SLIDE 1
WELL-FUNCTIONING SHORT- TERM MARKETS
Seminar at NVE, 21 June 2019 Marte Lind, Statkraft
2
TERM MARKETS Seminar at NVE, 21 June 2019 Marte Lind, Statkraft 2 - - PowerPoint PPT Presentation
TERM MARKETS Seminar at NVE, 21 June 2019 Marte Lind, Statkraft 2 - - PowerPoint PPT Presentation
WELL-FUNCTIONING SHORT- TERM MARKETS Seminar at NVE, 21 June 2019 Marte Lind, Statkraft 2 Direct marketing of renewables by Statkraft currently 12.3 GW (mainly wind) all remote controlled 3 Deviations from Day-ahead forecasts are traded at
SLIDE 2
SLIDE 3
Direct marketing of renewables by Statkraft
currently 12.3 GW (mainly wind) all remote controlled
3
SLIDE 4
Deviations from Day-ahead forecasts are traded at the short-term markets
4 Source: Statkraft Portfolio Thursday 17.05.2018
Higher generation must be sold …
…. a lower price ….at a lower price
SLIDE 5
Deviations from Day-ahead forecasts are traded at the short-term markets
5 Source: Statkraft Portfolio Thursday 14.05.2018
Last forecast came too late to be traded
SLIDE 6
6 Source: Statkraft Portfolio Thursday 14.05.2018
Last forecast came too late to be traded
Remaining imbalance settled at imbalance price
Deviations from Day-ahead forecasts are traded at the short-term markets
SLIDE 7
7 Source: Statkraft Portfolio Thursday 14.05.2018
… which can be very high
SLIDE 8
Intraday price developments: Highest volumes and volatility close to delivery 30 April 2017 (long weekend, negative prices)
8
Data: EPEX
SLIDE 9
9
SLIDE 10
Reservation of XB capacity for intraday trading – a driver for increased intraday liquidity?
10
Source: NordPool
The gain is not high enough Market participants will arbitrage
between day-ahead and intraday and use the possibilities efficiently, without capacity being reserved for intraday
No rationale for reserving capacity for
XB intraday trading, as long as arbitrage between segments and price areas is accepted.
SLIDE 11
The obligation to be balanced at the day-ahead stage hinders free arbitrage and reduces efficiency
11
… …
SLIDE 12
REMIT does not require nomination in a specific time frame
12
FOS § 8 REMIT
SLIDE 13
How can we ensure well-functionning markets with the increasing share of renewables?
Harmonize the interpretation of REMIT Re-calculate capacity and allocate it as early as possible Harmonize products and gate closure times
Consider adjusting FOS § 8 to allow for arbitrage between segments.
- It would increase market efficiency
- reservation of XB capacity for the intraday market would be
unnecessary
13
SLIDE 14
www.statkraft.com
THANK YOU
14