Transcript PowerPoint プレゼンテーション

CIGRE SC-C5 Workshop in Brasilia
Liberalization of the Electric
Power Sector in Japan
September 22, 2003
Jun-ichi Naito
The Tokyo Electric Power Company,Inc.
1
Outline of Japanese Electricity Market
１．Overview of Electric Power Industry
２．Background of Liberalization
３．Japanese Electricity Market Design
４．Challenges for Emerging Electricity Market
2
１． Overview of Electric Power Industry
3
1. Overview of Electric Power Industry 2. Background of Liberali
3. Market Design
4. Challenges for Emerging
Outline of Network System in Japan
Elongate-shape system without
international connection (isolated system)
Hokkaido
5 GW
Service Area
(km2)
System Peak
Demand
(GW)
No. of
Customers
(Thousand)
TEPCO(a)
39,494
64.30
27,025
JAPAN(b)
372,708
182.38
80,203
A/b(%)
11%
35%
34%
Tohoku
15GW
Hokuriku
6GW
64 GW
Chugoku
Kansai
12GW
Kyushu
17GW
Tokyo
33GW
Chubu
28GW
Shikoku
6GW
(about 100 GW)
60 Hz
50 Hz (about 85 GW)
4
1. Overview of Electric Power Industry 2. Background of Liberali
3. Market Design
4. Challenges for Emerging
Energy Self-sufficiency Rate
Very few natural resources in Japan
160%
142%
140%
108%
120%
100%
80%
64%
60%
27%
40%
20%
0%
9%
4%
Japan
U.S.
Canada
U.K.
Germany
France
16%
Italy
Source: IEA/Energy Balances of OECD Countries
(excluding nuclear energy)
5
1. Overview of Electric Power Industry 2. Background of Liberali
3. Market Design
4. Challenges for Emerging
Electric Energy Output by Generation type
 Too much dependence on Oil
Best Mix Policy
Generating Energy of TEPCO
47
111
112
188
249
284
308
[TWh]
343
100%
Nuclear
80%
60%
Oil
40%
LNG
20%
Hydro
0%
1965
Hydro
Oil
1973
1975
LNG/LPG
Coal
1985
1990
1995
Others
Nuclear
2000
2005
IPP
6
1. Overview of Electric Power Industry 2. Background of Liberali
3. Market Design
4. Challenges for Emerging
Daily Load Curve
 High level skill for dispatching control is
required by steep load curve.
Norway
100
Norway(2000/12/12)
7.7%/hr
(17.6 GW)
TEPCO(2000/8/3)
ＰＪＭ
80
(59.3 GW)
Demand (%)
4.2%/hr
California (43.4 GW)
ISO(2000/8/1)
PJM(2000/8/1)
14.8%/hr
60
TEPCO
(40.5 GW)
6.4%/hr
40
California
20
0
0
2
4
6
8 10 12 14 16 18 20 22 24
Time
7
1. Overview of Electric Power Industry 2. Background of Liberali
3. Market Design
4. Challenges for Emerging
Duration of Yearly Forced Outages per Customer
90
Duration and当社のお客さま１軒あたりの年間事故停電時間・回数
Frequency of Yearly Forced Outages per TEPCO’s Customer
93 minutes
2.13 times
Duration of outages
(on the left scale)
80
Duration of outages
per household
(Times)
2.50
2.00
70
60
1.50
50
Frequency of outages
(on the right scale)
40
30
1.00
16 minutes
0.25 times
9 minutes
0.24 times
20
5 minutes
0.19 times
3 minutes
0.10 times 0.50
Frequency of outages
per household
(Minutes/
year)
100
10
0.00
’00 ‘01 (FY)
0
‘66
’70
(Minutes per
household
per year)
（
分/軒・
年）
‘75
’80
‘85
’90
‘95
Duration of Yearly Forced Outages per Customers in Major Countries (2000)
100
82
80
High reliability
73
60
46
40
20
4
0
TEPCO
東京電力
USA
アメ
リカ
UK ス
イギリ
France
フ
ランス
Source: USA: “SAIDI” (System Average Interruption Duration Index) average value of five US electric power companies—
Consolidated Edison, Florida Power & Light, NStar (former Boston Edison), Pacific Gas & Electric, and
Southern California Edison.
