apex 2003 conference cartagena de indias – colombia 14th – 15th october 2003 markets evolution...
TRANSCRIPT
APEX 2003 CONFERENCE
Cartagena de Indias – Colombia
14th – 15th October 2003
MARKETS EVOLUTION (I)
“MARKET EVOLUTION AND ALTERNATIVES FORESEEN FOR THE SPANISH MARKET”
Mª Luisa Huidobro
President and CEO of OMEL
CONTENTS
1. RECENT EVOLUTION OF THE SPANISH MARKET.
2. FACING A GROWING NUMBER OF PARTICIPANTS.
3. NEW SESSION OF THE INTRADAY MARKET AND SOLUTION OF DOMESTIC CONGESTIONS.
4. FORWARDS.
5. NEW EUROPEAN REGULATIONS AND DEVELOPMENT OF THE MARKETS.
Increasing commercial capacity in the interconectors.
Coordinated market coupling.
Certification of green energy and energy free from CO2 by power exchanges.
6. THE IBERIAN MARKET DEVELOPMENTS.
7. DEMAND SIDE MANAGEMENT AND DEREGULATION.
THE SPANISH ELECTRICITY MARKET
OMEL´s market offers to the participants the opportunity for trading electricity in seven sessions comprising the main session of the daily market, and the six subsequent sessions of the intraday or adjustment market covering the 24 hours of each day.
Settlements, collections and payments refer to the final energy prices, due to supplies and productions carried out, are the result of transactions in:
● The daily and intraday markets.● Capacity payment.● Technical operating processes of the system.● Meter readings.
OMEL provides market participants with a monthly invoicing service for the electricity purchased and sold on the market, with the important advantage of a single bill for energy and ancillary services corresponding to their participation in the markets and in the system technical processes.
The possibility for all consumers and producers to access the organized market, with simple schemes for participation and invoicing, constitutes an important factor regarding the integration of wholesale and retail transactions
SE30JN8/
ANCILLIARY SERVICESViable Daily
Schedule
Matching Result
Final Hourly Schedule
Operative Hourly Schedule
TECHNICAL CONSTRAINTS SOLUTION
Domestic Bilateral Contracts
OTHER TECHNICAL MANAGEMENT PROCESSES
MARKET SEQUENCE
Base Operating Schedule
DAILY MARKET
+International
Bilateral
Contracts
6 INTRADAY MARKETS
MARKET OPERATOR SYSTEM OPERATOR
1. RECENT EVOLUTION OF THE SPANISH MARKET.
Daily market started operations on January 1998. Intraday market started operations in April 1998.
Settlements of all markets and processes started on January 1998.
Economic volume traded in 2002: 9,250 million euros.
Energy traded: 208,000 GWh.
3,900,000 transactions where done last year.
94 companies act as purchasing agents on the market, 11 of them are external agents and 74 are independent resellers.
63 companies act as producers, 11 of them are external agents.
Domestic technical constraints are very reduced (around 3% of the daily energy).
The market price is a reference for many commercial transactions.
MAIN FIGURES OF THE SPANISH MARKET
MARKET AGENTS
CANTABRICO IBERDROLAELCOGAS ENDESAUNION FENOSA
CANTABRICOENDESAIBERDROLAUNION FENOSA
CANTABRICOENDESA ENERGIAENRONIBERDROLASKSUNION FENOSA
ONE (Marruecos)ELECTRABEL (Bélgica)REN (Portugal)
CELSAGLOBAL STEEL WIRE
PRODUCERS
RETAILERS
EXTERNAL AGENTS
QUALIFIED CONSUMMERS
DISTRIBUTION
MARCH 1999
CANTABRICO IBERDROLA ENERGIA ELECTRICA DEL EBROELCOGAS ENDESA ELEC. CONQUENSE GENERACIÓNUNION FENOSA VIESGO GENERACION SIERRA SUR ENERGIASNIACE COGENERACION GAS NATURAL SDG STORA ENSOCOGENERACION PRAT SERVEIS AUX. SOT DE RUBIO DETISA
ECOCARBURANTES ESPAÑOLES ENERNOVA AYAMONTE COG. VILLARICOS
PUERTO REAL COGENERACION ENDESA CICLOS COMBINADOS ELECTRICA RIBERA EBRO
COGENERACION DEL SUR REPSOL PETROLEO CERANOR
REPSOL QUIMICA GENFIBRE AZULIBER
SAICA COGENERACIÓN DE NAVIA FORSEAN
COGENERACIÓN DEL NOROESTE BAHÍA DE BIZCAIA CELULOSA DE ENERGÍA Y ENCE
INEUROPA, FMC y U.F. EN. ESPECIALES SOLAL COGENERACIÓN A. I. E. FORANETO S.L.
