Interconnection Agreements Research Articles

Evaluating the Curtailment Risk of Non-Firm Utility-Scale Solar Photovoltaic Plants under a Novel Last-In First-Out Principle of Access Interconnection Agreement

With the increasing share of distributed energy resources on the electric grid, utility companies are facing significant decisions about infrastructure upgrades. An alternative to extensive and capital-intensive upgrades is to offer non-firm interconnection opportunities to distributed generators, via a coordinated operation of utility scale resources. This paper introduces a novel flexible interconnection option based on the last-in, first-out principles of access aimed at minimizing the unnecessary non-firm generation energy curtailment by balancing access rights and contribution to thermal overloads. Although we focus on solar photovoltaic (PV) plants in this work, the introduced flexible interconnection option applies to any distributed generation technology. The curtailment risk of individual non-firm PV units is evaluated across a range of PV penetration levels in a yearlong quasi-static time-series simulation on a real-world feeder. The results show the importance of the size of the curtailment zone in the curtailment risk distribution among flexible generation units as well as that of the “access right” defined by the order in which PV units connect to the grid. Case study results reveal that, with a proper selection of curtailment radius, utilities can reduce the total curtailment of flexible PV resources by up to more than 45%. Findings show that non-firm PV generators can effectively avoid all thermal limit-related upgrade costs.

Interoperability of LNG terminals and gas pipeline networks

The interchangeability between natural gas of different sources and LNG have been concerned and tackled to a certain extent at home, and the interconnection of gas infrastructures including LNG terminals and gas pipeline networks have also been lifted up to the national level since 2018. However, the research on the interoperability with overall-planning interchangeability and interconnection at a higher level is still in the blank stage at home. By extensively investigating EU's regulations and practices related to interoperability in the field of natural gas pipeline network, this paper put forward the conceptual definition of the interoperability of gas infrastructures including LNG terminals and gas pipeline networks for the first time. Then, the basic implementation framework and components of interoperability were set up. Finally, domestic latest typical cases which have presented the characteristics of interoperability in the recent two years were analyzed. And the following research results were obtained. First, interoperability and third-party access are two independent themes. Second, the target of interoperability is to realize the cross-system unimpeded flow of natural gas of all facility users between different facilities according to the uniform specification of specific technical standards, operation criteria and operation procedures of various facilities, based on interconnection, coordination and information interaction. Third, the framework of interoperability consists of 8 key elements, including gas quality standard & interchangeability, facility interconnection, facility interconnection agreement, unified measurement unit, unified electronic data exchange platform, technical capacity calculation method, approval procedure of LNG carrier entering the port and ship–shore compatibility unique to LNG terminals, and gas quality based LNG storage and tank loading rules. Fourth, it is recommended to give consideration to both target and requirement of interoperability and fully integrate 3 elements that are discussed more deeply and more crucial in EU countries (i.e., facility interconnection agreement, unified electronic data exchange platform and technical capacity calculation method) into the practice system of treatment reform of domestic natural gas industry chain.

The impact of the General Data Protection Regulation on internet interconnection

The Internet comprises thousands of independently operated networks, interconnected using bi-laterally negotiated data exchange agreements. The European Union (EU)'s General Data Pro-tection Regulation (GDPR) imposes strict restrictions on handling of personal data of European Economic Area (EEA) residents. A close examination of the text of the law suggests signifi-cant cost to application firms. Available empirical evidence confirms reduction in data usage in the EEA relative to other markets. We investigate whether this decline in derived demand for data exchange impacts EEA networks' decisions to interconnect relative to those of non-EEA OECD networks. Our data consists of a large sample of interconnection agreements between networks globally in 2015–2019. All evidence estimates zero effects: the number of observed agreements, the inferred agreement types, and the number of observed IP-address-level inter-connection points per agreement. We also find economically small effects of the GDPR on the entry and the observed number of customers of networks. We conclude there is no visible short run effects of the GDPR on these measures at the internet layer.

