IMPACT OF GB S ELECTRICITY MARKET REFORM ON INTERCONNECTIONS, CONSEQUENCES ON NORDIC MARKET Michel Martin, 3 April 2014
|
|
- Lizbeth Ray
- 8 years ago
- Views:
Transcription
1 IMPACT OF GB S ELECTRICITY MARKET REFORM ON INTERCONNECTIONS, CONSEQUENCES ON NORDIC MARKET Michel Martin, 3 April 2014
2 PÖYRY MANAGEMENT CONSULTING ENERGY Pöyry offices (c) grafikdienst.com Pöyry Management Consulting offices Europe s leading specialist energy management consultancy Offering expert advice from strategy to implementation on policy, regulation, business operations, financing and valuation and sustainability Providing in-depth market analysis and strategic insight across Europe Over 250 energy market experts in 13 offices across Europe: Düsseldorf Helsinki London Madrid Milan Moscow Oslo Oxford Stockholm Paris Vienna Villach Zurich COPYRIGHT PÖYRY 2
3 AGENDA 1. GB s Electricity Market Reform (EMR) 2. Impact of the EMR on interconnections 3. Effect of the EMR and other National Solutions on Nordics COPYRIGHT PÖYRY 3
4 EMR S FOUR CENTRAL POLICY INSTRUMENTS There are a number of other small and large changes to policy expected to supplement these reforms A carbon price underpin to reduce downside carbon price volatility, making low carbon investments more attractive Carbon Price Support Contract for Difference Feed-in Tariff Long-term contracts to remunerate low carbon generators to a defined strike price (energy market revenue plus difference) EMR To remunerate capacity providers Capacity Market Emissions Performance Standard A regulated limit upon point CO 2 emissions allowed from new (or life extended) power stations COPYRIGHT PÖYRY 4
5 CARBON PRICE SUPPORT (CPS) CPS Intended to top-up the EU ETS price to an expected floor level The carbon price support is designed to give clarity to all the market regarding the level of carbon price in the UK A tax on fuels (the Carbon Price Support) will top-up the level of carbon cost to the intended trajectory The level of carbon cost will be seen by all domestic production, but not by interconnectors 19 March 2014: the carbon price support will be capped to 18/tCO2 represents 8/MWh increased variable cost for a 50% efficient CCGT represents 18/MWh increased variable cost for a 38% efficient coal plant Summary of scenarios carbon price support (initial) trajectory EU ETS (example) Source: HM Treasury COPYRIGHT PÖYRY 5
6 CONTRACT FOR DIFFERENCES FEED IN TARIFF (CFD FIT) CfD Feed in Tariff provides a difference payment to supplement wholesale market revenue payments are two way depending on level of power price Baseload CfD FIT Intermittent CfD FIT Nuclear, CCS, biomass Market ref. price based on year-ahead prices Nuclear CfD FIT: 92.5/MWh - 112/MWh (real terms), 35 years Wind, solar, wave, tidal Market ref. price based on hourly day-ahead prices Onshore wind: 95/MWh - 115/MWh COPYRIGHT PÖYRY 6
7 CAPACITY MARKET Central auction for capacity, broad based payment Capacity requirement Capacity auction Eligibility Contracts Forward looking horizon 4 years ahead Forecast of future peak demand in delivery year made by SO/Ofgem Minister decides volume of capacity needed to deliver security of supply (3h LOLE) If capacity shortfall anticipated, Minister can take decision (on annual basis) to initiate a central capacity auction to secure capacity in delivery year SO runs and administers the auction Aim for interconnected capacity to participate alongside conventional GB capacity New and existing capacity eligible CfD FIT contracted capacity ineligible DSR can participate in 1 year ahead auction Parties successful in auction will receive capacity agreements for the delivery year(s) 1 year contracts for existing capacity, 15 year contracts for new capacity Receive availability fee which is expected to be based on auction clearing price COPYRIGHT PÖYRY 7
8 EMISSION PERFORMANCE STANDARD (EPS) OF 450GCO 2 /KWH A technology neutral ban on new coal plants EPS of 450g CO 2 /kwh will be used to set an annual, plant limit on allowed CO 2 emissions assuming baseload operation (85% load factor) Annual limit: Illustration of EPS 800MW CCGT To apply from 2013 to new plants >50MW and substantial retrofits/life extensions upgrades to comply with EU law, retrofit of CCS and biomass conversion will not result in EPS capture = 450*8760*85%*800,000 Allowance = 2.68mt Likely emissions at baseload emissions intensity 360g/kWh Exemptions for CCS demonstration plants Effectively limits operations of new coal plants to around 60%, which is unlikely to lead to capex recovery = 360*8760*85%*800,000 Actual (illustrative) = 2.14mt Illustrative actual emissions < limit, so plant is compliant COPYRIGHT PÖYRY 8