ENERGÉTICA DE ROSELLÓ A.I.E. FUERZAS ELÉCTRICAS DE NAVARRA S.A. TORTOSA ENERGÍA S.A.
ERCROS INDUSTRIAL S.A. RUBIERA S.A. G. ENERGIA DE GUARARRANQUE
ENERGIA TERMOELECTRICA S.A. GARONA VERDA S.A. TRUCHAS DEL CINCA S.C.P.A.
COGENERADORA BURGALESA, S.L. GENERACIÓN MAZAGÓN S.A. FORESTAL DEL ATLÁNTICO
INDUSTRIAS DEL TABLERO UNIÓN DE EMPRESAS MADERERAS CAILA Y PARES
NUCLENOR
ENDESA DISTRIBUCION VIESGO 1 CANTABRICOENERGIAS DE ARAGON UNION FENOSAIBERDROLA SAN FRANCISCO DE ASISELEC. CONQUENSE DISTRIBUCION HIDROELECTRICA DEL GUADIELA
AGRI ENERGIA A. BARBASTRO BP AMOCO GASASTURALTER BASSOLS ENERGIA ELECTRA NORTE LERSA ELECTRA ENERGIA ENDESA ENERGIAELECTRABEL ESPAÑA ENBW ENERGIA ELECTRA DEL CARDENERFACTOR ENERGIA GAS NATURAL C. GAS NATURAL ELECTRICIDADESTABANELL Y PAHISA CANTABRICO ENERGIA H. DEL VALIRAGAS NATURAL SERVICIOS IBERDROLA NAVARRO GENERACIONHISPAELEC ENERGIA SALTEA COMERCIAL SEMPRA ENERGYRWE TRAIDING U. FENOSA GENERACION U. FENOSA MULTISERVICIOSSHELL ESPAÑA ELECTRICA DE CADIZ H. DEL CABRERAADURIZ ENERGIA H. DE LARACHA NATURGASELECTRICA SOLLERENSE P. E. DEL CABRERA ENERGIA ELECTRICA DEL EBROUNION ELECTRO INDUSTRIAL ENERCO CUELLAR CE ENERGIANEXUS ENERGIA ELECTRA CALDENSE E. EOSA ENERGIAGLOBAL TRES ENERGÍA ANSELMO LEON ELEC. CONQUENSE COMERC.ELECTRICA VAQUER ELÉCTRICA SEROSENSE CEPSA GAS COMERCIALIZADORAEL PROGRESO ENERGIA ICASA SOREAVIESGO COMERCIALIZACIÓN EPRESA ENERGÍA CYD ENERGIACANTABRICO GENERACION ALTAIR ENTORNO DE NEGOCIO ELECTRICA CALLOSINA E. ALTO MIÑO COM. DE ENERGÍA FLUIDO ELEC. CAMPRODON II COMERCIALIZADORA DEL CEGAROMERO ABREU HERMANOS EGL ESPAÑA DETISAE-COGENIA CENTRICA ENERGIA VIESGO ENERGÍACANAL ENERGIA COMERCIALIZACION EDP ENERGÍA IBÉRICA S.A. ELYO GYMSA IBERICA
AARE-TESSIN (Suiza) ELECTRABEL (Bélgica) EDF (Francia)ENBW (Alemania) EDP (Portugal) ONE (Marruecos)REN (Portugal) ENEL (Italia) SONELGAZ (Argelia)EGL (Suiza) E.ON (Alemania)
PRAXAIR PRODUCCIÓN ESPAÑA EL YATE SOC. COOP. ANDALUZA DURANJAMONES PESON JUAN JOSÉ MARTÍNEZ LÓPEZ FUNDICIONES MIGUEL ROS
EXTERNAL AGENTS
QUALIFIED CONSUMMERS
DISTRIBUTION
SEPTEMBER 2003PRODUCERS
RETAILERS
PARTICIPACIÓN EN EL MERCADO DE INSTALACIONES MAYORES DE 50 MW INSCRITAS PREVIAMENTE EN EL RÉGIMEN ESPECIAL, E INSTALACIONES DE RÉGIMEN ESPECIAL
