SlideShare ist ein Scribd-Unternehmen logo
1 von 34
Downloaden Sie, um offline zu lesen
Clean Energy and the Role for
Regulators
Garrett Blaney
Commissioner
Commission for Energy Regulation
Clean Energy Regulators Initiative Webinar Programme
5 December 2013
What is the role of a regulator?
Appeal
and/or
Legal
challenge

Industry/
Capital
Markets

Legislation

Economic
Energy
Regulator

Consumers

Government
Policy
Typical Regulatory Objectives
•
•
•
•
•

the lights stay on
the gas continues to flow
prices for energy are fair and reasonable
Complying with environment policy and laws
Best practice regulatory processes
The Energy Trilemma

Price

Security

Environment
The impact of clean energy
• The wholesale market
• The Transmission System
• The Distribution System
• Retail
European Renewable Electricity Targets for 2020
The Cost of Renewables
600

500

€/MWh

400

300

200

100

0

Hydro

Wind

Biomass

Biogas and waste

Photo-voltaic

Geo-thermal
The Wholesale Market
European Context
Creating the Single Market
• Interconnectors historically underused, markets segmented
• Uneconomic cross border flows undermine EU energy policy goals
of sustainability, competitiveness and security of supply
• EU has addressed this by forging an internal market in electricity to
form part of single European market in goods and services
European Context
Creating the Single Market (2)
• 1st and 2nd electricity liberalisation packages (1996 and 2003):
– Some success but price correlation between regional markets remained poor
and cross border capacity was inadequate or inefficiently used

• 3rd electricity liberalisation package (2009):
– Establishment of ACER and ENSTO-E
– harmonisation of market rules - market coupling
– increase in physical cross border investment

• Target Model – end 2014
– SEM derogation to end 2016


Market Integration 2000
Implicit auctions
Only explicit auctions
Other methods

Nord Pool


Market Integration 2006
Implicit auctions
Only explicit auctions
Other methods


Market Integration 2010
Only explicit auctions
Other methods
Implicit auctions
APX

EMCC
CWE


Market Integration 2014?
Implicit auctions
Only explicit auctions
Other methods

Euro Pool


Market Coupling 2016
Implicit auctions
Only explicit auctions
Other methods

Euro Pool
Different Market Designs
•
•

Gross Pool markets are centrally dispatched with TSOs deciding centrally on
generator running order
Bilateral markets like those in Britain and continental Europe are self dispatch,
where TSOs only balance the system close to real time
SEM

British Market
European Target Model
Long-term
allocation

Day-ahead implicit
auctions

Intraday
continuous trading

Zone delineation

Capacity
calculation

How it works…
Common cross-border arrangements
The interaction between the two should encourage
harmonisation

Diverse national arrangements

Cross-border
balancing
Forward Capacity Allocation
• Rules for calculating and allocating cross border capacity
– Auction Rules
– Allocation Platforms

• Cross Border Risk Hedging and Firmness
– Physical Transmission Rights (PTRs) with UIOSI
– Financial Transmission Rights (FTRs)
– Other hedging tools if sufficient liquidity exists
Day Ahead Market Coupling
•
•
•
•

Centrepiece of the Target Model
Links separate day-ahead spot markets using cross-border (XB) transmission
capacity
It is an “implicit auction” – meaning cross border capacity allocation is integrated
with the energy market (‘explicit auctions’ sell capacity separately)
Common prices between spot markets when there is sufficient capacity
Market Coupling (2)
If there are XB capacity constraints, these will limit the flows between the coupled
markets and a price difference will persist
Hourly Capacity Utilisation - Explicit

CAPACITY UTILISATION

100%

Wrong direction

A to B

0%

B to A
Wrong direction

100%
A >> B

A=B

A << B

PRICE DIFFERENCE
21
Hourly Capacity Utilisation - Coupled
Optimal utilisation (same price unless congested)

CAPACITY UTILISATION

100%

A to B

0%

B to A

100%
A >> B

A=B

A << B

PRICE DIFFERENCE
22
Future Issues – Capacity Mechanism
•
•

Target Model is being finalised and is due to be implemented by 2014
But, in parallel several Member States have or are considering CRMs
– Generation Adequacy– e.g. German nuclear closures and LCPD impacts
– Missing money problem
– Impact of RES on energy only markets
Does Clean Energy need Support?
•
•
•
•