The Impact of the General Data Protection Regulation on Internet Interconnection

The Internet comprises thousands of independently operated networks, interconnected using bilaterally negotiated data exchange agreements. The European Union (EU)’s General Data Protection Regulation (GDPR) imposes strict restrictions on handling of personal data of European Economic Area (EEA) residents. A close examination of the text of the law suggests significant cost to application firms. Available empirical evidence confirms reduction in data usage in the EEA relative to other markets. We investigate whether this decline in derived demand for data exchange impacts investment in interconnection by networks in the EEA relative to networks in non-EEA OECD countries. Our data consists of a large sample of interconnection agreements between networks globally in 2015–2019. All evidence estimates precisely zero effects: the number of observed agreements, the inferred agreement types, and the number of observed IP-address-level interconnection points per agreement. We also find economically small effects of the GDPR on the entry and the observed number of customers of networks. We conclude there is no visible short run consequence of the GDPR at the internet layer. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Requirements for Validation of Dynamic Wind Turbine Models: An International Grid Code Review

Wind power is positioned as one of the fastest-growing energy sources today, while also being a mature technology with a strong capacity for creating employment and guaranteeing environmental sustainability. However, the stochastic nature of wind may affect the integration of power plants into power systems and the availability of generation capacity. In this sense, as in the case of conventional power plants, wind power installations should be able to help maintain power system stability and reliability. To help achieve this objective, a significant number of countries have developed so-called grid interconnection agreements. These are designed to define the technical and behavioral requirements that wind power installations, as well as other power plants, must comply with when seeking connection to the national network. These documents also detail the tasks that should be conducted to certify such installations, so these can be commercially exploited. These certification processes allow countries to assess wind turbine and wind power plant simulation models. These models can then be used to estimate and simulate wind power performance under a variety of scenarios. Within this framework, and with a particular focus on the new Spanish grid code, the present paper addresses the validation process of dynamic wind turbine models followed in three countries—Spain, Germany and South Africa. In these three countries, and as a novel option, it has been proposed that these models form part of the commissioning and certification processes of wind power plants.

Direct Interconnection and Investment Incentives for Content Quality

AbstractThis paper analyzes the effects of direct interconnection agreements in the Internet backbone on content quality investment for content providers (CPs). The model assumes that when the Internet service provider (ISP) has a vertical affiliation with one CP, the ISP directly interconnects the affiliated CP’s traffic to its network for free while collecting a direct interconnection fee from the unaffiliated CP. If the unaffiliated CP’s traffic is indirectly interconnected to the ISP’s network via a third party transit provider, its network quality is lower than that via a direct interconnection. For the CPs’ content quality investments, I find that the affiliated CP invests more in content when the rival indirectly interconnects, leading to a higher total level of content investment. Accordingly, there is a condition under which the ISP does not want to offer direct interconnection to the unaffiliated CP. However, consumers are not always worse off from this interconnection foreclosure. Thus, the regulation of a paid direct interconnection does not necessarily enhance welfare in terms of consumer surplus.

A survey on the current internet interconnection practices

The Internet topology has significantly changed in the past years. Today, it is richly connected and flattened. Such a change has been driven mostly by the fast growth of peering infrastructures and the expansion of Content Delivery Networks as alternatives to reduce interconnection costs and improve traffic delivery performance. While the topology evolution is perceptible, it is unclear whether or not the interconnection process has evolved or if it continues to be an ad-hoc and lengthy process. To shed light on the current practices of the Internet interconnection ecosystem and how these could impact the Internet, we surveyed more than 100 network operators and peering coordinators. We divide our results into two parts: ( i ) the current interconnection practices, including the steps of the process and the reasons to establish new interconnection agreements or to renegotiate existing ones, and the parameters discussed by network operators. In part ( ii ), we report the existing limitations and how the interconnection ecosystem can evolve in the future. We show that despite the changes in the topology, interconnecting continues to be a cumbersome process that usually takes days, weeks, or even months to complete, which is in stark contrast with the desire of most operators in reducing the interconnection setup time. We also identify that even being primary candidates to evolve the interconnection process, emerging on-demand connectivity companies are only fulfilling part of the existing gap between the current interconnection practices and the network operators' desires.