9 AGENDA 1. GB s Electricity Market Reform (EMR) 2. Impact of the EMR on interconnections 3. Effect of the EMR and other National Solutions on Nordics COPYRIGHT PÖYRY 9
10 IMPACT OF MAIN EMR COMPONENTS ON INTERCONNECTORS Fundamental drivers for interconnectors are altered by the EMR, both upside and downside Assuming future prices in GB are fundamentally higher than elsewhere, due to large share of CCGTs: Carbon price support Contract for Differences Capacity markets Upside for interconnectors, increases electricity price Recently capped at 18/tCO2 Downside for interconnectors Pushes down the wholesale electricity price Downside for IC if not eligible to participate: transfer of value from MWh to MW Upside (less risk) if eligible to participate Impact of the Electricity Market Reform is difficult to determine for interconnectors may be dominated by positive effect of Carbon price support Some elements are still uncertain, e.g. the extent to which interconnectors can participate to the capacity market Uncertainty is in itself a hurdle for investment Emission performance standard No direct effect effective ban on coal COPYRIGHT PÖYRY 10
11 IMPACT OF THE EMR ON INTERCONNECTORS Pöyry has analysed the impact of the EMR on interconnectors for DECC Many parties (public and private) are interested in the impact of the EMR on interconnections to the UK DECC commissioned a study from Pöyry in 2012 to look at the impact of the capacity payment mechanism the reform of the balancing mechanism cash-out the interconnection capacity CfD FIT for Nuclear and CCS This study is available on-line: COPYRIGHT PÖYRY 11
12 SCOPE OF THE STUDY The study for DECC focused on capacity mechanism and balancing cash-out, at two levels of interconnector capacity Reform of the balancing mechanism cash-out cash-out: incentive to balance portfolio currently, rules introduce a de facto cap of wholesale prices at around 500/MWh (no hard cap, but a soft observed limit) reform expected in 2015, to better reflect value of capacity Capacity mechanism cleared 4 year ahead auction Interconnectors 4GW: France, Netherlands, Island of Ireland 10GW: (in addition to above) Belgium, Norway, France, DK, Iceland High-carbon sensitivities re-ran baseline and scenario 5 with CCGTs instead of CCS and Nuclear for new entry COPYRIGHT PÖYRY 12
13 ANALYTICAL FRAMEWORK OF THE STUDY Detailed hourly modelling of North West Europe supports robust findings Pöyry modelled different scenarios in the study using own power market model BID3: Pöyry s modelling platform Wholesale prices, flows, dispatch and new build are a result of the model and methodology Criteria for investment meets carbon emission target new build needs to be profitable lights stay (largely) ON The study used DECC s assumptions, which have a large impact on results e.g. a very high Carbon Price Support makes interconnectors near-baseload Note: DECC study used the predecessor to BID3 (Zephyr), based on same principles COPYRIGHT PÖYRY 13
14 SUMMARY OF THE FINDINGS Most of the changes investigated decrease the value of existing and new interconnectors but from quite a high level, due to the CPS assumption! Item tested New Entry (GW) Price impact ( /MWh) Congestion rent (%) Comment CfD FIT: Nuclear and CCS new build instead of CCGTs BM cash-out reform (no CM) Capacity market (with BM cash out reform) Capacity Market (no BM cash out reform) % Supply curve effect decreases prices, more hours of 0 prices +2 small similar More new capacity is profitable, higher price peaks, lower mid-merit prices % Increases capacity margin, diverts scarcity rent to Capacity Market % Cannot rely on neighbours, as the price can t go high enough to attract flows when most needed BM: balancing mechanism cash-out reform, CM: capacity market COPYRIGHT PÖYRY 14
15 AGENDA 1. GB s Electricity Market Reform (EMR) 2. Impact of the EMR on interconnections 3. Effect of the EMR and other National Solutions on Nordics COPYRIGHT PÖYRY 15
16 POLICIES MUST EVOLVE TO DELIVER DECARBONISATION Decarbonising the power sector is very challenging, current arrangements are unlikely to deliver decarbonisation Goal: Decarbonisation by 2050 CO2 Intensity EU RoadMap Scenarios (gco2/kwh) EU Energy Road Map Scenarios Current intermediate target Europe s electricity systems must go through a sharp transition in the coming years if we are to meet ambitious decarbonisation policy targets. Large scale investment is needed. But European energy companies face an uncertain investment environment and financial investors are becoming wary of the power sector. Scenario 1: Reference Scenario 1bis: Current Policy Initiatives Scenario 2: High energy efficiency Scenario 3: Diversified technologies Scenario 4: High RES Scenario 5: Delayed CCS Scenario 6: Low nuclear CO 2 Intensity, ~20 gco 2 /kwh Europe faces a policy dilemma; whether to rely on markets and a strong CO2 regime, or to build national solutions with government-channelled investment * source: EC impact assessment, EU Roadmap COPYRIGHT PÖYRY 16