-200
0
200
400
600
800
1000
1200
1400
1600
10/0
9/20
0216
/09/
2002
22/0
9/20
0228
/09/
2002
05/1
0/20
0211
/10/
2002
17/1
0/20
0223
/10/
2002
29/1
0/20
0205
/11/
2002
11/1
1/20
0217
/11/
2002
23/1
1/20
0230
/11/
2002
06/1
2/20
0212
/12/
2002
18/1
2/20
0225
/12/
2002
31/1
2/20
0206
/01/
2003
12/0
1/20
0319
/01/
2003
25/0
1/20
0331
/01/
2003
06/0
2/20
0313
/02/
2003
19/0
2/20
0325
/02/
2003
03/0
3/20
0310
/03/
2003
16/0
3/20
0322
/03/
2003
28/0
3/20
0304
/04/
2003
10/0
4/20
0316
/04/
2003
23/0
4/20
0329
/04/
2003
05/0
5/20
0311
/05/
2003
18/0
5/20
0324
/05/
2003
30/0
5/20
0305
/06/
2003
12/0
6/20
0318
/06/
2003
24/0
6/20
0330
/06/
2003
07/0
7/20
0313
/07/
2003
19/0
7/20
0325
/07/
2003
01/0
8/20
0307
/08/
2003
13/0
8/20
0319
/08/
2003
26/0
8/20
0301
/09/
2003
07/0
9/20
0313
/09/
2003
DÍAS
EN
ER
GÍA
(M
Wh
)
-200
0
200
400
600
800
1000
1200
1400
1600
PO
TE
NC
IA (
MW
)
Mercado diario (con restricciones) Mercado intradiario Potencia instalada
POWER IS MORE THAN 50 MW AND POWER STATIONS UNDER THE SPECIAL REGIMEMARKET ENERGY OF POWER STATIONS UNDER THE SPECIAL REGIME WHOSE NOMINAL POWER IS MORE THAN 50 MW AND POWER STATIONS UNDER THE SPECIAL REGIME
0
250
500
750
1000
1250
1500
1750
2000
11
/01
/98
15
/03
/98
17
/05
/98
19
/07
/98
20
/09
/98
22
/11
/98
24
/01
/99
28
/03
/99
30
/05
/99
01
/08
/99
03
/10
/99
05
/12
/99
06
/02
/00
09
/04
/00
11
/06
/00
13
/08
/00
15
/10
/00
17
/12
/00
18
/02
/01
22
/04
/01
24
/06
/01
26
/08
/01
28
/10
/01
30
/12
/01
03
/03
/02
05
/05
/02
07
/07
/02
08
/09
/02
10
/11
/02
12
/01
/03
16
/03
/03
18
/05
/03
20
/07
/03
GWh/semana 01/01/1998 - 14/09/2003
Energía a precio libre (período): 255.253,8
GWh
Energía total adquirida (período)(*): 981.901,3 GWh
Energía a precio libre (última semana): 1.439,4 GWh (38,79 %)
Energía total adquirida (última semana): 3.710,6 GWh
* Excluído consumo de bombeo y autoproductores Diario Intradiario
1998 1999 1999 2000 2000 2001 2001 2002 2002 2003
PURCHASES BY RETAILERS, QUALIFIED CONSUMERS AND EXTERNAL AGENTS
INFORMATION ON THE ELECTRICITY MARKET RESULTS AND TRANSPARENCY
Information provided immediately after market sessions.● Results of the daily and intraday market.
