Capacity Remuneration Mechanisms : Overview, Implementation in Selected European Jurisdictions, and Implications for Switzerland

In many European jurisdictions, capacity remuneration mechanisms are either in use or their implementation is being discussed. In light of falling prices on the wholesale markets for electricity, these mechanisms are meant to generate revenues over and above energy-only market revenues in order for power plants to be able to recover their fixed costs and ensure a reliable energy supply. In the first part of this paper, we present a framework for discussing the different types of capacity remuneration mechanisms currently in operation or under discussion. In a next step, we take a closer look at the implementation status of these mechanisms in France, Germany, and Italy, Switzerland’s main electricity import and export partners. Whereas capacity mechanisms are in place in France and Italy, in Germany the process intended to lead to an overhaul of the current market design is still ongoing

Assessment of underlying capacity mechanism studies for Greece

The increased electricity production from variable sources in the EU combined with the overall decline in demand in recent years, have raised concerns about the security of electricity supply, in general, and in particular about generation adequacy and flexibility, prompting some Member States to consider new public interventions, the so-called capacity remuneration mechanisms. This work presents a review of the underlying capacity mechanism studies for Greece based on European best practices to highlight the latest developments and current trends.JRC.C.3-Energy Security, Distribution and Market

Joustotuotteet monenkeskisillä sähkömarkkinoilla

Power grids, electrical systems and liberalized zonal electricity markets are in due for major recasting as the ongoing energy transition impacts the electricity sector profoundly.This will mean new kinds of market behavior in liberalized and regulated electricity markets and increased challenges for TSOs to maintain power balance at system-level. Also, inadequacies in network capacity and flexible asset availability impact at local level. Congestions, voltage deviations and grid outages impact both TSOs and DSOs locally and the mitigation of these situations requires new types of multilateral coordination. In addition to more transmission and distribution grid capacity, future electrical systems need resilient flexible resources and intelligent control mechanisms. This thesis examines market-based control by using flexibility products. The envisioned flexibility products are expected to be implementable in the Baltic Sea area electricity markets during the regulatory period of Finnish electricity network companies beginning in 2024. Thesis includes a literature review and a qualitative empirical research consisting of industry consultation. First, the literature study examines existing products traded on future European electricity markets and other mechanisms that control networks and network connected assets. Secondly, it examines emerging flexibility products that can provide local flexibility services which the existing product structure is not covering. Industry consultation includes Finnish expert views regarding different aspects of flexibility needs,flexibility markets and opinions on the emerging flexibility products. Interviewees found the concepts of flexibility markets and products new and complex. Most of the interviewees had not experienced serious technical flexibility issues at local level in Finnish electrical networks but agreed that local flexibility challenges would be a reality in Finland within next five years. Majority of interviewees saw new enabling technologies and market-based trading of local flexibility worth considering. They had different local needs for flexibility products, if trading could be done cost-efficiently and market design would be supportive for both flexibility buyers and sellers. Outage management and voltage support with