Limits of Energy Only market (marginal cost)
High Capex, Low Opex
Reducing cost of capital
Regulatory/Policy Certainty
Elements of Market Dysfunction
• Cheap Coal from US
• Dropping gas demand
• Good Utility/Bad Utility – security of supply?
• Nuclear Support
• Cost competitiveness for large industry
The Transmission System
Grid Roll-out
• Much wind in west, demand in east
• Rolling out the grid is critical to
meeting 2020 renewable target
• EirGrid has major Grid 25
plan
• Over €1 billion in grid
investment allowed by CER
from 2011 to ‘15
• Planning and land access are
a major challenge
DS3 Project
Delivering a Secure,
Sustainable, Electricity System
(“DS3”) – integrating wind
while maintaining secure
operation of system
•
75% instantaneous wind
penetration;
•
Greater flexibility from
conventional plant
(existing & new);
•
RoCoF settings
•
Keep curtailment to
“bankable” levels i.e. 5%
•
Better wind forecasting,
real time data and
controllability;
•
Demand Side
Management;
•
Cost & Benefit to
consumers
System Non-Synchronous
Penetration (SNSP)
50% SNSP

75% SNSP
The Distribution System
Changes to DSO
• New technologies such as embedded (e.g.
micro) generation and electric vehicles
• Smart grids
• Smart metering
• Demand Side participation
• Ancillary service provision and flexibility
DSOs Issues for Regulators
•
•
•
•
•
•

Distribution tariffs
Promoting innovation
The scope and extent of DSOs functions
Price controls and incentives
Data handling and protection
Future unbundling/separation requirements
The Retail Market
•
•
•
•
•
•

Green Tariffs
Changing Consumption Behaviour
Smart Meters – Static or Dynamic ToU Tariffs?
Microgeneration Issues
Consumer Confusion & impact on competition
EV integration
Conclusions
• Regulatory Change Needed to Delivery Green
Targets:
– Wholesale market evolution
– Public Friendly Transmission Investment
– New Role for DSO
– New Engagement with Consumers

Weitere ähnliche Inhalte

Was ist angesagt?

tew (09.10.18) - Implementation of remit in the energy community
tew (09.10.18) - Implementation of remit in the energy communitytew (09.10.18) - Implementation of remit in the energy community
tew (09.10.18) - Implementation of remit in the energy community
Денис Киркач
 
The european energy policy the role of ENTSO-E and of TSOs
The european energy policy the role of ENTSO-E and of TSOsThe european energy policy the role of ENTSO-E and of TSOs
The european energy policy the role of ENTSO-E and of TSOs
ENTSO-E
 

Was ist angesagt? (20)

tew (08.10.18) - Transparency and use of published data, price formation and ...
tew (08.10.18) - Transparency and use of published data, price formation and ...tew (08.10.18) - Transparency and use of published data, price formation and ...
tew (08.10.18) - Transparency and use of published data, price formation and ...
 
tew (10.10.18) - Towards new distribution tariffs in ukraine
tew (10.10.18) - Towards new distribution tariffs in ukrainetew (10.10.18) - Towards new distribution tariffs in ukraine
tew (10.10.18) - Towards new distribution tariffs in ukraine
 
Toward a Target Model
Toward a Target ModelToward a Target Model
Toward a Target Model
 
Challenges for the European Gas Market
Challenges for the European Gas MarketChallenges for the European Gas Market
Challenges for the European Gas Market
 
tew (10.10.18) - Policy guidelines for distribution network tariffs
tew (10.10.18) - Policy guidelines for distribution network tariffstew (10.10.18) - Policy guidelines for distribution network tariffs
tew (10.10.18) - Policy guidelines for distribution network tariffs
 
Training Module on Electricity Market Regulation - SESSION 1 Regulation gen...
Training Module on Electricity Market Regulation - SESSION 1  Regulation  gen...Training Module on Electricity Market Regulation - SESSION 1  Regulation  gen...
Training Module on Electricity Market Regulation - SESSION 1 Regulation gen...
 
