GCC Interconnection Authority 3rd Power Trade Forum

GCC Interconnection Authority
Interconnecting Our World
3rd Power Trade Forum
Beyond the GCC
Power Market
2015-2020
Initiating a GCC Power
Market
2010-2015
Establishing The
Interconnection
2005-2011
Platform
to facilitate
opportunities (EMMS)
power
trade
Workshops
and training to raise
awareness of the issues and benefits of
power trade.
Visits to policy makers to get their views
and support for power trade initiatives.
Policy
changes
trading through
(White paper).
to promote power
the Interconnector
Regional forums to address issues that relate
to promoting power trading.
1st Forum on Power Trade Dec 2010
Power Market initiation Road map
Needs driven
by limited
capacity
• Auctioning
• Grid Security
• Fine tune NTC
calculation
• Tarriff structure
YES
2
a
Interconnecter
congested ?
• Time-2-market focus
• Processes
• People nominations
and authorizations
• Simple tools
• Decide on NTC
NO
1
PETA process 1.0
« INCUBATION » or
« learn by doing »
• EMMS
• Automated
system
• Sophisticated
tarriff models
• …
3
2
b
• Automation
• Settlement
• Tarriff
structure
Shareholders +
Shareholders only
others (IPP, PP
Trading
etc)
partners
?
FULL MARKET
IMPLEMENTATION
Needs driven
by trading
parties
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
46000
308
0
0
2010
Unsceduled Exchanges
Traded Energy
0
2011
2012
2013
Absence of visibility and awareness of
electricity costs and the benefits that can be
achieved by power trading;
Energy price distortion due to varying levels of
subsidies in GCC countries;
Differences in national energy policies;
Differences in local regulations towards crossborder power trading;
Differences in national power sector structure;
Low number of market participants.
GCC MSs National Markets Status
Bahrain
Kuwait
Qatar
Saudi Arabia
UAE
Oman
Regulator
No
No
No
ECRA
Bureau
AER
Electricity Law
No
No
Yes
Yes
Yes
Yes
Transmission Grid
Code
No
No
Yes
Yes
Yes
Yes
Distribution Grid Code
No
No
Yes
Yes
Yes
Yes
Sector
Structure/reform
Single Buyer
Partially
unbundling exists
Vertically
Integrated
Single Buyer
Partially unbundling
exists
Principle Buyer
Partially unbundling
exists
Single Buyer
Partially
unbundling exists
Single Buyer
Partially
unbundling exists
Subsidies Issue
Yes
Yes
Yes
Yes
Yes
Yes
Authority to Trade
Yes
No
Yes
Need Permission
Yes
Yes
Not ready
Not ready
Need update from
QP
Need declaration
from Ministry of
Energy
As per request
They prices
based on
subsided fuel
GCCIA 5$
UAE
Summer = 34$
Winter = ? $
GCCIA = 5$
UAE
Summer = 34$
Winter = ? $
GCCIA = 5$
Not Declared
As per request
Price for Trade
Wheeling Charges
Power Offered
GCCIA 5$
GCCIA 5$
GCCIA 5$
As per request
Not Declared
Full line capacity
Price up on Time
and quantities
Not Ready
successfully used
for stability and
support in
around 1100
incidents
Not used for
economic gains
through
economical
trade of energy
Utilization Factor around
8%
Value of Economic Gains that can be
Attained through Economic Trading
Optimal Energy Exchanges between the Member States
through the GCC interconnection leads to a global
reduction of operation and maintenance costs. The
corresponding Present Value of the Energy Exchanges
Revenues is of 1.8 Billion US$.
Economic Energy Exchanges
require:
Coordination of
power production
between the
Member States
development of a
electricity market
Process through the
GCC interconnection
3200
KUW Demand
5000
4800
4000
3000
QAT Demand
2800
2600
2400
Time (Hrs)
1:00
2:00
3:00
4:00
5:00
6:00
7:00
8:00
9:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
0:00
5400
Demand (MW)
1400
5600
4400
4200
Time (Hrs)
4800
2200
3800
2000
3600
1:00
2:00
3:00
4:00
5:00
6:00
7:00
8:00
9:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
0:00
Demand (MW)
GCC Member
States Demand
During Winter
Time
1:00
2:00
3:00
4:00
5:00
6:00
7:00
8:00
9:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
0:00
3400
Demand (MW)
1:00
2:00
3:00
4:00
5:00
6:00
7:00
8:00
9:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
0:00
Demand (MW)
5200
1:00
2:00
3:00
4:00
5:00
6:00
7:00
8:00
9:00
10:4
11:4
12:4
13:4
14:4
15:4
16:4
17:4
18:4
19:4
20:4
21:4
22:4
23:4
0:00
Demand (MW)
11000
10500
KSA4
10000
9500
9000
8500
8000
1300
BA4
Time (Hrs)
1200
1100
1000
4600
900
800
5000
Time (Hrs)
UAE Demand
4600
4400
4200
4000
Variation in the Fuel Mix
and Price
Trading Opportunities
in Winter to buy energy
Below is the variation in the marginal cost of generation during the winter
time period for the member states.
UAE
QAT
15
Trading Opportunities
in Summer to buy energy
Shown below the variation in the marginal cost of generation during the
winter time period for the member states.
BAH
KSA
KUW
16
Comparison of Average
Marginal Costs
Economic Imports in a Peak
day of High Season
Shown below the estimated energy to be imported from the GCCIA grid
base on the marginal cost of generation during the winter time period
for the member states.
Economic Exports in a Peak
day of High Season
Shown below the estimated energy to be exported from the GCCIA grid
base on the marginal cost of generation during the winter time period
for the member states.
Exchange during the High Season
Phase I
Phase II
Phase III
Electricity Exchange Opportunity 2012-2030
Exchange
Consultant
Results • The Consultant has estimated the total theoretical
benefit of both countries from economic electricity
exchanges between Saudi Arabia and UAE-Abu
Dhabi during the period 2012-2030 of about
2,935 MUSD or 154.5 MUSD/yr. considering a
link utilization factor of 50% of NTC.
22
Electricity Exchange Opportunity 2012-2030
Exchange
Consultant
Results The Consultant has estimated the total theoretical
benefit of both countries from economic electricity
exchanges between Saudi Arabia and Bahrain during
the period 2012-2030 of about 2,024 MUSD or 106.5
MUSD/yr. considering a link utilization factor of 50% of
NTC.
23
Electricity Exchange Opportunity 2012-2030
Exchange
Consultant
Results The Consultant has estimated the total theoretical benefit of
both countries from economic electricity exchanges
between Saudi Arabia and Kuwait during the period 20122030 of about 720 MUSD or 37.9 MUSD/yr. considering a
link utilization factor of 50% of NTC.
24
Electricity Exchange Opportunity 2012-2030
Exchange
Consultant
Results
The Consultant has estimated the total theoretical
benefit of both countries from economic electricity
exchanges between Saudi Arabia and Qatar during the
period 2012-2030 of about 3,448 MUSD or 181.5
MUSD/yr. considering a link utilization factor of 50% of
NTC.
25
Study
• Make a feasibility Study for capturing Power Trading
opportunities between Member States
• Create a model where all MS’s agree to the proposed
model and price structure.
• Reflect outcome of the study and the proposed Market
model in the revision of the GA & PETA agreement.
• MS to make any necessary adjustment to harmonize the
GA & PETA
market model proposed with their internal regulations.
• All Member States and GCCIA shall work together to
Implement implement the proposed market model.
the market
model