Field validation of a standard Type 3 wind turbine model implemented in DIgSILENT-PowerFactory following IEC 61400-27-1 guidelines

Transient stability analyses are one of the key tools used to ensure grid stability and safeguard security of electricity supply, as well as to comply with different countries grid interconnection agreements. Transmission and distribution system operators require validated wind turbine models to perform these studies. This is becoming increasingly important in current power systems because wind energy penetration is constantly expanding, and its integration has a significant impact on power grid planning and operation. The definition of generic wind turbine models by international standard IEC 61400-27-1, first released in February 2015, aims to deal with this issue. Therefore, since the validation process of the most widely used model defined by this standard and one of the most technically advanced, the generic type 3 wind turbine, i.e., the doubly-fed induction generator, has only been conducted using non-specialised software tools in the field of electrical engineering, the present paper addresses the validation process of this WT when simulated in one of the leading electric power system analysis software tools: DIgSILENT-PowerFactory. The model is subjected to voltage dips of varying magnitude and duration, under both full and partial load conditions. The results are compared to field measurement data according to IEC 61400-27-1 guidelines, and validation errors are estimated.

Mexican Consular and Diplomatic Functions vis-à-vis Private International Law and Nationality Conflicts: Towards a New Normative Framework for the Twenty-First Century

The study of Mexican law and practice makes it apparent that the regulation of several consular and diplomatic functions within the framework of the protection of nationals and dual or multiple nationals abroad, inheritance upon death (successions mortis causa), family law and international judicial assistance, needs to be updated in accordance with the development of private international law, information technologies and ciberspace. Ongoing preparatory work in drafting National Rules on Civil and Family Law Procedure presents an opportunity and framework to that effect, opening space for inter alia: the legal recognition of electronic apostilles (e-APPs); for regulating consular intervention on behalf of minors and persons lacking full capacity; for reasserting the mandatory six-week deadline for the child’s return in international child abduction procedures; as well as for enacting domestic provisions on the transmission and execution of requests of international judicial assistance by electronic means; as well as for digital research into foreign law. Mexico’s leadership would likewise be enhanced through the promotion of multilateral protocols on the subject and the negotiation of international judicial technologi-cal interconnection agreements; through the updating of official guidelines on consular protection for dual or multiple nationals; through the statutory definition of Mexican authorities entrusted with executing foreign requests regarding Mexican law; and in particular through the launching of a Presidential Program on International Human Mobility and high level programs connected to The law of the international movement of persons.

Civil-law characteristic of the contract of electronic money issue

The article is devoted to the analysis of the civil-law nature of the contract of electronic money issue. A civil-law description of the contract of electronic money issue on the main criteria for the classification of contracts in civil law. The author's concept of the contract of electronic money issue is proposed, which reflects its essential features. Some shortcomings of the current legislation have been identified in this area, and ways of improving it have been proposed. The author points out, that legal research on electronic money is more about definition of their economic and legal nature. In the same time, the problems of issuing of electronic money and contractual forms, that mediate such emissions, undeservedly left without attention. The issue of electronic money always precedes their further distribution and circulation, that is why civil-legal analysis of the contract of electronic money issue is needed. The article justifies conclusion, that the contract of electronic money issue is an agreement aimed at providing banking services, mutual, repayable and real. In most cases, such a contract will be public and may be described as an interconnection agreement. In the article author formulates the definition of the contract of electronic money issue. The author states, that the civil-law regulation of electronic money circulation today is at the stage of its formation. Detailed study of the obligations arising from the contract of electronic money issue is required. In general, the dynamics of the development of relations associated with the use of electronic money, mediates global changes in legislation, which provides the regulation of such relationships. Thereby, scientific research in this area will remain relevant for a long time.

From internet “Openness” to “Freedom”: How far has the net neutrality pendulum swung?

We examine the extent to which the Federal Communications Commission's (FCC) 2015 “Open Internet” and 2018 “Restoring Internet Freedom” orders constrain anti-competitive and discriminatory pricing. We show that without regulation of interconnection agreements, and by allowing Internet Service Providers to cap bandwidth while also engaging in “zero rating,” the prescriptive regulations promulgated by the FCC in its 2015 order left the door open for both anti-competitive and discriminatory pricing. Conversely, by undoing the Title II underpinning for its 2015 adopted rules, the FCC may bind itself from being able to remedy anti-competitive or discriminatory pricing in the future.