tew (09.10.18) - Implementation of remit in the energy community
tew (09.10.18) - Implementation of remit in the energy communitytew (09.10.18) - Implementation of remit in the energy community
tew (09.10.18) - Implementation of remit in the energy community
 
Security of Gas Supply in the Energy Community
Security of Gas Supply in the Energy CommunitySecurity of Gas Supply in the Energy Community
Security of Gas Supply in the Energy Community
 
The european energy policy the role of ENTSO-E and of TSOs
The european energy policy the role of ENTSO-E and of TSOsThe european energy policy the role of ENTSO-E and of TSOs
The european energy policy the role of ENTSO-E and of TSOs
 
tew (09.10.18) - Marsenic
tew (09.10.18) - Marsenictew (09.10.18) - Marsenic
tew (09.10.18) - Marsenic
 
Anna Colucci Fingrid Current 5.4.2017
Anna Colucci Fingrid Current 5.4.2017 Anna Colucci Fingrid Current 5.4.2017
Anna Colucci Fingrid Current 5.4.2017
 
Electricity Markets and Principle Market Design Models
Electricity Markets and Principle Market Design ModelsElectricity Markets and Principle Market Design Models
Electricity Markets and Principle Market Design Models
 
Electricity market needs fixing – what can we do?
Electricity market needs fixing – what can we do?Electricity market needs fixing – what can we do?
Electricity market needs fixing – what can we do?
 
tew (12.10.18) - Electricity market reform in turkey
tew (12.10.18) - Electricity market reform in turkeytew (12.10.18) - Electricity market reform in turkey
tew (12.10.18) - Electricity market reform in turkey
 
When electricity market design meets innovation from ENTSO-E
When electricity market design meets innovation from ENTSO-EWhen electricity market design meets innovation from ENTSO-E
When electricity market design meets innovation from ENTSO-E
 
Electricity Market Design at a crossroad
Electricity Market Design at a crossroadElectricity Market Design at a crossroad
Electricity Market Design at a crossroad
 
Radical Innovation in the Electricity Sector - Saskia LAVRIJSSEN- Tilberg Uni...
Radical Innovation in the Electricity Sector - Saskia LAVRIJSSEN- Tilberg Uni...Radical Innovation in the Electricity Sector - Saskia LAVRIJSSEN- Tilberg Uni...
Radical Innovation in the Electricity Sector - Saskia LAVRIJSSEN- Tilberg Uni...
 
The British retail energy market: politicians and re-regulation?
The British retail energy market: politicians and re-regulation?The British retail energy market: politicians and re-regulation?
The British retail energy market: politicians and re-regulation?
 
Radical Innovation in the Electricity Sector – Netherlands - June 2017 OECD d...
Radical Innovation in the Electricity Sector – Netherlands - June 2017 OECD d...Radical Innovation in the Electricity Sector – Netherlands - June 2017 OECD d...
Radical Innovation in the Electricity Sector – Netherlands - June 2017 OECD d...
 
tew (09.10.18) - Compliance with remit, a market participant's prespective
tew (09.10.18) - Compliance with remit, a market participant's prespectivetew (09.10.18) - Compliance with remit, a market participant's prespective
tew (09.10.18) - Compliance with remit, a market participant's prespective
 

Ähnlich wie Clean energy and the role for regulators

Revealing the value of flexibility
Revealing the value of flexibilityRevealing the value of flexibility
Revealing the value of flexibility
Stephen Woodhouse
 
Regulating Electricity Market
Regulating Electricity MarketRegulating Electricity Market
Regulating Electricity Market
Justinas Pagirys
 
Challenges in adoption of international model of consumer protection in india...
Challenges in adoption of international model of consumer protection in india...Challenges in adoption of international model of consumer protection in india...
Challenges in adoption of international model of consumer protection in india...
Balasubramanya Chandrashekariah
 

Ähnlich wie Clean energy and the role for regulators (20)

Clean energy and the role for regulators
Clean energy and the role for regulatorsClean energy and the role for regulators
Clean energy and the role for regulators
 
