capacity market europe

8/16/2019 capacity market europe

1/19

Fakultät für Wirtschaftswissenschaften, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst

www.ee2.biz

Interdependency betweenNational Capacity Markets anduropean ner!y "trate!ies

# Who$ Why$ What$

Samarth Kumar


2/19

TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !".#.#!$

Who a% I$

I n t e r e

s t

E d u c a t i

o n

B.Tech - MechanicalEngineering

ClimateChange

Computer

Science

MinorComputer Science

2 0 0 8

2 0 1 2

2 0 1 3

2 0 1

MSc !Energ" Technologies

Economics and

Energ" Mar#et

2 0 1 $

Techno-economicanal"sis %or &t' S"stem

&h(

*Not the philosophicaltype…


3/19

TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst $!".#.#!$

Interdependence between National CapacityMarket and uropean ner!y "trate!ies


4/19

TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst "!".#.#!$

&ri'in! force for capacity %echanis%

Germany France UK Spain Italy

)uclear &hase-out

'igh *ESdeplo"ment -+

lo, spot mar#etprices o%electrict" -+ lo,protailit" o%thermal andccgt plants

/rid Constraints

'ighl"temperature-dependentconsumption

-+ 'igh &ea#(emand

geing coal andnuclear po,erplants

imited

Interconnection

'igh *ESgro,th

Impact o% argeConsumption&lant (irectieC&(4 andindustrialEmissions(irectie IE(4

(emandincrease

'igh *ESgro,th

imitedinterconnection

o, protailit"%or CC/T

Internal 5onesand gridconstraints

'igh *ES

gro,th

'istoricall"6capacit" decit


5/19

TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst %!".#.#!$

(a closer look at )er%any

Germany

)uclear &hase-out



/rid Constraints


6/19

TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst &!".#.#!$

...a closer look at )er%any

G e r m a n y

d e c i d e

d a g a i n s t s e

t t i n g u

p

o f

C a p a c i t y

M a r k e t

.


7/19TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst '!".#.#!$

)rowin! Capacity Markets and Concerns

Source7 Capacit" Mechanisms. *eigniting Europes Energ" Mar#ets - in#laters


8/19TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst (!".#.#!$

Work *acka!es

9ear 1 9ear 2 9ear 3

1 2 3 : 1 2 3 : 1 2 3 :

AP1Collecting ational and !uropean !nergyPolicy

European Energ" Strategies - ect impact4

(ata sources -+ data collection

AP" ational factors in#uencing energy policy

)ational %actors -+ polic"

AP$Model %ased analysis of interdependencies and&armoni'ation


9/19TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst -!".#.#!$

,n!oin! -asksIdeas

• Timeline for oliciesdirecti/eslaws

• Policies 01 2esults

• 3ational 4actors 01 Policies

• 5/er/iew of a/aila6le Models and Modelling Methodologies

• Data Prearation


10/19TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !#!".#.#!$

-hanks for your +ttention(

/uestion&iscussion


11/19

TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !!!".#.#!$

7not so much if, 6ut when,7 8ies6ert9 said7:n a renewa6les s+stem, caacit+ will 6e scarce and energ+ otentiall+a6undant,7 said ;ndreas 2egnell head of strateg+ and sustaina6ilit+ atSwedish utilit+


12/19

TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !!".#.#!$

Why is it i%portant


13/19

TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !$!".#.#!$

Ne0t tasks(

•Understand Polic+ Mechanisms = EU and 3ational

• 4amiliari9e with Modelling aroaches

• 4amiliari9e with Data and Model resent at EE

• 4amiliari9e with other data sources

Mar#et (ata &olic"


14/19

TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !"!".#.#!$

What is the issue$

0 $ ? 2 0 0 @

(irectie 200@?28?EC7• Manditor" )ational Targets " 2020 %or EA

• 20 Share o% Energ" %rom *ene,ales• 10 Share o% Energ" in Transport %rom *ene,ales

Countr

y

S"--+. S"-"-.

/erman" .8 18

rance 10.3 23

AD 1.3 1

Ital" .2 1FShare o% energ" %rom rene,ale sources in gross nal consumption

Same %orall

countries


15/19

TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !%!".#.#!$

What is the issue$

0 $ ? 2 0 0 @

( i r e c t i e

2 0 0 @ ? 2 8 ? E C

0

10

1

20

2

Share o% Energ" %rom *ene,ale Sources

/erman"

rance

AD Ital"

EAShare in


16/19

TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !&!".#.#!$

What is dri'in! i%ple%entation of CapacityMechanis%$

Germany France UK Spain Italy

)uclear &hase-out



/rid Constraints

Electricalheating

'ighl"temperature-

dependentconsumption

-+ 'igh &ea#(emand

geing coal andnuclear po,erplants

imited

Interconnection

'igh *ESgro,th

Impact o% argeConsumption&lant (irectie

C&(4 andindustrialEmissions(irectie IE(4

(emandincrease

'igh *ESdeelopment

imitedinterconnection

o, protailit"%or CC/T

Internal 5onesand gridconstraints

'istoricall"6

capacit" decit

'igh *ESgro,th


17/19

TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !'!".#.#!$

What is the issue$

; closer loo> at german+?

0 $ ? 2 0

0 @

( i r e c t i e

2 0 0 @ ? 2 8 ? E

C 0 2 ? 2 0 1

E n e r g "

A n i o n


18/19

TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !(!".#.#!$

Capacity Mechanis%s

•

"trate!ic reser'es1;n indeendent agent @often TS5sA contracts or tenders with ea>ing units forreser/e caacit+

• Capacity *ay%ents1

4iBed or /aria6le a+ments are ro/ided to all or art of eligi6le caacit+

• Capacity +uctions1

*efore new caacit+ is reCuired, the TS5s launches an auction and selectssources to satisf+ the target margin a6o/e the ea> load demand

• Capacity ,bli!ations1

Each sulier has o6ligation to meet the anticiated load of its customers, lusa redefined securit+ margin

• eliability ,ptions1

4orward caacit+ otions @contracts for differenceA gi/e the holder the right to6e aid the difference 6etween the energ+ mar>et sot rice and aredetermined stri>e rice.


19/19

TU Dresden, Lehrstuhl für Energiewirtschaft, Prof. Dr. Möst !-!".#.#!$

Capacity Mechancis%s

Capacit"&a"ment

Strategic*esere

Capacit" Mar#ets

Capacit"

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