UK: “Ofgem Report on Distribution and Transmission Performance”
France: “EDF Annual Report”
8
1. Overview of Electric Power Industry 2. Background of Liberali
3. Market Design
4. Challenges for Emerging
SOX Emission Intensity of Thermal P/S
Strictly environmental
restrictions
9
２．Background of Liberalization
10
1. Overview of Electric
2. Background of Liberalization
3. Market Design
4. Challenges for Emerging
Historical Restructuring
 Regional electric utilities were privatized and
vertically integrated 50 years ago.
Privatized
Government-owned
Generation & Transmission Co
Regional Distribution Co.
1951
Vertically Integrated Co.
Regional Supply Responsibility
Inter-regional Coordination
Independent of government
11
1. Overview of Electric
2. Background of Liberalization
3. Market Design
4. Challenges for Emerging
Debate on Liberalization
Higher electricity rate
Advisory body to govt.
20
17.23
16.27
14.02
EDF
RWE
Yello
11.18
PG
11.93
Eastern
LE
TXU
Com Ed
Con Ed
10
TEPCO
12.29
12.98
Economic
Reform
16.3
14.43
15
BG
YEN/kWh
25 23.46 23.66
Introducing
principle of
competition
1996 -
600
70000
65000
60000
55000
50000
45000
40000
35000
30000
25000
500
GDP
450
Peak demand
400
350
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
300
1980
GDP[trillion yen]
550
Peak demand[thousand kW]
Recession after economic bubble
Global liberalization trend
California
U.K.
Nordic
PJM
[FY]
12
1. Overview of Electric
3. Market Design
2. Background of Liberalization
4. Challenges for Emerging
Liberalization Schedule in JAPAN
Scale of
Market
 Step-by-step expansion
of eligible customers
Full Retail Market?
Expansion of
Retail Market
(50kW～)
Partial Retail Market
(2000kW～)
Wholesale Market
1996
PX(Power Exchange)
Neutral Organization
IPP (Independent
Power Producer)
bidding system
2000
Year
2005
?
13
1. Overview of Electric
2. Background of Liberalization
3. Market Design
4. Challenges for Emerging
Eligible Customers
Eligible customers will account for about 64% in 2005.
20kV & above
(2000kW～)
6kV
(500kW～)
6kV
(50～500kW)
100,200V
(～50kW)
75 billion kWh
(27%)
Liberalized in 2000
40 billion kWh
(15%)
Liberalized in 2004
60 billion kWh
(22%)
Liberalized in 2005
100 billion kWh
(36%)
Begin discussion in
2007
* Electricity sales of TEPCO in the fiscal year 2001
14
1. Overview of Electric
2. Background of Liberalization
3. Market Design
4. Challenges for Emerging
Share of PPS(non-utility)
Share of Power Producer & Supplier is
gradually increasing .
Share of PPS
GWh
1.60%
300
PPS sales
PPS share
1.40%
1.20%
250
200
1.00%
0.80%
150
0.60%
100
0.40%
50
0.20%
0.00%
2000
2001
2002
2003
0
Share of PPS = PPS Sales ÷ Consumption of Eligible Customer
Source: METI web site
15
３．Japanese Electricity Market Design
16
1. Overview of Electric
2. Background of Liberal 3. Japanese Electricity Market Design 4. Challenges for Emerging
First Step of Partial Retail
Competition(2000)
TPA system is adopted.
