Electricity market of Europe (trends) with a special focus on EU generation capacity gap by How to deal with it-

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Electricity market of Europe (trends) with a special focus on EU generation capacity gap by How to deal with it-"

Transcription

1 Electricity market of Europe (trends) with a special focus on EU generation capacity gap by How to deal with it- Hans ten Berge, Secretary General Budapest, 03 September What incentives are there for investment into power plants which would not count as prohibited state aid in the EU? The state aid guidelines set these rules up to 2020 For RES, the rules for support schemes are also laid out (e.g. preference for tendering) In terms of security of supply, capacity mechanisms which can help promote investments have specific rules for compliance (market-based, tech neutral, open to new and existing plants, open to cross-border participation, etc.) Practical examples of implementation have already been approved in light of the state aid guidelines (UK capacity market for security of supply and UK contracts for difference for RES) 1

2 More in depth Final guidelines: What s in... for rules on RES support Aid can be granted as investment or operating aid Replacement of feed-in tariffs by feed-in premiums Balancing responsibilities will apply to >500 kw (wind >3 MW or 3 generation units). Competitive bidding Pilot stage : Bidding on aid for at least 5% of new capacities 2017 onwards: bidding mandatory Bidding can be limited to specific technologies No requirements on support for small scale RES No retroactivity: EEAG will not affect schemes approved under the existing rules More in depth Final guidelines: What is in... rules on generation adequacy CRM is not a priori considered as aid to generation adequacy. This depends on design. CRM to be open for existing and new units for generation, storage, demand and cross border participation A clear technology-neutral approach not fully respected: preference to low carbon generators in case of equivalent technical / economic performance 2

3 Role of nuclear energy in EU power generation mix The total electricity production in 2013 amounts to 3,101 TWh This represents a decline of less than 1% compared to 2012 RES and Nuclear are contributing to this total equally with 27% Fossil fuel generation decreased by 8% compared to 2012 From the perspective of security of supply, competitiveness and CO 2 emissions, nuclear energy has the potential to make a valuable contribution to the EU power mix for years to come. The European Commission s 2050 roadmap indeed foresees an important continuing role for nuclear power in the EU. However, the present pace of new nuclear construction in Europe is clearly not in line with long term forecasts indicating stable nuclear power production until Optimal and suboptimal power generation mixes for CEE region The overarching goal of a holistic market design is to deliver an optimal power system Energy and flexibility markets deliver optimal dispatch and short term system operation and capacity markets deliver long-term system adequacy. All of these markets should have a few fundamental features: Technology-neutral All technologies should be able to participate in the markets without discrimination; Open to new and existing participants The markets should be based on a level playing field between both new and existing participants, including cross-border participants; Open to generation, demand response and storage All participants throughout the value chain should be able to participate in the market. 3

4 Effect of CRM regarding security of supply Our customers expect a reliable supply of electricity whenever they need it! Increasing market uncertainty for all market participants: Existing capacity and new investments lack visibility on what the energy market will look like in the future. The energy-only market provides increasingly shorter term signals whereas existing and/or new firm capacity needs more visibility into the future to be available and thus provide security of supply. The need for firm capacity that delivers long-term system adequacy Political reluctance to leave security of supply to the energy market: Security of supply is viewed as a common good. High peak prices or curtailing a subset of consumers as the outcome of a normally functioning energy market lack political acceptance. Governments thus tend to create a form of insurance that the lights do stay on for everyone, following the goal of the Security of Supply Directive. The need for an evolved market design that reconciles the Internal Energy Market (IEM) with capacity markets Energy + capacity markets (including flexibility) Energy DA & ID Balancing Capacity ETS /MWh /MW Conventional generation Demand Storage RES generation 1 1. Support schemes based on investment or operational aid may still be granted for immature technologies 4

5 To maximise cost-efficiency and market orientation, any capacity market should follow a set of fundamental design features Goal Product Design features Geography Description Overarching goal must be generation adequacy (i.e., firm capacity without any other political targets) Remunerate plant availability/firm capacity Market-based Technology neutral Open to new/existing plants Open to generation/demand response/storage Open to cross-border participation, while not distorting the energy market The completion of the IEM and coordination of the key elements of market design are crucial for EU energy policy Prospect of CCGT power plants in the balancing market Thermal generation is necessary to complement variable renewable power generation and ensure security of supply. The volatility of the demand that has to be met by capacity other than solar or wind power will increase and thermal generation will need to adapt to this. The new role requires above all high flexibility (faster start-ups and shut-downs, lower minimum generation) and reliability, as well as low CAPEX to minimise fixed costs. The European energy market should be fully implemented through integrated forward, intraday, day-ahead and balancing and ancillary services markets that ensure incentives for flexibility in a technology neutral manner. The design of the current balancing and intraday markets must be improved, introducing for instance a possibility to trade balancing forward and more sophisticated products and timeframes that better fit the flexibility requirements (ramp up and down rates etc.) 5

