In the context of the European Forum for Science and Industry, the JRC organises a series of Round Table discussions on Energy Transition from a European Perspective. In this framework the JRC prepares a Round Table on "Scientific support to energy markets" on 18 December 2013.
Scientific support is crucial regarding energy markets. Above all, there is a growing need for new market designs reflecting today's energy panorama in Europe. The question that needs to be asked is whether the design of market places, support systems for renewables, and grids, as well as the incentives in place towards a low-carbon economy in the EU are appropriate for facing these challenges. In this context, the focus of this Round Table will be on liquidity: Liquidity for the marketplace with new tools and price signals, and conditions for investments.
Two thematic sessions will discuss:
- Financing needs and conditions for investment in generation, transmission, and distribution. How to develop liquidity in the market?
- Which are the financing needs in the European energy market?
- In order to attract new investment, which are the market based tools able to create the right conditions?
- How to design tools to improve market efficiency (combined and harmonised processes in intraday, day-ahead, forward markets)?
- Risk management: How to design call options/reliability contracts to reduce the volatility of spot prices while insuring against energy shortages.
- Which role can these tools play on a cross-border, regional level in contributing to cost-effective balancing and the reliability of supply? How to ensure that such tools above the Member State level are transparent and free of distortion?
- Energy market design is by nature a governance issue. Which governance criteria would be needed to trigger investment?
- Which European market design can attract more capital at financial markets
- What are the shortcomings of the energy-only market?
- Whose profits are power plant operators' losses?
- Are there any interactions between the energy-only market and financial markets to be taken into consideration in favour of lower electricity prices to consumers?
- How to monitor or mitigate bidding behaviour? Is there a need to act on negative effects of manipulation?
Stakeholders from European and Member State authorities, energy utilities, transmission and distribution system operators, industry, financial services and consumers are invited to participate in this Round Table hosted in the framework of the JRC European Forum for Science and Industry. The Round Table should underpin the science-based understanding of the challenges to the electricity system created by intermittent energy sources. It is to use this understanding as a basis for formulating policy recommendations on how to tackle these challenges in the most efficient way.
→ Download the draft Programme in PDF (Latest version: 18/12/2013)
→ Download the minutes in PDF (Latest version: 06/03/2014)
- Jeroen van der Veer, former CEO of Royal Dutch Shell plc, and Chairman of the Global Agenda Council on New Energy Architecture of the World Economic Forum ("Davos Club")
Extract from Shell energy scenarios
Session I – Financing needs and conditions for investment in generation, transmission, and distribution. How to develop liquidity in the market?
- Henk Don, Member of the Board and vice-Chair of the Netherlands Authority for Consumers and Markets (ACM)
Round table discussion: Scientific support to energy markets
- Klaus-Dieter Borchardt, Director, Internal Energy Market, DG Energy, European Commission
Towards a single energy market - required investment in gas & electricity infrastructure
- Giovanni de Santi, Director of the Institute for Energy and Transport, Joint Research Centre, European Commission
JRC Scientific Support to Energy Transition
- Jérôme Le Page, Market & Regulation Consultant, Electricity Committee, European Federation of Energy Traders
How to ensure flexibility and restore balance in the IEM?
- Jacek Brandt, Director International Cooperation and Regulatory Affairs, Business Development Bureau, Polish Power Exchange
How to improve energy markets?
Session II – Which European market design can attract more capital at financial markets?
- Graham Weale, Chief Economist of RWE AG
Which market design can enable a secure, low-carbon power supply at lowest cost?
- Olivier Musset, Global Head of the Energy Group, Natural Resources and Energy Financing Group, Société Générale
- Martin Brough, Director, Utilities Research, Deutsche Bank
Market design and finance
- Karl Ludwig Brockmann, Vice President, Group Officer Environment and Sustainability, KfW Group
Energy Transition – Implications for Financing Conventional Power Plants