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ELECTRICITY GENERATION OR:HOW TO MARRY CONTRADICTIONS WITH         INEFFICIENCIES ?           Vlerick Finance Alumni7th of...
1. THE CONTRADICTIONS• electricity generators are supposed to be managers of  contradictions;• contradiction n° 1: the log...
2. THE INEFFICIENCIES• electricity generators are supposed to be managers of  inefficiencies;• inefficiency n° 1: combined...
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3. HOW TO MARRY BOTH?• by interference in supply AND demand;• with respect to supply:      combination of intermittent RES...
Chris De Groof, Director Strategy and Sustainable Development, Electrabel (Impact of energy sources on the competitive lan...
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Chris De Groof, Director Strategy and Sustainable Development, Electrabel (Impact of energy sources on the competitive landscape)

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Chris De Groof, Director Strategy and Sustainable Development, Electrabel (Impact of energy sources on the competitive landscape)

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  2. 2. ELECTRICITY GENERATION OR:HOW TO MARRY CONTRADICTIONS WITH INEFFICIENCIES ? Vlerick Finance Alumni7th of March 2012 C. De Groof 2
  3. 3. 1. THE CONTRADICTIONS• electricity generators are supposed to be managers of contradictions;• contradiction n° 1: the logic behind decisions, viz. environment versus competition (= price) versus security of supply … BUT this is unfortunately a FACT• contradiction n° 2: (cfr. financial crisis): the institutional aspect, viz.: EU versus member state versus, cfr. Belgium, regions at different speeds … BUT this is unfortunately a FACT 3
  4. 4. 2. THE INEFFICIENCIES• electricity generators are supposed to be managers of inefficiencies;• inefficiency n° 1: combined EU objective of less CO2 and more renewable energy sources (RES) … BUT this is unfortunately a FACT• inefficiency n° 2: unjustified burden sharing and failing consistent translation in national (or: regional) legislation … BUT this is unfortunately a FACT 4
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  6. 6. 3. HOW TO MARRY BOTH?• by interference in supply AND demand;• with respect to supply: combination of intermittent RES with adapted use of fossil fired plants; ceteris paribus: will inevitably lead to higher prices; “back to square 1”? i.e. back to regulation but more expensive than previous one ? no place for new nuclear; instead proceed during transition to life time extension;• with respect to demand: the myth of the smart meter / grid; no free lunch: expensive ticket! only a pragmatic and well reflected introduction is defendable; competition with “smart devices”. 6

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