How Citizen Potawatomi Nation utilizes energy efficiency and renewable energy to address its high energy burden

Tribal lands comprise 2% of the United States but contain 5% of the potential renewable resources totaling over 14 billion MWh of energy generation potential. A vast majority of this potential has been undeveloped. Challenges such as difficulty accessing capital, securing interconnection and power purchase agreements, and persistent poverty have hindered energy development. The Citizen Potawatomi Nation is recognized for utilizing energy efficiency and renewable energy to address its high energy burden.

Paid Peering and Investment Incentives for Network Capacity and Content Diversity

This paper analyzes the effects of direct interconnection agreements in the Internet backbone on content quality investment for content providers (CPs). The model assumes that when the Internet service provider (ISP) has a vertical affiliation with one CP, the ISP directly interconnects the affiliated CP’s traffic to its network for free while collecting a direct interconnection fee from the unaffiliated CP. If the unaffiliated CP’s traffic is indirectly interconnected to the ISP’s network via a third party transit provider, its network quality is lower than that via a direct interconnection. For the CPs’ content quality investments, I find that the affiliated CP invests more in content when the rival indirectly interconnects, leading to a higher total level of content investment. Accordingly, there is a condition under which the ISP does not want to offer direct interconnection to the unaffiliated CP. However, consumers are not always worse off from this interconnection foreclosure. Thus, the regulation of a paid direct interconnection does not necessarily enhance welfare in terms of consumer surplus.

Between Coordination and Regulation: Conceptualizing Governance in Internet Governance

This paper contributes to the recent move towards a more systematic reflection on the conceptual foundations of Internet governance. It is led by the question of how to define (Internet) governance in a way that is theoretically grounded as well as empirically instructive. For this aim, it mobilizes literature from the broader field of governance and regulation studies as well as sociological theory and applies these concepts to issues of Internet governance. A brief literature review reveals that studies on Internet governance rely on partly contradictory notions of governance. The common understanding as some form of deliberate steering or regulation clashes with equally common definitions of Internet governance that emphasize its distributed and heterogeneous character taking ordering effects of interconnection agreements or discursive arenas like the IGF into account. Drawing on controversies in the broader field of governance and regulation studies, we suggest to dissolve this conceptual problem by grounding governance in mundane coordination activities. We then define governance as reflexive coordination focusing on those “critical moments” when routine activities become problematic and need to be revised, when regular coordination itself requires coordination. Regulation, in turn, can then be understood as intentional interventions by public or private actors aiming to influence the behavior of others. Differentiating between governance and regulation in this way resolves the contradiction between different forms of political ordering found on the Internet. With this conceptualization of governance in Internet governance we hope to contribute to an emerging debate on the conceptual foundations of Internet governance and to prepare the ground for new angles and insights on ordering processes on the net.

Regulating the Open Internet: Past Developments and Emerging Challenges

On June 14, 2016, in perhaps one of the most important rulings supporting Federal Communications Commission (FCC) policy, the D.C. Circuit Court of Appeals upheld the FCC's 2015 Open Internet Order laying out network neutrality rules that govern how Internet service providers may price to edge platform users at the point of termination. In this manuscript, we provide a concise historical perspective of the FCC policies, proceedings and court decisions that led to this point and characterize emerging economic policy challenges that the current rules leave unresolved. In particular, we show that by refraining from regulating interconnection agreements and by allowing Internet service providers to engage in novel forms of price discrimination, the FCC has left the door open for certain anti-competitive practices to arise.

Towards a Future Internet infrastructure: Analyzing the multidimensional impacts of assured quality Internet interconnection

The path towards the development of a Future Internet infrastructure requires a significant redefinition and realignment of the basic concept of Internet interconnection (IC), which is the glue that holds the Internet together via bilateral network interconnection agreements of best effort (i.e. non-assured) quality. More specifically, the concept of Quality of Service is often overlooked in traditional relationships based on best effort. This study offers a qualitative analysis and assessment of the multidimensional impacts of the recent proposals of introducing Assured Service Quality (ASQ) in the Internet interconnection (IC) market. The analysis focuses on the impacts in four distinct, though strongly interrelated areas: Business, Socioeconomic, Regulatory and Net Neutrality. Methodologically, the impacts and their interplays are identified through a focus group, which involved key informants from 17 European Carriers and stakeholders. Exploring how these complementary impacts may affect the ASQ offer is fundamental for envisioning the Internet infrastructure’s business and technological evolution, as well as for setting appropriate governance policies. This study identifies and discusses the expected impacts, thus shedding light on the key implications of ASQ IC.

