1 Electricity Spot Markets and Renewables A Feedback Analysis Carlo Obersteiner, Christian Redl Energy Economics Group (EEG), Vienna University of Technology Gusshausstrasse 25-29/373-2, A-1040 Vienna, Austria Tel , Fax Web: Within the EU, electricity from renewable energy sources (RES-E) is supported in order to achieve the targets defined in directive 2001/77/EC. In general, the supported electricity replaces conventional generation and therefore affects power market prices even if RES-E is not directly traded on power markets (e.g. as it is the case in Germany and Austria). This lowers, on the one hand, the burden of RES-E support for the consumer but also affects the market value of RES-E generation. Especially for wind power this might become dominant in markets with increasing wind power shares. In the following article the effects of RES-E generation on the price formation on the EEX spot market are identified. Furthermore, the consequences of this price (decreasing) effect on the market value of wind energy are evaluated. Keywords: Price modelling, Spot markets, Marketing renewables 1. Introduction In 2001, a new European directive on the promotion of electricity produced from renewable energy sources entered into force in order to facilitate an increasing share of renewables in the electricity sector. This increase is to be achieved by applying special support schemes in the Member States (Directive 2001/77/EC). In general, the supported electricity replaces conventional generation and therefore affects power market prices even if RES-E is not directly traded on wholesale power markets (e.g. as it is the case in Germany and Austria). This, on the one hand, indirectly lowers the burden of specific RES-E support for the consumer but also affects the market value of RES-E generation. Especially for wind power this effect might become dominant in markets with increasing wind power shares.
2 Hence, the major objective of this article is i) to identify the effects of RES-E generation on the price formation on the EEX spot market for electricity by using an econometric model as well as a fundamental marginal cost model ( Macro approach ) and ii) to evaluate the effect on the market value of wind energy ( Micro approach ). The article proceeds as follows: In section 2 the results of the market modelling approach are documented. Section 3 discusses and quantifies mechanisms that are affecting the market value of wind power based on case studies. Finally, section 4 concludes. 2. Price effects of RES-E on the EEX spot market With the liberalisation of the European electricity sector and the introduction of competition, a transition from a cost based price regulation towards a market orientated price formation took place. In a competitive power market, the wholesale price is determined by the generation costs of the marginal technology (i.e. the SRMC of the most expensive plant which is needed to satisfy demand merit order principle). In many Member States, electricity produced from renewable energy sources is not directly traded on these wholesale power markets. 1 Instead, for example in a feed-in tariff system, transmission system operators (TSOs) are obliged to treat RES-E as top priority and producers receive certain remuneration. Therefore, ceteris paribus, RES-E replaces conventional electricity in order to meet given electricity demand which corresponds to a shift of the residual demand curve to the left. As a result, assuming a convex supply curve, wholesale prices decrease when RES-E generation increases (see Fig. 1). 2 1 E.g. as it is the case in Austria, Germany and France. 2 See also Sensfuss et al. (2007).
3 Price [ /MWh] Demand Supply Price (System marginal costs) excl. RES-E Price (System marginal costs) incl. RES-E Quantity [MW] Fig. 1. Price effect of increasing RES-E generation in the conventional wholesale power market. In order to assess the price effect of RES-E generation on the EEX spot market a marginal cost modelling approach is used. As the countries Austria, France, Germany and Switzerland are not separated by cross-border transmission capacity bottlenecks, electricity can be traded virtually without limitations between these countries. This, in turn, causes prices to converge due to arbitrage reasons. Hence, when modelling EEX prices the whole Central European electricity sub market consisting of the four mentioned countries has to be considered. Fig. 2 shows the results of this modelling approach. RES-E generation 3 significantly affects the EEX spot market already although in the Central European sub market fossil fuelled plants are the price setting technologies. However, increased renewable electricity generation leads to a lower residual demand which has to be met by conventional plants. Due to the stepped supply curve plants with a higher electrical efficiency are more likely to be at the margin in case of high renewable production. 3 In this paper the term RES-E refers to all renewable energy sources except hydro power.