flexibility were identified as the most urgent local needs and congestion management was seen less important. According to the findings, numerous although contradictory flexibility product alternatives can solve different flexibility needs. It was concluded that market design should go forward with the development of three options: locational intraday products, locational balancing products and competitive bilateral flexibility contracts. The results show, that these recommended products are modifications of existing products. All three preferred options should be enabled due to different reasons and these options are not mutually exclusive. The compatibility of flexibility products with existing products and operational processes must be ensured, especially considering reconciliation of flexibility markets and a reactive balancing model of TSOs. Development of flexibility products should start immediately with incremental experimentation with cooperation of all network users and operators.Meneillään oleva energiamurros aiheuttaa merkittäviä muutoksia sähköverkkoihin ja-markkinoihin. Tämä johtaa uudenlaiseen käyttäytymiseen vapautetuilla ja säännellyillä sähkömarkkinoilla sekä kantaverkkoyhtiöiden lisääntyviin haasteisiin ylläpitää järjestelmätason tehotasapainoa. Myös alueelliset haasteet lisääntyvät riittämättömän verkkokapasiteetin tai joustavien resurssien puuttuessa. Paikalliset ylikuormitukset, jännite- ja loistehopoikkeamat sekä käyttökatkot voivat vaikuttaa useisiin siirto- ja jakeluverkkoyhtiöihin, jolloin ratkaisut vaativat monenkeskistä koordinointia. Tulevaisuuden sähköjärjestelmät vaativat lisää siirto- ja jakeluverkkokapasiteettia, joustavia resursseja ja älykkäitä ohjausmekanismeja. Tässä diplomityössä tutkitaan markkinaehtoisiin joustotuotteisiin perustuvia ohjausmekanismeja. Suunniteltujen joustotuotteiden on tarkoitus olla käytettävissä 2024 alkavalla suomalaisten sähköverkkoyhtiöiden sääntelykaudella Itämeren alueen sähkömarkkinoilla. Tämä diplomityö sisältää kirjallisuuskatsauksen ja empiirisen tutkimuksen, joka koostuu sähköalan asiantuntijoiden laadullisesta konsultaatiosta. Työssä tarkastellaan nykyisten sähkömarkkinoiden tuotteita, joilla verkkoja ja verkkoon kytkettyjä resursseja hallitaan. Lisäksi työ tutkii kehittyviä joustotuotteita, jotka voivat tarjota paikallisia joustopalveluita, joita nykyiset tuotteet eivät kata. Konsultaatio sisällyttää alan näkemyksiä jouston tarpeista, joustomarkkinoista ja kehittyvistä joustotuotteista tutkimukseen. Haastateltavat kokivat joustomarkkinoiden ja -tuotteiden käsitteet uusiksi ja monimutkaisiksi. Suurin osa haastatelluista ei ollut todennut suomalaisissa sähköverkoissa alueellisesti vakavia haasteita, mutta arvioivat paikallisten joustavuushaasteiden yleistyvän seuraavan viiden vuoden aikana. Merkittävä osa asiantuntijoista arvioi uudet teknologiaratkaisut ja markkinalähtöisen joustokaupankäynnin harkinnan arvoiseksi, mikäli kaupankäynti on kustannustehokasta ja kannattavaa sekä joustavuuden ostajille että myyjille. Keskeyttämätön sähkönsyöttö ja loistehon hallinta tunnistettiin kiireellisiksi paikallisiksi tarpeiksi ja siirtojenhallintaa pidettiin vähemmän kiireellisenä tarpeena. Työn mukaan lukuisat ja keskenään ristiriitaiset joustotuotevaihtoehdot voivat ratkaista erilaisia joustotarpeita. Ensisijaisesti tulisi keskittyä kolmen kategorian tuotteiden kehittämiseen: sijainnilliset päivänsisäisen markkinan tuotteet, sijainnilliset säätösähkömarkkinan tuotteet ja kilpailutetut kahdenväliset joustosopimukset. Tuloksista voidaan nähdä, että kaikki kolme vaihtoehtoa ovat olemassa olevien tuotteiden muunnoksia. Tuotteet ovat otettavissa käyttöön eri syistä, ja vaihtoehdot eivät ole toisiaan poissulkevia. Joustotuotteiden yhteensopivuus olemassa olevien tuotteiden ja toimintaprosessien kanssa on taattava, erityisesti yhteensovittaminen kantaverkkojen reaktiivisen säätötavan kanssa on varmistettava. Joustomarkkinoiden jatkokehittäminen tulisi aloittaa välittämättömästi kokeiluilla ja verkonhaltijoiden ja -käyttäjien yhteistyöllä

