Transcript The Swedish Power Market

The Swedish Power Market
Presented for Invest in Sweden Agency and Sun Microsystems
Stockholm 20 March, 2009
Sandra Grauers Nilsson, Vattenfall Power Consultant
© Vattenfall AB
Content
• Energy and Electricity in Sweden
• The Nordic Power Market
• Consumer prices in Europe
• Supplier vs. Distributor in the Nordic Power Market
© Vattenfall AB
2
Content
• Energy and Electricity in Sweden
• The Nordic Power Market
• Consumer prices in Europe
• Supplier vs. Distributor in the Nordic Power Market
© Vattenfall AB
3
Total energy supply in Sweden 1973–2007
Source: Swedenergy
© Vattenfall AB
4
Electricity generation in Sweden by power type,
TWh/year
Source: Swedenergy
© Vattenfall AB
5
Installed wind power generation capacity in MW 2002-2007
Source: Swedenergy
© Vattenfall AB
6
In 2006, 97% of the electricty production was CO2-free
Source: Swedish Energy Agency
© Vattenfall AB
7
Development of renewable electricity generation
2000–2007
Source: Swedenergy
© Vattenfall AB
8
Emissions of CO2 equivalents in the world, tonnes per
capita
Source: Swedish Environmental Protection Agency
© Vattenfall AB
9
Ownership of electricity generation capacity
Source: Swedenergy
© Vattenfall AB
10
Changes in ownership of electricity generation 19962007
Source: Swedenergy
© Vattenfall AB
11
Content
• Energy and Electricity in Sweden
• The Nordic Power Market
• Consumer prices in Europe
• Supplier vs. Distributor in the Nordic Power Market
© Vattenfall AB
12
The Nordic Market - four countries
• 14 million customers, 73.000 MW, 390 TWh/year
• Full regulated TPA (third party access)
• National Grid companies, TSOs
• Some 350 power generating companies,
450 supplying companies and
550 regulated distribution companies
• The Nordic Power Exchange - Nord Pool
•
•
•
•
Spot Market
Futures Markets
(EUA, CER
Green certificates)
150
100
50
0
150
100
50
0
Finland
Norway
© Vattenfall AB
Source: Swedenergy
150
100
50
0
150
100
50
0
Sweden
Denmark
13
Wind power
Gas turbines
Condensing
Combined heat and power
Nuclear power
Hydro power
Production capacity a normal year, TWh
The Nordic Market
•
Generation in Sweden, The
Nordic region, Europe
•
The 400/200 kV grid
EU 27 +Norway
~ 3000 TWh
Sweden
~ 150 TWh
The Nordic
Countries
~ 380 TWh
Fossil fuels
Net imports
Other
renewables
© Vattenfall AB
Nuclear
Source: Swedenergy
Hydro
14
Markets for electricity trade
Source: Swedenergy
The Nordic Power Exchange
– traded volumes, TWh/year
3500
3000
2500
Clearing - (OTC)
Futures
Elspot
2000
1500
1000
500
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Source: Swedish Energy Agency
© Vattenfall AB
16
Electricity consumption and price in the Nordic
countries
SEK/MWh
400
1000
Norden, TWh
Systempris, SEK/MWh
900
390
800
700
380
600
370
500
400
360
300
200
350
100
340
dec-96
0
jun-98
dec-99
jun-01
dec-02
jun-04
dec-05
jun-07
dec-08
Source: Swedenergy
Nordic spot prices – hydro power reservoirs
130
"Överskott"
110
"Underskott"
Systempris Nord Pool, €/MWh
EUA, €/ton
TWh, EUR/MWh, EUR/ton
90
70
50
30
10
-10
-30
jan-00
© Vattenfall AB
jan-01
Source: Swedenergy
jan-02
jan-03
jan-04
18
jan-05
jan-06
jan-07
The Nordic Power System
Production capability, normal year
Incremental
operating costs
Gas turbine
Oil condensing
power
Coal
condensing
power
Wind
power
CHP
Industrial
CHP
District
Nuclear power heating