● Aggregate demand and supply curves.
● Commercial capacities and international exchanges by border.
Information provided on a monthly basis.● Result of the energy schedules aggregated by participants.
● Generation capacity reserve.
Information provided with a delay of three months.● Bids submits by the participants in each of the daily and intraday
markets
Electronic mail: [email protected]
Public web site: http://www.omel.es
CHALLENGES FOR THE NEAR FUTURE
New production plants and new producers.
Development of forward supply in OMEL and other contracts appropriate for the good behaviour of the liberalisation process.
Efficient organisation regarding total supply deregulation in 2003.● Small consumer right to change supplier.
● Contract security.
Increase of commercial capacity through the international interconnections.
● New investments: new lines and reinforcement of the existing transmission equipment.
● Access to the commercial capacity avoiding discrimination an pancaking in the single European market (implicit auctions).
Iberian market.
2. FACING A GROWING NUMBER OF PARTICIPANTS.
FACING A GROWING NUMBER OF PARTICIPANTS: PRODUCERS
Ordinary regime producers.● 4,224.3 MW of gas combined cycle plants have recently incorporate to
the market.● During 2004 it is expected that 1,000 – 2,000 MW of additional capacity
will be incorporated to the market.
The new generation capacity is being installed by existing and new producers
Cogenerators.● During 2003, 30 new producers have become members of the market.● During 2004, it is expected new additional participants access the
market.
Wind producers.● Possible participation in the market.● Intraday markets and a correct and flexible deviation management are
imperative.
DAILY ENERGY by TECHNOLOGIESSEPTEMBER 2002 – AUGUST 2003
SPECIAL REGIME TO DISTRIBUTION SPECIAL REGIME TO MARKET
NUCLEAR IMPORTS
HYDRO COAL
COMBINED CYCLE FUEL-GAS
32%
2%
27%
15%
3%
14%
4% 3%
0
50
100
150
200
250
300
350
400
450
500
550
600
650
700
750
800
850
01/0
9/02
15/0
9/02
29/0
9/02
13/1
0/02
27/1
0/02
10/1
1/02
24/1
1/02
08/1
2/02
22/1
2/02
05/0
1/03
19/0
1/03
02/0
2/03
16/0
2/03
02/0
3/03
16/0
3/03
30/0
3/03
13/0
4/03
27/0
4/03
11/0
5/03
25/0
5/03
08/0
6/03
22/0
6/03
06/0
7/03
20/0
7/03
03/0
8/03
17/0
8/03
31/0
8/03
Fechas
EN
ER
GÍA
S (
GW
h)
FACING A GROWING NUMBER OF PARTICIPANTS: DEMAND SIDE OF THE MARKET
Retailers and traders.● Non resident companies.
● Medium side retailers.
● Consumers with more than one point of consumption or subsidiaries.
Consumers.● From first January 2003 all consumers are qualified in Spain.
● They can freely choose supplier .
● Remain in the regulated tariff
● Bilateral contract with a retailer
● Bilateral contract with a producers
● Participation in OMEL
Tariff for the use of the network can be paid to the distributor directly by the consumer or the retailer can pay for it in the name of the consumer
3. NEW SESSION OF THE INTRADAY MARKET AND SOLUTION OF DOMESTIC CONGESTIONS.
NEW SESSION OF THE INTRADAY MARKET AND SOLUTION OF DOMESTIC CONGESTIONS (I)
New proposal for solving technical constraints.● The system operator indicates the plants to be included/excluded
in the viable program wich will be paid at bid price.
