CIGRE TF C5-2-1: Classification of Electricity Markets Worldwide

Classification of Electricity Markets Worldwide

Paul Giesbertz

KEMA Consulting, the NetherlandsOn behalf of CIGRE TF C5-02-01

CIGRE SymposiumBrasilia; 21-23 September 2003

Contents

• TF C5-02-01• Examples of classification

CIGRE TF C5-2-1: Classification of Electricity Markets Worldwide

TF C5-2-1 : members

• 9 members (4 Europe, 3 Asia, 1Australia, 1 Africa)

• Participation from Americas would be welcome

CIGRE TF C5-2-1: Classification of Electricity Markets Worldwide

CIGRE TF C5-2-1: Classification of Electricity Markets Worldwide

TF C5-2-1 : Schedule

• First meeting: September 2003• Submission of Questionnaire : December

2003• Collect & Analyse Answers: April 2004• Report - high level paper : August 2004

CIGRE TF C5-2-1: Classification of Electricity Markets Worldwide

TF C5-2-1 : scope

• Organisation and functioning of electricity markets: describe and classify

• No focus on industry structures (build on previous work e.g. of WG 37-32)

• Regulation of markets is excluded• All models (from Single Buyer to full retail

markets) are covered• Preference: markets in operation

CIGRE TF C5-2-1: Classification of Electricity Markets Worldwide

Examples of classification (1)• Size of market, period of operation• Market Model

– Mandatory Pool, Bilateral Contracts, Single Buyer, Balancing Market

– Energy Only , Capacity Markets– Financial Markets and Futures

• Dispatch of power plants– Central scheduling & central dispatch– Self scheduling & central dispatch– Self scheduling & self dispatch

CIGRE TF C5-2-1: Classification of Electricity Markets Worldwide

Two principal market models

Generator

DisCo / Consumer

Central Market

Bilateral contracts

Pool model:Central Dispatch of power

plants

Generator

DisCo / Consumer

Bilateral Trade Model:Self Dispatch of power plants

Bilateral contracts

PowerExchange

Examples of classification (2)

• Market Participants & Market Operator• Market Sessions (day ahead, hour ahead)• Offers & Bids (portfolio bidding, cost based)• Market Price calculation (market clearing, pay-as-

bid, price caps, single or nodal, firm or indicative)• congestion & ancillary services management will

be treated briefly

CIGRE TF C5-2-1: Classification of Electricity Markets Worldwide

Examples of classification (3)

• Advantages & Disadvantages / Successes & Failures– Prices and market volumes– Demand participation / response– Investment incentives

• Improvements realised and proposed

CIGRE TF C5-2-1: Classification of Electricity Markets Worldwide

Your comments & suggestions will be appreciated!

pgiesbertz@kemaconsulting.com

CIGRE TF C5-2-1: Classification of Electricity Markets Worldwide