Food security and transition towards sustainability

In the light of linkages in various scales and targets, the complex and nuanced design of the sustainable development goals (SDG) raises more challenges in their implementation on the ground. This paper reviewed 25 food security indicators, proposed improvements to facilitate operationalization, and illustrated practical implementation. The research focused on three essential blind spots that arise from the potential interactions between sustainable food production, consumption, and domestic material consumption (DMC). Projection of latent structure regression was applied to link food security and sustainable development goals. Findings revealed that the key target in reducing trade-offs was the integration of DMC with sustainable food production and consumption. DMC was positively correlated with the creation of coherent SDG strategies and sustainable food security. Practical implications were discussed by highlighting how to achieve food security across contrasting development contexts and the challenges of addressing the links between targets and indicators within and beyond SDGs 2 and 12. The results are useful for setting a proper strategy for sustainable production and consumption that can improve the efficient use of resources in the eight Central European countries

The United Nation data governance: a panopticon and a catalyst for cooperation

With the rapid advancement of technology and digitalization, the collection, String, processing through machine learning and deep learning, trading of data has become widespread. However, because data privacy laws vary greatly from one jurisdiction to the next, personal information is not consistently secured. For people, corporations, and governments, this lack of harmonization creates challenges in a world that is ever more interconnected. This study looks into the viability of establishing a global data privacy body, specifically as a UN agency. By serving as the global regulatory authority for data privacy, a global data privacy organization can aid in the resolution of these issues. We examine some of these institution's possible benefits in this study, including enhanced privacy protection, safer data storage, and easier international data transfers. Additionally, it covers the obstacles that can develop when establishing an international organization and provides answers to those issues. By utilizing the expertise and resources of the United Nations, an international data privacy body can assist in making sure that data protection rules remain current with technological advancements. Additionally, it can contribute to increasing transparency and accountability in the digital economy, which is advantageous for both governments and enterprises. To further the International Data Governance, establishment of a UN agency to address data privacy, cross border data transfer and global data governance issues is speculative from history, as happened in the development of IPR as important field in International Law WIPO was established. The adoption of a brand-new, comprehensive international data privacy policy is not required to happen (at least not right away) when a global organization is established. By harnessing the knowledge and resources of the United Nations, an international data privacy agency can ensure that data protection laws keep up with technological advancements and foster trust and responsibility in the digital ecosystem. The challenges brought on by the Collection, processing, analysis and transfer of stored data in different geographical locations, gives call for Data Globalization & Data Sovereignty Debate, therefore by establishing an institution by United Nations dedicated to promoting data privacy & related issues will act as a panopticon for State & Non-State actors

Croatia and the Region in the WEC’s Scenario Concept (WEC – World Energy Council)

Najznačajniji World Energy Council (WEC) projekt u razdoblju od 2004. do 2007. godine je studija Energy Policy Scenarios to 2050, na kojem članovi WEC-a i nezavisni stručnjaci rade tri posljednje godine, a čiji su rezultati predstavljeni na kongresu u Rimu od 9. do 16. studenog 2007. godine. Energetska budućnost svijeta se promatra po kontinentima, pa je tako i energetska budućnost Europe jedan od podprojekata. Prateći koncept analize energetske budućnosti Europe u Energy Policy Scenarios to 2050 3, u ovom je članku obrađena regija jugoistočne Europe unutar Europe, a koja u spomenutom radu nije posebno promatrana. Razrađen je koncept mogućih scenarija regije, i povezanosti s događanjima u EU i ostalom dijelu Europe. Obzirom da se dijelovi regije znatno razlikuju po gospodarskoj snazi i razvojnom potencijalu, za regiju bi bilo korisno napraviti energetske analize prema razrađenom konceptu scenarija. Za razumijevanje problema i prepoznavanje mogućnosti regije analizirani su glavni energetski pokazatelji, posebno u dijelu koji se odnosi na električnu energiju i plin. Dane su preporuke o daljnjim aktivnostima, koje se dijelom odnose i na šire područje Europe.The most significant project of the World Energy Council (WEC), in the period from 2004 to 2007, is the Energy Policy Scenarios to 2050 study, in which the members of the WEC and independent experts have been working on for the last three years. The results of this were presented in the congress in Rome from November 9-16, 2007. The energy future of the world is viewed by continents, and because of this the energy future of Europe is one of the pre-projects. By following the concept of analyzing the energy future of Europe in the Energy Policy Scenarios to 20503, the region of southeastern Europe within Europe was processed. This region was not previously monitored in particular in this mentioned work. A concept was drawn up of possible region scenarios and a connection with events in EU and the rest of Europe. Since the region significantly differs by its economic strength as well as by its developmental potential, it would be useful for the region to have an energy analysis done according to the elaborated concept of the scenario. To make the problems and possibilities of the region more understandable, the main energy indicators were analyzed especially in the part which refers to electric energy and gas. Recommendations were given concerning further activities which partly also refer to the broader area of Europe