Hydro power (normal year)
0
40
80
120
160
200
240
280
320
360
Electricity consumption
Source: Swedenergy
400
The Nordic Power System
Production capability, dry year
Incremental
operating costs
Söre/kWh
2) Less supply
3) Higher production costs
0
0
50
Source: Swedenergy
100
150
200
250
300
1) Less Hydro Power
350
400
Runoff variations in relation to normal year runoff
1952−2007
© Vattenfall AB
Source: Swedenergy
21
Content
• Energy and Electricity in Sweden
• The Nordic Power Market
• Consumer prices in Europe
• Supplier vs. Distributor in the Nordic Power Market
© Vattenfall AB
22
Source: Eurostat
23
Denmark
Italy
Germany
Ireland
Netherlands
Belgium
Austria
Sweden
Luxembourg
Cyprus
Portugal
Norway
United Kingdom
Spain
Poland
Slovakia
Hungary
France
Finland
Romania
Slovenia
Czech Republic
Malta
Croatia
Greece
Lithuania
Estonia
Latvia
Bulgaria
0,25
ea12
eu27
Electricity prices in Europe
households 2 500-5 000 kWh/year, 2:nd half 2007
0,3
EUR/kWh
Moms
Skatt
Energi+nät
0,2
0,15
0,1
0,05
0
Källa: Eurostat
24
Denmark
Italy
Cyprus
Germany
Ireland
Hungary
Slovakia
Belgium
United Kingdom
Austria
Malta
Spain
Slovenia
Netherlands
Poland
Czech Republic
Romania
Luxembourg
Portugal
Greece
Lithuania
Croatia
Norway
France
Latvia
Finland
Bulgaria
Sweden
Estonia
ea12
eu27
Electricity prices for the industry
20-500 MWh/year, incl network and taxes, 2:nd half 2007
0,25
EUR/kWh
0,2
0,15
0,1
0,05
0
Content
• Energy and Electricity in Sweden
• The Nordic Power Market
• Consumer prices in Europe
• Supplier vs. Distributor in the Nordic Power Market
© Vattenfall AB
25
Two Separate Legal Entities
 Production and sales in competition

© Vattenfall AB
Transmission and distribution as a monopoly
Source: Swedenergy
26
Electricity network regulation should aim to achieve...
• Efficient operation of the national grid as well as the regional
and local networks
• Reasonable tariffs vs. service provided
• Competition in sales of electricity by creating nondiscriminatory conditions for all
© Vattenfall AB
Source: Swedenergy
27
Structure of Network Utilities in Sweden
• National Grid, Svenska kraftnät - 400-220 kV
• Regional networks - 10 operators - 40-130 kV
• Local networks - 180 operators < 40 kV,
5.3 million customers, average 29.000 cust./co.
© Vattenfall AB
Source: Swedenergy
28
The deregulated electricity market
Monopoly
Competition
Grid
Generator
Regional net
Generator
Local net
Generator
Market Place
Trader
Supplier
Customer
Supplier
Customer
Customer
TSO
© Vattenfall AB
Source: Swedenergy
29
Customer
Customer
Thank you!
© Vattenfall AB
Extra material
© Vattenfall AB
31
Storage levels in the regulating reservoirs
Source: Swedenergy
© Vattenfall AB
32
Energy consumption by user (Statistics Sweden)
2003
2004
2005
TWh
TWh
TWh
%
Industry .........................
154
158
156
39
Transport ......................
95
99
101
25
Housing, services, etc. ..
154
147
145
36
TOTAL ...........................
403
404
402
100
© Vattenfall AB
Source: Swedenergy
33
The residential and service sector has abandoned oil
for electricity and district heating..
© Vattenfall AB
Source: Swedish Energy Agency
34
..and the base for district heating has gone from fossil
fuel to biomass
© Vattenfall AB
Source: Swedish Energy Agency
35
Simultaneously, industry has switched to biomass and
electricity
© Vattenfall AB
Source: Swedish Energy Agency
36