Keynote speech by Oyvind Vessia, DG Energy, European

Making the market fit for
facilitating the integration of
renewables
Øyvind Vessia, European Commission, DG ENER, C1
CEPS - Thursday, 12th of November 2015, 14.00 – 17.00
Smart grids, intelligent markets, and flexibility
CHALLENGES
Energy
1) Efficient
markets for
dispatch
Energy
Making
the market
fit for RES fit
Making
the market
and renewables
together
Making the
market fit for RES
Integrating RES
into the market
New hedging tools
More coordinated approach to
support schemes at regional
level
Flexibility options
(including DSR)
RES selling into the market
Market rules compatible
with RES
Dispatch rules
Short term markets (ID,
BAL), bidding zones
Balance responsability
Old times:
Demand leads, supply
follows.
Integrating variable renewables requires
new thinking
Supply
Day-ahead-price (EUR/MWh)
Demand flexibility
Sector coupling (Heatpumps, EV)
Reduction of mustrun units &
feed-in of RE
Production (MW)
Demand
Supply
Modern times:
dynamic,
interactive,
flexible,
modern
dance.
2) Efficient
markets for
investment
Source: IEA
Impact of cost of capital on the levelised
cost of solar PV
Source: IEA, ETP 2015
Who takes the risk?
Source: IEA Energy Technology Perspectives 2014
.
.
.
.
.
.
.
Future market design legislative proposals?
Enhanced and more integrated intraday and balancing
markets with deployment of demand response.
Renewable support and operation more market based,
with interaction between national schemes.
Need to keep capital costs at a balanced level
Sorting out roles in distribution, supply and services,
imposing collection and access to data, discussion on
tariffs.
Capacity remuneration mechanism blueprint with
regional adequacy analysis and standard.
TSOs to cooperate more regionally, oversight by ACER.
More: power exchanges' governance, retail,
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Thank you for your attention
[email protected]
https://ec.europa.eu/energy
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Energy