Characterization of new flexible players: Deliverable D3.2

Project TradeRES - New Markets Design & Models for 100% Renewable Power Systems: https://traderes.eu/about/ABSTRACT: The subject matter of this report is the analysis of the electricity markets’ actors’ scene, through the identification of actor classes and the characterisation of actors from a behavioural and an operational perspective. The technoeconomic characterization of market participants aims to support the upcoming model enhancements by aligning the agent-based model improvements with the modern market design challenges and the contemporary characteristics of players. This work has been conducted in the context of task T3.2, which focuses on the factorization of the distinctive operational and behavioural characteristics of players in market structures. Traditional parties have been considered together with new and emerging roles, while special focus has been given on new actors related to flexible technologies and demand-side response. Among the main objectives have been the characterization of individual behaviours, objectives and requirements of different electricity market players, considering both the traditional entities and the new distributed ones, and the detailed representation of the new actors.N/

Energy Storage in the new Electricity Market Design : leveling the playing field and improving the Security of Electricity Supply

The Clean Energy Package reformed the electricity market design with hopes for adapting the electricity system to the challenges of the future. Especially important was to create an efficient electricity market that could improve cross-border trading and the possibilities for energy technologies. This paper aims at identifying the new regulatory framework for energy storage systems. In addition, the electricity market design’s impact on security of electricity supply is assessed. The method used is a literature review based on EU official documents regarding the electricity market design. In addition, scientific articles provide understanding on the economic and technical possibilities of energy storage systems in the new electricity market design. The impact on security of electricity supply is based on the technical and legal capabilities that are assessed in relation to the needs of the electricity system. As illustrated in this paper, the new regulatory framework improves significantly the case for energy storage systems. The reforms are divided into the core rules, rules regarding access, market reforms and including energy storage in long-term network planning. These reforms indicate the expectations that policy makers have for energy storage. In addition, by reforming the framework for energy storage, the security of electricity supply will improve as a result of removing the need for capacity mechanisms, creating a favorable environment for renewable energy production and improving the affordability of electricity

Current and forthcoming issues in the South African electricity sector

One of the contentious issues in electricity reform is whether there are significant gains from restructuring systems that are moderately well run. South Africa's electricity system is a case in point. The sector's state-owned utility, Eskom, has been generating some of the lowest-priced electricity in the world, has largely achieved revenue adequacy, and has financed the bulk of the government's ambitious electrification program. Moreover, the key technical performance indicators of Eskom's generation plants have reached world-class levels. Yet the sector is confronted today with serious challenges. South Africa's electricity system is currently facing a tight demand/supply balance, and the distribution segment of the industry is in serious financial trouble. This paper provides a careful diagnostic assessment of the industry and identifies a range of policy and restructuring options to improve its performance. It suggests removing distribution from municipal control and privatizing it, calls for vertical and horizontal unbundling, and argues that the cost-benefit analysis of different structural options should focus on investment incentives and not just current operating efficiency.Energy Production and Transportation,Electric Power,Environment and Energy Efficiency,Energy and Environment,Infrastructure Economics