Year 1 - January 2003 to December 2003 The objectives of the HVDC are to Provide a methodology to assess the technical, economic and environmental benefits of mixed HVAC/HVDC electrical power transmission and distribution systems as part of the European transmission network including the benefits of using more environmentally acceptable HVDC power cable systems. This will assist the strategic development of the European transmission system. It is our expectation that significant benefits will be shown particularly for system optimisation, reduced environmental impacts and greater flexibility to geographically expand the physical and trading network - this will require a large number of reliable HVDC cables connections. Obtain an enhanced understanding of the factors that control the design and performance of HVDC cable systems to produce design principles and tools, to obtain a model for cable reliability prediction for use in transmission system evaluation. The work will include: Definition of transmission system scenarios at trans-European, country and regional levels for which HVDC in HVAC systems could produce medium to long-term benefits. System studies (e.g. load flow, stability, reliability, security assessment) to establish HVDC benefits for cases such as: geographical interconnection of AC systems, system reinforcement, in-feed to urban areas and high power users and the operation of flexible ac transmission systems (F.A.C.T.S). Establish a set of environmental impact assessment (EIA) parameter to include the EC EIA Directive and produce a framework and associated software tools for enviro-economic lifecycle evaluation for transmission systems (for both HVAC and HCDC components). Evaluate and rank the technical, environmental and economic advantages of partial DC versus complete AC for a set of defined case studies and scenarios. Develop physical models to calculate the electric field distribution in cables and multi-layer systems as used in cable accessories for HVDC application. Evaluate damage accumulation and failure processes in cables including account of polarity reversal and impulse field effects found in HVDC systems and establish a number of ageing diagnostics indicators. Devise a predictive failure model for HVDC cable systems to be used in transmission system reliability studies and to assess insulation system requirements for cable designs having particular failure probabilities to arrive at optimal cable technical and economic characteristics. Disseminate and obtain feedback progressively from European transmission system operators through specialist workshops and through interfaces with UCTE and CIGRE committees. Items 1, 2 and 3 are nearing completion.