Vertically Integrated Utility
Generation
Power Plant
Wholesaler
New entrant
IPP
Power Producer
& Supplier (PPS)
[Wholesale Contract]
Transmission Line
Transmission
Distribution
PPS =
Wholesaler
+ Supplier
Distribution Line
[Legal Supply Responsibility]
Retail
Middle & Small
Customers
Large
Customers
17
1. Overview of Electric
2. Background of Liberal 3. Japanese Electricity Market Design 4. Challenges for Emerging
Second Step of Retail Competition(2005)
Vertically
Integrated Utility
Generation
Power Plant
P
Wholesaler
X
IPP
PPS
[Wholesale Contract]
Transmission Line
Transmission
Distribution
Distribution Line
[Obligation to Serve]
Retail
Small(LV)
Customers
Middle(MV)
Customers
Large(HV)
Customers
 Retail competition will be expanded to the middle scale customers
 Utilities would be practically vertically integrated
 Power eXchange in TPA model would encourage wholesale transactions
18
1. Overview of Electric
2. Background of Liberal 3. Japanese Electricity Market Design 4. Challenges for Emerging
Basic concept of PX
<CONCEPT>
Private and voluntary (not compulsory pool)
Physical transaction rather than financial
Wholesale power exchange (Customers not take part in)
<AIM>
Establish PX
 To facilitate power exchange between players
 To form market price index
 To supplement bilateral transaction
19
1. Overview of Electric
2. Background of Liberal 3. Japanese Electricity Market Design 4. Challenges for Emerging
Design of Power Exchange Market
PX transaction
Day ahead
market
Forward market
・Continuous trading
Year
ahead
Month
ahead
Week
ahead
Bilateral transaction
・Closed book
auction with single
price
・Congestion
management with
market splitting
Settlement of
Imbalance
By Utilities
Operating day
Day ahead
No Real
Time
Market
20
1. Overview of Electric
2. Background of Liberal 3. Japanese Electricity Market Design 4. Challenges for Emerging
Impartiality and Transparency of T&D
Legislation for
・Information firewall
・Prohibition of cross subsidization
・Ban on discriminatory treatment
Electric Utility remains
vertically integrated
Establishment of
Neutral Organization
New Scheme from 2005
Ex-post regulation by the Ministry
21
1. Overview of Electric
2. Background of Liberal 3. Japanese Electricity Market Design 4. Challenges for Emerging
Neutral Organization
Neutral organization is not ISO/RTO.
Stake-holders
Whole
saler
PPS
Utility
Neutral member
Academic
BOARD
Check
<Function>
•Formation of Grid Code
・Dispute resolution
•Disclosing of power
system information
•Study on interconnection
system reinforcements
Trustees
Ministry of
Administrative Office
Expert Committee
Utility’s T&D
Inter-regional
Coordination
PX
Ex-post
regulation
Economy, Trade &
Industry
22
1. Overview of Electric
2. Background of Liberal 3. Japanese Electricity Market Design 4. Challenges for Emerging
Transmission Tariff at Present
Postage stamp
2.4yen/kwh Basic Rate
•Demand Charge (\/kW)
+ Energy Charge (\/kWh)
•Selective Menu
Regional (Standard or Time-of-
CrossBorder
Use)
•Discounted Rate to
reduce dominant flow
•Ancillary Service
•Energy Charge(\/kWh)
only
•Postage Stamp based
Zone System
•Additional Rate for
Frequency Converter
Backup Services
•Load Following
(within 3%)
•Forced Outage
•Scheduled Outage
Compensation for
New Facilities
•Standard
Construction
Cost deducted
by Utility’s
burden
•Actual
Construction
Cost
0.3yen/kWh
23
1. Overview of Electric
2. Background of Liberal 3. Japanese Electricity Market Design 4. Challenges for Emerging
Cross Border(area) Tariff
Abolish “pancaking”
<Conventional Scheme>
<Proposed Scheme>
Transmission users pay thin
CBT in addition to regional
transmission charge
All customers pay uniform
regional transmission charge
including CBT.
Compensate CBT among
regional utilities.