The Evolution of Internet Service Providers from Partners to Adversaries: Tracking Shifts in Interconnection Goals and Strategies in the Internet's Fifth Generation

This paper will examine new models for the carriage of Internet traffic with an eye toward providing insights on how the interconnection process has changed and what positive and negative consequences have resulted. Internet Service Provider (“ISP”) interconnection used to constitute a cooperative undertaking, but now it increasingly requires difficult and protracted negotiations between ventures that consider themselves adversaries in a winner take all transaction.The paper concludes that new commercial arrangements, such as paid peering, can achieve mutually beneficial outcomes. However, the paper also identifies instances where migration from traditional interconnection arrangements can harm consumers by reducing some of the benefits accruing from network externalities.At the Internet’s inception, carriers providing essential bit switching and transmission functions largely embraced twin goals of expanding connections and the number of users. These ventures refrained from metering traffic and charging for carriage based on the assumption that traffic volumes roughly matched, or that traffic measurement was not worth the bother in light of external funding from government grants. Most ISPs bartered network access through a process known as peering in lieu of metering traffic and billing for network use.As governments removed subsidies and commercial carriers invested substantial funds to build larger and faster networks, ISPs more accurately identified carriers and customers triggering higher costs and targeted them for rates increases. Currently the issue of cost causation has become a key commercial and regulatory policy issue, because of the potential for traffic disconnections and service degradation when parties cannot agree on interconnection terms. The FCC has responded with ex ante, common carrier regulatory safeguards designed to anticipate and prevent anticompetitive practices with emphasis on ISPs that provide retail broadband services and also negotiate and implement interconnection agreements with upstream carriers and content distributors.A number of highly publicized traffic interconnection and compensation disputes have recently occurred among ISPs, and between them and content distributors. The most controversial clashes have involved Netflix and ventures handling its extremely large volume of downstream traffic, on one hand, and “Retail ISPs,” such as Comcast and Verizon, that provide last mile delivery of traffic to end users. These disputes evidence a substantial change in strategies and tactics among ventures operating within the Internet ecosystem. In particular, the process for negotiating network interconnection appears increasingly contentious instead of cooperative as carriers attempt to extract higher compensation. Retail ISPs appear most able and inclined to exploit possible market power as terminating monopolies particularly when negotiating with content distributors and Content Distribution Networks (“CDNs”) that provide downstream video delivery. Most broadband subscribers in the United States have limited facilities-based carrier options. Consumers typically subscribe to only one ISP and they may not readily change carriers even if options exist. Additionally, end users require higher transmission speeds and downloading capacity in light of growing demand for bandwidth intensive video, often by multiple users at the same location. Under current marketplace conditions, Retail ISPs have raised rates and segmented service into different tiers of transmission speed and downloading capacity. Additionally they have imposed surcharges on upstream CDNs and other carriers. Exploiting superior bargaining leverage has translated into a number of new interconnection and compensation arrangements that deviate from both traditional telecommunications and Internet carriage models. This paper will identify instances where price and quality of service discrimination benefits and harms consumers.

Proposal of a new information theory-based technique based on traffic anomaly detection analysis

The change-point detection theory is used to identify abrupt changes in the network traffic. The literature has focused on longitudinal traffic analysis, namely, detecting sudden peak changes, rather than analysing the traffic pattern on a 24 h typical day. As traffic varies throughout the day, it is essential to consider the concrete traffic period in which the anomaly occurs, which is useful for checking interconnection agreements amongst operators, something not possible with traditional sudden peak changes techniques. The aim of this paper is to analyse how the different algorithms behave in detecting changing points inside a typical day profile. We conclude that a combination of the algorithms provides better results than the use of a single one: in low traffic periods the tests of goodness-of-fit best detect changing conditions, while in normal traffic periods (daytime) entropy-based algorithms best detect traffic increases; besides, the statistical control charts complements both of them when detecting very abrupt changes regardless of the traffic load.