● Daily market price do no change.
● The net countertrading is negotiated in a new intraday market.
New intraday market at 2 p.m.● All market agents can bid.
● S.O. designated plants will bid at instrumental price.
The countertrading price is the result of a market open to the supply and demand sides of the market.
NEW SESSION OF THE INTRADAY MARKET AND SOLUTION OF DOMESTIC CONGESTIONS (II)
Today's technical constraints solution
Countertrading in a new intraday market
c€/kWh
MWh
Energy removed Er,to solve contraints
Pof
Er
Energy assigned to solvecontraints Er, at bid price
Er
MarginalPrice
Demand
TECHNICAL CONTRAINTS
Production bids
Purchase bids
Matched Energy
Intradaymarginal
price
c€/kWh
MWh
SUPPLY AND DEM AND CURVES
Sale bids from the production unitsand sale bids for power acquired bydistributors, qualified consumers,retailers and external agents
Purchase bids from distributors,qualified consumers, and retailers,and purchase bids for powerpreviously sold by production units
4. FORWARDS.
ELECTRICITY FORWARD SUPPLY THROUGH THE SPANISH MARKET OPERATOR
Allows market participants, sellers and buyers, to hedge electricity price risk for a period of time.
It simplifies market access for small consumers that do not want to participate in the market every day.
For big consumers this another tool to manage price risk.
This forward supply possibilities provide forward price signals useful for buyer and sellers.
FORWARD SUPPLY (I)
Forward supply up to a maximum period of one year
Forward supply up to a minimum of one day
The net physical contracted energy has to be desegregated in physical units to be integrated on the spot market (same as bilateral transactions)
Energy contracted will be divided as the delivery period approaches
What is contracted in the forward supply is physical energy (same as the spot market)
FORWARD SUPPLY(II)
Forward supply market participants.● All current spot market participants, perhaps with the exception of
distribution companies (tariff retailers).
Bids will be presented to the market operator.
Technical requirements identical to the spot market.
Energy bidding unit same as in the spot market.
Energy blocks tradable● Base energy. All 24 hours of all days
● Working days peaks
Price formation● Continuos trading
● Successive auctions
Physical delivery of next day net (open) positions
FORWARD SUPPLY (III)
OMEL´S FORWARD PROTOTYPE (I)
OMEL´S FORWARD PROTOTYPE (II)
5. NEW EUROPEAN REGULATIONS AND DEVELOPMENT OF THE MARKETS.
Increasing commercial capacity in the interconectors.
Coordinated market coupling.
Certification of green energy and energy free from CO2 by power exchanges.
NEW EUROPEAN REGULATION
The Directive 2003/54/EC modifying Directive 96/92/EC on common rules for the internal market in electricity.
The Regulation 1228/2003 governing conditions for access to the network for cross-border exchanges in electricity.
The Decision 1229/2003/EC modifying 1254/96/EC that establishes a set of guidelines relating to trans-European energy sector networks.
NEW EUROPEAN REGULATION
The Decision 1229/2003/EC modifying 1254/96/EC that establishes a set of guidelines relating to trans-European energy sector networks.
“ The aim of the proposal is to foster the interconnection, interoperability and development of trans-European energy networks in order to achieve a 10% interconnection capacity between Member States. The Barcelona European Council (March 2002) highlighted this objective as a priority for the achievement of electricity interconnection at the latest by 2005 in order to foster the effective and quick operation of the internal energy market”.
INTERCONNECTION CAPACITY IN 2005
INTERCONNECTION WINTER COMMERCIAL CAPACITY (MW)
With France 3,000
With Portugal 1,200
With Morocco 900
Total 5,100
Source: Electricity and Gas planning
INCREASING COMMERCIAL CAPACITY IN THE INTERCONECTORS
Is reinforcement of the interconnection capacity the only ultimate way to improve utilisation or deal with congestion?