17 POLICY DILEMMA: MARKET VS. REGULATION The GB Electricity Market Reform is a clear illustration of national, regulation-based decarbonisation policy Decarbonising power markets Cost of decarbonisation Through the wholesale price High carbon and wholesale prices Market finds cheapest solution Through out-of-market payments High subsidies Central decision making EU wide Market-based National Regulation-based Risks Carbon pricing needs to be credible to support investment Central planner generally suffers inefficiencies The Nordics will be highly influenced by the market design decisions of the rest of Europe market-based: high wholesale prices will be passed on to the Nordics Nordic consumers may pay for the decarbonisation of thermal markets! regulation-based: market distortions likely to affect the Nordics Nordic producers may not get rewarded for their role in decarbonisation! COPYRIGHT PÖYRY 17
18 A NEW PÖYRY MULTICLIENT STUDY: NORDICS BALTICS 2050 A Multiclient study to investigate the effect of European decarbonisation policies on Nordics and Baltics power markets Steering Group Topics under investigation (extract) Long term demand evolution: will decarbonisation mean de-industrialisation? Energy surplus, mix, role/value of production assets: how to replace nuclear? Role, value and impact of interconnectors: interaction Nordics, Baltics, Continent, Russia Study Members Continental market design: from market design maker to market design taker Demand side participation: will heat be the new hydro? Power prices: significant changes in price structure? and more......and more COPYRIGHT PÖYRY 18
19 CONCLUSION The Electricity Market Reform (EMR) in the UK is a profound shift of approach strong focus on decarbonisation high degree of central intervention The EMR and associated policy changes disturb the investment signals for interconnectors both upwards and downwards signals At the European level, a patchwork of different National approaches has the risk of increasing the cost of decarbonisation inefficiencies in central planning inefficiencies in the interaction between different market designs COPYRIGHT PÖYRY 19
20 Contact: Michel Martin, COPYRIGHT PÖYRY
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 informationForatom 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 informationPOWER 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 informationVALUING 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 informationElectricity 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 informationThe UK Electricity Market Reform and the Capacity Market
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
More informationRegulatory Briefing. Capital Markets Day. 17 October 2013
Regulatory Briefing Capital Markets Day 17 October 2013 Agenda Andrew Koss Director of Strategy Damien Speight Head Trader Renewables Obligation Contracts for Difference Levy Control Framework Capacity
More informationImpact Assessment (IA) Summary: Intervention and Options. Title: Emissions Performance Standard DECC. Lead department or agency:
Title: Emissions Performance Standard Lead department or agency: DECC Other departments or agencies: Impact Assessment (IA) IA : DECC0064 Date: 12/07/2011 Stage: Consultation Source of intervention: Domestic
More informationElectricity 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 informationProgress on market reform: EMR, the I-SEM and the TEM
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
More informationELECTRICITY 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 informationInvesting in renewable technologies CfD contract terms and strike prices
Investing in renewable technologies CfD contract terms and strike prices December 2013 Crown copyright 2013 You may re-use this information (not including logos) free of charge in any format or medium,
More informationThe 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 information4. Comparison with DECC (2014) Estimated impacts of energy and climate change policies on energy prices and bills
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
More informationANNEX D ELECTRICITY MARKET REFORM: UPDATE ON THE EMISSIONS PERFORMANCE STANDARD