6 The cross-regional roadmap on Day-Ahead Market Coupling Good progress towards a single pan-european day-ahead market Ongoing extensions on the basis of a solution developed by a joint cooperation of Power Exchanges (PRC) and TSOs: Voluntary process What can we expect from regional electricity markets and from market coupling? Trends and effects- NWE pilot project went live in February 2014 (i.e. NWE + Baltic - 75% of the EU electricity market) Source: ACER The SWE region successfully coupled with the NWE region in May In the CEE region, the 4 Market Coupling project (CZ, SK, HU and RO) went live on 19 November 2014 Italian borders successfully coupled since 24 February 2015 Swiss borders technically ready but waiting for EU-CH agreement. Voluntary process The Cross-Regional Roadmap on Flow-Based Capacity Allocation A pilot project launched in the Central West Europe region (CWE) Unprecedented coordination challenges to be solved by the involved TSOs Parallel run simulations since early 2013 with promising results Operational since 21 May 2015 Extension to other areas (CEE) and to other timeframes to be undertaken soon as a second step Source: ACER 6

7 Voluntary process The Cross-Regional Roadmap on Intraday Key to integrate ID markets in the context of growing RES penetration Key prerequisite for integrated balancing markets. PXs and the service provider Deutsche Börse AG finally signed the contract (ESA = Early Start Agreement) in June TSOs and Power Exchanges are confronted to several technical and organisational difficulties along the path. Strong uncertainty about the success and timetable for this project, after several delays. XBID solution now planned for Q Source: ACER Crucial to progress on local implementation projects/smart planning Voluntary / Formal process The Cross-Regional Roadmap on Balancing and ancillary services OBJECTIVE: to ensure continuous balance of demand and supply at the lowest possible cost to customers A greater integration, coordination and harmonization of electricity balancing rules in Europe is expected to increase cross-border trading of balancing and ancillary services products and consequently to reduce costs and increase security of supply MEANS: Top-down: Electricity Balancing Network Code to be implemented by 2022 Bottom-up: several pilot projects at regional level in order to prove the feasibility of the target model CHALLENGES: Higher gap between the target model and existing initiatives Large differences between national models Higher interference with security of supply matters 7

8 Formal process The network codes/guidelines form the foundation on which the IEM is being built Internal electricity market 3 Connection NCs/GLs set requirements for - Generators - Demand-side (including DSM) - HVDC connections 3 Market NCs/GLs set market rules for - Day ahead/intraday & Capacity calculation - Long-term timeframes - System balancing 4 Operational NCs/GLs set common rules for - System security - Assessing adequacy - Planning outages - Emergency situations e.g. paving the way offshore wind for e.g. day-ahead market coupling e.g. regional security coordination initiatives Formal process Network Codes Development state of play Scrutiny Entry into Force Update Text Committee and Translation Committee and Translation Update Text Committee and Translation Update Text Committee and Translation Redrafting and Combining Committee and Translation 3 European Network Codes Stakeholder Committees to be set up by ACER and ENTSO-E to ensure stakeholders involvement throughout the NC implementation phase 8

9 How long might electricity prices fall? -Reasons for this trend and consequences- Low-carbon technologies have low variable costs which lead to a decrease in wholesale prices Demand has stagnated for many years now CO2 prices have remained low Is intervention necessary? *if yes, who, when and how should intervene? The completion of the IEM is key and interventions should be minimized so that we have normal market operation Topics which relate to a common good such as security of supply require intervention in the form of target setting but implementation should always be market-based (e.g. capacity markets) 9

EURELECTRIC presentation. EURELECTRIC contribution to a reference model for European capacity markets. DG COMP workshop 30 June 2015

EURELECTRIC presentation. EURELECTRIC contribution to a reference model for European capacity markets. DG COMP workshop 30 June 2015 EURELECTRIC presentation EURELECTRIC contribution to a reference model for European capacity markets DG COMP workshop 30 June 2015 EURELECTRIC believes that energy, flexibility and capacity are all needed

More information

European Commission Public Consultation on GENERATION ADEQUACY, CAPACITY MECHANISMS AND THE INTERNAL MARKET IN ELECTRICITY

European Commission Public Consultation on GENERATION ADEQUACY, CAPACITY MECHANISMS AND THE INTERNAL MARKET IN ELECTRICITY February 2013 European Commission Public Consultation on GENERATION ADEQUACY, CAPACITY MECHANISMS AND THE INTERNAL MARKET IN ELECTRICITY Reply from NASDAQ OMX The NASDAQ OMX Group, Inc. delivers trading,

More information

Regional resource adequacy Cross-border trade of capacity. From implicit to explicit cross-border participation in capacity mechanisms

Regional resource adequacy Cross-border trade of capacity. From implicit to explicit cross-border participation in capacity mechanisms Regional resource adequacy Cross-border trade of capacity From implicit to explicit cross-border participation in capacity mechanisms Håkan FEUK Chairman of EURELECTRIC WG Wholesale Market Design IEA Expert

More information

June 2015. Position Paper Contribution to the debate on electricity market design and capacity markets

June 2015. Position Paper Contribution to the debate on electricity market design and capacity markets June 2015 Position Paper Contribution to the debate on electricity market design and capacity markets Eurogas is the association representing the European gas wholesale, retail and distribution sectors.