● Yes, although, as seen in the past years, the possibility of making a better use of the existing equipment and some small improvements of the network can help the problem, but the ultimate solution is the construction of new lines.
NEW EUROPEAN REGULATION
The Directive 2003/54/EC modifying Directive 96/92/EC on common rules for the internal market in electricity.
● Acceleration of the market deregulation calendar:
– 1 July 2004, all non-household customers may choose a supplier.
– 1 July 2007, all customers may choose a supplier.
● Independence of transport and distribution management activities
● Public service obligations.
● Demand management.
NEW EUROPEAN REGULATION
The Regulation 1228/2003 governing conditions for access to the network for cross-border exchanges in electricity.
The Commission, with the report issued by the Regulation Committee, may adopt decisions on:
● Amounts of compensation payable, which shall be paid on a regular basis, when due, and in accordance with the directives established by the regulation. Flows will correspond to those actually measured.
● Directives relating to the compensation mechanism, and its modification, including detailed information on the payment procedure.
● Directives relating to the allocation of available commercial capacity● It will ensure that the evolution of congestion management mechanism is compatible with the
objectives of the Internal market.
It establishes the terms and conditions that must be complied in order to establish interconnectors that, being exempt from the compliance with certain obligations contained in the Regulation and the Directive (tolls, access, etc.), foster competition in electricity supply:
● Allocation of income arising from the use of the interconnector.● Right to collect royalties for the us of the interconnector, which are different to regulated access
tariffs.● Exemption form the network access obligations established in Article 20.● Compliance with the established methodology and tariffs
THE IMPLEMENTATION OF A MARKET-BASED MECHANISM
The French and Spanish mechanisms to solve congestions in the border between France and Spain are different:
● France: first come first served rule applied prior to real time (partially considering counter flows)
● Spain: market splitting/auction in case of real congestion (considering all counter flows) on the daily and intraday markets
Considering the existence of liquid power exchanges in both sides of the border, would a market-coupling mechanism be appropriate and feasible?
● It is the only solution compatible with correct working of the internal market. The solution to be implemented has also to allow for the existence of physical bilateral contracts.
● This border is the perfect candidate for a pilot project of the method, since the commercial capacity determination is one of the easiest and there are liquid power exchanges at both sides of the border.
What are the necessary conditions to allow regulatory changes to take place, in Spain and in France? What steps would be needed to implement a market based-mechanism?
● At least from the Spanish side the changes are minimal and can be handled at a relative low legislation level.
POWER EXCHANGE COOPERATION PROCESS
UNIVERSAL AND PUBLIC SERVICE OBLIGATIONS ACCORDING TO PROPOSAL AMENDING DIRECTIVES
Member States shall ensure that electricity suppliers specify in the bills and in all advertising and promotional materials made available to final customers:
●The percentage contribution of each energy source to the commercial fuel mix for the electricity supplied.
●The overall fuel mix of the supplier over the preceding year;
●The relative importance of each energy source with respect to the production of greenhouse gases.
With respect to electricity obtained via an electricity exchange, the aggregate figures provided by the exchange over the preceding year may be used.
6. THE IBERIAN MARKET DEVELOPMENTS.
ADVANTAGES OF THE IBERIAN MARKET
Opportunities for market agents
● Only the differences in Regulation and the scarce interconnection capacity justify segmenting the markets
● Global market
● Prices formed in a better way
● Substantial increment in the commercial transactions
Development of an organized market
● It is convenient to organize a market that allows the participation of all sizes of agents in the same conditions of transparency and objectivity
● The current characteristics of the market that OMEL runs today allows it, with the necessary harmonization changes, to be identified as a solution for the Iberian market
● The addition of forward physical contracting possibilities in the organized market will increase it’s efficiency
CONVERGENCE HYPOTHESIS
Market opening
● Approximation between real and theoretical opening of the markets
● Scheduled day for total consumption liberalization
Commercial capacity increase
● With the existing interconnections● New interconnections already in the
building process
Liberalization rules
● Capacity to access the production and retailing activities in equivalent conditions in both countries
● Independence of the liberalized economic manager of the electric system (Market Operator) from the system Operator
Stranded cost solution and CAES
Some progress in Portuguese regulation regarding deregulation retailing activities and CAES
INTEGRATED MARKET PRINCIPLES
The development of an integrated market could be structured in the following way:
● Deeper technical coordination of the system Operation of the two systems closer to being managed as a single system, preserving each system operator responsibilities over it’s own network security
● Freedom of all agents to access the market, together with the freedom to sign bilateral contracts
TECHNICAL ISSUES TO CONSIDER FACING ORGANIZED MARKET
Forwards: physical delivery and cash delivery.
