Page 61 - European Energy Innovation - Winter 2015 publication
P. 61
Winter 2015 European Energy Innovation 61
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business model innovation.
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regional rules are needed to providing more stable investment and development incentives
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at the distribution level to all LQFHQWLYHV2QHH[DPSOHLVWKH innovation efforts across Europe
markets. recent launch of intraday cap are very heterogeneous. The
futures by EEX2. regulatory model for TSOs is
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innovation: The more RES we (in particular balancing power sector.
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UHVSRQVLYHDQGŴH[LEOH7KHUHIRUH potential lies with new actors
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needs adjustment and price negative prices at wholesale storage solutions. The TSO
signals need to be strengthened. levels. Subsidies for mature RES community thus needs to be
The updated market design must technologies should be phased SUHSDUHGIRUJDPHFKDQJHUVVXFK
reveal system costs and the value out or – if still necessary in the DVORZFRVWORFDOVWRUDJHDQGPXVW
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ŴH[LELOLW\DQGUHVLOLHQFH in a way that minimises the market the cooperation with these actors.
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market design to ensure power trading opportunities, which they funding mechanism to allow for
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DQGWRPRELOLVHHIIHFWLYHHQG H[LVWLQJUHJXODWRU\PRGHOO
consumers’ participation in INNOVATION IS
markets. Contact details:
81'(53,11,1*7+(0$5.(7
Scarcity pricing entails European Network of Transmission System
unconstrained price formation in %$6('(1(5*<75$16,7,21 Operators for Electricity
DOOPDUNHWWLPHIUDPHVGD\DKHDG The power system’s need for Avenue de Cortenbergh, 100
1000 Brussels, Belgium
LQWUDGD\DQGEDODQFLQJWRUHŴHFW ŴH[LELOLW\LVHQRUPRXVDQG Tel: +32 2 741 09 57
the real cost of electricity. In this another important way of making Email: michael.mieszczanski@entsoe.eu
FRQWH[WWKHUHIHUHQFHWRVXFKD Web: www.entsoe.eu
need in the joint declaration of WKHV\VWHPPRUHŴH[LEOHLVHQHUJ\
the Pentalateral Forum of 8 June storage. TSOs are neutral with
20151 is a positive sign. regard to the various energy
Since more frequent scarcity VWRUDJHWHFKQRORJLHV+RZHYHULW
SULFHVZLOOH[SRVHPDUNHW
VKRXOGEHQRWHGWKDWRQO\K\GUR
SDUWLFLSDQWVWRQHZƓQDQFLDO pumped storage is competitive
risks, this will trigger the market enough in the present market
environment and that the current
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in Europe is limited. The role of
innovative storage solutions, such
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potential that need to be realised.
1. Joint Decleration for Regional Cooperation on Security of Electricity Supply in the Framework of the IEM
2. KWWSVZZZHH[FRPHQDERXWQHZVURRPQHZVGHWDLOHH[WUDGLQJRIFDSIXWXUHVWREHJLQRQVHSWHPEHU
www.europeanenergyinnovation.eu
(1(5*<75$16,7,21
(distribution system operators) to develop corresponding Innovation is an important
have already launched joint enabler of the energy transition.
initiatives for closer cooperation ULVNKHGJLQJSURGXFWV7KHVH Innovation comprises more
in relevant areas such as data products will allow market than just technology; it also
PDQDJHPHQW+RZHYHUZHGR participants to mitigate their encompasses both process and
business model innovation.
EHOLHYHWKDW(XURSHZLGHRU ƓQDQFLDOULVNVZKLOHDOVR +RZHYHUGXHWRDODFNRIUHVHDUFK
regional rules are needed to providing more stable investment and development incentives
IDFLOLWDWHDFFHVVWRŴH[LEOHVRXUFHV for TSOs in several countries,
at the distribution level to all LQFHQWLYHV2QHH[DPSOHLVWKH innovation efforts across Europe
markets. recent launch of intraday cap are very heterogeneous. The
futures by EEX2. regulatory model for TSOs is
$)8785(3522)0$5.(7 based on national oversight to
Likewise, the market needs HQVXUHFRVWHIIHFWLYHGHOLYHU\
'(6,*10867%(%$6('21 adjustment to move renewables for local consumers. This poses
challenges for fostering the
()),&,(1735,&(6,*1$/6 RQWRDOHYHOSOD\LQJƓHOGZLWK required participation of TSOs in
Renewables drive innovation, other technologies and let them the innovation to underpin the
and renewables necessitate bear the same responsibilities ODUJHVFDOHWUDQVIRUPDWLRQRIWKH
innovation: The more RES we (in particular balancing power sector.