More information

CAPACITY MECHANISMS IN EU POWER MARKETS

CAPACITY MECHANISMS IN EU POWER MARKETS 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

More information

The pivotal role of TSOs in European energy market integration

The pivotal role of TSOs in European energy market integration 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

More information

Security of electricity supply

Security of electricity supply Security of electricity supply Definitions, roles & responsibilities and experiences within the EU Thomas Barth Chairman of Energy Policy & Generation Committee EURELECTRIC Outline Security of Supply a

More information

Harmonisation of electricity generation transmission tariffs. A EURELECTRIC contribution to ACER s scoping exercise

Harmonisation of electricity generation transmission tariffs. A EURELECTRIC contribution to ACER s scoping exercise Harmonisation of electricity generation transmission tariffs A EURELECTRIC contribution to ACER s scoping exercise December 2015 EURELECTRIC is the voice of the electricity industry in Europe. We speak

More information

EURELECTRIC proposals for amendments to Directive 2005/89/EC on measures to safeguard security of electricity supply and infrastructure investment

EURELECTRIC proposals for amendments to Directive 2005/89/EC on measures to safeguard security of electricity supply and infrastructure investment EURELECTRIC proposals for amendments to Directive 2005/89/EC on measures to safeguard security of electricity supply and infrastructure investment July 2016 EURELECTRIC is the voice of the electricity

More information

market design policy paper

market design policy paper market design policy paper 15 September 2014 1 introduction Ensuring economic growth, jobs, secure coverage of basic needs at an affordable and competitive price, and sustainable use of limited resources

More information

Summary of the Impact assessment for a 2030 climate and energy policy framework

Summary of the Impact assessment for a 2030 climate and energy policy framework Summary of the Impact assessment for a 2030 climate and energy policy framework Contents Overview a. Drivers of electricity prices b. Jobs and growth c. Trade d. Energy dependence A. Impact assessment

More information

Energy Union and 2030 Energy & Climate Governance. A EURELECTRIC position paper

Energy Union and 2030 Energy & Climate Governance. A EURELECTRIC position paper Energy Union and 2030 Energy & Climate Governance A EURELECTRIC position paper April 2015 EURELECTRIC is the voice of the electricity industry in Europe. We speak for more than 3,500 companies in power

More information

STATKRAFT IN SOUTH-EAST EUROPE VIENNA, MARCH

STATKRAFT IN SOUTH-EAST EUROPE VIENNA, MARCH STATKRAFT IN SOUTH-EAST EUROPE VIENNA, MARCH 3 2010 No. 1 90% 265 35% 3400 EMPLOYEES.. WITHIN RENEWABLES IN EUROPE RENEWABLE ENERGY POWER AND DISTRICT HEATING PLANTS OF NORWAY S POWER GENERATION...IN MORE

More information

Forward Risk-Hedging Products PC_2012_E_13

Forward Risk-Hedging Products PC_2012_E_13 Answer to public consultation Petteri Haveri 26.10.2012 1(5) Agency for the cooperation of energy regulators consultation2012r08@acer.europa.eu Forward Risk-Hedging Products PC_2012_E_13 The Finnish Energy

More information

Market design and the use of FTRs and CfDs

Market design and the use of FTRs and CfDs THEMA Report 2011-15 ISBN no. 978-82-93150-07-7 Market design and the use of FTRs and CfDs A report prepared for Energy Norway September 2011 CONTENT 1 SUMMARY AND CONCLUSIONS...3 2 INTRODUCTION...4 3

More information

The death of invest and forget

The death of invest and forget 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

More information

SCOPING TOWARDS POTENTIAL HARMONISATION OF ELECTRICITY

SCOPING TOWARDS POTENTIAL HARMONISATION OF ELECTRICITY SCOPING TOWARDS POTENTIAL HARMONISATION OF ELECTRICITY TRANSMISSION TARIFF STRUCTURES AGENCY FOR COOPERATION OF ENERGY REGULATORS (ACER) JUNE 2015 DRAFT FINAL REPORT Prepared by: Cambridge Economic Policy

More information

Foratom event 29 April 2015

Foratom event 29 April 2015 Foratom event 29 April 2015 New nuclear in the UK and Electricity Market Reform Colin Parker Head of European Liaison - EDF Energy 1 April 2015 EDF Energy plc. All rights reserved. EDF Energy A UK energy

More information

Capacity mechanism. General Directorate for Energy and Climate August 30, 2012

Capacity mechanism. General Directorate for Energy and Climate August 30, 2012 Capacity mechanism General Directorate for Energy and Climate August 30, 2012 Ministère de l économie, des Finances et de l Industrie Ministère de l'écologie, du Développement durable, des Transports et

More information

Integrating 300 GW wind power in European power systems: challenges and recommendations. Frans Van Hulle Technical Advisor

Integrating 300 GW wind power in European power systems: challenges and recommendations. Frans Van Hulle Technical Advisor 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

More information

DG COMP interim report of the sector inquiry on capacity mechanisms. A EURELECTRIC response paper

DG COMP interim report of the sector inquiry on capacity mechanisms. A EURELECTRIC response paper DG COMP interim report of the sector inquiry on capacity mechanisms A EURELECTRIC response paper July 2016 EURELECTRIC is the voice of the electricity industry in Europe. We speak for more than 3,500 companies

More information

EU energy and climate policies beyond 2020

EU energy and climate policies beyond 2020 EU energy and climate policies beyond 2020 Policy recommendations EU s energy and climate change policies are in need of reform. They need to be consistent, simplified and set to drive European competitiveness.

