Restructuring Model and Competition in Electricity Markets
The evolution of the EU electricity market, from a simple linear model to one with wholesale and retail competition, has brought about significant changes. The introduction of competition has aimed at making the economy more cost-efficient and reducing prices. This transformation involves various aspects such as wholesale and retail competition, open access to the transmission grid, and the role of generators and consumers in energy sales.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
Opening your mind to market opening Rudi Hakvoort
LearningObjectives To be able to apply restructuring model for electricity markets To compare the roles of the wholesale market and retail market
EU Electricity Market Before 1998 After Simple, linear model in electricity market The European Commission introduces competition Transform the existing economy to be more cost efficient and have lower prices.
Wholesale competition Variety of contracts between generator and consumer Independent generators produce electricity which is freely traded Retail companies buy the demand needed to serve their customers
Wholesale competition Open access to transmission grid Independent generators produce electricity which is freely traded Retail companies buy the demand needed to serve their customers
Wholesale competition Generator Generator Generator Generator Generator Wholesale marketplace Wholesale marketplace Transmission wires Transmission wires Large customer Large customer Distribution Distribution Customer Customer Distcos and large industrial customers buy from competitive generators Energy sales
Retail competition Generator Generator Generator Generator Generator Wholesale Marketplace Transmission wires Distribution/ retailer Distribution/ retailer Retailer Retailer Retailer Retail Marketplace Distribution wires Customer Customer Customer Customer Customer Choice of supplier for all customers Energy sales Energy flows in same company
Retail competition Distribution depends on contracts Many contracts possible
Building an electricity market Competition Unbundling of the essential facility from competitive activities Independent regulator Unbundling of the essential facility from competitive activities Price liberalization Unbundling of the essential facility from competitive activities Non-discriminatory access to the networks at regulated tariffs Unbundling of the essential facility from competitive activities Unbundling of monopoly networks from competitive activities Unbundling of the essential facility from competitive activities Remove government price subsidies