have in the system, the more the responsibility) as other market
system has to be sophisticated, participants. They also have to /LNHZLVHDVLJQLƓFDQWLQQRYDWLRQ
UHVSRQVLYHDQGŴH[LEOH7KHUHIRUH potential lies with new actors
empowering consumers alone EHH[SRVHGWRSULFHVLJQDOV from the ICT sector, independent
ZLOOQRWVXIƓFH7KHPDUNHWGHVLJQ in particular when we see aggregators, ‘prosumers’ and
needs adjustment and price negative prices at wholesale storage solutions. The TSO
signals need to be strengthened. levels. Subsidies for mature RES community thus needs to be
The updated market design must technologies should be phased SUHSDUHGIRUJDPHFKDQJHUVVXFK
reveal system costs and the value out or – if still necessary in the DVORZFRVWORFDOVWRUDJHDQGPXVW
of services delivering adequacy, future – they should be designed EHSUHSDUHGDQGDEOHWRGHƓQH
ŴH[LELOLW\DQGUHVLOLHQFH in a way that minimises the market the cooperation with these actors.
and operational impacts and be
We therefore believe that scarcity While learning and knowledge
prices—wholesale price spikes VXIƓFLHQWO\FRRUGLQDWHGDFURVV can be achieved and shared
UHŴHFWLQJWHPSRUDU\VFDUFLW\ Europe to support trading or IURPORFDOWRSDQ(XURSHDQOHYHO
situations (e.g., periods of low participation across borders. LWLVQHFHVVDU\WKDWDVSHFLƓF
wind or solar and high demand)— To move in this direction, SDQ(XURSHDQSRZHUV\VWHP
are central to enabling the future renewables have to get better innovation is enabled. The
market design to ensure power trading opportunities, which they funding mechanism to allow for
system adequacy and resilience, currently lack in some markets. this evolution challenges the
DQGWRPRELOLVHHIIHFWLYHHQG H[LVWLQJUHJXODWRU\PRGHOO
consumers’ participation in INNOVATION IS
markets. Contact details:
81'(53,11,1*7+(0$5.(7
Scarcity pricing entails European Network of Transmission System
unconstrained price formation in %$6('(1(5*<75$16,7,21 Operators for Electricity
DOOPDUNHWWLPHIUDPHVGD\DKHDG The power system’s need for Avenue de Cortenbergh, 100
1000 Brussels, Belgium
LQWUDGD\DQGEDODQFLQJWRUHŴHFW ŴH[LELOLW\LVHQRUPRXVDQG Tel: +32 2 741 09 57
the real cost of electricity. In this another important way of making Email: michael.mieszczanski@entsoe.eu
FRQWH[WWKHUHIHUHQFHWRVXFKD Web: www.entsoe.eu
need in the joint declaration of WKHV\VWHPPRUHŴH[LEOHLVHQHUJ\
the Pentalateral Forum of 8 June storage. TSOs are neutral with
20151 is a positive sign. regard to the various energy
Since more frequent scarcity VWRUDJHWHFKQRORJLHV+RZHYHULW
SULFHVZLOOH[SRVHPDUNHW
VKRXOGEHQRWHGWKDWRQO\K\GUR
SDUWLFLSDQWVWRQHZƓQDQFLDO pumped storage is competitive
risks, this will trigger the market enough in the present market
environment and that the current
K\GURSXPSHGVWRUDJHFDSDELOLW\
in Europe is limited. The role of
innovative storage solutions, such
DVSRZHUWRJDVRUVPDOOVFDOH
VWRUDJHKDYHJDPHFKDQJLQJ
potential that need to be realised.
1. Joint Decleration for Regional Cooperation on Security of Electricity Supply in the Framework of the IEM
2. KWWSVZZZHH[FRPHQDERXWQHZVURRPQHZVGHWDLOHH[WUDGLQJRIFDSIXWXUHVWREHJLQRQVHSWHPEHU
www.europeanenergyinnovation.eu