4 The marginal cost model indicates, ceteris paribus, a system marginal cost increase of 9% in the EEX market in the period from January 2005 to December 2006 in case of no RES-E generation [ /MWh] SRMC incl. RES-E SRMC excl. RES-E Jan 05 Mrz 05 Mai 05 Jul 05 Sep 05 Nov 05 Jan 06 Mrz 06 Mai 06 Jul 06 Sep 06 Nov 06 Fig. 2. System marginal costs in the Central European electricity sub market with and without RES-E generation. Source: UCTE, BAFA, own calculations When assessing different influence parameters on electricity wholesale prices empirically, statistical regression analyses are a useful tool. Hence, to estimate the influence of various parameters on the EEX spot price, a simple linear regression model is considered. Besides RES-E and hydro generation prices certainly are influenced by generation costs of conventional fossil fuelled power plants. A linear regression model is applied to test this hypothesis: LnSpotBase = b1 + b2lnres + b3lnsrmcccgt + b4lnsrmc HC (1) 4 In a perfectly competitive electricity market system marginal costs equal wholesale prices.
5 where SpotBase is the the monthly spot market average for baseload at the EEX, RES is the monthly generation of all renewable energy sources in the Central European sub market, and SRMC CCGT and SRMC HC are short run marginal generation costs of CCGT and hard coal plants respectively. 5 The theoretical explanations at the beginning of this chapter let us to anticipate a negative sign of parameter b 2 and positive signs of parameters b 3 and b 4 respectively. 6 Table 1 shows the results of the econometric model for monthly baseload power prices on the EEX for the period January 2005 to December RES-E generation leads to price reductions in all load segments, where the highest reductions occur during peak load, followed by baseload and off-peak power. This can be explained by the higher slope of the supply curve when approaching system capacity (see also Sensfuss et al. (2007)). 7 Table 1. Results of the regression analysis for Ln SpotBase (t-statistics in brackets). n=24 b 1 (constant term) 15,02 (4,51) b 2 (RES generation) -1,42 (-4,62) b 3 (SRMC CCGT ) 0,71 (3,61) b 4 (SRMC HC ) -0,02 (-0,08) R 2 (R 2 corr) 0,70 (0,65) DW 2,14 ADF (95% critical value) -3,54 (-4,63) As predicted, total RES-E generation has a (significant) dampening impact on power prices whereas generation costs of CCGT plants increase the price level. Interestingly, production costs of hard coal 5 Simplified, short run generation costs of fossil fuelled power plants are calculated as follows: p primary pco2 fco2 SRMC = + ; where SRMC are short run marginal costs [ /MWh], p primary are primary η η energy prices [ /MWh], η is the efficiency of the power plant, p CO2 is the price of emission allowances [ /t CO 2 ], and f CO2 is the CO 2 -emission factor of the fuel [t CO 2 /MWh primary ]. 6 See also Neubarth et al. (2006) on the negative effects of increasing wind power feeds into the German grid on EEX prices. 7 The regression results for off-peak and peak prices are available on request.
6 plants have a negligible effect on EEX electricity prices. This stresses the higher influence of the CCGT technology on the price formation compared to coal plants during the examination period Marketing wind power The market value of electricity is a key parameter for investments in power generation technologies. For RES-E technologies this is true if support is coupled to whole sale electricity prices (like e.g. in quota systems with TGC or bonus systems). Under support schemes that are uncoupled from power markets (like e.g. feed-in tariffs) the market value becomes of interest as soon as the generation unit drops out of the support system, i.e. after the guaranteed support period. Wind power is a very promising RES-E technology but due to its stochastic nature marketing is more challenging than for other technologies. Therefore the objective of the following analyses is to better understand mechanisms that are affecting the market value of wind power. The market value of power generation is basically determined by the level of whole sale electricity prices which show seasonal as well as diurnal fluctuations. Therefore the market value of a specific generation technology depends on seasonal and diurnal supply characteristic. For wind power due its average base characteristic usually the base price is used as a benchmark for estimating its market value. However due the variability and the limited predictability revenues on wholesale electricity markets are reduced depending on the share of wind power in the corresponding markets. In order to quantify these effects and to determine the key influencing parameters, the market value of wind power is evaluated within selected case studies for Germany and Austria. Effect of variability As already demonstrated on a monthly basis RES-E generation reduces the residual demand that has to be met by conventional generation and therefore affects electricity prices. For wind power the same effect can be observed on the spot market due to diurnal variations in generation. The correlation between spot market price and wind power affects in turn the resulting market value of wind power. 8 Redl and Haas (2007) show similar results for prices of electricity futures traded at EEX.
