Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG

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S U S T E L N E T Policy and Regulatory Roadmaps for the Integration of Distributed Generation and the Development of Sustainable Electricity Networks Martin Scheepers ECN The Netherlands Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG

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S U S T E L N E T Policy and Regulatory Roadmaps for the Integration of Distributed Generation and the Development of Sustainable Electricity Networks Martin Scheepers ECN The Netherlands. Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG. Project Objective. - PowerPoint PPT Presentation

Transcript of Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG

Page 1: Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG

S U S T E L N E T

Policy and Regulatory Roadmaps for the Integration of Distributed Generation and the Development of

Sustainable Electricity Networks

Martin ScheepersECN

The Netherlands

Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG

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2 Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG

Development of regulatory road maps for the

transition to an electricity market and

network structure that creates a

level playing field between

centralised and decentralised generation.

Project Objective

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3 Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG

Project Partners and Organisation

The SUSTELNET project is carried out by a consortium of 10European research institutes:

The SUSTELNET project:• is running in from beginning 2002 to mid 2004 • has a research budget of € 1.7 million• is supported by the European Commission under the 5th RTD

Framework Programme

EU Member States:• ECN, The Netherlands (co-ordinator)• University of Warwick, UK• Öko-Institut, Germany• FEEM, Italy• Tech-Wise, Denmark• IZES, Germany

New Associated States:• Enviros, Czech Republic• KAPE, Poland• MAKK, Hungary• EGU, Slovakia

Other contributing organisations:• Eindhoven University, The Netherlands• Eltra, Denmark

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4 Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG

Analytical Phase (EU MS)

Participatory Regulatory Process Phase

WP 1: Dynamics of electricity EU systems

WP 2:Review electricity policyand regulation

WP 3:Technical aspects ofDG integration

WP 5:Policy and regulatory road maps

WP 4:Criteria for electricity policyand regulation

Benchmark study electricity policyand regulation

EU steeringcommittee

EU steeringcommittee

Regulators Forum

Regulators Forum

Regulators Forum

Utility Forum

Utility Forum

Utility Forum

Analytical Phase (NAS)WP 2:Review electricity policyand regulation

WP 3:Technical aspects ofDG integration

Analytical Phase (EU MS)

Participatory Regulatory Process Phase

WP 1: Dynamics of electricity EU systems

WP 2:Review electricity policyand regulation

WP 3:Technical aspects ofDG integration

WP 5:Policy and regulatory road maps

WP 4:Criteria for electricity policyand regulation

Benchmark study electricity policyand regulation

EU steeringcommittee

EU steeringcommittee

Regulators Forum

Regulators Forum

Regulators Forum

Utility Forum

Utility Forum

Utility Forum

Analytical Phase (NAS)WP 2:Review electricity policyand regulation

WP 3:Technical aspects ofDG integration

Project Structure

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5 Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG

The Policy Challenge

CHP EU electricity production (EU Energy Outlook 2020)

RES EU CO2 emissions (EU Energy Outlook 2020)

1995 2010 2020

0

500

1000

1500

2000

2500

3000

3500

4000

EU

ele

ctri

city

pro

du

ctio

n (

TW

h)

2000

2200

2400

2600

2800

3000

3200

3400

3600

EU

CO

2 em

issi

on

s (M

t)

ca.23%

ca.40%

RESRES

CHP

CHP

Kyoto target

GHG emissionsreduction from RESand CHP targets

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6 Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG

Institutional Changes

Liberalisation of electricity markets results in:• Introduction of market competition in electricity

generation• Unbundling of generation, network operations

and supply• Network regulation

Current regulation often do not consider regulation of distribution networks to ensure effective participation of RES and DG in liberated electricity markets.

In liberalised electricity market RES and DG are often:• not or insufficiently rewarded for their benefits • dependent on non-market based support schemes

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7 Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG

DG Economics

Cost price Regulatedfeed-in tariff

Commodityprice

Support (e.g. green certificates)• environmental benefits• sustainability goals• technology support

Market basedpricing

Compensationfor electricity

system benefits

Today

Cost price Market basedpricing

Future(2010-2020)

Support reduces• only for externalities

Electricitysystem benefitsincreases due to

network innovates

Creating a level playing field• correct transfer of values between DG and network operators• guaranteed market access for DG

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8 Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG

Network Economics

Regulatedtariff

NetworkCosts

Today

CAPEX(capital

expenditures)

OPEX(operational expenditures)

Future(2010-2020)

Regulatedtariff

NetworkCosts

Lower network tariffs due to performance based regulation

DG electricitysystem benefits

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9 Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG

Regulatory Road Maps towards a Sustainable Electricity System

2020

today

implementation

refinement

integrated DG networks

regulation

period

20202020

possible futures

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10 Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG

Visit: www.sustelnet.net

Or contact: [email protected]@ecn.nl

For more information

Thank you for your attention