ANNEX D ELECTRICITY MARKET REFORM: UPDATE ON THE EMISSIONS PERFORMANCE STANDARD Contents Excutive Summary... 3 Background... 3 Level and Compliance... 4 Administration - Monitoring and Enforcment arrangements...
More informationElectricity 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 informationPöyry Point of View: Shaping the next future. How will Lancashire shale gas impact the GB energy market?
Pöyry Point of View: Shaping the next future How will Lancashire shale gas impact the GB energy market? Why are people interested in shale gas? Shale gas production in the US is massive, exceeding 2bcm
More informationThis seeks to define Contracts for Difference (CfDs) and their relevance to energy related development in Copeland.
Contracts for Difference and Electricity Market Reform LEAD OFFICER: REPORT AUTHOR: John Groves Denice Gallen Summary and Recommendation: This seeks to define Contracts for Difference (CfDs) and their
More informationPöyry Point of View: Shaping the next future. The value of within-day flexibility in the GB electricity market
Shaping the next future The value of within-day flexibility in the GB electricity market 1 Introduction The integration of renewable generation on the GB electricity system leads to a greater need for
More informationElectricity Market Reform: policy overview
Electricity Market Reform: policy overview November 2012 2 ELECTRICITY MARKET REFORM: POLICY OVERVIEW Presented to Parliament by the Secretary of State for Energy and Climate Change by Command of Her Majesty
More informationImpact Assessment (IA)
Title: Electricity Market Reform ensuring electricity security of supply and promoting investment in low-carbon generation IA No: DECC0104 Lead department or agency: DECC Impact Assessment (IA) Date: 26/11/2012
More informationInvestment 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 informationConcepts 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 informationUTILITY BUSINESS MODELS Future of Utilities discussion 6 October 2015. Andy Kelly
UTILITY BUSINESS MODELS Future of Utilities discussion 6 October 2015 Andy Kelly PÖYRY MANAGEMENT CONSULTING A division of Pöyry a global consulting and engineering company Over 250 energy market experts
More informationNational Grid EMR Electricity Capacity Report
National Grid National Grid EMR Electricity Capacity Report 1 June 2015 Report with results from work undertaken by National Grid for DECC in order to support the development of Capacity Market volume
More informationCAPACITY 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 informationUK renewable energy an update
UK renewable energy an update 30 October 2014 Robert Hull, Managing Director Renewable energy key challenges 1 2 3 Costs to Climate change: Risks to security consumers: decarbonising of supply: short affordability
More informationSummary 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 informationCritical 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 informationEnvironment and energy briefing from Burges Salmon published in the March 2014 issue of The In-House Lawyer:
Environment and energy briefing from Burges Salmon published in the March 2014 issue of The In-House Lawyer: Electricity market reform: an update on contracts for difference Electricity market reform:
More informationTHE COSTS OF DECARBONISING ELECTRICITY GENERATION
THE COSTS OF DECARBONISING ELECTRICITY GENERATION This technical annex to Building a low-carbon economy presents further details on the analysis underlying the estimates of the costs of decarbonising the
More informationContracts for Difference - the new support regime for low carbon generation
Contracts for Difference - the new support regime for low carbon generation James Taylor Raj Bavishi 11 November 2014 UK Incentive Regimes Small scale Feed in Tariffs and the Renewables Obligations have
More informationEnergy, Trade & Commodities Alert
Energy, Trade & Commodities Alert If you have questions or would like additional information on the material covered in this Alert, please contact the author, or the Reed Smith lawyer with whom you regularly
More informationBriefing. Electricity Market Reform
Updated April 2012 Briefing Electricity Market Reform The Government s aspirations for Electricity Market Reform decarbonisation, security and affordability are sound. But the policies proposed in the
More informationElectricity Market Reform: Proposals for Implementation
EMR Programme Team Department of Energy & Climate Change 4 th Floor Area D 3 Whitehall Place London SW1A 2AW 23 rd December 2013 Dear Sirs, Electricity Market Reform: Proposals for Implementation I am