7 This effect is exemplarily evaluated for the German balancing zone of Vattenfall on a quarterly basis for 2005 and Therefore in a first step the average wind generation is determined for every hour of the day based on historical data on wind power forecasts. The resulting average wind power profile is then assessed with average hourly spot market prices observed on the EEX. The volume weighted average price represents the market value of an anticipated generation technology with a constant average daily profile equal to that of wind power. This number is compared to the specific revenue for selling wind power on the EEX spot market, i.e. the volume weighted power price. Both numbers are finally compared with the average base price observed for the analysed period (see Fig. 3). 70 Average EEX base price Market value of average wind power profile Market value of forcasted wind power 60 Market value in /MWh Q Q Q Q Q Q Q Fig. 3. Comparison of the volume weighted market value of wind power in the Vattenfall area with EEX spot market prices. Source: Vattenfall, EEX, own calculations The results show a significant reduction in revenue between 1.5 and 9.4 /MWh for wind power compared to an average profile. On average the reduction amounts to 6.4 % of the reference market value. The result indicates that Vattenfall is trading wind power on the EEX spot market 9. The deviation between EEX base price and the market value of an average profile depends on the shape of 9 In Germany TSOs collect RES-E generation supported under the Renewable Energy Law and pass it on to suppliers according to their consumer demand in form of ex ante defined monthly generation bands. TSOs are thereby free to trade the difference quantities between the fixed band and the daily RES-E generation forecast bilaterally or on whole sale electricity markets.
8 the average quarterly profile. For the whole period of consideration the value of the average profile is slightly higher than the average EEX base price due to the peak characteristic of wind power in the balancing zone of Vattenfall (see Fig. 4). Average hourly wind power in MW 3,500 3,000 2,500 2,000 1,500 1, Q Q Q Q Q Q Q Average profile Fig. 4. Average daily profile of wind power generation in the Vattenfall area. Source: Vattenfall, own graphic. Similar analysis carried out for a sample of wind sites in Austria show, that there is no reduction in market value due to variability of wind power. This result indicates that for small volumes (compared to the overall market volume) the effect of variability is negligible and that there is no significant correlation between wind power in the two regions analysed. Effect of limited predictability Finally the impact of the limited predictability of wind power on its market value is discussed and assessed for a sample of wind sites in Austria. The Austrian power market is designed based on the concept of Programme Responsible Parties (PRPs) who submit their resulting power schedules for the following working day to the TSO that is responsible for the corresponding balancing zone. Deviations from schedules are settled with imbalance prices which are assessed ex post for every quarter of an hour.
9 Due to its stochastic nature, wind power faces a higher risk of imbalances and corresponding cost than other power generation technologies. The amount of imbalance is determined by the accuracy of wind power forecasts. Imbalance prices are principally based on spot prices and further determined by the overall imbalance of the balancing zone in a certain period. Imbalance prices are higher than spot prices when the system is short and vice versa. The resulting cost of imbalance therefore is even determined by the correlation between the imbalance of the power system and the PRP 10. Imbalances are modelled for various samples of 22 wind sites in Austria using a commercial wind forecasting tool developed by Siemens PSE. Wind power forecasts are based on historical hourly wind speed forecasts provided by the Austrian Central Institute for Meteorology and Geodynamics. Wind speeds are transformed into wind power data using a piecewise linear transformation matrix which is calculated offline based on a pivot analyses of historical wind power measurements and wind speed forecasts. Due to the lack of wind speed data, forecasts exceeding the one-day time horizon are reproduced by forecasts of the previous day. Currently wind power forecasts have to be performed for horizons >1 day as the EEX spot market closes on weekends and public holidays. In order to determine the impact of potential future changes of the regulatory framework on imbalance cost of wind power even the case of continuous day-ahead forecasts is evaluated. Analyses are carried out for different arrangements of wind sites in order to assess the dependency of forecast accuracy and corresponding imbalance cost on the cumulated capacity. Cumulated capacities of grouped wind sites range from 7.5 to 85 MW. Arrangements show a comparable spatial distribution in order to filter its influence on the forecast accuracy. Key data of the analysed arrangements are summarised in Table Analysis of the Austrian power system show that even for relatively small shares of wind power (<4 % of gross consumption), the imbalance of the power system is highly correlated with the forecast error of wind power.