More information

D 6.4 and D7.4 Draft topics of EEGI Implementation Plan 2016-2018 Revision: Definitive

D 6.4 and D7.4 Draft topics of EEGI Implementation Plan 2016-2018 Revision: Definitive Project no.: 282794 Project acronym GRID+ Project title: Supporting the Development of the European Electricity Grids Initiative (EEGI) Instrument: Coordination and support action Thematic priority: ENERGY.2011.7.3-1:

More information

IMPACT OF GB S ELECTRICITY MARKET REFORM ON INTERCONNECTIONS, CONSEQUENCES ON NORDIC MARKET Michel Martin, 3 April 2014

IMPACT OF GB S ELECTRICITY MARKET REFORM ON INTERCONNECTIONS, CONSEQUENCES ON NORDIC MARKET Michel Martin, 3 April 2014 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

More information

Final Draft Framework Guidelines on Capacity Allocation and Congestion Management for Electricity Ref: E10-ENM-20-03 3 February 2011

Final Draft Framework Guidelines on Capacity Allocation and Congestion Management for Electricity Ref: E10-ENM-20-03 3 February 2011 Final Draft Framework Guidelines on Capacity Allocation and Congestion Management for Electricity Ref: E10-ENM-20-03 3 February 2011 European Regulators Group for Electricity and Gas Contact: Council of

More information

Power market integration. Geir-Arne Mo Team Lead Nordic Spot Trading Bergen Energi AS

Power market integration. Geir-Arne Mo Team Lead Nordic Spot Trading Bergen Energi AS 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

More information

Energy Futures Lab. Will EMR work? Robert Gross Matt Black. Centre for Energy Policy and Technology Imperial College

Energy Futures Lab. Will EMR work? Robert Gross Matt Black. Centre for Energy Policy and Technology Imperial College Energy Futures Lab Will EMR work? Robert Gross Matt Black Centre for Energy Policy and Technology Imperial College Presentation to the British Institute of Energy Economics, September 2010 Overview What

More information

ELECTRICITY MARKET REFORM SHAPING THE FUTURE GB POWER MARKET

ELECTRICITY MARKET REFORM SHAPING THE FUTURE GB POWER MARKET ELECTRICITY MARKET REFORM SHAPING THE FUTURE GB POWER MARKET A Pöyry briefing note Electricity Market Reform (EMR) proposals, intended to deliver the transition to a decarbonised electricity sector, have

More information

The ENERGIEWENDE The Transformation of the German Energy System

The ENERGIEWENDE The Transformation of the German Energy System The ENERGIEWENDE The Transformation of the German Energy System 15th Czech Energy Congress 14.-15. April 2015 Peter Fischer Deputy Director-General for Globalisation, Energy and Climate Policy Federal

More information

Second Political Declaration of the Pentalateral Energy Forum of 8 June 2015

Second Political Declaration of the Pentalateral Energy Forum of 8 June 2015 PENTALATERAL ENERGY FORUM Second Political Declaration of the Pentalateral Energy Forum of 8 June 2015 The Ministers of the Pentalateral Energy Forum, consisting of Austria, Belgium, France, Germany, Luxembourg,

More information

Study on flexibility in the Dutch and NW European power market in 2020

Study on flexibility in the Dutch and NW European power market in 2020 Study on flexibility in the Dutch and NW European power market in 2020 A REPORT PREPARED FOR ENERGIENED April 2010 Frontier Economics Ltd, London. April 2010 Frontier Economics i Study on flexibility

More information

Energy Productivity & Pricing

Energy Productivity & Pricing Energy Productivity & Pricing Markets for energy, renewable energy and carbon Dr Jenny Riesz February 2014 2 Average electricity retail prices Electricity price rises CSIRO Future Grid (2013) Change and

More information

Business Area Markets

Business Area Markets 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

More information

Critical Policy Options to Protect Industry Competitiveness

Critical Policy Options to Protect Industry Competitiveness Critical Policy Options to Protect Industry Competitiveness Graham Weale Chief Economist, RWE AG IEA Energy Business Council Meeting, Paris 4 th June 2013 RWE Group a leading European energy utility >

More information

Call for comments to ACER on the Network Code Emergency and Restoration. EURELECTRIC and VGB PowerTech comments

Call for comments to ACER on the Network Code Emergency and Restoration. EURELECTRIC and VGB PowerTech comments Call for comments to ACER on the Network Code Emergency and Restoration EURELECTRIC and VGB PowerTech comments April 2015 EURELECTRIC and VGB PowerTech (thereafter referred as VGB) welcome this opportunity

More information

EPEX SPOT Markets and Products 2012 Review & Current developments

EPEX SPOT Markets and Products 2012 Review & Current developments EPEX SPOT Markets and Products 2012 Review & Current developments Sylvie Tarnai & Katharina Niciejewska EEX Summer Workshop Marriott Hotel Leipzig 6 th June 2013 EPEX SPOT 2013 All rights reserved Use

More information

European Distribution System Operators for Smart Grids. Flexibility: The role of DSOs in tomorrow s electricity market