More informationWind 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 informationnpower EMR Explained Session The Energy Event 10 th & 11 th September 2013
npower EMR Explained Session The Energy Event 10 th & 11 th September 2013 Welcome Chris Billing, Head of Indirect Sales, npower Agenda > 13.30 Welcome & introduction Chris Billing EMR Pulse Survey Results
More informationPower Generation. Lilian Macleod Power Supply Manager National Grid
Power Generation Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. This text box and image can
More informationThe role of coal in the UK generation industry. Philip Garner - Director General of the Confederation of UK Coal Producers
The role of coal in the UK generation industry Philip Garner - Director General of the Confederation of UK Coal Producers Recent History In 1983 there were 170 underground mines owned by the National Coal
More informationEnergy 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 informationWhite 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 informationon 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 informationQuantifying 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 informationUK Energy policy. David Newbery Imperial College London & EPRG. IEFE Workshop on Energy Markets Bocconi, Milan 18 th May 2012
UK Energy policy David Newbery Imperial College & EPRG IEFE Workshop on Energy Markets Bocconi, Milan 18 th May 2012 http://www.eprg.group.cam.ac.uk dmgn [at] cam.ac.uk 1 Outline UK energy policy - past
More informationNegative pricing in the GB wholesale electricity market
Negative pricing in the GB wholesale electricity market CLIENT: DECC DATE: 01/07/2015 Version History Version Date Description Prepared by Approved by 3.0 06/06/2015 Revised draft version for client Mark
More informationState Aid Analysis for Electricity Market Reform
State Aid Analysis for Electricity Market Reform Richard Green and Iain Staffell Imperial College Business School 1 Background UK government wanted to sign a 35-year Contract for Differences with EdF for
More informationDisclaimer: All costs contained within this report are indicative and based on latest market information. 16 th March 2015
Disclaimer: All costs contained within this report are indicative and based on latest market information 16 th March 2015 FD SUMMARY The make up of the electricity bill is changing, with non-commodity
More informationNational Grid EMR Analytical Report
Grid National Grid EMR Analytical Report July 2013 Final report with results from work undertaken for DECC In order to support the development of strike prices under Feed in Tariffs with Contracts for
More informationElectricity Market Reform: Amendment to Contracts for Difference (Definition of Eligible Generator) Regulations
Electricity Market Reform: Amendment to Contracts for Difference (Definition of Eligible Generator) Regulations Consultation on a proposed amendment to enable retrofit Carbon Capture and Storage projects
More informationSCOTTISHPOWER CONSULTATION RESPONSE ELECTRICITY MARKET REFORM
SCOTTISHPOWER CONSULTATION RESPONSE ELECTRICITY MARKET REFORM Introduction ScottishPower is a major UK energy company with networks, generation and retail interests. It is part of the Iberdrola group,
More informationUnderstanding the Balancing Challenge. For the Department of Energy and Climate Change
Understanding the Balancing Challenge For the Department of Energy and Climate Change August 2012 Imperial College Project Team: Goran Strbac Marko Aunedi Danny Pudjianto Predrag Djapic NERA Project Team:
More informationEnergy 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 informationina Crisis - Italy's Electricity Market Regulation
Electricity Regulation in the United Kingdom AIIFL Working Paper No. 10 April 2013 Asian Institute of International Financial Law Faculty of Law The University of Hong Kong www.aiifl.com April 2013 the
More informationOpening the CfD support scheme to non-uk renewables projects
Opening the CfD support scheme to non-uk renewables projects European Commission workshop, Brussels, 5 November 2014 Agenda 1. What is the CfD support scheme? 2. What may be the benefits of opening the
More informationFuture Trading Arrangements 3 rd Forum. Giuseppina Squicciarini 18/11/13
Future Trading Arrangements 3 rd Forum Giuseppina Squicciarini 18/11/13 Agenda 1. The FTA process so far 2. Outline of potential workstreams 3. Criteria for prioritisation 4. Scope and prioritisation of
More informationWhat next for UK auctions of renewable Contracts for Difference?
