TOWARDS THE INTERNAL
ENERGY MARKET IN 2014 – PANEUROPEAN VS. NORDIC

LARGE PRODUCER
PERSPECTIVE
Steinar Bysveen, EVP Statk...
Value of international trade

2
An efficient internal energy market in 2014…


EU's stated goal is to have an
efficient internal energy market in
2014, a...
…however some forces work in the other
direction




National renewable subsidy
schemes
Capacity mechanisms
- High RES +...
Example: Capacity mechanisms – EU vs National
UK: Developing auction model;
Detailed design proposal
published June 2013, ...
From Statkraft's perspective


There is considerable value in having a trans-national market with predictable
framework c...
THANK YOU
www.statkraft.com
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Steinar Bysveen - Towards the Internal Energy Market in 2014 - Pan-European vs. Nordic

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Presentation held at "Norges energidager 2013", an annual event in Oslo, Norway, hosted by The Norwegian Water Resources and Energy Directorate (NVE).

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Steinar Bysveen - Towards the Internal Energy Market in 2014 - Pan-European vs. Nordic

  1. 1. TOWARDS THE INTERNAL ENERGY MARKET IN 2014 – PANEUROPEAN VS. NORDIC LARGE PRODUCER PERSPECTIVE Steinar Bysveen, EVP Statkraft Energidagene 2013
  2. 2. Value of international trade 2
  3. 3. An efficient internal energy market in 2014…  EU's stated goal is to have an efficient internal energy market in 2014, and many initiatives have been taken - 3 "Electricity market directive" 1,2 & 3 Market Coupling Network codes Establishment of ACER/ENTSO-E Unbundling of TSOs Etc.
  4. 4. …however some forces work in the other direction   National renewable subsidy schemes Capacity mechanisms - High RES + flat demand + low CO2 leads to - A need to decommission existing thermal plant, but with consequential worries over security of supply ("Missing money")  National capacity remuneration mechanisms across Europe  Etc. 4 Capacity remuneration Renewable subsidies Unintended consequences (high coal burn, no investment signal from the wholesale market etc) leads to further intervention CO2 market Energy efficiency
  5. 5. Example: Capacity mechanisms – EU vs National UK: Developing auction model; Detailed design proposal published June 2013, first auction in 2014 EU calling for coordination: “If mechanisms are not well designed, set up prematurely or without proper coordination at EU level, they may be counterproductive.” IR: Capacity payments in place since 2005 NO, SE & FI: Strategic reserve (if security of supply is at stake) DE: “Stillegungsverbot” to be replaced by capacity market by end 2017 FR: Capacity obligation model decided and now being designed BE: Financial support for new CCGTs proposed IT: Capacity market to be implemented in 2017 ES: Capacity payments. 5
  6. 6. From Statkraft's perspective  There is considerable value in having a trans-national market with predictable framework conditions - Investor confidence gives efficient investment and competitive prices  Capacity markets are coming – and are needed in some markets - They must be market-wide, allowing for competition between all capacity providers. - Transmission interconnectors are the most cost-effective solution to safeguard reliability of supply, hence need to ensure that they are also incentivised  6 The EU ETS should be strengthened as the most efficient and effective way of furthering the de-carbonisation of Europe
  7. 7. THANK YOU www.statkraft.com

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