Revealing the value of flexibility in electricity markets - September 2013
Revealing the value of flexibility in electricity markets - September 2013Revealing the value of flexibility in electricity markets - September 2013
Revealing the value of flexibility in electricity markets - September 2013
 
Revealing the value of flexibility
Revealing the value of flexibilityRevealing the value of flexibility
Revealing the value of flexibility
 
electricity-markets-basil-sharp.ppt
electricity-markets-basil-sharp.pptelectricity-markets-basil-sharp.ppt
electricity-markets-basil-sharp.ppt
 
Clean energy transition – challenges and opportunities
Clean energy transition – challenges and opportunitiesClean energy transition – challenges and opportunities
Clean energy transition – challenges and opportunities
 
Business Ecosystem View on Demand Response
Business Ecosystem View on Demand ResponseBusiness Ecosystem View on Demand Response
Business Ecosystem View on Demand Response
 
Wf storage 2018 presentation_ores v1_may 18th 2018
Wf storage 2018 presentation_ores v1_may 18th 2018Wf storage 2018 presentation_ores v1_may 18th 2018
Wf storage 2018 presentation_ores v1_may 18th 2018
 
Clean energy-package-compromise-infographic
Clean energy-package-compromise-infographicClean energy-package-compromise-infographic
Clean energy-package-compromise-infographic
 
System Integration of Renewables
System Integration of RenewablesSystem Integration of Renewables
System Integration of Renewables
 
Regulating Electricity Market
Regulating Electricity MarketRegulating Electricity Market
Regulating Electricity Market
 
Future Design of Electricity Markets
 Future Design of Electricity Markets Future Design of Electricity Markets
Future Design of Electricity Markets
 
Clean Restructuring: design elements for low carbon wholesale markets
Clean Restructuring: design elements for low carbon wholesale marketsClean Restructuring: design elements for low carbon wholesale markets
Clean Restructuring: design elements for low carbon wholesale markets
 
Clean Restructuring: design elements for low carbon wholesale markets
Clean Restructuring: design elements for low carbon wholesale marketsClean Restructuring: design elements for low carbon wholesale markets
Clean Restructuring: design elements for low carbon wholesale markets
 
Completing the Internal Energy Market
Completing the Internal Energy Market Completing the Internal Energy Market
Completing the Internal Energy Market
 
Scaling up renewable energies
Scaling up renewable energiesScaling up renewable energies
Scaling up renewable energies
 
Keynote Speaker: D. Frank Wolak, Catedrático de Economía de Stanford University
Keynote Speaker: D. Frank Wolak, Catedrático de Economía de Stanford UniversityKeynote Speaker: D. Frank Wolak, Catedrático de Economía de Stanford University
Keynote Speaker: D. Frank Wolak, Catedrático de Economía de Stanford University
 
Radical Innovation in the Electricity Sector – Frank WOLAK - Stanford Univers...
Radical Innovation in the Electricity Sector – Frank WOLAK - Stanford Univers...Radical Innovation in the Electricity Sector – Frank WOLAK - Stanford Univers...
Radical Innovation in the Electricity Sector – Frank WOLAK - Stanford Univers...
 
Balancing Mechanism Units: the Main Income Stream for Battery Storage
Balancing Mechanism Units: the Main Income Stream for Battery StorageBalancing Mechanism Units: the Main Income Stream for Battery Storage
Balancing Mechanism Units: the Main Income Stream for Battery Storage
 
Challenges in adoption of international model of consumer protection in india...
Challenges in adoption of international model of consumer protection in india...Challenges in adoption of international model of consumer protection in india...
Challenges in adoption of international model of consumer protection in india...
 
Webinar : What's the impact of regulation on energy communities? Cases from B...
Webinar : What's the impact of regulation on energy communities? Cases from B...Webinar : What's the impact of regulation on energy communities? Cases from B...
Webinar : What's the impact of regulation on energy communities? Cases from B...
 

Mehr von Leonardo ENERGY

Mehr von Leonardo ENERGY (20)

A new generation of instruments and tools to monitor buildings performance
A new generation of instruments and tools to monitor buildings performanceA new generation of instruments and tools to monitor buildings performance
A new generation of instruments and tools to monitor buildings performance
 
Addressing the Energy Efficiency First Principle in a National Energy and Cli...
Addressing the Energy Efficiency First Principle in a National Energy and Cli...Addressing the Energy Efficiency First Principle in a National Energy and Cli...
Addressing the Energy Efficiency First Principle in a National Energy and Cli...
 