10 Table 2. Key data of analysed wind site arrangements. Cluster 7.5 Cluster 12.5 Cluster 30 Cluster 85 Number of aggregated wind sites Installed capacity MW 7,5 12,4 29,0 85,9 Installed capacity per site MW 1,1 1,0 1,8 3,9 Generation in analysed period Full load hours MWh h/a In literature different measures are used to describe the accuracy of wind power forecasts. In this paper the Mean Absolute Error (MAE) related to the mean wind power is used because it directly indicates the share of imbalances on total wind generation: MAPE where MAPE t N 1 P ( t) Pmeasure ( t) 100, 1 Pmeasure ( t) N forecast N t= 1 = N t= 1 Mean Absolute Error related to the mean power generation in % (Mean Absolute Percentage Error) Time interval (15 min) N Number of time intervals in consideration period (35040) P measure (t) mean measured power in time interval t P forcast (t) mean forecasted power in time interval t The analysis show that the forecast error decreases significantly for a sample of few spatially distributed sites compared to a single site forecast. A further extension of the forecasted sample allows for a moderate increase of forecast accuracy. A considerable decrease of the forecast error in the range of 20 % can be realised by applying continuous day-ahead forecasts instead of the current forecast practise which is determined by the lack of continuous day-ahead markets (see fig 5). With 50 % the MAPE is in the range of forecast errors published for the total wind power capacity supported under the Austrian Renewable Energy Law (see E-Control (2006). The forecast error decreased from 52.5 % in 2003 to 45.8 % in 2005 (for total capacities of 186 and 698 MW). In leading wind energy countries forecast error range from 25 to 35 %.
11 MAPE (related to mean wind power) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Current forecast practise Continuous day-ahead forecast 0% Single site average Cluster 7.5 Cluster 12.5 Cluster 30 Cluster 85 Fig. 5. Mean absolute percentage error of wind power forecasts for different arrangements of 22 Austrian wind sites. Source: IGWindkraft, ZAMG, own calculations. Imbalance costs are determined by assessing imbalances with historical clearing prices for the balancing zone of Verbund APG. As a reference these cost are calculated for the case of a perfect foresight of the average wind power on a quarterly basis. Deviations of the measured wind power from the mean power are assessed with imbalance prices. This reference case is compared with forecasts under the current regulatory framework and with continuous day-ahead forecasts (see Table 3). Table 3. Imbalance cost for different arrangements of wind sites and different forecast scenarios, average values for period 07/ /2006. Source: APCS, own calculations. Imbalance cost in /MWh Forecast of average generation Current forecast practice Continuous dayahead forecast Cluster Cluster Cluster Cluster The results show, that imbalance cost are in the range of /MWh for the reference case or 20 to 25 % of the average EEX base price in the analysed period. Imbalance cost can be reduced by 10 % by forecasting wind power and by another 30 % by applying continuous day-ahead forecasts. Although the forecast accuracy is higher for the 85 MW cluster imbalance cost are higher than for the 7.5 MW
12 cluster. This result indicates than besides the volume of imbalances also its correlation with imbalances of the balancing zone determines the resulting imbalance cost. Imbalance costs of wind power have been assessed for the Danish system in Holttinen (2004) and Morthorst (2003) for the years 2001 and 2002 respectively. These studies come up with numbers in the range from 2.3 to 3 /MWh. Kleinschmidt et al. (2006) calculates imbalance cost for a 100 MW onshore wind farm for the years 2004 and 2005 in the range from 5.6 to 8.8 /MWh. Even if these numbers have to be interpreted against the background of underlying assumptions which are not fully consistent, the comparison indicates that imbalance costs in Austria are in the upper range. 4. Conclusions Increasing RES-E generation leads to a reduction of the residual demand on conventional electricity wholesale markets. As a consequence, ceteris paribus, prices on these wholesale markets are expected to decrease when large amounts of RES-E are fed into the grid. Various studies support this theory (see e.g. Neubarth et al. (2006) and Sensfuss et al. (2007)). In our analysis, both a marginal cost model and an econometric model were used to assess this price (decreasing) impact of renewables on the EEX spot market. The model results indicate significant price reductions during the examination period. In turn, this decrease in the power price has to be taken into account when considering the consumers burden of RES-E support. Although wind power on average has a base characteristic as a first approximation (i.e. a constant profile), the market value of wind power due to variability and limited predictability is lower than the average base price. For both effects described the reduction of the market value results from a correlation between volumes (of wind generation/imbalances) and market prices (on the spot /balancing market). The market value decreases ceteris paribus for increasing market shares which has to be taken into account when assessing economics on wind power in the medium to long term. While the revenue loss on the spot market is widely independent of the regulatory framework charges for
13 imbalances can be reduced by introducing markets with shorter gate closures and improving wind power forecast accuracies. References Directive 2001/77/EC (2001): Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market, OJ L283, Brussels. Holttinen H.: The impact of large scale wind power production on the Nordic electricity system, Dissertation, Helsinki, Finland, 2004 Kleinschmidt C., Verheij F., Cleijne H., Moldovan N.: The value of wind power from a market perspective, Proceedings of the Sixth International Workshop on Large-Scale Integration of Wind Power and Transmission Networks for Offshore Wind Farms, Delft, Netherlands, October Morthorst P. E.: Wind power and the conditions at a liberalized power market, Wind Energy, vol. 6, Issue 3, pp , 2003 Neubarth, J., Woll, O., Weber, C., Gerecht, M. (2006): Beeinflussung der Spotmarktpreise durch Windstromerzeugung, Energiewirtschaftliche Tagesfragen 56. Jg., Heft 7, Redl, C., Haas, R. (2007): Preisbildung auf Stromterminmärkten eine ökonomische Analyse, Proceedings of the IEWT2007, Vienna, Schönbauer C.: Gutachten zur Bestimmung der Aliquoten Ausgleichsenergie- und Verwaltungsaufwendungen bei der Ökostromförderung 2006 und 2007, Gutachten der Energie- Control GmbH im Auftrag des Bundesministers für Wirtschaft und Arbeit, Wien, 11. September 2006,
14 Sensfuss, F., Genoese, M., Ragwitz, M. (2007): Analysis of the price effect of renewable electricity generation on spot market prices in Germany, Proceedings of the IEWT2007, Vienna, 2007.
