IEEE Systems, Man and Cybernetics Magazine - January 2023 - 39

data and cause large-scale power outages, economic
losses, and power systems instability. Hence, cybersecurity
is one of the important requirements for power
systems transformation.
◆ Public participation in the energy sector: The main
goal of public participation in power systems is to focus
on public participation in environmental decision-making
processes. Public participation makes it possible to
achieve a zero-emissions power sector and allows more
DG units to participate at the distribution level (or higher
level of grid operation).
◆ Rules and regulations: Security and adequacy of power
systems are highly dependent on the determined rules
and regulations and predictability based on what exists
in power systems. Since all modern power systems
assets are connected together, the requirements determine
how they respond, and accordingly, have a clear
control or operation plan.
◆ Transparency and auditability
for regulators: Cybersecurity
attributes, such as transparency
and auditability, in modern
power systems through a secure
platform enable IoT devices to
directly transact and interact,
and accordingly, energy regulators
can have access to the
required information of the current
status of the system.
should be no barrier to the electricity trade in modern
power systems.
◆ Investment in clean energy: RESs dominate investment
in new power generation, and currently, the new
power market models are based on RESs. Therefore,
the power market should encourage more investment
in clean energy and reduce greenhouse gas emissions.
◆ Developing efficient market strategies, platforms,
rules, and regulations: To support and sustain the
energy transition, the existing strategies, platforms,
and rules and regulations of the power market should
be appropriately revised.
◆ Risk management and robustness assessment: The
power market should accommodate effective risk management,
and the market should be robust against sudden
changes in power grids as much as possible.
On the contrary, there are several challenges with power
◆ Minimizing market distortions
in the energy sector: It is
important to determine the
potential stranded costs associated
with decisions under previous regulations.
Transition payments to generation companies (GENCOs)
can be considered as the solution to prevent sudden
dislocation of uneconomic assets in a way that
distortion of the operation of different markets is minimized.
Otherwise, competition between different companies
can be distorted in favor of one or a few to the
disadvantage of the remaining market participants.
Considering the global power market design in modern
power systems, many developing countries are affected by
climate commitments. Hence, power systems operators
are motivated to invest in net-zero power generation
assets. In this regard, several principles of developing
power markets are defined, which are as follows:
◆ Efficient operation in the energy sector: An efficient
daily operation of the power market depends on
exchanging the right control signals while maintaining
power systems security and minimizing market costs.
◆ Facilitating cross-border energy trade: Cross-border
energy trade supports the transition from coal-based
to renewable power generation and helps to address
the existing issues with climate change, electricity
access, and energy security. In this regard, there
Public participation
makes it possible
to achieve a zeroemissions
power
sector and allows
more DG units to
participate at the
distribution level.
market development and its operation. For instance, compared
to the fossil fuel-based power
generation units, the cost of power
generation by RESs is relatively
higher than the market prices. Considering
power generation by RESs,
power systems face stability and
overgeneration issues. In addition,
there should be flexible energy trading
strategies, such as short-term
market platforms, to earn more revenue
during higher value, peakdemand
hours, and trade electricity
in a competitive process and with
greater transparency. The advent of
new technologies and new market
players is another challenge with power market development.
Besides, there are different issues with interconnecting
different systems together to trade electricity in terms of
their structures, data exchange among them, and satisfying
the operational constraints. Participation of more distribution
companies in the power market rather than only transmission
companies requires mandatory changes in the rules
and regulations of the market. From a power systems planning
point of view, since the details of power systems components
are not the main interest, power grid operators
decide on new and upgrading existing system components
to properly satisfy loads for a foreseeable future. In other
words, power grid operators decide where to allocate the
components, when to install the components, and what to
select in terms of the components' specifications. This process
and any possible changes in it can directly affect
the power market development. Last but not least, when the
power systems' information is being exchanged, its privacy
becomes a major concern.
Digitalization can help owners and power grid operators
to have a full understanding of the current status of the facilities
by collecting and analyzing the data on energy use. With
the help of digitalization, different energy sources and
January 2023 IEEE SYSTEMS, MAN, & CYBERNETICS MAGAZINE 39
IEEE Systems, Man and Cybernetics Magazine - January 2023

Table of Contents for the Digital Edition of IEEE Systems, Man and Cybernetics Magazine - January 2023
