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2. ELECTRICITY GENERATION OR:
HOW TO MARRY CONTRADICTIONS WITH
INEFFICIENCIES ?
Vlerick Finance Alumni
7th of March 2012 C. De Groof
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3. 1. THE CONTRADICTIONS
• electricity generators are supposed to be managers of
contradictions;
• contradiction n° 1: the logic behind decisions, viz.
environment versus competition (= price) versus
security of supply … BUT this is unfortunately a FACT
• contradiction n° 2: (cfr. financial crisis): the
institutional aspect, viz.:
EU versus member state versus, cfr. Belgium, regions
at different speeds
… BUT this is unfortunately a FACT
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4. 2. THE INEFFICIENCIES
• electricity generators are supposed to be managers of
inefficiencies;
• inefficiency n° 1: combined EU objective of less CO2
and more renewable energy sources (RES)
… BUT this is unfortunately a FACT
• inefficiency n° 2: unjustified burden sharing and
failing consistent translation in national (or: regional)
legislation
… BUT this is unfortunately a FACT
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6. 3. HOW TO MARRY BOTH?
• by interference in supply AND demand;
• with respect to supply:
combination of intermittent RES with adapted use of fossil fired
plants;
ceteris paribus: will inevitably lead to higher prices;
“back to square 1”? i.e. back to regulation but more expensive than
previous one ?
no place for new nuclear; instead proceed during transition to life
time extension;
• with respect to demand:
the myth of the smart meter / grid;
no free lunch: expensive ticket!
only a pragmatic and well reflected introduction is defendable;
competition with “smart devices”.
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