8/16/2019 capacity market europe
1/19
Fakultät für Wirtschaftswissenschaften, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst
www.ee2.biz
Interdependency betweenNational Capacity Markets anduropean ner!y "trate!ies
# Who$ Why$ What$
Samarth Kumar
8/16/2019 capacity market europe
2/19
TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !".#.#!$
Who a% I$
I n t e r e
s t
E d u c a t i
o n
B.Tech - MechanicalEngineering
ClimateChange
Computer
Science
MinorComputer Science
2 0 0 8
2 0 1 2
2 0 1 3
2 0 1
MSc !Energ" Technologies
Economics and
Energ" Mar#et
2 0 1 $
Techno-economicanal"sis %or &t' S"stem
&h(
*Not the philosophicaltype…
8/16/2019 capacity market europe
3/19
TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst $!".#.#!$
Interdependence between National CapacityMarket and uropean ner!y "trate!ies
8/16/2019 capacity market europe
4/19
TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst "!".#.#!$
&ri'in! force for capacity %echanis%
Germany France UK Spain Italy
)uclear &hase-out
'igh *ESdeplo"ment -+
lo, spot mar#etprices o%electrict" -+ lo,protailit" o%thermal andccgt plants
/rid Constraints
'ighl"temperature-dependentconsumption
-+ 'igh &ea#(emand
geing coal andnuclear po,erplants
imited
Interconnection
'igh *ESgro,th
Impact o% argeConsumption&lant (irectieC&(4 andindustrialEmissions(irectie IE(4
(emandincrease
'igh *ESgro,th
imitedinterconnection
o, protailit"%or CC/T
Internal 5onesand gridconstraints
'igh *ES
gro,th
'istoricall"6capacit" decit
8/16/2019 capacity market europe
5/19
TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst %!".#.#!$
(a closer look at )er%any
Germany
)uclear &hase-out
'igh *ESdeplo"ment -+
lo, spot mar#etprices o%electrict" -+ lo,protailit" o%thermal andccgt plants
/rid Constraints
8/16/2019 capacity market europe
6/19
TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst &!".#.#!$
...a closer look at )er%any
G e r m a n y
d e c i d e
d a g a i n s t s e
t t i n g u
p
o f
C a p a c i t y
M a r k e t
.
8/16/2019 capacity market europe
7/19TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst '!".#.#!$
)rowin! Capacity Markets and Concerns
Source7 Capacit" Mechanisms. *eigniting Europes Energ" Mar#ets - in#laters
8/16/2019 capacity market europe
8/19TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst (!".#.#!$
Work *acka!es
9ear 1 9ear 2 9ear 3
1 2 3 : 1 2 3 : 1 2 3 :
AP1Collecting ational and !uropean !nergyPolicy
European Energ" Strategies - ect impact4
(ata sources -+ data collection
AP" ational factors in#uencing energy policy
)ational %actors -+ polic"
AP$Model %ased analysis of interdependencies and&armoni'ation
8/16/2019 capacity market europe
9/19TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst -!".#.#!$
,n!oin! -asksIdeas
• Timeline for oliciesdirecti/eslaws
• Policies 01 2esults
• 3ational 4actors 01 Policies
• 5/er/iew of a/aila6le Models and Modelling Methodologies
• Data Prearation
8/16/2019 capacity market europe
10/19TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !#!".#.#!$
-hanks for your +ttention(
/uestion&iscussion
8/16/2019 capacity market europe
11/19
TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !!!".#.#!$
7not so much if, 6ut when,7 8ies6ert9 said7:n a renewa6les s+stem, caacit+ will 6e scarce and energ+ otentiall+a6undant,7 said ;ndreas 2egnell head of strateg+ and sustaina6ilit+ atSwedish utilit+
8/16/2019 capacity market europe
12/19
TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !!".#.#!$
Why is it i%portant
8/16/2019 capacity market europe
13/19
TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !$!".#.#!$
Ne0t tasks(
•Understand Polic+ Mechanisms = EU and 3ational
• 4amiliari9e with Modelling aroaches
• 4amiliari9e with Data and Model resent at EE
• 4amiliari9e with other data sources
Mar#et (ata &olic"
8/16/2019 capacity market europe
14/19
TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !"!".#.#!$
What is the issue$
0 $ ? 2 0 0 @
(irectie 200@?28?EC7• Manditor" )ational Targets " 2020 %or EA
• 20 Share o% Energ" %rom *ene,ales• 10 Share o% Energ" in Transport %rom *ene,ales
Countr
y
S"--+. S"-"-.
/erman" .8 18
rance 10.3 23
AD 1.3 1
Ital" .2 1FShare o% energ" %rom rene,ale sources in gross nal consumption
Same %orall
countries
8/16/2019 capacity market europe
15/19
TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !%!".#.#!$
What is the issue$
0 $ ? 2 0 0 @
( i r e c t i e
2 0 0 @ ? 2 8 ? E C
0
10
1
20
2
Share o% Energ" %rom *ene,ale Sources
/erman"
rance
AD Ital"
EAShare in
8/16/2019 capacity market europe
16/19
TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !&!".#.#!$
What is dri'in! i%ple%entation of CapacityMechanis%$
Germany France UK Spain Italy
)uclear &hase-out
'igh *ESdeplo"ment -+
lo, spot mar#etprices o%electrict" -+ lo,protailit" o%thermal andccgt plants
/rid Constraints
Electricalheating
'ighl"temperature-
dependentconsumption
-+ 'igh &ea#(emand
geing coal andnuclear po,erplants
imited
Interconnection
'igh *ESgro,th
Impact o% argeConsumption&lant (irectie
C&(4 andindustrialEmissions(irectie IE(4
(emandincrease
'igh *ESdeelopment
imitedinterconnection
o, protailit"%or CC/T
Internal 5onesand gridconstraints
'istoricall"6
capacit" decit
'igh *ESgro,th
8/16/2019 capacity market europe
17/19
TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !'!".#.#!$
What is the issue$
; closer loo> at german+?
0 $ ? 2 0
0 @
( i r e c t i e
2 0 0 @ ? 2 8 ? E
C 0 2 ? 2 0 1
E n e r g "
A n i o n
8/16/2019 capacity market europe
18/19
TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !(!".#.#!$
Capacity Mechanis%s
•
"trate!ic reser'es1;n indeendent agent @often TS5sA contracts or tenders with ea>ing units forreser/e caacit+
• Capacity *ay%ents1
4iBed or /aria6le a+ments are ro/ided to all or art of eligi6le caacit+
• Capacity +uctions1
*efore new caacit+ is reCuired, the TS5s launches an auction and selectssources to satisf+ the target margin a6o/e the ea> load demand
• Capacity ,bli!ations1
Each sulier has o6ligation to meet the anticiated load of its customers, lusa redefined securit+ margin
• eliability ,ptions1
4orward caacit+ otions @contracts for differenceA gi/e the holder the right to6e aid the difference 6etween the energ+ mar>et sot rice and aredetermined stri>e rice.
8/16/2019 capacity market europe
19/19
TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !-!".#.#!$
Capacity Mechancis%s
Capacit"&a"ment
Strategic*esere
Capacit" Mar#ets
Capacit"