Auctions for energy efficiency and the experience of renewables
 Auctions for energy efficiency and the experience of renewables Auctions for energy efficiency and the experience of renewables
Auctions for energy efficiency and the experience of renewables
 
Energy efficiency first – retrofitting the building stock final
Energy efficiency first – retrofitting the building stock finalEnergy efficiency first – retrofitting the building stock final
Energy efficiency first – retrofitting the building stock final
 
How auction design affects the financing of renewable energy projects
How auction design affects the financing of renewable energy projects How auction design affects the financing of renewable energy projects
How auction design affects the financing of renewable energy projects
 
Energy Efficiency Funds in Europe (updated)
Energy Efficiency Funds in Europe (updated)Energy Efficiency Funds in Europe (updated)
Energy Efficiency Funds in Europe (updated)
 
Energy Efficiency Funds in Europe
Energy Efficiency Funds in EuropeEnergy Efficiency Funds in Europe
Energy Efficiency Funds in Europe
 
Five actions fit for 55: streamlining energy savings calculations
Five actions fit for 55: streamlining energy savings calculationsFive actions fit for 55: streamlining energy savings calculations
Five actions fit for 55: streamlining energy savings calculations
 
Recent energy efficiency trends in the EU
Recent energy efficiency trends in the EURecent energy efficiency trends in the EU
Recent energy efficiency trends in the EU
 
Energy and mobility poverty: Will the Social Climate Fund be enough to delive...
Energy and mobility poverty: Will the Social Climate Fund be enough to delive...Energy and mobility poverty: Will the Social Climate Fund be enough to delive...
Energy and mobility poverty: Will the Social Climate Fund be enough to delive...
 
Does the EU Emission Trading Scheme ETS Promote Energy Efficiency?
Does the EU Emission Trading Scheme ETS Promote Energy Efficiency?Does the EU Emission Trading Scheme ETS Promote Energy Efficiency?
Does the EU Emission Trading Scheme ETS Promote Energy Efficiency?
 
Energy efficiency, structural change and energy savings in the manufacturing ...
Energy efficiency, structural change and energy savings in the manufacturing ...Energy efficiency, structural change and energy savings in the manufacturing ...
Energy efficiency, structural change and energy savings in the manufacturing ...
 
Energy Sufficiency Indicators and Policies (Lea Gynther, Motiva)
Energy Sufficiency Indicators and Policies (Lea Gynther, Motiva)Energy Sufficiency Indicators and Policies (Lea Gynther, Motiva)
Energy Sufficiency Indicators and Policies (Lea Gynther, Motiva)
 
The Super-efficient Equipment and Appliance Deployment (SEAD) Initiative Prod...
The Super-efficient Equipment and Appliance Deployment (SEAD) Initiative Prod...The Super-efficient Equipment and Appliance Deployment (SEAD) Initiative Prod...
The Super-efficient Equipment and Appliance Deployment (SEAD) Initiative Prod...
 
Modelling and optimisation of electric motors with hairpin windings
Modelling and optimisation of electric motors with hairpin windingsModelling and optimisation of electric motors with hairpin windings
Modelling and optimisation of electric motors with hairpin windings
 
Casting zero porosity rotors
Casting zero porosity rotorsCasting zero porosity rotors
Casting zero porosity rotors
 
Direct coil cooling through hollow wire
Direct coil cooling through hollow wireDirect coil cooling through hollow wire
Direct coil cooling through hollow wire
 
Motor renovation - Potential savings and views from various EU Member States
Motor renovation - Potential savings and views from various EU Member StatesMotor renovation - Potential savings and views from various EU Member States
Motor renovation - Potential savings and views from various EU Member States
 
The need for an updated European Motor Study - key findings from the 2021 US...
The need for  an updated European Motor Study - key findings from the 2021 US...The need for  an updated European Motor Study - key findings from the 2021 US...
The need for an updated European Motor Study - key findings from the 2021 US...
 