What next for UK auctions of renewable Contracts for Difference? In February we saw the results of the first competitive auction for Contracts for Difference (CfDs), the primary support mechanism for incentivising
More informationBuilding a Low-Carbon Economy The UK's Contribution to Tackling Climate Change. www.theccc.org.uk
Building a Low-Carbon Economy The UK's Contribution to Tackling Climate Change www.theccc.org.uk Structure of the presentation 1. The 2050 target 2. The first three budgets 3. Wider social and economic
More informationThe participation of non-generation activities in the GB Capacity Market. Department for Energy & Climate Change
The participation of non-generation activities in the GB Capacity Market Department for Energy & Climate Change 22 January 2015 Presentation today 1 Environmental & Energy Aid Guidelines and nongeneration
More informationConsultation on the draft Electricity Market Reform Delivery Plan
Consultation on the draft Electricity Market Reform Delivery Plan July 2013 URN:13D/139 Department of Energy and Climate Change 3 Whitehall Place London SW1A 2AW Telephone: 0300 068 4000 Website: www.decc.gov.uk
More informationThe 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 informationImpact Assessment (IA)
Title: Renewables Obligation Transition IA No: DECC0086 Lead department or agency: Department of Energy and Climate Change Other departments or agencies: Summary: Intervention and Options Total Net Present
More informationConsumer Cost Effectiveness of CO 2 Mitigation Policies in Restructured Electricity Markets. Jared Moore and Jay Apt.
Consumer Cost Effectiveness of CO 2 Mitigation Policies in Restructured Electricity Markets Jared Moore and Jay Apt Supporting Data Consumer Cost Effectiveness of CO 2 Mitigation Policies in Restructured
More informationEuropean gas vs coal plant switching
gas [$/mmbtu] gas [p/th] CCGT @52% CCGT @49% CCGT @47% Sum15 Win15 Sum16 Win16 Sum17 80 European gas vs coal plant switching 8 6 52% CCGTs displacing 36% coal in Summers 70 60 50 40 30 20 A Timera Energy
More informationPlanning our electric future: a White Paper for secure, affordable and low carbon electricity
Planning our electric future: a White Paper for secure, affordable and low carbon electricity July 2011 Planning our electric future: a White Paper for secure, affordable and low carbon electricity Presented
More informationSubsidising Biomass Electricity - Contracts for Difference and what they mean for dedicated and converted biomass power stations
January 2014 Subsidising Biomass Electricity - Contracts for Difference and what they mean for dedicated and converted biomass power stations New Government support for renewable electricity, and hence
More informationWORLD ENERGY INVESTMENT OUTLOOK 2014 FACTSHEET OVERVIEW
OVERVIEW More than $1.6 trillion was invested in 2013 in energy supply, a figure that has more than doubled in real terms since 2000, and a further $130 billion to improve energy efficiency. Renewables
More informationDecarbonising electricity generation. Policy paper
Decarbonising electricity generation Samuela Bassi, Chris Duffy and James Rydge Policy paper April 2013 Centre for Climate Change Economics and Policy Grantham Research Institute on Climate Change and
More informationEnergy Megatrends 2020
Energy Megatrends 2020 Esa Vakkilainen 1 NOTE The data included in the following is mainly based on International Energy Agency's (IEA) World Energy Outlook 2007 IEA is considered the most reliable source
More informationJune 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 informationAssessing Scotland s security of supply in the GB Electricity market OCTOBER 2014
Assessing Scotland s security of supply in the GB Electricity market OCTOBER 2014 Contents 1 Key messages 1 2 Introduction 4 2.1 Aims of this study 4 2.2 Scottish Government policy objectives 4 2.3 Context
More informationCFDS: POTENTIAL OPPORTUNITIES FOR HYDRO PROJECTS. John Puddephatt October 29th 2014