Congestion in the border and market splitting.
Influence of the harmonization.
● Ancillary services● Capacity payment● Tariffs for the use of the network● CAE´s and bilateral contracts.
Steps for markets integration.
7. DEMAND SIDE MANAGEMENT AND DEREGULATION.
DEMAND SIDE MANAGEMENT?
Objective:
Consumption decrease in pick hours.
Increase of consumption in valley hours
Consequences:
Reduction of the demand for capacity
Bigger supplies of generation capacity in pick hours
Production cost decreases
Price decreases
Environmental protection advantages
-
+
t
E
RELATIONS BETWEEN MARKET PRICES AND ENERGIES
0
2
4
6
8
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
HORAS
cEur/kWh
0
5.000
10.000
15.000
20.000
25.000
30.000
MWh
Precios marginales
DEMANDA + BOMBEO
30/07/02
6.436 MW (32,5%)
3,236 c€ (120%)
0
2
4
6
8
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
HORAS
cEur/kWh
0
5.000
10.000
15.000
20.000
25.000
30.000
MWh
Precios marginales
DEMANDA + BOMBEO
30/07/02
6.436 MW (32,5%)
3,236 c€ (120%)
0
2
4
6
8
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24HORAS
cEur/kWh
0
5.000
10.000
15.000
20.000
25.000
30.000
MW h
Precios marginales
DEMANDA + BOMBEO
07/10/02
8.436 MW (50,9%)
4,533 c€ (258,0%)
0
2
4
6
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
HORAS
cEur/kWh
0
5.000
10.000
15.000
20.000
25.000
30.000
MWh
Precios marginales
DEMANDA + BOMBEO
06/01/03
3,700 c€ (1245,79%)
7.648 MW (48,29%)
0
2
4
6
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
HORAS
cEur/kWh
0
5.000
10.000
15.000
20.000
25.000
30.000
MWh
Precios marginales
DEMANDA + BOMBEO
06/01/03
3,700 c€ (1245,79%)
7.648 MW (48,29%)
0
2
4
6
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
HORAS
cEur/kWh
0
5.000
10.000
15.000
20.000
25.000
30.000
MWh
Precios marginales
DEMANDA + BOMBEO
14/01/03
3,473 c€ (545,2%)
8.640 MW (40,4%)
0
2
4
6
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
HORAS
cEur/kWh
0
5.000
10.000
15.000
20.000
25.000
30.000
MWh
Precios marginales
DEMANDA + BOMBEO
14/01/03
3,473 c€ (545,2%)
8.640 MW (40,4%)
0
2
4
6
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
HORAS
cEur/kWh
0
5.000
10.000
15.000
20.000
25.000
30.000
MWh
Precios marginales
DEMANDA + BOMBEO
28/08/02
5.508 MW (30,2%)
2,593 c€ (145,9%)
0
2
4
6
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
HORAS
cEur/kWh
0
5.000
10.000
15.000
20.000
25.000
30.000
MWh
Precios marginales
DEMANDA + BOMBEO
28/08/02
5.508 MW (30,2%)
2,593 c€ (145,9%)
RELATIONS BETWEEN MARKET PRICES AND ENERGIES
0
2
4
6
8
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
HORAS
cEur/kWh
0
5.000
10.000
15.000
20.000
25.000
30.000
MWh
Precios marginales
DEMANDA + BOMBEO
30/07/02
6.436 MW (32,5%)
3,236 c€ (120%)
0
2
4
6
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
HORAS
cEur/kWh
0
5.000
10.000
15.000
20.000
25.000
30.000
MWh
Precios marginales
DEMANDA + BOMBEO
28/08/02
5.508 MW (30,2%)
2,593 c€ (145,9%)
RELATIONS BETWEEN MARKET PRICES AND ENERGIES
0
2
4
6
8
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24HORAS
cEur/kWh
0
5.000
10.000
15.000
20.000
25.000
30.000
MWh
Precios marginales