Efficient motor systems for a Net Zero world, by Conrad U. Brunner - Impact E...
Efficient motor systems for a Net Zero world, by Conrad U. Brunner - Impact E...Efficient motor systems for a Net Zero world, by Conrad U. Brunner - Impact E...
Efficient motor systems for a Net Zero world, by Conrad U. Brunner - Impact E...
 

Kürzlich hochgeladen

EIS-Webinar-Prompt-Knowledge-Eng-2024-04-08.pptx
EIS-Webinar-Prompt-Knowledge-Eng-2024-04-08.pptxEIS-Webinar-Prompt-Knowledge-Eng-2024-04-08.pptx
EIS-Webinar-Prompt-Knowledge-Eng-2024-04-08.pptx
Earley Information Science
 
CNv6 Instructor Chapter 6 Quality of Service
CNv6 Instructor Chapter 6 Quality of ServiceCNv6 Instructor Chapter 6 Quality of Service
CNv6 Instructor Chapter 6 Quality of Service
giselly40
 
IAC 2024 - IA Fast Track to Search Focused AI Solutions
IAC 2024 - IA Fast Track to Search Focused AI SolutionsIAC 2024 - IA Fast Track to Search Focused AI Solutions
IAC 2024 - IA Fast Track to Search Focused AI Solutions
Enterprise Knowledge
 

Kürzlich hochgeladen (20)

Workshop - Best of Both Worlds_ Combine KG and Vector search for enhanced R...
Workshop - Best of Both Worlds_ Combine  KG and Vector search for  enhanced R...Workshop - Best of Both Worlds_ Combine  KG and Vector search for  enhanced R...
Workshop - Best of Both Worlds_ Combine KG and Vector search for enhanced R...
 
08448380779 Call Girls In Friends Colony Women Seeking Men
08448380779 Call Girls In Friends Colony Women Seeking Men08448380779 Call Girls In Friends Colony Women Seeking Men
08448380779 Call Girls In Friends Colony Women Seeking Men
 
EIS-Webinar-Prompt-Knowledge-Eng-2024-04-08.pptx
EIS-Webinar-Prompt-Knowledge-Eng-2024-04-08.pptxEIS-Webinar-Prompt-Knowledge-Eng-2024-04-08.pptx
EIS-Webinar-Prompt-Knowledge-Eng-2024-04-08.pptx
 
04-2024-HHUG-Sales-and-Marketing-Alignment.pptx
04-2024-HHUG-Sales-and-Marketing-Alignment.pptx04-2024-HHUG-Sales-and-Marketing-Alignment.pptx
04-2024-HHUG-Sales-and-Marketing-Alignment.pptx
 
CNv6 Instructor Chapter 6 Quality of Service
CNv6 Instructor Chapter 6 Quality of ServiceCNv6 Instructor Chapter 6 Quality of Service
CNv6 Instructor Chapter 6 Quality of Service
 
ProductAnonymous-April2024-WinProductDiscovery-MelissaKlemke
ProductAnonymous-April2024-WinProductDiscovery-MelissaKlemkeProductAnonymous-April2024-WinProductDiscovery-MelissaKlemke
ProductAnonymous-April2024-WinProductDiscovery-MelissaKlemke
 
08448380779 Call Girls In Civil Lines Women Seeking Men
08448380779 Call Girls In Civil Lines Women Seeking Men08448380779 Call Girls In Civil Lines Women Seeking Men
08448380779 Call Girls In Civil Lines Women Seeking Men
 
IAC 2024 - IA Fast Track to Search Focused AI Solutions
IAC 2024 - IA Fast Track to Search Focused AI SolutionsIAC 2024 - IA Fast Track to Search Focused AI Solutions
IAC 2024 - IA Fast Track to Search Focused AI Solutions
 
08448380779 Call Girls In Greater Kailash - I Women Seeking Men
08448380779 Call Girls In Greater Kailash - I Women Seeking Men08448380779 Call Girls In Greater Kailash - I Women Seeking Men
08448380779 Call Girls In Greater Kailash - I Women Seeking Men
 
Finology Group – Insurtech Innovation Award 2024
Finology Group – Insurtech Innovation Award 2024Finology Group – Insurtech Innovation Award 2024
Finology Group – Insurtech Innovation Award 2024
 