Interconnection and Capacity Allocation for All-IP Networks: Walled Gardens or Full Integration?

The migration towards all-IP networks fundamentally changes the equation for IP interconnection. A wide spectrum of different application services requires heterogeneous levels of quality of service (QoS). Although the relevance of end-to-end inter-provider QoS has been recognized for a long time and technical means for implementing such strategies were developed more than a decade ago, there is no widespread implementation of differentiated IP interconnection. Taking into account the evolution in the Internet ecosystem and the transition towards all-IP, the aim of this paper is to describe the evolution and future challenges in the markets for “all-IP interconnection”. The role of content delivery networks (CDNs) for the provision of end-to-end QoS is discussed and implications for QoS-based interconnection agreements are derived. We compare a scenario based on fully integrated all-IP service provision to a scenario based on a regulatory market split between two types of traffic services as proposed by the recent FCC regulation in the U.S. and what is similarly envisaged in Europe. Based on a network economic analysis, we derive implications for an economically desirable all-IP interconnection regime. Economically optimal capacity allocation requires market driven price and QoS differentiations based on the opportunity costs of network usage. Moreover, the integrated optimization of capacity allocation should be based on an unrestricted evolutionary search for bilateral and multilateral interconnection agreements. A fully integrated solution results in an all-IP ecosystem relying on a continuum of interconnection agreements capable of reflecting heterogeneity in demand for QoS.

The Costs and Benefits of Regulatory Intervention in Internet Service Provider Interconnection Disputes: Lessons from Broadcast Signal Retransmission Consent Negotiations

This paper considers what limited roles the FCC may lawfully assume to ensure timely and fair interconnection and compensation agreements in the Internet ecosystem. The paper examines the FCC’s limited role in broadcaster-cable television retransmission consent negotiations with an eye toward assessing the applicability of this model. The FCC explicitly states that it lacks jurisdiction to prescribe terms, or to mandate binding arbitration. However, it recently interpreted its statutory authority to ensure “good faith” negotiations as allowing it to constrain broadcaster negotiating leverage by prohibiting multiple operators, having the largest market share, from joining in collective negotiations with cable operators. References to the Internet as a network of networks, or cloud recognize the numerous interconnections and compensation arrangements necessary to achieve a complete routing of traffic from content source to end user. Free from a public utility, common carrier regulatory regime, Internet Service Providers (“ISPs”) regularly engage in commercial negotiations to reach agreements on contractual terms and conditions. As the Internet has evolved, interconnection and compensation agreements have diversified from a general baseline dichotomy of using barter (peering), or a transfer payment (transiting). In particular, the downstream delivery of bandwidth intensive video content has triggered new arrangements that accommodate the interests of content providers and distributors in speedy, high quality delivery of traffic and ISPs’ interest in profiting from their substantial investment in switching and routing capacity needed to handle a massive increase in volume. Content providers and downstream ISPs may have such conflicting views on who should pay, or incur delivery costs that a timely interconnection and compensation agreement may not occur. The proliferation of “mission critical” bit streams containing “must see” video has raised the stakes in such negotiations. The combination of consumer intolerance for service degradation and the need to negotiate with specific ISPs serving retail subscribers, who rely exclusively on one such carrier for service, may place upstream ISPs and content ventures at a negotiation disadvantage. Retail ISPs may perceive an advantage in stalling, perhaps with an eye toward enlisting broadband subscribers as their advocates. On the other hand, retail ISPs risk subscriber push back and churn if they overplay their hand. Several high profile interconnection and compensation disputes have raised the issue whether and how the Federal Communications Commission (“FCC”) should get involved. To the Commission’s credit, it has refrained, but the issue of interconnection and compensation between ISPs has the potential to become a part of the broader debate about what constitutes “commercially reasonable” deviations from best efforts traffic routing. The paper concludes that the FCC should not define or interpret what constitutes commercially reasonable interconnection and compensation agreements. However the Commission should use simple reporting requirements to assess the timeliness of negotiations and also provide a forum to identify and disclose instances where stalling tactics possibly evidence bad faith.