European Distribution System Operators for Smart Grids. Flexibility: The role of DSOs in tomorrow s electricity market European Distribution System Operators for Smart Grids Flexibility: The role of DSOs in tomorrow s electricity market 1 Executive summary A core element of the transformation of energy systems around Europe

More information

Concepts and Experiences with Capacity Mechanisms

Concepts and Experiences with Capacity Mechanisms Concepts and Experiences with Capacity Mechanisms Manuel Baritaud, International Energy Agency Conference Capacity Mechanisms: Experiences in Various European Countries Bundesministerium fur Wirtschaft

More information

The debate on market design in the EU energy policy

The debate on market design in the EU energy policy The debate on market design in the EU energy policy 12 th International Conference on the European Energy Market - EEM15 Lisbon, May 20 th, 2015 Pedro Neves Ferreira Head of Energy Planning pedro.nevesferreira@edp.pt

More information

WIND ENERGY Roadmap 1.

WIND ENERGY Roadmap 1. WIND ENERGY Roadmap 1. Introduction to the Wind Energy Roadmap to 25 The development of renewable energy, including both offshore and onshore wind, is central to our energy policy. 2. Energy derived from

More information

A new electricity market for Northern Ireland and Ireland from 2016 - Integrated Single Electricity Market (I-SEM)

A new electricity market for Northern Ireland and Ireland from 2016 - Integrated Single Electricity Market (I-SEM) A new electricity market for Northern Ireland and Ireland from 2016 - Integrated Single Electricity Market (I-SEM) Non-technical summary High level design Draft Decision Paper SEM -14-047 June 2014 1 INTRODUCTION

More information

HydroPeak - WP3. Assessing capacity mechanisms in the European power system. Stefan Jaehnert, PhD HydroPeak User group meeting, Trondheim, 30.10.

HydroPeak - WP3. Assessing capacity mechanisms in the European power system. Stefan Jaehnert, PhD HydroPeak User group meeting, Trondheim, 30.10. HydroPeak - WP3 Assessing capacity mechanisms in the European power system Stefan Jaehnert, PhD HydroPeak User group meeting, Trondheim, 30.10.2014 Outline Capacity remuneration mechanisms What are these

More information

Cooperation between 50Hertz and ČEPS A stable basis for European Infrastructure

Cooperation between 50Hertz and ČEPS A stable basis for European Infrastructure Cooperation between 50Hertz and ČEPS A stable basis for European Infrastructure Michael Kranhold Head of Corporate Strategy/Cooperation 50Hertz Transmission Agenda 1. 50Hertz the Company 2. Cooperation

More information

Creating a competitive market beyond subsidies

Creating a competitive market beyond subsidies Creating a competitive market beyond subsidies Policy Paper July 2015 Key messages An energy system in which variable renewable energy sources play an increasingly important role, is not only possible,

More information

Adapting Gas-Power Generation to New Role in Low-Carbon Energy Systems

Adapting Gas-Power Generation to New Role in Low-Carbon Energy Systems 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

More information

Volatility, risk and risk premium in German and Continental power markets

Volatility, risk and risk premium in German and Continental power markets 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

More information

Electricity Market Reform

Electricity Market Reform 2016 Electricity Market Reform Background The Electricity Market Reform (EMR) was issued by the UK government as a potential solution to the nation s core energy problems which include; keeping energy

More information

BALANCING RESPONSIBILITY AND COSTS of wind power plants. September 2015 (Maps updated on February 2016)

BALANCING RESPONSIBILITY AND COSTS of wind power plants. September 2015 (Maps updated on February 2016) BALANCING RESPONSIBILITY AND COSTS of wind power plants September 2015 (Maps updated on February 2016) Executive summary Accurately defining and estimating the balancing cost of a single power generation

More information

Germany. Key issues. 1. General overview

Germany. Key issues. 1. General overview Germany Key issues High volumes of renewables have changed the way the electricity market in Germany operates. In 2012 direct marketing increased, in particular in onshore wind, due to a change of the

More information

The levy control framework (LCF) & contracts for difference (CfD) allocation what it means for the low-carbon generation mix

The levy control framework (LCF) & contracts for difference (CfD) allocation what it means for the low-carbon generation mix The levy control framework (LCF) & contracts for difference (CfD) allocation what it means for the low-carbon generation mix Gareth Redmond 24 th September, 2014 Paid for through energy bills costs passed

More information

Status NWE DA & ID Projects

Status NWE DA & ID Projects Status NWE DA & ID Projects European Market Design Working Group October 26 th 2012 29.10.2012 DAY AHEAD PROJECT 29.10.2012 NWE Day Ahead Project Status Report Design Assumptions The market coupling systems

More information

RE-POWERING MARKETS Market design and regulation during the transition to low-carbon power systems

RE-POWERING MARKETS Market design and regulation during the transition to low-carbon power systems RE-POWERING MARKETS Market design and regulation during the transition to low-carbon power systems EC-IEA Roundtatble on electricity market design and regulation Brussels, 18 February 2016 Power markets

More information

Reasons for the drop of Swedish electricity prices

Reasons for the drop of Swedish electricity prices 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 hirth@neon-energie.de Summary report

More information

POWERGEN Europe 2015 Market Reform Policy Options. Case Example Germany. By Melle Kruisdijk, From Wärtsilä

POWERGEN Europe 2015 Market Reform Policy Options. Case Example Germany. By Melle Kruisdijk, From Wärtsilä 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...