Data Cloud, More than a CDP by Matt Robison
Data Cloud, More than a CDP by Matt RobisonData Cloud, More than a CDP by Matt Robison
Data Cloud, More than a CDP by Matt Robison
 
TrustArc Webinar - Stay Ahead of US State Data Privacy Law Developments
TrustArc Webinar - Stay Ahead of US State Data Privacy Law DevelopmentsTrustArc Webinar - Stay Ahead of US State Data Privacy Law Developments
TrustArc Webinar - Stay Ahead of US State Data Privacy Law Developments
 
Boost PC performance: How more available memory can improve productivity
Boost PC performance: How more available memory can improve productivityBoost PC performance: How more available memory can improve productivity
Boost PC performance: How more available memory can improve productivity
 
Presentation on how to chat with PDF using ChatGPT code interpreter
Presentation on how to chat with PDF using ChatGPT code interpreterPresentation on how to chat with PDF using ChatGPT code interpreter
Presentation on how to chat with PDF using ChatGPT code interpreter
 
Boost Fertility New Invention Ups Success Rates.pdf
Boost Fertility New Invention Ups Success Rates.pdfBoost Fertility New Invention Ups Success Rates.pdf
Boost Fertility New Invention Ups Success Rates.pdf
 
[2024]Digital Global Overview Report 2024 Meltwater.pdf
[2024]Digital Global Overview Report 2024 Meltwater.pdf[2024]Digital Global Overview Report 2024 Meltwater.pdf
[2024]Digital Global Overview Report 2024 Meltwater.pdf
 
Partners Life - Insurer Innovation Award 2024
Partners Life - Insurer Innovation Award 2024Partners Life - Insurer Innovation Award 2024
Partners Life - Insurer Innovation Award 2024
 
Strategize a Smooth Tenant-to-tenant Migration and Copilot Takeoff
Strategize a Smooth Tenant-to-tenant Migration and Copilot TakeoffStrategize a Smooth Tenant-to-tenant Migration and Copilot Takeoff
Strategize a Smooth Tenant-to-tenant Migration and Copilot Takeoff
 
How to Troubleshoot Apps for the Modern Connected Worker
How to Troubleshoot Apps for the Modern Connected WorkerHow to Troubleshoot Apps for the Modern Connected Worker
How to Troubleshoot Apps for the Modern Connected Worker
 
Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024
Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024
Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024
 

