Transcript Slide 1

Market4RES Workshop
Post 2020
framework
-
Can markets and
RES coexist?
Dr. Oliver Koch
Deputy Head of Unit
DG Energy Unit B.2 – Internal Market II
Wholesale markets; electricity & gas
28. April 2014
Energy
This presentation replects solely the personal views
IEM is at a
tipping point
Energy
Markets are integrated: EU-Power Grid
Energy
Scheerer (2012)
Markets are
integrated:
Market Coupling
•
Optimised
capacity calculation
•
EU-wide aggregation
of bids and offers
Energy
Renewables need aggregation
Energy
Shrinking role for energy markets
RES Support
Government (national)
Wholesale
price
Market (EU)
System costs
Government (monopolies) (national)
Energy
Shrinking role for energy markets
RES
RES
Support
Support
Wholesale
price
System
System
costs
costs
Government
(national)
Market (EU)
Government / monopolies
(national)
Energy
Issue: Coordination of RES and CO2 policies
=> “2030“ Process
• COM consultation – report to EU Council
• Decision 2014/2015 ?
Energy
Future
EU Market Design
"State Interventions" Package:
Key messages
• More cross-border
• More market-based
• Competition between technologies
Energy
Market integration: support schemes
Phase in market exposure:
Feed-in tariff
Premium
Quota
 Competitive allocation
mechanisms
 Mechanism to reflect
degree of maturity of
technology
 Competition among
RES – technology
development
 Minimise impact on
production decision
Energy
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
Energy
Energy
Security of
supply
Energy
Uncoordinated national interventions are a threat to the
Internal Energy Market
Source ENTSO-E
Energy
Cooperation in parallel supply crisis?
?
Wholesale Market Design
Issues
Issue: Will merit curve survive?
Energy
Future
EU Market Design
Future EU
Market Design
Issues
Energy
Future
EU Market Design
ETS
CO2 price
Wholesale
Target Model
Technical
balancing,
ancillary service
State
interventions
RES etc.
State"designed"
trading?
Generation
Adequacy
+Flexibility?
"Market Design"
discussion
Self
regulation/
legislation
Link to Gas,
Transport,
Heating
Energy
EU ?
Regional ?
National?
Demand
Side
participation
Future
EU Market Design
2014
2014 Target
Target Model:
Model: Outdated?
MODERN!
Energy
Need for new Market Design?
1.Preserve market path – give
ongoing harmonisation a chance !
Energy
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.)
- Adequacy: guidance needed?
-
Adequacy assessment
C/B-openness
Protection levels / solidarity
Energy
Need for new Market Design?
2.Scope for finetuning?
- 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?
Energy
Making the Internal Energy Market Work
2011
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
2012
Report "Making the Internal Energy
Market work" published by the
European Commission assessing the
state of the internal energy market
June 2014
European Commission will report on the
progress reached in completing the
internal energy market
Energy
Thank you very much for
your attention
Dr. Oliver Koch
Deputy Head of Unit
European Commission
DG Energy
Unit B-2 (Internal Market II: Wholesale; gas & electricity)
DM 24 – 6/117
Brussels/Belgium
[email protected]
++32 229 87302
Energy
Commission Toolbox:
Advocacy
(e.g. communication on state interventions)
TFEU
Art 28?
Procurement?
…
3rd Package
"PSO?
Art 3 E-Reg
…
COMP Law
GBER
EEAG
Art 102/106?
Long-term: new legislation?
"2030" discussion – revised targets ?
Energy
Outlook
…but: decisions need to be taken at one stage!
Next years = decisive
- Will “consensus approach” work?
- More COM intervention / harmonisation
needed?
Energy
Wholesale Market Design
Issues
Perceived security of supply concerns
Issue: who decides about the “gap”?
• Central adequacy decision/estimation?
(most got it wrong, even in more stable times…)
• Decentral or fully market-based decision on
what is needed possible?
(e.g. BDEW approach?)
Energy
Wholesale Market Design
Issues
(Key) issue in EU:
How to avoid fragmented solutions?
 How to organise cross-border
co-operation on security of supply?
• Technical dimension
• Political dimension
Energy
Wholesale Market Design
Issues
 How to organise cross-border
co-operation in security of supply matters ?
Technical dimension
•C/B adequacy planning - in practice?
•C/B capacity/capability/flexibility ‘markets’
• Common definitions (products)
• Common procedures (tender, auction, cap ticket,…)
• Physical long-term reservations/PTRs needed?
Energy
Wholesale Market Design
Issues
 How to organise cross-border
co-operation in security of supply matters ?
Political dimension
•Parallel supply crisis: what happens?
•Upfront agreement on load shedding rules?
=> Can Member States rely on neighbours?
Energy
Wholesale Market Design
Issues
Issue: Allocation of "flexibility risk"
• Fair balancing responsibility for RES ? How?
• Additional "backup" responsibility needed?
Energy
Wholesale Market Design
Issues
Issue: Fair demand side participation
•Is model neutral to supply and demand solutions?
•Does it maximise potential flexibility, storage,
DSR, energy efficiency ?
•Fair balance between DSOs/TSOs
Energy