More information

Future-Oriented Market Design A BEE consultation response

Future-Oriented Market Design A BEE consultation response Future-Oriented Market Design A BEE consultation response October 2015 Response to the new energy market design consultation 2 Introduction The German Renewable Energy Federation (BEE) welcomes the Commission

More information

on Wholesale Electricity Markets: The German Case, May 29, 2013, Madrid.

on Wholesale Electricity Markets: The German Case, May 29, 2013, Madrid. Oxford Energy Comment June 2013 Living with Intermittent Renewable Power: Challenges for Spain and the EU 1 David Robinson 1. Introduction This note summarizes thirteen policy challenges facing Spain in

More information

CEER s Response to the European Commission s Consultation on a new Renewable Energy Directive for the period after 2020

CEER s Response to the European Commission s Consultation on a new Renewable Energy Directive for the period after 2020 CEER s Response to the European Commission s Consultation on a new Renewable Energy Directive for the period after 2020 2 February 2016 Part I: Background and main messages This document contains the feedback

More information

ITALIAN EXPERIENCE WITH CAPACITY SUPPORT MECHANISMS

ITALIAN EXPERIENCE WITH CAPACITY SUPPORT MECHANISMS Forum ElCom 2014 Le marché de gros de l electricité en mouvement ITALIAN EXPERIENCE WITH CAPACITY SUPPORT MECHANISMS Guido Bortoni, President AEEGSI (Italy) Palais des Congres Biel/Bienne, November 14th

More information

Electricity Generation Costs

Electricity Generation Costs October 2012 Introduction Electricity generation costs are a fundamental part of energy market analysis, and a good understanding of these costs is important when analysing and designing policy. DECC regularly

More information

SCENARIO OUTLOOK AND ADEQUACY FORECAST 2014-2030

SCENARIO OUTLOOK AND ADEQUACY FORECAST 2014-2030 SCENARIO OUTLOOK AND ADEQUACY 2 June 2014 1. Executive summary... 3 Main results load and generation... 3 Main results system adequacy... 7 Stakeholder Consultation Process on future ENTSO-E Adequacy Assessment...

More information

Wind and solar reducing consumer bills An investigation into the Merit Order Effect

Wind and solar reducing consumer bills An investigation into the Merit Order Effect Switch for Good Wind and solar reducing consumer bills An investigation into the Merit Order Effect Executive summary Concerns over the cost of renewable subsidy schemes have led to significant policy

More information

European Power Exchanges Challenges for market integration

European Power Exchanges Challenges for market integration Mikael Lundin CEO Nord Pool Spot AS European Power Exchanges Challenges for market integration Helsinki, March 17 th 2011 About Nord Pool Spot Nord Pool Spot runs the largest market for power in the world

More information

Customers and Other Interested Parties Direct Dial: 020 7901 7000 Email: gb.markets@ofgem.gov.uk

Customers and Other Interested Parties Direct Dial: 020 7901 7000 Email: gb.markets@ofgem.gov.uk System Operators, Transmission System Owners, Promoting choice and value for Generators, Suppliers, Traders, all gas and electricity customers Customers and Other Interested Parties Direct Dial: 020 7901

More information

Investment risks in a decarbonising electricity market

Investment risks in a decarbonising electricity market Investment risks in a decarbonising electricity market Dr William Blyth, Oxford Energy Associates International Energy Agency Emissions Trading Workshop Paris, September 2013 Investment challenges Uncertain

More information

Electricity market reform: policy overview

Electricity market reform: policy overview Electricity market reform: policy overview May 2012 Contents Introduction... 3 Electricity Market Reform... 6 The Move to EMR... 21 Costs and Benefits of EMR... 24 EMR in the Devolved Administrations...

More information

Quantifying flexibility markets

Quantifying flexibility markets 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.

More information

CAPACITY REMUNERATION MECHANISMS AND THE INTERNAL MARKET FOR ELECTRICITY

CAPACITY REMUNERATION MECHANISMS AND THE INTERNAL MARKET FOR ELECTRICITY Pursuant to Article 11 of Regulation (EC) No 713/2009, THE AGENCY FOR THE COOPERATION OF ENERGY REGULATORS reports on: CAPACITY REMUNERATION MECHANISMS AND THE INTERNAL MARKET FOR ELECTRICITY of 30 July

More information

VALUING FLEXIBILITY 20 May 2014 Florence Forum Stephen Woodhouse, Director, Pöyry Management Consulting

VALUING FLEXIBILITY 20 May 2014 Florence Forum Stephen Woodhouse, Director, Pöyry Management Consulting VALUING FLEXIBILITY 20 May 2014 Florence Forum Stephen Woodhouse, Director, Pöyry Management Consulting THE NEED FOR FLEXIBILITY IS GROWING With new forms of generation. prices and dispatch patterns will

More information

Electricity Market Reform. Consultation by DECC. Response by E.ON. Summary

Electricity Market Reform. Consultation by DECC. Response by E.ON. Summary Electricity Market Reform Consultation by DECC Response by E.ON Summary We recognise that Government needs to provide stronger incentives to build new low carbon generating capacity to meet the UK s specific