CFDS: POTENTIAL OPPORTUNITIES FOR HYDRO PROJECTS John Puddephatt October 29th 2014 Statkraft at a glance Installed capacity * 17 607 MW Power production (2013) * 55.9 TWh 97% renewable energy 3 600 employees
More informationElectricity Capacity Assessment
Promoting choice and value for all gas and electricity customers Electricity Capacity Assessment Ofgem report to Government Reference: 126/12 Publication date: 5 October 2012 Contact Karen Mayor, Socrates
More informationRE-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 informationEuropean 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 informationOverview of UK Carbon Pricing Policies
Partnership for Market Readiness PA11 Overview of UK Carbon Pricing Policies Paul van Heyningen, Department of Energy & Climate Change 10 March 2015 UK approach to emissions reduction Set legally binding
More informationAnnex B: Strike price methodology July 2013
July 2013 URN 13D/189 Contents Introduction... 3 Overview of methodology for deriving a CfD strike price... 3 Strike Prices during the cross-over period with the RO (2014/15 2016/17)... 4 Comparison of
More informationProgress'with'the'UK'Electricity' Market'Reform'(EMR) :
Progress'with'the'UK'Electricity' Market'Reform'(EMR) : Prof.&Michael&Pollitt& Cambridge*Judge*Business*School* & CEEP& Beijing&Institute&of&Technology& 12&May&2015& Outline: Introduction&and&background&
More informationPower 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 informationSCOPING 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 informationEnergy Policy & Regulation Briefing Note
Creating a sporting habit for life UK Energy Policy and Regulation and what it means for the sports and leisure sector Introduction We have got used to the fact that energy costs will continue to increase.
More informationEnergy prices and bills - impacts of meeting carbon budgets. Committee on Climate Change December 2014
Energy prices and bills - impacts of meeting carbon budgets Committee on Climate Change December 2014 Energy prices and bills impacts of meeting carbon budgets Committee on Climate Change December 2014
More informationEligibility for an exemption for the costs of Contracts for Difference for Energy Intensive Industries
Eligibility for an exemption for the costs of Contracts for Difference for Energy Intensive Industries Summary of BIS consultation July 2013 RWE npower 7/25/2013 PAGE 1 BACKGROUND RWE npower 7/25/2013
More informationStudy 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 information4 DAY Course Outline. Power Purchase Agreements. for Emerging Countries
4 DAY Course Outline Power Purchase Agreements for Emerging Countries Overview This intensive and highly interactive four day hands-on course will provide a comprehensive analysis of issues associated
More informationEURELECTRIC 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 informationCarbon pricing and the competitiveness of nuclear power
Carbon pricing and the competitiveness of nuclear power by J.H. Keppler and C. Marcantonini* recent NEA study entitled Carbon Pricing, Power A Markets and the Competitiveness of Energy assesses the competitiveness
More informationLevelized Cost and Levelized Avoided Cost of New Generation Resources in the Annual Energy Outlook 2015
June 2015 Levelized Cost and Levelized Avoided Cost of New Generation Resources in the Annual Energy Outlook 2015 This paper presents average values of levelized costs for generating technologies that
More informationAnnex A Feed-in Tariff with Contracts for Difference: Operational Framework
Annex A Feed-in Tariff with Contracts for Difference: Operational Framework November 2012 Contents Executive Summary... 5 Document Overview... 9 1. Introduction... 10 The Energy Bill: The Legal Framework
More informationE&D Capacity Assessment and Other Issues
17 October 2013 Update on EMR Chris Andrew and Mark Walker Allen & Overy 2013 The UK Energy Policy Trilemma Security of Supply In the next decade a fifth of existing UK generating capacity will come off-line.
