3 rd Power Trade Forum. GCC Interconnection Authority Interconnecting Our World

Transcription

1 3 rd Power Trade Forum GCC Interconnection Authority Interconnecting Our World

2 Beyond the GCC Power Market Initiating a GCC Power Market Establishing The Interconnection

3 Platform to facilitate power trade opportunities (EMMS) Workshops and training to raise awareness of the issues and benefits of power trade. Visits to policy makers to get their views and support for power trade initiatives. Policy changes to promote power trading through the Interconnector (White paper).

4 Regional forums to address issues that relate to promoting power trading. 1st Forum on Power Trade Dec 2010

5 Power Marketinitiation Road map Needs driven by limited capacity YES Interconnecter congested? NO PETA process 1.0 «INCUBATION» or «learn by doing» 1 Auctioning Grid Security Fine tune NTC calculation Tarriff structure 2 a Time-2-market focus Processes People nominations and authorizations Simple tools Decide on NTC Shareholders only Trading partners? EMMS Automated system Sophisticated tarriff models 2 b Automation Settlement Tarriff structure Shareholders + others (IPP, PP etc) 3 FULL MARKET IMPLEMENTATION Needs driven by trading parties

6 900, , , , , , , , , Unsceduled Exchanges Traded Energy

7 Absence of visibility and awareness of electricity costs and the benefits that can be achieved by power trading; Energy price distortion due to varying levels of subsidies in GCC countries; Differences in national energy policies; Differences in local regulations towards crossborder power trading; Differences in national power sector structure; Low number of market participants.

8 GCC MSs National Markets Status Bahrain Kuwait Qatar Saudi Arabia UAE Oman Regulator No No No ECRA Bureau AER Electricity Law No No Yes Yes Yes Yes Transmission Grid Code No No Yes Yes Yes Yes Distribution Grid Code No No Yes Yes Yes Yes Sector Structure/reform Single Buyer Partially unbundling exists Vertically Integrated Single Buyer Partially unbundling exists Principle Buyer Partially unbundling exists Single Buyer Partially unbundling exists Single Buyer Partially unbundling exists Subsidies Issue Yes Yes Yes Yes Yes Yes Authority to Trade Yes No Yes Need Permission Yes Yes Price for Trade Not ready Not ready Need update from QP Need declaration from Ministry of Energy As per request They prices based on subsided fuel Wheeling Charges GCCIA 5$ GCCIA 5$ GCCIA 5$ GCCIA 5$ UAE Summer = 34$ Winter =? $ GCCIA = 5$ UAE Summer = 34$ Winter =? $ GCCIA = 5$ Power Offered As per request Not Declared Full line capacity Price up on Time and quantities Not Declared As per request Not Ready

9 successfullyused used for stability and support in around 1100 incidents Not used for economic gains through economical trade of energy Utilization Factor around 8%

10 Value of Economic Gains that can be Attained through Economic Trading Optimal Energy Exchanges between the Member States through the GCC interconnection leads to a global reduction of operation and maintenance costs. The corresponding Present Value of the Energy Exchanges Revenues is of 1.8 Billion US$.

11 Economic Energy Exchanges require: Coordination of power production between the Member States development of a electricity market Process through the GCC interconnection

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13 :00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 0:00 Demand (MW) Time (Hrs) KSA and (MW) KUW Demand Demand (MW) BA GCC Member States Demand During Winter Time :00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 0:00 Dema Time (Hrs) :00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10: 11: 12: 13: 14: 15: 16: 17: 18: 19: 20: 21: 22: 23: 0:00 Demand (MW) Time (Hrs) QAT Demand :00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 0:00 D Time (Hrs) :00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 0:00 Demand (MW) UAE Demand

14 Variation in the Fuel Mix and Price

15 Trading Opportunities in Winter to buy energy Below is the variation in the marginal cost of generation during the winter time period for the member states. UAE QAT 15

16 Trading Opportunities in Summer to buy energy Shown below the variation in the marginal cost of generation during the winter time period for the member states. BAH KSA KUW 16

17 Comparison of Average Marginal Costs

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19 Economic Imports in a Peak day of High Season Shown below the estimated energy to be imported from the GCCIA grid base on the marginal cost of generation during the winter time period for the member states.

20 Economic Exports in a Peak day of High Season Shown below the estimated energy to be exported from the GCCIA grid base on the marginal cost of generation during the winter time period for the member states.

21 Exchange during the High Season Phase I Phase II Phase III

22 Electricity Exchange Opportunity Exchange Consultant Results The Consultant has estimated the total theoretical benefit of both countries from economic electricity exchanges between Saudi Arabia and UAE-Abu Dhabi during the period of about 2,935 MUSD or MUSD/yr. considering a link utilization factor of 50% of NTC. 22

23 Electricity Exchange Opportunity Exchange Consultant Results The Consultant has estimated the total theoretical benefit of both countries from economic electricity exchanges between Saudi Arabia and Bahrain during the period of about 2,024 MUSD or MUSD/yr. considering a link utilization factor of 50% of NTC. 23

24 Electricity Exchange Opportunity Exchange Consultant Results The Consultant has estimated the total theoretical benefit of both countries from economic electricity exchanges between Saudi Arabia and Kuwait during the period of about 720 MUSD or 37.9 MUSD/yr. considering a link utilization factor of 50% of NTC. 24

25 Electricity Exchange Opportunity Exchange Consultant Results The Consultant has estimated the total theoretical benefit of both countries from economic electricity exchanges between Saudi Arabia and Qatar during the period of about 3,448 MUSD or MUSD/yr. considering a link utilization factor of 50% of NTC. 25

26 Study Make a feasibility Study for capturing Power Trading opportunities between Member States Create a model where all MS s agree to the proposed model and price structure. Reflect outcome of the study and the proposed Market model in the revision of the GA & PETA agreement. MS to make any necessary adjustment to harmonize the GA & PETA market model proposed with their internal regulations. All Member States and GCCIA shall work together to Implement implement the proposed market model. the market model

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