The Impact of Wind Power on Day-ahead Electricity Prices in the Netherlands Frans Nieuwenhout #1, Arno Brand #2 # Energy research Centre of the Netherlands Westerduinweg 3, Petten, the Netherlands 1 firstname.lastname@example.org
Simulation of the Central European Market for Electrical Energy T. Mirbach and H.-J. Haubrich RWTH Aachen University Institute of Power Systems and Power Economics Schinkelstr. 6, D-52056 Aachen, Germany
Power market integration Geir-Arne Mo Team Lead Nordic Spot Trading Bergen Energi AS 1 Geir-Arne Mo Some background information: Working for Bergen Energi since 2015 Team Lead Nordic Spot Trading I work
Journal of Power Sources 162 (2006) 949 953 Short communication Value of storage in providing balancing services for electricity generation systems with high wind penetration Mary Black, Goran Strbac 1
The pivotal role of TSOs in European energy market integration To meet the needs of modern society, the energy market is having to change. Concerns about environmental sustainability and dwindling supplies
Public ISDN nr. 978-82-93150-03-9 THEMA Report 2011-1 Carbon Price Transfer in Norway The Effect of the EU-ETS on Norwegian Power Prices Commissioned by Energy Norway, Federation of Norwegian Industries
Wind Energy and Electricity Prices Exploring the merit order effect A literature review by Pöyry for the European Wind Energy Association Abbreviations EUR Euro EEX European energy exchange MOE Merit order
Impacts of large-scale solar and wind power production on the balance of the Swedish power system Joakim Widén 1,*, Magnus Åberg 1, Dag Henning 2 1 Department of Engineering Sciences, Uppsala University,
Perspectives on CRMs from an Academic Point of View Prof. Dr. Jan Horst Keppler Professor of economics, Université Paris-Dauphine Scientific Director, Chaire European Electricity Markets (CEEM) Conference
PÖYRY POINT OF VIEW - APRIL 2015 The death of invest and forget A brave new world for European renewables investors A brave new world for European renewables investors For many investors, renewables have
Volatility, risk and risk premium in German and Continental power markets Stefan Judisch / Andree Stracke RWE Supply & Trading GmbH 22 nd January 2015 RWE Supply & Trading PAGE 0 Agenda 1. What are the
Design and Operation of Power Systems with Large Amounts of Wind Power, first results of IEA collaboration H. Holttinen, P. Meibom, A. Orths, F. Van Hulle, C. Ensslin, L. Hofmann, J. McCann, J. Pierik,
Proc. of the 3rd IASME/WSEAS Int. Conf. on Energy, Environment, Ecosystems and Sustainable Development, Agios Nikolaos, Greece, July 24-26, 2007 254 The impacts of wind power on power systems operation
ARTICLE IN PRESS Energy Policy ] (]]]]) ]]] ]]] www.elsevier.com/locate/enpol Do support systems for RES-E reduce EU-ETS-driven electricity prices? M. Rathmann University of Flensburg, International Institute
Vattenfall Capital Markets Day 2005 Presentation by Lars G. Josefsson CEO 27 September, 2005 Content 2 1. Overview & recent developments 2. Industry trends 3. Electricity prices 4. Strategic focus 5. Climate
Memo From: Dr. Felix Christian Matthes Energy & Climate Division email@example.com Berlin, 23 June 2013 The current electricity costs of energy-intensive industries in Germany Background The electricity
Quantifying flexibility markets Marit van Hout Paul Koutstaal Ozge Ozdemir Ad Seebregts December 2014 ECN-E--14-039 Acknowledgement The authors would like to thank TenneT for its support of this project.
