Denis Milyutin Deputy Director of the Department for regulation in electricity sector, FTS of Russia Regulation on long-term capacity market St-Petersburg May 17, 2011 10 th ERRA ENERGY INVESTMENT AND REGULATION CONFERENCE
Mar 15, 2016
Denis MilyutinDeputy Director of the Department for regulation in electricity sector,
FTS of Russia
Regulation on long-term capacity market
St-PetersburgMay 17, 2011
10th ERRA ENERGY INVESTMENT AND REGULATION CONFERENCE
New model of capacity market
2
Law “On electric power”: Capacity is a special commodity
Rules of the wholesale power and capacity market are set by a Decree of the Government of the Russian Federation
2011
For 1 year period For 4 years ahead
Scope of capacity supply at free prices - the share determined by the Government
Price for capacity for generatorsaccording to the results of competitive capacity take-off (CCT)According to free agreements
Regulated tariff
=
>
Scope of capacity supply at free prices (CCT + NRC) - all except households (at regulated prices)
Capacity price for generators according to•the results of CCT•the non-regulated contracts (NRC)•capacity delivery contracts (CDC) prices•regulated prices
Transitional period Long-term model
Payment for the entire capacity Only taken-off capacity payment
201601.07.08
Market map
3
Zones without price-cap:Centre, the
Urals
Siberia price zone– 7 free capacity transfer zones
Europe price zone– 22 free capacity transfer zones
Non-price areas, geographically isolated systems
Types of Regulated Prices
4
1. For supply to - household sector- consumers in the areas with specific
pricing (until 2015)≤
35% of power and capacity generation scope
2. Forced/most expensive
3. NPP/HPP: security charge;investments charge;new plants
15 (10) %
CCT price
Demand
Not taken-off capacity
CDC, NPP and HPP
Most expensive
Decommissioning
When it is impossible:
Only for day-ahead market
Government commission
Ministry of Energy
Forced generator
Not satisfied with technical requirements
Liberalization and price regulation
5
2011
The structure of the physical scope of the capacity supplied by the generators
Transitional period Long-term model
power
capacity
5% 10% 15%25%
30%
50%60%
80%
From 1 Jan.2007
From 1 Jul.2007
From 1 Jan.2008
From 1 Jul.2008
From 1 Jan.2009
From 1 Jul. 2009
From 1 Jan.2010
From 1 Jul.2010
at free prices
at regulated prices Others in zones with price-cap
CDC
Forced/ most expensiveNew NPP/HPP
NPP/HPP charges
Households sector supply
Regulating authorities
6
FAS of Russia
SystemOperator
Ministry of Energy
•Normative support•Determination of reserve ratio ≈
demand for capacity•Decision on the correcting CCT
Thank You for Your attention!
FTS of Russia7, Kitaigorodsky proezd109074 MoscowRussiaTel. +7(495)710-61-97Fax +7(495)[email protected]