Resource Adequacy & Cross-Border Capacity Remuneration Schemes: - - PowerPoint PPT Presentation

resource adequacy cross border capacity remuneration
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Resource Adequacy & Cross-Border Capacity Remuneration Schemes: - - PowerPoint PPT Presentation

Resource Adequacy & Cross-Border Capacity Remuneration Schemes: Options & Alternatives Introduction 30 May 2017 Michael Hogan Senior Advisor rue de la Science 23 Phone: +32 2-894-9300 The Regulatory Assistance Project web:


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Resource Adequacy & Cross-Border Capacity Remuneration Schemes: Options & Alternatives

Introduction 30 May 2017 Michael Hogan

Senior Advisor

Phone: +32 2-894-9300 web: www.raponline.org rue de la Science 23 B - 1040 Brussels Belgium The Regulatory Assistance Project

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Context – adequacy assessed

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ENTSO-e, 2016

LoLE < 1 hour LoLE > 1 hour (conservative assumptions) LoLE > 1 hour

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Context – capacity surplus

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Reliable capacity margin by region (with DR potential)

ENTSO-e, 2015

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Price effect of capacity rationalization

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EA Energy Analyses, for DONG (2016)

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Capacity markets experience

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ratio of actual to target reserve margins

North America Australia

2 4 6 8 SWIS NEM ISO-NE PJM NYISO ERCOT

avg annual new-build as % of 2014 peak

Strength

  • f FCM
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What kind matters - but not to a CRM

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Peak Mid-merit Baseload Peak Mid-merit Baseload Yesterday Tomorrow

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Energy market price formation

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Source: Hogan, M. “Hitting the Mark on Missing Money: ensuring reliability at least cost to consumers,” The Regulatory Assistance Project (2016)

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Energy market price formation

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Source: Hogan, M. “Hitting the Mark on Missing Money: ensuring reliability at least cost to consumers,” The Regulatory Assistance Project (2016)

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Energy market price formation

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Source: Hogan, M. “Hitting the Mark on Missing Money: ensuring reliability at least cost to consumers,” The Regulatory Assistance Project (2016)

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Administrative RA mechanisms

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Administrative RA mechanisms

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Administrative RA mechanisms

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…plus (perhaps) a transitional strategic reserve

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Energy prices in high-RES scenario

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Higher and more volatile…no price collapse

EA Energy Analyses, for DONG (2016)

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For more information…

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About RAP

The Regulatory Assistance Project (RAP) is a global, non-profit team of experts that focuses on the long-term economic and environmental sustainability of the power

  • sector. RAP has deep expertise in regulatory and market policies that:

§ Promote economic efficiency § Protect the environment § Ensure system reliability § Allocate system benefits fairly among all consumers Learn more about RAP at www.raponline.org

Michael Hogan mhogan@raponline.org +1 (603) 738 8652 (mobile)