FRAUNHOFER INSTITUTE FOR SOLAR ENERGY SYSTEMS ISE Power generation from renewable energy in Germany assessment of first half of 2015 Prof. Dr. Bruno Burger Fraunhofer Institute for Solar Energy Systems
April 2011 CER Factsheet on the Single Electricity Market The Commission for Energy Regulation (CER) is the independent body responsible for regulating the natural gas and electricity markets in Ireland.
Perspectives for ESS in Germany and Europe legal situation and applications StoREgio energy storage system association Dr. Peter Eckerle Managing Director firstname.lastname@example.org Topics Who is StoREgio?
Integrating 300 GW wind power in European power systems: challenges and recommendations Frans Van Hulle Technical Advisor Worldbank, SDN Week, Washington, February 21-22, 2008 Leonard Crettaz What is the
Concepts and Experiences with Capacity Mechanisms Manuel Baritaud, International Energy Agency Conference Capacity Mechanisms: Experiences in Various European Countries Bundesministerium fur Wirtschaft
Design and Impacts of the German Renewable Energy Act an Inspiration for a Feed-in Law for Egypt? Folie 1 > Vortrag > Autor About us DLR German Aerospace Center Aeronautics Space German Aerospace Agency
Phelix Power Futures EEX at a glance The European Energy Exchange develops, operates and connects secure, liquid and transparent markets for energy and related products. EEX is a regulated market according
Challenges and Scenarios for Transmission Systems in Germany and Europe European Electricity Workshop Pfeil_1 Pfeil_2 Berlin Balken_1 Balken_2 Dr. Christoph h Maurer Balken_3 The Role of Electricity Transmission
Technical challenges and R&D in the field of Scientific officer of Projektträger Jülich at the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) Alexander.Folz@bmu.bund.de
The Energy Transition in Germany Past, Present and Future smart energy Paraná, Conferência International 2014 9 May 2014 Dr. Carsten Tschamber A Brief History of the Energiewende 1973 - oil crisis, Federal
FRAUNHOFER INSTITUTE FOR SOLAR ENERGY SYSTEMS ISE Power generation from renewable energy in Germany assessment of 2015 Prof. Dr. Bruno Burger Fraunhofer Institute for Solar Energy Systems ISE Freiburg,
Reasons for the drop of Swedish electricity prices Project for Svensk Energi Dr. Lion Hirth Neon Neue Energieökonomik GmbH Karl-Marx-Platz 12, 12043 Berlin, Germany email@example.com Summary report
Energy prices and bills - supplementary tables Contents: 1. Energy prices and bills 2. Assumptions 3. Scenarios to 2030 4. Comparison with DECC (2014) Estimated impacts of energy and climate change policies
THE TRADABLE VALUE OF DISTRIBUTED GENERATION CONTRACT NUMBER: DG/DTI/00047 URN NUMBER: 05/1228 1 The DTI drives our ambition of prosperity for all by working to create the best environment for business
1. The market When the electricity market is liberalized, electricity becomes a commodity like, for instance, grain or oil. At the outset, there is as in all other markets a wholesale market and a retail
Briefing paper 1 Sectoral RES and EE targets for 2030: a cost-effective option to achieve the EU s climate and energy objectives? Anne Held, Mario Ragwitz, Wolfgang Eichhammer, Frank Sensfuss (Fraunhofer
Green and Secure Challenges of increasing RES feed-in from a TSO perspective and from a power market point of view René Müller TenneT Two TSOs, one company Europe s first cross-border TSO Connections to
Power Trading as operating company within the Group AG (Group Center) Power Dea Gas Midstream Trading Energy npower Systems Upstream (Production) Electricity generation Gas and oil production Gas Midstream
Negative Wholesale Power Prices: Why They Occur and What to Do about Them by Maria Woodman, Undergraduate Student Economics Department, New York University Phone: (410) 262-9307 Email: firstname.lastname@example.org Advisor:
The Energiewende in the Power Sector: State of Affairs 2014 A Review of the Significant Developments and an Outlook for 2015 BERLIN, 07 JANUARY 2015 The most important developments in 2014 at a glance:
How Much European Regulation Do We Need for Electricity Markets? Brüssel, 06 March 2013 Professor Dr. Justus Haucap Heinrich-Heine University of Düsseldorf 1 The German Energiewende Tsunami in Japan on
