thomas van maele, partner corporate finance, econopolis (market structure and regulation)

www.econopolis.be

Vlerick MFMMeet the Industry ʻElectricityʼ

7 March 2012

Traditional electricity supply chain

2

Traditional electricity supply chain

3

TransmissionFuel Generation Distribution End Consumer

INTEGRATED UTILITY

Market Liberalisation

4

Transmission

Fuel

Generation Distribution

End Consumer

UTILITY

UTILITY

Supply (front- & back-office)

Trading platform

1. Unbundling

4. 20-20-20 targets3. Competition in production & supply2. Power trading

20-20-20 targets

5

Transmission

Fuel

Generation Distribution

End Consumer

Supply (front- & back-office)

Trading platform

- 20% of electricity to be generated from renewable sources

- 20% reduction in primary energy use by improving energy efficiency

- A reduction in EU greenhouse gas emissions of 20% below 1990 levels

Renewable targets lead to incentive policies

6Source: greenrhinoenergy.com

Different schemes per member state• Investment grants• Certificate schemes

• Feed-in schemes• Tax incentives

• etc.

More focus on energy efficiency is needed

7Source: OECD / IEA 2011

450 Scenario: A target of 450 parts per million (ppm) CO2 in the atmosphere is widely regarded as synonymous with keeping mean global temperature by 2100 to no more than 2°C above pre-industrial levels.

20-20-20 has changed the electricity landscape

8

Balancing service

(Renewable)Fuel

(Intermittent)Generation

Smart(er) grids

Producer - Consumer

Supply (front- & back-office)

Trading platform

Energyconsultancy

Smarter electricity supply chain

9

Whatʼs next?

10

iCloud vs eCloud

11

Content production

iCloud

Content consumption

New role for Apple• Providing platform• Managing content storage

• Quality control• IT-Consultancy

• etc.

Internet

New role for internet operators• Connection security• Certainty of client access

• Maintenance of network• etc.

iCloud vs eCloud

12

Electricity production

EnergyStorage

ʻeCloudʼ

Electricity consumption

Smart Grid

New role for incumbents• Providing electricity platform• Electricity storage

• Power Quality control• Energy Consultancy

• etc.

New role for grid operators• Balancing offer & demand • Consumer protection

• O&M of grid

THANK YOU!

13

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Tel. 03 / 3 666 555Fax 03 / 3 666 466

info@econopolis.be

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