Transcript Statkraft
Statkraft’s experience in the European power markets and view on the markets in South East Europe “Energy Streams in Regional and European Aspect” conference
March 12, 2007.
Sheraton hotel, Sofia
Plamen Popov, Managing Director, Statkraft South-East Europe, Bulgaria
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Highlights
Who is Statkraft?
South-East European Power Market as part of Pan-European Market;
Shall we invent the Bicycle again?
(Is the “Copy-Paste” approach from WE to SEE possible?).
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Statkraft
TEV Trondheim 100% BKK 49,9% Agder 45,5% ScanEnergi 21,4 %*** Statkraft Markets BV Statkraft Skagerak 66,6 % E.ON Sverige 44,6 %*** Baltic Cable 66,7 % Statkraft Markets GmbH Vienna Warsaw Budapest Belgrade Facts and Figures 2005*
– 100% state owned – 2000 employees** – 42 TWh production in normal year** – 1.9 bn € revenues – 0.7 bn € profit after tax – 11.3 bn € assets – 5.0 bn € equity
Bucharest
– Second largest producer of enviromentally friendly energy in Europe
Sofia
– 14 years experience in the liberalised power market * € = 8.0 NOK ** incl. TEV, Skagerak *** Financial investment
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Statkraft Core Business Hydro and RES generation + GAS
Statkraft owns and operates 156 Power plants. 133 Hydro and 2 Wind in Norway; 19 Hydro in Sweden 4 Hydro in Finland Total installed capacity Average annual production 10 530 MW 292 MW 66 MW 10 888 MW 42 TWh 3 CCGT under construction:
400 MW in Norway;
800 MW in Germany;
400 MW in Germany. Several wind farms in design and construction phase
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The Statkraft Group - from state utility to market player 1895
The State of Norway buys its first ”waterfall”, water rights.
1921
Foundation of Norways Water and Energyworks being responsible for construction and operation of the state’s power plants.
1986
State’s power plants become a division of Ministry for Oil and Energy.
1991
Legal basis for market liberalisation. Goal: More efficient operation and flexible use of power system.
1992
Split up of ”Statkraftverkene” into grid part, Statnett, and commercial part for production and (wholesale) marketing, Statkraft.
1996
Statkraft buys shares in Sydkraft. Nordpool is established.
1998
Opening of Amsterdam office.
1999
Opening of D üsseldorf office.
2000
Political message: ”Time of large-scale hydro projects is over.” 2
001
Statkraft takes over 1/3 of Baltic Cable.
2002
No more state guarantees for Statkraft’s debt in the future.
2004
Commercial activities are being transfered from Statkraft SF (”state company”) into Statkraft AS (joint stock company, 100% state owned).
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Statkraft in Continental Europe
Trading and Cross Border Trading
Trading Complex Green / C0 2 Power plants Services European borders DC cable active trading infrastructure in place, not active yet under development
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Statkraft in Continental Europe
Renewables and CO 2
Trading Complex Green / C0 2 Power plants Services
Green Value Electricity Certificate market Wholesale market Electricity CO 2 Certificate CO 2 Certificate market
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SEE electricity sector in 2005-6
(source UCTE and BSREC)
The SCALE
60000 Generation, MWh 50000 40000 30000 20000 10000 0 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 Generation, MWh Consumption, MWh
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SEE
plans to meet power demand Source: World Bank – 2006 GIS study
New and rehabilitated generating capacity for SEE
12000 10000 8000 6000 4000 2000 Rehab total MW Total new accum Total new MW delta peak load Total rehab+new MW 0 2006 2007 2008 2009 2010 2011 2012 2013
MW
2014 2015 2016 2017 2018 2019 2020
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EEX Spot Price History
CO2 & gas prices, cold winter Hot summer: Demand increase & Cooling water problems hot & dry summer: demand increase & cooling water problems Coal & oil prices cold spell wet, mild, holidays Start of EU emission trading Emission market crash Mild winter, lots of wind
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European Spot Prices on the Way to Convergence
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Even Forward Markets Going Parallel
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Athens process
• • • • • • Main Athens process achievements :
ITC (CBT) mechanism, similar to the 1 st ETSO. (From Apr. 1 st under question ?????) 2007 – MoU for REM – in 2005 transferred to a SEE Energy Community Treaty; Regional Grid Code; First draft of Standard Market Design SMD; Coordinated capacity allocation auction project.
B U T : . . . . a lot of work, still to be done . . . .
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Single UCTE synchronous zone
3 ITC mechanisms (funds)
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Missing or insufficient market environments
Issues to be addressed to the
regulators
: • Non harmonized licensing regimes. The requirements to the potential traders differ from country to country; • Complicated and long lasting procedure for application and issuing of licenses in some countries; • Relatively high initial and annual fees to obtaining and keeping of licenses; • Lack of information in some countries about the current or planned requirements and licensing regime in respect to the wholesale and retail trade; • Development of cost reflective transmission tariffs to all market participants; • Development of measures to deal with market concentration and vertical foreclosure;
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Missing or insufficient market environments
Issues to be addressed to the
TSOs
: • Different cross-border capacity allocation mechanisms applied by TSOs in the region; • Lack of information and transparency about the procedures, application mechanisms, gate closure and the final allocation of the cross-border capacity; • Missing rules and means for secondary cross-border capacity market; • Market based (national and regional) balancing arrangements;
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Missing or insufficient market environments
Issues to be addressed to the
market operators
: • Only two PXs – OPCOM and BORZEN: • OPCOM – central clearing function is missing. Lack of trust, yet; • BORZEN – too small volumes and liquidity; • No forward market and market for financial derivatives; • No brokers involved to facilitate OTC; • Application of market rules to all participants; • Insufficient information about market results – prices.
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Thank you for your attention !
www.statkraft.com