Volume 2 A BidURenergy White Paper Unlocking Electricity Prices: A White Paper Exploring Price Determinants by: Mark Bookhagen, CEP pg. 2 Written by Mark Bookhagen, CEP Introduction In order to be classified
Understanding Solar Power Investments in Romania White Paper Series Contributing Authors: Douglas A. Marett and Thomas Bosse Grue + Hornstrup A/S Nupark 51 7500 Holstebro Denmark Tel. +45 96 10 13 30 www.g
Maintaining electricity security across the market Sergey Ilyukhin, Fortum 28 April 2016 Disclaimer This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire
Energy Storage: From Compressed air Energy Storage to E-Mobility Energiespeicher: Von Druckluftspeichern und Elektroautos Dr. Peter Radgen, E.ON Energie AG, Technology Policy, New Technologies, Munich,
CAPACITY MECHANISMS IN EU POWER MARKETS Can we progress to bilateral energy options? Simon Bradbury Ultimately, European renewable targets mean that prices and dispatch patterns will be dictated by wind
PHOTOVOLTAICS IN THE GERMAN POWER SYSTEM Past, Now and in the Future Dr. Simon P. Philipps Fraunhofer Institute for Solar Energy Systems, ISE / Fraunhofer Energy Alliance Wind & Solar Seminar, Vaasa Energy
Co optimizing Energy and Ancillary Services from Energy Limited Hydro and Pumped Storage Plants Brendan Kirby, www.consultkirby.com, Palm City, Florida Power System Researcher and Consultant email@example.com
CENTRE FOR RENEWABLE ENERGY SOURCES AND SAVING Generation Expansion Planning under Wide-Scale RES Energy Penetration K. Tigas, J. Mantzaris, G. Giannakidis, C. Nakos, N. Sakellaridis Energy Systems Analysis
DESCRIPTION OF EPEX SPOT MARKETS INDICES Updated on October 2015 SUMMARY 1 ABOUT... 3 2 DAY-AHEAD AUCTION INDICES... 4 2.1 European Electricity Index (ELIX)... 4 2.2 German/Austrian Physical Electricity
On behalf of Union of the Electricity Industry EURELECTRIC Final Report Prepared by KEMA Consulting GmbH Bonn, Germany Disclaimer This report is based on empirical evidence and provides facts and observations
Merchant Interconnectors David Newbery EPRG Winter Research Seminar Cambridge 15 December 2006 http://www.electricitypolicy.org.uk Outline Strong pressure from EC to increase interconnection impeded by
Merit Order of Energy Storages by 2030 The Impact of Storage Technologies and Market Regulation on Future Electricity Prices and the Value of Flexibility Berlin, June 14, 2013 2nd Annual Electricity Price
GB Electricity Market Summary SECOND QUARTER 2014 APR TO JUN Recorded Levels of UK Generation by Fuel (based upon DECC Energy Trends & FUELHH data): GAS: 10.8GW WIND: 2.6GW AUGUST 2014 COAL: 10.1GW BIOMASS:
INVESTING IN A TRANSITIONING SECTOR Eurelectric conference Jon Moore, CEO NEW INVESTMENT IN CLEAN ENERGY 24-14 ($BN) 32% 17% $318bn -7% $294bn 16% -9% $31bn.5% $272bn $268bn 17% 46% 36% $175bn $25bn $26bn
Lessons learnt from the current energy and climate framework A REPORT PREPARED FOR BUSINESSEUROPE May 2013 Frontier Economics Ltd, London. May 2013 Frontier Economics i This report contains the results
Impact of Wind Generation on Wholesale Electricity Costs in 2011 February 2011 Version 1.1 Report prepared by Dr. Eoin Clifford (EirGrid) Matthew Clancy (SEAI) Sustainable Energy Authority of Ireland The
EEX European Power Futures and Introduction of Cap Futures Tim Greenwood, Steffen Riediger, Dr. Maximilian Rinck Essen, 11 February 2015 Agenda 1. Review volumes and trends in 2014 2. EEX Power Derivatives
IMPACT OF GB S ELECTRICITY MARKET REFORM ON INTERCONNECTIONS, CONSEQUENCES ON NORDIC MARKET Michel Martin, 3 April 2014 PÖYRY MANAGEMENT CONSULTING ENERGY Pöyry offices (c) grafikdienst.com Pöyry Management
The UK Electricity Market Reform and the Capacity Market Neil Bush, Head Energy Economist University Paris-Dauphine Tuesday 16 th April, 2013 Overview 1 Rationale for Electricity Market Reform 2 Why have
THE AMENDED RENEWABLE ENERGY SOURCES ACT 2014 (EEG 2014) 18.08.2014 Energy Regulatory & Governmental Affairs The Amended Renewable Energy Sources Act 2014 (EEG 2014) With the most recent amendment of the
The Nordic Electricity Exchange and The Nordic Model for a Liberalized Electricity Market 1 The market When the electricity market is liberalized, electricity becomes a commodity like, for instance, grain
