Power Blackout Risks

3.1.1. liberalisation and privatisation
2
 
Nowadays, most industrialised countries have 10 to 20 years experience with privatisation and liberalisation of 
electricity systems. The liberalisation of the market resulted in the separation of power generation and transmission 
and distribution (T&D) business. This process has created an additional interface which can adversely impact 
communication and coordination activities between operators on both sides. The past blackout events reveal (see 
boxes in 3.2.1 and annex
) that underlying causes are also partly linked to the privatisation and liberalisation trends 
due to missing incentives to invest in reliable, and therefore well maintained, infrastructures. The discrepancy is 
further described in chapter 3.1.3.
3.1.2. renewable energies
3
 
Efforts to mitigate climate change across the world are focusing on the expansion of renewable energy production 
e.g. onshore and offshore wind farms, solar and biomass power plants. Half of the estimated 194 gigawatts (GW)
of newly added electric capacity worldwide in 2010 is represented by renewable energies which was an increase of 
8% compared to 2009. According to the World Wind Energy Association (WWEA), about 175,000 megawatts (MW) 
of energy are now being produced by wind power stations around the world. Leading producers are the United States, 
China and Spain. The European Union intends to increase the renewable energy share of total energy production to 
20% by 2020. 
3. Blackout risks on the increase
2
http://www.psiru.org/reports/2009-12-E-Indon.doc 
3
http://www.ren21.net/Portals/97/documents/GSR/GSR2011_Master18.pdf 
4
http://www.energies-renouvelables.org/observ-er/html/inventaire/pdf/12e-inventaire-Chap02.pdf
[TWh]
2010
Total electricity 
production
[TWh]
Percentage of 
RE [%]