Power
Power
Power
Company A Company B Company C
G
L
Company C’s
\0.3/kWh \0.3/kWh Transmission
charge \3/kWh
User’s payment
(income for utilities A and B)
Power
Power
Power
Company A Company B Company C
G
L
Company C’s
Transmission
charge \3/kWh +
\α(*)
* Utility C compensates A and B’s
transmission cost.
24
1. Overview of Electric
2. Background of Liberal 3. Japanese Electricity Market Design 4. Challenges for Emerging
Balancing Mechanism
Utility is responsible for balancing and ancillary services.
Imbalance charge is settled by the 30 minutes.
GA2 GU1
GA1
GB2
GU2
GB1
From other
control area
Electric Power System
GAx
LU1
LB2
PPS A
ΣGAi =ΣL*Ai
LU2
LA2
Utility
ΣGUi =ΣLUi
+ Ancillary Services
LA1
LB1
PPS B
ΣGBi =ΣL*Bi
25
1. Overview of Electric
2. Background of Liberal 3. Japanese Electricity Market Design 4. Challenges for Emerging
Alleviated Imbalance Charge
【Conventional Scheme】
Supply shortage
・DC+EC
(Over 2h: high penalty)
３％
・EC
(Under 2h)
【Proposed Scheme】
Supply shortage
・EC
(high penalty)
10％
３％
・EC
０％
Second imbalance level ・DC+EC
(Proposed)
Selectable
First imbalance level ・EC
０％
・EC
・EC
▲３％
▲３％
・Free of compensation
▲10％
Supply surplus
・EC
(lower than EC under 3%)
・Free of compensation
Supply surplus
26
４．Challenges for Emerging Electricity Market
27
1. Overview of Electric
2. Background of Liberal
3. Market Design
4. Challenges for Emerging Market
Clarify Aims of Liberalization
To lower electricity rate for all end-users.
Not only to diverse business chances for newcomers.
Average electricity
rate of TEPCO
Electricity rate has been decreasing on
and on since opening market.
100
△3.1
%
△5.4
%
IPP
bidding
‘96
△18.3%
△4.2
%
△7.0%
Retail
competition
‘98
‘00
‘02
Fruits of
Liberalization
28
1. Overview of Electric
2. Background of Liberal
3. Market Design
4. Challenges for Emerging Market
Need for Transmission Investment
Transmission investment is necessary to avoid Blackout.
What incentive is necessary for transmission reinforcement?
140
Normalized Transmission Circuit Miles
130
Japan
Japan 122.6
Germany
120
PJM
California
California 107.1
110
PJM 106.1
100
Germany 100.2
90
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
29
1. Overview of Electric
2. Background of Liberal
3. Market Design
4. Challenges for Emerging Market
Nuclear Power Promotion v.s. Liberalization
Problems of Nuke under
liberalization
Risk of cost recovery
Risk of stranded cost
Risk of uncertain back-end
project
Necessity of nuclear generation
Trade-off
Energy security in poor
natural resource country
Mitigate global warming due
to CO2 emission
Homework of
Ministry by 2004
How to coordinate antimony in market design?
Who shall pay back-end cost?
Who is responsible for nuclear power promotion?
30
1. Overview of Electric
2. Background of Liberal
3. Market Design
4. Challenges for Emerging Market
Proposal for Emerging Market
- Japanese way of liberalization Inherent energy situation
－Low energy self-sufficiency rate
－Steep daily load curve
－Long lead-time of facility construction
Specialty as market commodity
<Remember original GOAL!>
Customer’s Satisfaction
－Decrease electricity rate
－Keep energy security
& supply reliability
－Real-time balance, Incapable of storage
－Low elasticity of price
Slow but Steady!
Step by Step!
<START>
Opening electricity market
 Learn from examples
of failure
－California crisis
－Enron debacles
31
Thank you for your attention !
Junichi NAITO
Tokyo Electric Power Company, Inc.
[email protected]
32