More information

annual report TSO cooperation and the internal energy market European Network of Transmission System Operators for Electricity

annual report TSO cooperation and the internal energy market European Network of Transmission System Operators for Electricity annual report 2013 TSO cooperation and the internal energy market European Network of Transmission System Operators for Electricity TSO cooperation and the internal energy market Contents I About entso-e

More information

White Paper Growing Up: Onshore wind s place in a competitive, low carbon power generation system. At a Crossroad the UK Power Market

White Paper Growing Up: Onshore wind s place in a competitive, low carbon power generation system. At a Crossroad the UK Power Market FTI Consulting: Energy sector White Paper Growing Up: Onshore wind s place in a competitive, low carbon power generation system October 2015 At a Crossroad the UK Power Market The UK is at a pivotal moment

More information

Public consultation on measures to ensure the adequacy of the conventional means of electricity production in Belgium n

Public consultation on measures to ensure the adequacy of the conventional means of electricity production in Belgium n Amstelveenseweg 998 1081 JS Amsterdam Phone: + 31 20 520 7970 Email: secretariat@efet.org Website: www.efet.org Public consultation on measures to ensure the adequacy of the conventional means of electricity

More information

Electricity Market and Policy Development in the Energy Community

Electricity Market and Policy Development in the Energy Community Electricity Market and Policy Development in the Energy Community Jasmina Trhulj Enlargement and Integration Action Workshop The Future Role of Energy Storage in South Eastern Europe Tirana, 22 October

More information

a reference model for european capacity markets

a reference model for european capacity markets a reference model for european capacity markets Nondiscriminatory Technology neutral Regional Market- based Security of supply Values availability A EURELECTRIC report March 2015 EURELECTRIC is the voice

More information

Shaping Our Energy Future: The Cost of Energy

Shaping Our Energy Future: The Cost of Energy 1. Introduction The total average UK household energy bill in 2011 has been assessed as between 1,249 and 1,300 [1] [2] [3]. The wholesale cost of gas and electricity is estimated to account for around

More information

Brussels, XXX [ ](2013) XXX draft

Brussels, XXX [ ](2013) XXX draft Formatiert: Header Cover Page Formatvorlagendefinition: Standard EUROPEAN COMMISSION Brussels, XXX [ ](2013) XXX draft COMMUNICATION FROM THE COMMISSION Delivering the internal electricity market: making

More information

Executive summary. Chapter one: Foreword. Jochen Kreusel

Executive summary. Chapter one: Foreword. Jochen Kreusel Chapter one: Foreword 2. Executive summary This report gives a comprehensive outlook towards an electricity system for Europe and North Africa based completely on renewable energy in 2050. Its particular

More information

Dealing with the rise of Renewables Investing in smart renewables. Felice Egidi Head of Regulatory&Antitrust Affairs Paris, July 2 nd 2014

Dealing with the rise of Renewables Investing in smart renewables. Felice Egidi Head of Regulatory&Antitrust Affairs Paris, July 2 nd 2014 Dealing with the rise of Renewables Investing in smart renewables Felice Egidi Head of Regulatory&Antitrust Affairs Paris, July 2 nd 2014 Summary RES worldwide Global Investments ($bln) Global Installed

More information

Development of decentralised energy and storage systems in the UK

Development of decentralised energy and storage systems in the UK Development of decentralised energy and storage systems in the UK A report for the Renewable Energy Association If you would like to receive a full hard copy of the report please email decentral@r-e-a.net

More information

Power Exchanges and Market Coupling tools for mitigating energy costs favoring EU competitiveness

Power Exchanges and Market Coupling tools for mitigating energy costs favoring EU competitiveness Power Exchanges and Market Coupling tools for mitigating energy costs favoring EU competitiveness Brussels, April 30 th 2014 Dr. Wolfram Vogel Director Public Affairs & Communications, EPEX SPOT Liberalization

More information

Norwegian position on the proposed EU framework for climate and energy policies towards 2030

Norwegian position on the proposed EU framework for climate and energy policies towards 2030 Norwegian position on the proposed EU framework for climate and energy policies towards 2030 The EU plays an important role as a global leader in climate policy and has a fundamental interest in strengthening

More information

of2o July of Transmission System Operators for Electricity

of2o July of Transmission System Operators for Electricity Energy Regulators OPINION OF THE AGENCY FOR THE COOPERATION OF ENERGY REGULATORS No 06/2015 2O July 2015 ON THE ENT$O-E IMPLEMENTATION PLAN 2016-2018 OF THE RESEARCH AND DEVELOPMENT ROADMAP 2013-2022 THE

More information

Business Policy of CEZ Group and ČEZ, a. s.