Clean energy and the role for regulators

  • 1. Clean Energy and the Role for Regulators Garrett Blaney Commissioner Commission for Energy Regulation Clean Energy Regulators Initiative Webinar Programme 5 December 2013
  • 2. What is the role of a regulator? Appeal and/or Legal challenge Industry/ Capital Markets Legislation Economic Energy Regulator Consumers Government Policy
  • 3. Typical Regulatory Objectives • • • • • the lights stay on the gas continues to flow prices for energy are fair and reasonable Complying with environment policy and laws Best practice regulatory processes
  • 5. The impact of clean energy • The wholesale market • The Transmission System • The Distribution System • Retail
  • 7. The Cost of Renewables 600 500 €/MWh 400 300 200 100 0 Hydro Wind Biomass Biogas and waste Photo-voltaic Geo-thermal
  • 9. European Context Creating the Single Market • Interconnectors historically underused, markets segmented • Uneconomic cross border flows undermine EU energy policy goals of sustainability, competitiveness and security of supply • EU has addressed this by forging an internal market in electricity to form part of single European market in goods and services
  • 10. European Context Creating the Single Market (2) • 1st and 2nd electricity liberalisation packages (1996 and 2003): – Some success but price correlation between regional markets remained poor and cross border capacity was inadequate or inefficiently used • 3rd electricity liberalisation package (2009): – Establishment of ACER and ENSTO-E – harmonisation of market rules - market coupling – increase in physical cross border investment • Target Model – end 2014 – SEM derogation to end 2016
  • 11.  Market Integration 2000 Implicit auctions Only explicit auctions Other methods Nord Pool
  • 12.  Market Integration 2006 Implicit auctions Only explicit auctions Other methods
  • 13.  Market Integration 2010 Only explicit auctions Other methods Implicit auctions APX EMCC CWE
  • 14.  Market Integration 2014? Implicit auctions Only explicit auctions Other methods Euro Pool
  • 15.  Market Coupling 2016 Implicit auctions Only explicit auctions Other methods Euro Pool
  • 16. Different Market Designs • • Gross Pool markets are centrally dispatched with TSOs deciding centrally on generator running order Bilateral markets like those in Britain and continental Europe are self dispatch, where TSOs only balance the system close to real time SEM British Market
  • 17. European Target Model Long-term allocation Day-ahead implicit auctions Intraday continuous trading Zone delineation Capacity calculation How it works… Common cross-border arrangements The interaction between the two should encourage harmonisation Diverse national arrangements Cross-border balancing
  • 18. Forward Capacity Allocation • Rules for calculating and allocating cross border capacity – Auction Rules – Allocation Platforms • Cross Border Risk Hedging and Firmness – Physical Transmission Rights (PTRs) with UIOSI – Financial Transmission Rights (FTRs) – Other hedging tools if sufficient liquidity exists
  • 19. Day Ahead Market Coupling • • • • Centrepiece of the Target Model Links separate day-ahead spot markets using cross-border (XB) transmission capacity It is an “implicit auction” – meaning cross border capacity allocation is integrated with the energy market (‘explicit auctions’ sell capacity separately) Common prices between spot markets when there is sufficient capacity
  • 20. Market Coupling (2) If there are XB capacity constraints, these will limit the flows between the coupled markets and a price difference will persist
  • 21. Hourly Capacity Utilisation - Explicit CAPACITY UTILISATION 100% Wrong direction A to B 0% B to A Wrong direction 100% A >> B A=B A << B PRICE DIFFERENCE 21
  • 22. Hourly Capacity Utilisation - Coupled Optimal utilisation (same price unless congested) CAPACITY UTILISATION 100% A to B 0% B to A 100% A >> B A=B A << B PRICE DIFFERENCE 22
  • 23. Future Issues – Capacity Mechanism • • Target Model is being finalised and is due to be implemented by 2014 But, in parallel several Member States have or are considering CRMs – Generation Adequacy– e.g. German nuclear closures and LCPD impacts – Missing money problem – Impact of RES on energy only markets
  • 24. Does Clean Energy need Support? • • • • Limits of Energy Only market (marginal cost) High Capex, Low Opex Reducing cost of capital Regulatory/Policy Certainty
  • 25. Elements of Market Dysfunction • Cheap Coal from US • Dropping gas demand • Good Utility/Bad Utility – security of supply? • Nuclear Support • Cost competitiveness for large industry
  • 27. Grid Roll-out • Much wind in west, demand in east • Rolling out the grid is critical to meeting 2020 renewable target • EirGrid has major Grid 25 plan • Over €1 billion in grid investment allowed by CER from 2011 to ‘15 • Planning and land access are a major challenge
  • 28. DS3 Project Delivering a Secure, Sustainable, Electricity System (“DS3”) – integrating wind while maintaining secure operation of system • 75% instantaneous wind penetration; • Greater flexibility from conventional plant (existing & new); • RoCoF settings • Keep curtailment to “bankable” levels i.e. 5% • Better wind forecasting, real time data and controllability; • Demand Side Management; • Cost & Benefit to consumers
  • 31. Changes to DSO • New technologies such as embedded (e.g. micro) generation and electric vehicles • Smart grids • Smart metering • Demand Side participation • Ancillary service provision and flexibility
  • 32. DSOs Issues for Regulators • • • • • • Distribution tariffs Promoting innovation The scope and extent of DSOs functions Price controls and incentives Data handling and protection Future unbundling/separation requirements
  • 33. The Retail Market • • • • • • Green Tariffs Changing Consumption Behaviour Smart Meters – Static or Dynamic ToU Tariffs? Microgeneration Issues Consumer Confusion & impact on competition EV integration
  • 34. Conclusions • Regulatory Change Needed to Delivery Green Targets: – Wholesale market evolution – Public Friendly Transmission Investment – New Role for DSO – New Engagement with Consumers