More informationInfrastructure in a low-carbon energy system to 2030: Transmission and distribution. Final report. for. The Committee on Climate Change
Project Name Document Name Infrastructure in a low-carbon energy system to 2030: Transmission and distribution Final report for The Committee on Climate Change Imperial College and Element Energy 22 nd
More informationANNEX B FEED-IN TARIFF WITH CONTRACTS FOR DIFFERENCE: DRAFT OPERATIONAL FRAMEWORK
ANNEX B FEED-IN TARIFF WITH CONTRACTS FOR DIFFERENCE: DRAFT OPERATIONAL FRAMEWORK 1 CONTENTS Introduction...3 Section A Price Setting...8 Section B CfD Allocation... 18 Section C CfD Terms Pre Commissioning...
More informationICIS Power Index Q1 2015 Global gas oversupply pushes down prices
Highlights l UK wholesale electricity market prices hit their lowest levels since the IPI has been calculated, because of global gas oversupply. l UK markets are now much more influenced by global gas
More informationOFF-TAKE UNDER THE CFD - BUSINESS AS NORMAL? Electricity Market Reform: Edging Towards Delivery 24 September 2014
OFF-TAKE UNDER THE CFD - BUSINESS AS NORMAL? Electricity Market Reform: Edging Towards Delivery 24 September 2014 Statkraft providing Pure Energy Statkraft is Europe s largest generator of renewable energy
More informationDECENTRALISED RELIABILITY OPTIONS Securing European electricity markets Florence Forum, 5 June 2014 Stephen Woodhouse, Director
DECENTRALISED RELIABILITY OPTIONS Securing European electricity markets Florence Forum, 5 June 2014 Stephen Woodhouse, Director ENERGY MARKETS ARE BEING CHALLENGED Increasing levels of weather variable
More informationH1 2014 LEVELISED COST OF ELECTRICITY - PV
H1 2014 LEVELISED COST OF ELECTRICITY - PV JENNY CHASE 4 FEBRUARY 2014 LCOE OF PV, FEBRUARY 2014 1 PV EXPERIENCE CURVE, 1976-2013 (2013 $/W) 100 Cost per W (2013 $) 1976 10 1985 2003 2006 1 2012 2013 Q3
More informationProjected Costs of Generating Electricity
Executive Summary Projected Costs of Generating Electricity 2015 Edition Projected Costs of Generating Electricity 2015 Edition INTERNATIONAL ENERGY AGENCY NUCLEAR ENERGY AGENCY ORGANISATION FOR ECONOMIC
More informationRole of Northern European forestry in the energy production chain, case Fortum. Jari Nylén Purchasing Manager Fortum Power and Heat Oy, HEAT
Role of Northern European forestry in the energy production chain, case Fortum Jari Nylén Purchasing Manager Fortum Power and Heat Oy, HEAT 8.11.2007 1 Fortum - A leading Nordic energy company The Nordic
More informationGDF SUEZ. Introduction. Jean-François Cirelli
GDF SUEZ Introduction Jean-François Cirelli Content 1. Focus on gas market dynamics 2. Focus on electricity market dynamics 3. Focus on P&L resilience and sensitivities 4. Focus on synergies and performance
More informationGovernment response to the consultation on proposals for the levels of banded support under the Renewables Obligation for the period 2013-17 and the
Government response to the consultation on proposals for the levels of banded support under the Renewables Obligation for the period 2013-17 and the Renewables Obligation Order 2012 July 2012 Government
More informationFiscal Year 2011 Resource Plan
Salt River Project Fiscal Year 2011 Resource Plan Page 1 Last summer SRP hosted three resource planning workshops for a diverse group of stakeholders and customers to explain the planning process, discuss
More information