IFIEC Energy Forum
22 November 2011
Electricity
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Contents
• Pricing mechanism
• Market integration
• Climate Policy and renewables
• Structural elements
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Pricing mechanisms
•
Efficient, liquid, competitive and transparent market platforms
•
Access to long term competitive contracts on normal market conditions
• Long term visibility of electricity prices
• Accelerate work on forward markets in Target Model
•
Day-ahead market is key
• All available capacity should be offered
• At marginal cost+
•
Intraday and balancing markets are “corrective” markets only
• On cross-border: no OTC
•
Capacity markets:
• Risk of paying the highest price for both capacity and electron
• Better ways to stimulate investments
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Market integration
• Necessary for effective competition AND better security of
supply
• Investments in additional grid capacity if it brings value to the
end customer (as long as it is economically justified)
• Make optimal use of existing capacities
• Target model:
• Coordinated flow-based capacity calculation
• Smaller bidding zones are OK, but price zones cannot
be reduced in size but rather increased!
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Climate Policy and Renewables
• ETS: compensation for exposed industries are essential as
long as no international commitment exists:
100% compensation
No decrease over time
• Integration of renewables
- impact on the market
- fuel cost – marginal pricing
- intermittence
- impact on grid (costs)
- impact of support schemes on overall electricity cost
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Structural elements
• Transparency
• IFIEC in principle welcomes additional transparency rules
(REMIT / MAD / fundamental power data / ...) but we oppose for
additional administrative or financial burdens for industry
• Consultation processes (ACER / Florence Forum / EC / ENTSO-E)
• IFIEC supports the consultation process and will contribute
with all its available resources
• Closed Distribution Systems
• IFIEC insists on workable solutions in EU member states
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Thank you for your attention
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