4 april 2012, sofia university "sts. cyril and methodius“ faculty of electrical engineering...
TRANSCRIPT
4 April 2012, Sofia
University "Sts. Cyril and Methodius“Faculty of Electrical Engineering and Information
Technology, Skopje
REGIONAL ELECTRICITY MARKET IN SEE
Are we ready?
Vienna Economic Talks – Sofia Meeting
Liberalisation of the Energy Market
Assoc. Prof. Vesna Borozan, PhD
EU – The 3rd Energy Package Promotion of the goal to reduce GHG emissions trough
series of measures, popularly named as “20-20-20 by 2020”
Technical precondition for fulfilment of this goal - high voltage Trans-European Super Grid to transmit amount of intermittent production of electricity from renewables
Backbone of the new energy policy is establishment of functioning integrated Internal Market for energy
The European electricity market design is not based on one single concept, but has rather evolved from different regional designs, all fulfilling the requirements of the energy acquis
To boost integration in a single market, EU is developing 7 Regional Markets for electricity
The Energy Community Energy Community Treaty signed in 2005, with
the main objectives: Short term - Create a single and stable
regulatory space coupled with a stable market framework attracting investment
Medium term - Integrated regional energy market that increases cross-border trade in energy, guarantees energy supply and takes into consideration climate and social aspects
Long term - The regional energy market should be fully integrated in the EU internal energy market
Status of development
Energy Community- The 8th Region
Source: Web-site of the Energy Community Secretariat
According to economic conditions/development:• LDC – Low Developed Countries (GDP 3000 )• MDC – Medium Developed Countries• HDC – High Developed Countries
Populatio
n [million]
GDP [€/per capita]
Electricity consumption
[kWh/per capita]
Installed GC[kW/per capita]
HDC 23.5 16000 5200 1.15MDC 41.0 6200 4000 1.0LDC 12.0 3000 2800 0.8SEE 76.5 8700 4180 1.0
Countries of the SEE and their specific indicators
Source: Prof. Kocho Angjushev, PhD,
EFT Group
Electricity balances- past trend, breakdown by countries -
Countries of the SEE – Electricity balances
Low utilization of hydro potentials (<45%) High proven reserves of lignite (over 23 000 million tons with
annual consumption of slightly more than 220 million tons) Natural gas supply (cost of gas and pipelines to be constructed) Nuclear option – not viable with existing technology and funds
Energy potentials in the Region
15.3 GW of new TPP: 12.1 GW due to increase in demand 3.2 GW due to decommissioning
3 GW of new HPP 1.4 GW of new RES
Generation investment needs
Actual technical
import limit
Electricity balances forecast
Source: Prof. Kocho Angjushev, PhD, EFT Group
Regional Electricity Market Study Study on the “Integration of South East Europe
into the Internal Market for electricity under the specific aspect of the TSO’s role”, July 2011, contracted by SECI, Vienna Office
Study objectives: Addressing the urgent request to clear the
way for development of SEE Regional wholesale market for electricity
Giving an overview about the actual status and providing essential findings and advises
Identifying the main road blockers concerning the technical means of the TSOs’ functions under market conditions
Summary - current state of play Formal transposition of the ECT acquis in the national
legislations without effective implementation measures
Declarative market opening which satisfies legal obligations under the ECT, but in practice minimising the exposure of the customers and the state owned utilities to market conditions
Low economic prospects of the jurisdictions resulting in keeping non cost-reflective tariffs
Resistance to regional initiatives (political conditions and struggle for regional leadership)
Opening of the SEE regional market can only happen through a bottom-up development of the local markets and their phased coupling
Proposed measures Legal and regulatory requirements Technical and organisational preconditions for
access of competition to the customers Socio-economic and political measures -
besides cost-reflective tariffs, as a basic measure, it would be very helpful to establish :
Removal of price distortions Effective social schemes for vulnerable
customers EU incentive measures Eased access to the EU funds Human capacity building
A Way Forward Unbundling and transposition of
the second package on energy Implementation of regulatory and
other measures to achieve fair competition in electricity supply
Urgent need for investments in energy efficiency and new capacities
Phased coupling of local markets
Main challenges still ahead – to be managed only by regional coordination of resources!
Thank you for your attention!
Assoc. Prof. Vesna Borozan, PhDFaculty of Electrical Engineering and Information Technology
University "Sts. Cyril and Methodius", Skopje