities. Wrongly smart grids are seen as a mainly technical issue. 84 Smart grids are given not a technology that may have impacts that can be analysed.
Rather, there is a set of available new technologies that open a wide range of opportunities for transforming the old unsustainable energy supply system into a new more sustainable socio--technical system involving much more actors.
For making best use of these opportunities for society we need a broader debate. This requires efforts:
could be a more detailed mapping of activities, stakeholders, positions and suggestions. A key difficulty is the accessibility of technical debates for non--technicians.
The EU Smart Grids Debate 33 Different groups of stakeholders have different, although mostly not explicit, ideas of the functioning logic of the future system.
Smart pricing to reduce network investment in smart distribution grids--Experience in Germany, in: Sioshansi, F. P. Ed.),Smart Grid, Integrating renewable, distributed & efficient energy.
Management and operation of the distribution network in presence of Active Demand. Presentation at the SECD DR Seminar Amsterdam, October 3rd 2011.
Making the World Economy Survive on Renewable Energies. Inwind Chronicle, New delhi Vol. 5, No. 4, 13--17.
How State Regulators Can Steer Investments Toward Customer--Side Solutions. Regulatory Assistance Project, Montpelier, Vermont, USA. http://raponline. org/docs/RAP SCHWARTZ SMARTGRID ACEEE PAPER 2010 08 23. pdf. Schwartz, L.,Sheaffer, P.,2010.
The Demand Response Snap Shot--The Reality For Demand Response Providers Working in Europe Today. Smart Energy Demand Coalition, Brussels. Sioshansi, F. P. Ed.),2012.
Smart Grid, Integrating Renewable, Distributed & Efficient Energy. Academic Press, Waltham. Stouge, A.,2012. Towards a fully integrated smart Grid:
and exploit active demand, in: CIRED (Ed.),21st International Conference on Electricity Distribution. CIRED, Frankfurt. http://www. addressfp7. org/config/files/CIRED2011 1171. pdf The EU Smart Grids Debate 37 Woods, E.,Gohn, B.,2011.
SEDC Smart Energy Demand Coalition, Secretary general Togeby, Michael; Ea Energy Analyses A s, Partner Turmes, Claude;
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