DEMANDA + BOMBEO
07/10/02
8.436 MW (50,9%)
4,533 c€ (258,0%)
RELATIONS BETWEEN MARKET PRICES AND ENERGIES
0
2
4
6
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
HORAS
cEur/kWh
0
5.000
10.000
15.000
20.000
25.000
30.000
MWh
Precios marginales
DEMANDA + BOMBEO
06/01/03
3,700 c€ (1245,79%)
7.648 MW (48,29%)
0
2
4
6
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
HORAS
cEur/kWh
0
5.000
10.000
15.000
20.000
25.000
30.000
MWh
Precios marginales
DEMANDA + BOMBEO
06/01/03
3,700 c€ (1245,79%)
7.648 MW (48,29%)
RELATIONS BETWEEN MARKET PRICES AND ENERGIES
0
2
4
6
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
HORAS
cEur/kWh
0
5.000
10.000
15.000
20.000
25.000
30.000
MWh
Precios marginales
DEMANDA + BOMBEO
14/01/03
3,473 c€ (545,2%)
8.640 MW (40,4%)
0
2
4
6
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
HORAS
cEur/kWh
0
5.000
10.000
15.000
20.000
25.000
30.000
MWh
Precios marginales
DEMANDA + BOMBEO
14/01/03
3,473 c€ (545,2%)
8.640 MW (40,4%)
RELATIONS BETWEEN MARKET PRICES AND ENERGIES
TYPES OF DEMAND RESPONSE PROGRAMS (I)
Price based load management programs.
Consumers react to the electricity price signal. They move the consumption from the high price hours to the low price ones.
Mandatory curtailable Load Programs.
Consumers mandatorily reduce or interrupt their consumption when there is an emergency situation. For such service, they have a reduced price for electricity.
Voluntary curtailable Load Programs.
Consumers voluntarily reduce or interrupt their consumption when they receive a signal, normally, from the SO. For such service, they have a reduced price for electricity, normally higher than the former one.
TYPES OF DEMAND RESPONSE PROGRAMS (II)
Demand biding/ Buyback markets• Consumers present bids to the market operator or to their
corresponding retailers to reduce their consumption for a particular price. If the bid is assigned, the consumer must reduce its consumption and it is remunerated accordingly.
Direct Load Control Programs• The SO or the utility directly control the consumer power
supply. In case of emergency, they interrupt it. For such service, they have a reduced price for electricity.
BARRIERS TO IMPLEMENTATION OF DEMAND RESPONSE PROGRAMS
Communications Metering equipment Programs design Application procedures
INSTITUTIONAL BARRIERS
Regulatory risk. Lack of long term commitment which
hinders consumers decisions and necessary investments
Existing competitive tariffs independent of the particular consumption profile.
OBSTACLES
ROLE OF POWER EXCHANGES
Promotion of consumers participation in daily, intraday and ancillary services markets Where consumers may continuously present bids to modify their
consumption, being ready to reduce it in case of interesting prices.
Organization of Demand biding/ Buyback markets• Introduction of specific buyback markets where consumers may
present bids to reduce their consumption in case of need.
Provision of Real-time Pricing Signals • The MO provides continuous (ideally real-time) price signals.
Consumers connected to the MO system may automatically react in case of interesting prices.