Energy Dr. Oliver Koch Deputy Head of Unit DG Energy Unit B.2 – Internal Market II Wholesale markets; electricity & gas 28. April 2014 This presentation replects solely the personal views of the author and does not bind the EU Commission Market4RES Workshop Post 2020 framework - Can markets and RES coexist?
32
Embed
Energy Dr. Oliver Koch Deputy Head of Unit DG Energy Unit B.2 – Internal Market II Wholesale markets; electricity & gas 28. April 2014 This presentation.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
EnergyEnergy
Dr. Oliver KochDeputy Head of Unit
DG Energy Unit B.2 – Internal Market IIWholesale markets; electricity & gas
28. April 2014
This presentation replects solely the personal views of the author and does not bind the EU Commission
Market4RES Workshop
Post 2020 framework
-
Can markets and RES coexist?
EnergyEnergy
IEM is at a tipping point
EnergyEnergyScheerer (2012)
Markets are integrated: EU-Power Grid
EnergyEnergy
Markets are integrated:Market Coupling
• Optimised capacity calculation
• EU-wide aggregation of bids and offers
EnergyEnergy
Renewables need aggregation
EnergyEnergy
System costs
Wholesale price
RES Support
Market (EU)
Government (national)
Government (monopolies) (national)
Shrinking role for energy markets
EnergyEnergy
Systemcosts
Wholesale price
RES Support
Market (EU)
Government(national)
Government / monopolies (national)
Shrinking role for energy markets
Systemcosts
Wholesale price
RES Support
Market (EU)
EnergyEnergy
Issue: Coordination of RES and CO2 policies
=> “2030“ Process
• COM consultation – report to EU Council• Decision 2014/2015 ?
EnergyEnergy
Future EU Market Design
•More cross-border•More market-based•Competition between
technologies
"State Interventions" Package: Key messages
EnergyEnergy
Market integration: support schemes
Feed-in tariff PremiumQuota
Phase in market exposure:
Competitive allocation mechanismsMechanism to reflect degree of maturity of technologyCompetition among RES – technology developmentMinimise impact on production decision
Phase in market exposure:
Competitive allocation mechanismsMechanism to reflect degree of maturity of technologyCompetition among RES – technology developmentMinimise impact on production decision
EnergyEnergy
Market Integration: RES and power market rules
Phase in equal treatment:
Balancing obligations
Bearing of grid costs
Dispatching rules
Different degrees of harmonisation for all users
Phase in equal treatment:
Balancing obligations
Bearing of grid costs
Dispatching rules
Different degrees of harmonisation for all users
EnergyEnergy
EnergyEnergy
Security of supply
EnergyEnergy
Source ENTSO-E
Uncoordinated national interventions are a threat to the Internal Energy Market
Cooperation in parallel supply crisis?
?
EnergyEnergy
Wholesale Market DesignIssues
Issue: Will merit curve survive?
EnergyEnergy
Future EU Market Design
- Issues
Future EU Market Design
EnergyEnergy
Future EU Market Design
"Market Design" discussion
Wholesale Target Model
Technical balancing,ancillary service
Generation Adequacy
+Flexibility?
ETS CO2 price
State interventions
RES etc.
State- "designed"
trading?
Link to Gas, Transport,
Heating
EU ? Regional ? National?
Self regulation/legislation
Demand Side
participation
EnergyEnergy
2014 Target Model: Outdated?
Future EU Market Design
2014 Target Model: MODERN!
EnergyEnergy
Need for new Market Design?
1. Preserve market path – give ongoing harmonisation a chance !
EnergyEnergy
Need for new Market Design?
2. Scope for finetuning?
- Flexibility – demand response - hedging- Will flexibility markets evolve?- Will DRS kick off?- Need to finetune target model (options markets, etc.)
- System operation – IEM with fragmented TSOs?- Fragmented system operation – capacity calculation- CASC/CAO – CORESO - SSC - TSC = enough?- EU ISO needed?
- Governance: - Role of ENTSO-E – EU or national perspective?- Role of ACER : EU or national perspective? - 3rd package "bottom up" approach – suffient?
EnergyEnergy
Making the Internal Energy Market Work
The Heads of State of Government recognized the importance of having an internal energy market in place and set a clear deadline for its completion by 2014
Report "Making the Internal Energy Market work" published by the European Commission assessing the state of the internal energy market
European Commission will report on the progress reached in completing the internal energy market
2011
2012
June 2014
EnergyEnergy
Thank you very much for your attention
Dr. Oliver KochDeputy Head of Unit
European CommissionDG Energy
Unit B-2 (Internal Market II: Wholesale; gas & electricity)DM 24 – 6/117