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Topic of the Month


Electricity

Tim Schittekatte

Topic of the Month

13.11.2017

Assessing distribution network tariff design in a changing context

Written by Tim Schittekatte In this topic of the month, I argue that the ideal distribution network tariff does not exist. The most robust choice for […] read more

Electricity

Topic of the Month

30.10.2017

The case for locational pricing

Day-ahead markets in the EU include only a coarse, zonal representation of physical transmission constraints. Sometimes this arrangement is justified on the basis that, for […] read more

Electricityundefined

Topic of the Month

24.10.2017

Why doesn’t the EU co-optimize the procurement of ancillary services with energy?

Written by Ross Baldick The US and the EU have different approaches to the procurement of ancillary services (AS), in particular frequency regulation and contingency […] read more

Electricity

Topic of the Month

16.10.2017

Stitching seams with different threads: the EU experience

Written by Ross Baldick Due to the lack of large scale real-time markets, the evolution of the electricity industry in the EU is currently much […] read more

Electricity

Topic of the Month

9.10.2017

Stitching seams with different threads: the US experience

Written by Ross Baldick   Today, the majority of electric energy consumed in the US is served in so-called “organized” or “centralized” markets that are operated […] read more

Gas

Ilaria Conti

Topic of the Month

25.09.2017

The energy regulators’ dilemma: anticipate the future or risk lagging behind?

Written by Ilaria Conti While the EU Commission wonders where the EU Gas market design “is going” (with its “Quo vadis study”) and as we […] read more

Gas

Ilaria Conti

Topic of the Month

18.09.2017

The perspectives of gas utilities: which new skin will fit the “utility of the future”?

Written by Ilaria Conti Gas utilities are facing the double challenge – among others – of decarbonisation and digitalisation, which are the main disruptive elements to […] read more

Gas

Ilaria Conti

Topic of the Month

11.09.2017

Surviving without gas Long-term contracts: at which price? The ‘gas supply’ perspective

Written by Ilaria Conti As the European Commission’s « Quo Vadis ? » research project has recently highlighted, gas Long-Term Contracts (LTCs) in Europe are dying out. The […] read more

Electricityundefined

Pradyumna Bhagwat

Topic of the Month

31.07.2017

CRMs and Cross-border effects

written by Pradyumna Bhagwat In a highly interconnected system such as the continental European electricity system, there appears to be a concern that the uncoordinated implementation […] read more

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Vincent Rious

Schizophrenic opening of hydropower markets: who to blame?

- Renewables

Written by Vincent Rious

 Introducing markets into the European power system has always been challenging. When this involves hydropower, things get slippery. Of course, hydropower offers new opportunities to the system. It is a cheap local carbon-free energy source.

It can store electricity and provide flexibility to the power system and is all the more useful as the share of intermittent generation gets higher and higher. But it also brings new issues. It has an unneglectable impact on other water and land uses and as such forces us to consider the associated interest of local actors and decision-makers on water management. Hydropower is also challenging if not a nightmare (depending on your point of view) to include in market modelling, for instance for a market actors and policy makers to test performances of market designs, for TSOs to manage the system balance or for market actors to manage energy storage and formulate their market bids. Therefore, considering hydro in Europe is an interesting way to refresh the challenge of designing power markets.

The right to use hydropower can be attributed in different ways. It can be granted through a competitive procedure whereby competitors bid to obtain the rights to develop or operate the power plant for a fixed duration. Without a competitive procedure, a public authority simply grants the rights after a bilateral negotiation with the applicant.

Under the pressure of DG Competition and seemingly in order to boost competition in their whole power market, France, Spain and Italy grant or renew the right to use hydropower through a competitive process (or have planned to do it – sic). Great Britain does the same for licences granted after 2003. A competitive process for new power plants is only in place in Portugal and Switzerland. Norway, Sweden, Finland, Germany, Austria, Poland, Bulgaria and Greece have not implemented any competitive procedure. Obviously, the implementation of a competitive process to grant or renew the right to use hydropower provides opportunities for new entrants to access this resource and these national markets. Limited reciprocity might then limit the willingness of countries under pressure to open their hydro markets.

Revisiting power markets on water flows