Business Policy of CEZ Group and ČEZ, a. s. Business Policy of CEZ Group and ČEZ, a. s. Contents: Introduction 1. CEZ Group mission and vision 2. Scope of business of CEZ Group 3. Business concept Guiding principles Trade Generation Electricity

More information

Modelling of Smart Low-Carbon Energy Systems. Imperial College London

Modelling of Smart Low-Carbon Energy Systems. Imperial College London Modelling of Smart Low-Carbon Energy Systems Imperial College London Goran Strbac, Marko Aunedi, Dimitrios Papadaskalopoulos, Meysam Qadrdan, Rodrigo Moreno, Danny Pudjianto, Predrag Djapic, Ioannis Konstantelos,

More information

Design and Operation of Power Systems with Large Amounts of Wind Power, first results of IEA collaboration

Design and Operation of Power Systems with Large Amounts of Wind Power, first results of IEA collaboration 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,

More information

POWER TRADING FORUM 20 March 2014. Andy Kelly

POWER TRADING FORUM 20 March 2014. Andy Kelly POWER TRADING FORUM 20 March 2014 Andy Kelly PÖYRY MANAGEMENT CONSULTING ENERGY Pöyry offices Pöyry Management Consulting offices Europe s leading specialist energy management consultancy. Offering expert

More information

Contract for Difference: The Basics. Levy Control Framework

Contract for Difference: The Basics. Levy Control Framework Contract for Difference: The Basics Electricity Market Reform has long been a key priority for the renewable energy industry. Scottish Renewables has been closely involved in this fast changing policy

More information

FINANCING PERSPECTIVE

FINANCING PERSPECTIVE C1 FINANCING PERSPECTIVE European Forum for Science and Industry Olivier Musset Energy Finance Société Générale DISCLAIMER This Presentation has been prepared by Société Générale Corporate and Investment

More information

Opportunities for the Georgian Hydropower industry to benefit from Directive 2009/28EC of the European Parliament

Opportunities for the Georgian Hydropower industry to benefit from Directive 2009/28EC of the European Parliament Promotion hidroenergetikasi Project investiciebis (HIPP) Opportunities for the Georgian Hydropower industry to benefit from Directive 2009/28EC of the European Parliament What Europe wants to do Comply

More information

Further Development of the Renewable Support Schemes in Germany

Further Development of the Renewable Support Schemes in Germany 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

More information

ERCOT Analysis of the Impacts of the Clean Power Plan Final Rule Update

ERCOT Analysis of the Impacts of the Clean Power Plan Final Rule Update ERCOT Analysis of the Impacts of the Clean Power Plan Final Rule Update ERCOT Public October 16, 2015 ERCOT Analysis of the Impacts of the Clean Power Plan Final Rule Update In August 2015, the U.S. Environmental

More information

Viewpoint. Insights and opinions from Baringa Partners. UK Contracts for Difference: Risks and opportunities

Viewpoint. Insights and opinions from Baringa Partners. UK Contracts for Difference: Risks and opportunities Viewpoint Insights and opinions from Baringa Partners UK Contracts for Difference: Risks and opportunities UK Contracts for Difference: Risks and opportunities The UK Government is set to introduce a

More information

Reliability and security of electricity supply: the Italian blackout

Reliability and security of electricity supply: the Italian blackout 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

More information

LONG-TERM OUTLOOK FOR GAS TO 2 35

LONG-TERM OUTLOOK FOR GAS TO 2 35 LONG-TERM OUTLOOK FOR GAS TO 2 35 Eurogas is the association representing the European gas wholesale, retail and distribution sectors. Founded in 1990, its members are some 50 companies and associations

More information

Effective integration of renewable energy in the European power market

Effective integration of renewable energy in the European power market Effective integration of renewable energy in the European power market EFET Position Paper, December 2010 1 Introduction: developing renewable energy in an efficient, effective and sustainable manner The

More information

Macro-economic impact of Renewable Energy Production in Belgium. 21 October 2014

Macro-economic impact of Renewable Energy Production in Belgium. 21 October 2014 Macro-economic impact of Renewable Energy Production in Belgium 21 October 2014 Context and objectives of the study Renewable energy deployment among key solutions for meeting energy challenges to be addressed

More information

ELECTRICITY MARKET REFORM (EMR) & THE ENERGY BILL INENCO OVERVIEW

ELECTRICITY MARKET REFORM (EMR) & THE ENERGY BILL INENCO OVERVIEW ELECTRICITY MARKET REFORM (EMR) & THE ENERGY BILL INENCO OVERVIEW February 2014 ELECTRICITY MARKET REFORM (EMR) & THE ENERGY BILL The Energy Bill is the government s flagship energy policy. There have

More information

Contents. Wind power sector facts. Growth drivers. Immediate challenges. Innovative and global response

Contents. Wind power sector facts. Growth drivers. Immediate challenges. Innovative and global response Wind power sector 'Keys to competitiveness on the international stage ESADE-Deloitte Jorge Calvet, Chairman of Gamesa Madrid, 1 July 2010 Contents 5 5 5 1 Wind power sector facts Growth drivers Immediate

More information

ABENGOA SOLAR Solar Power for a Sustainable World

ABENGOA SOLAR Solar Power for a Sustainable World European Workshop on "Success factors for International Cooperation on Research, Technological Development and Demonstration in the Area of Renewable Energy" Tenth World Renewable Energy Congress and Exhibition

More information

FSR Annual Conference: Future Trends in Energy Market Design. The regulatory dimension: a roundtable of senior regulators

FSR Annual Conference: Future Trends in Energy Market Design. The regulatory dimension: a roundtable of senior regulators FSR Annual Conference: Future Trends in Energy Market Design The regulatory dimension: a roundtable of senior regulators Valeria Termini Commissioner Florence School of Regulation, 25 tth May 2011 1 Future

More information