Business Area Markets Stefan Dohler Head of Business Area Markets Vattenfall Capital Markets Day, Solna, 27 May 2015 Facts and figures Business Area Markets Our Mission We commercially optimise Vattenfall
Risø-R-1441 (EN) Power System Models A Description of Power Markets and Outline of Market Modelling in Wilmar Deliverable 3.2 Peter Meibom, Risø National Laboratory Poul Erik Morthorst, Risø National Laboratory
Results and Challenges 2012 Contents Profile 3 Preface 4 Summary 7 Energy prices 8 The Danish Energy Regulatory Authority is developing new electricity price statistics 20 The electricity bill incomprehensible
- Smart Grids initiative Electrical Engineering Institute of Renewable Energies Dipl.-Wirtsch.-Ing. Alexander von Scheven 1 Agenda in Germany - the German Smart Grids initiative 4. First - 5. Outlook and
Progress on market reform: EMR, the I-SEM and the TEM David Newbery Electricity Market Reform Belfast 28 th March 2014 http://www.eprg.group.cam.ac.uk 1 Disclaimer Although I am an independent member of
Expert Discussion Platform April 8, 2008, Gdansk Regulatory incentives for efficient integration of renewable electricity into electricity grids comparison of European practice Lukas Weißensteiner Hans
Adapting Gas-Power Generation to New Role in Low-Carbon Energy Systems Sandra Scalari Enel Ingegneria e Ricerca SpA Copenhagen, May 27-28 th 2014 Enel Presentation Generation Shift & Market in Europe Enel
1 Recent developments of feed-in systems in the EU A research paper for the International Feed-In Cooperation January 2012 A report commissioned by the Ministry for the Environment, Nature Conservation
POWERGEN Europe 2015 Market Reform Policy Options Case Example Germany By Melle Kruisdijk, Director, Market Development Europe From Wärtsilä Paper ID number: T1S2P2 Page 1 TableofContents 1. Introduction...
Position Paper of the European Energy Exchange and EPEX SPOT Further Development of the Renewable Support Schemes in Germany Date 05/02/2014 Place Document version Leipzig & Paris 0001B 1. Introduction
Market Review 213 Market Prices and costs coupling Introduction Price volatility The electricity market is going through a phase of rapid change. While the process of European integration of electricity
E.ON s UK Consolidated Segmental Report for the year ended 31 December 2012 Introduction In accordance with the Electricity Generation Licence Condition 16 - Financial Information Reporting, and the Electricity
ERCOT Monthly Operational Overview (March 2014) ERCOT Public April 15, 2014 Grid Operations & Planning Summary March 2014 Operations The peak demand of 54,549 MW on March 3 rd was greater than the mid-term
1. EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS EXECUTIVE SUMMARY Energy policy in Greece has the potential to make a significant contribution to the country s economic recovery. Increasing competition and
7 th TYNDP WS The role of storage in a liberalized market Georg Dorfleutner RAG Energy Storage GmbH www.rag-energy-storage.at Unbundled SSO since 1.1.2013 Operating a storage-pool in Austria - CEGH TOV:
www.siemens.com/spectrum-power joint Resource Optimization and Scheduler All forecasting and planning applications in one component. Answers for infrastructure and cities. joint Resource Optimization and
Electricity and natural gas price statistics 1 Source: Statistics Explained (http://epp.eurostat.ec.europa.eu/statistics_explained/) - 21/11/2011-09:11:44 Electricity and natural gas price statistics Data
ACCELERATING GREEN ENERGY TOWARDS The Danish Energy Agreement of March 2012 The most ambitious energy plan of the world In March 2012 a historic new Energy Agreement was reached in Denmark. The Agreement
Energy Policy in Denmark December 2012 Preface Denmark s path to a greener energy future Denmark has a long tradition of active energy policy, initiated by the first oil crisis in 1973. Over the years,
ESRI Research Note The Irish Electricity Market: New Regulation to Preserve Competition Valeria di Cosmo and Muireann Á. Lynch Research Notes are short papers on focused research issues. They are subject
Reliability and security of electricity supply: the Italian blackout Alessandro Ortis President AEEG The Regulatory Authority for Electricity and Gas of Italy 5th NARUC/CEER Energy Regulators Roundtable