Electricity Markets

11 January 2017:
Bottlenecks in the Nordic Grids during the Storm "Urd"
Readers of my note from 30 December 2016 have asked why Sweden has prevented a transit of electricity from Denmark to Norway. This additional note tries to locate some of the bottlenecks in the Nordic grids from 22 December to 31 December 2016. The "west coast corridor" in Sweden is a real problem to Svenska Kraftnät. We cannot exclude that curtailment of import under certain circumstances is the only way out. Additional wind and solar power in Europe will make such circumstaces more frequent.

30 December 2016:
Grids Challenged by the Christmas Storm "Urd"
The Christmas days in 2016 were characterized by strong winds. The wind power variations were handled successfully by the Danish grid operator, Energinet.dk. It has apparently been necessary or profitable to curtail wind power in Denmark.
My note describes Nordic and German spot markets and power exchanges for the days 22 to 27 December.

18 November 2016:
Germany Will Limit Exchange of Electricity with Austria
The exchange between Germany and Austria often forces Germany to carry out redispatch (or countertrade) due to bottlenecks in the German grid. Redispatch is expensive. Therefore, the German Bundesnetzagentur (Federal Grid Agency) is now considering other measures. Austria is concerned about the possible loss of trading capacity with Germany.

16 May 2016:
Lack of Harmonization of European RES Support Schemes
European electricity consumers support renewable energy, but at different levels from 0 in Finland to 40 €/MWh in Italy. EU considers the Danish support scheme (PSO) to be in conflict with EU competieion rules. Therefore, the Danish government wants to move the RES support from the electricity bill to the state budget. This would not only bring us in line with Finland, but also remove the PSO cost from Danish enterprises.
See my note on RES support and industrial electricity prices in Europe.

11 November 2015:
4% Annual Decrease of Electricity Spot Prices since 2006
Electricity spot prices in Denmark follow either Nordic or German market prices in most hours. Both the Nordic and the German spot prices have a significant decreasing trend, which is likely to continue. Increasing subsidies for renewables must counterbalance decreasing revenues from the wholesale market.

25 March 2015:
German Green Paper on the Future Electricity Market
The German Energy Transition (die Energiewende) is an increasing challenge to the electricity market. The most urgent problems are grid congestions and regional shortage of generation capacity. The green paper analyses the problems and presents alternative solutions.
Here is the full report (English version)
and here is my comment.

16 February 2015:
The Average Market Value of Wind Energy in 2014
The total amount of wind energy has been used as a proof of the successful Danish wind programme. The market value of the energy output also deserves attention.

7 August 2014:
Urgent Need for a Capacity Market in Denmark
Denmark is closing efficient power plants down. Capacity arrangements in the neighbouring countries and a Danish deficit of dispatchable capacity will bring Denmark into a vulnerable position.

8 May 2013:
No Plans for a Danish Capacity Market
My comments from 9th January 2013 called for an open Danish strategy for the future power plant capacity. On the 22nd March 2013 the Energinet.dk CEO, Peder Østermark Andreasen, states in an article (in Danish) that a capacity market in Denmark would be an unnecessary additional cost to electricity consumers.

21 February 2013:
ENTSO-E Views on Capacity Mecanisms
ENTSO-E (the European Network of Transmissions System Operators for Electricity) has published an interesting response paper to an EC public consultation on "generation adequacy, capacity mechanisms and the internal market in electricity".
Read more here

31th October 2011:
New Estimates on Cost of Electricity Production
Only poor information is available on the cost of electricity production. Therefore Colin Gibson's new probabilistic approach is a much needed contribution. A spreadsheet with data and macros is available, so those who disagree with Colin Gibson can easily make their own versions.
See my summary and comment with link to the documents.

14th April 2010:
The European Court provides better access to Swedish transmission grid
The European Commission has adopted a decision rendering legally binding commitments offered by Svenska Kraftnät that will increase trade in electricity within Sweden and between Sweden and neighbouring countries. The improvements must be efective by 1 November 2011 at the latest.
Read more here

15th October 2009:
Agreement between European TSOs on market coupling
The association of European power system operators, ENTSOE, announces that an agreement on market coupling principles for the day-ahead markets has been made between system operators in North and Central Europe. The agreement will pave the way for an efficient use of the interconnection capacity, coordinated price signals and a more efficient system operation.
See the announcement from ENTSOE and the joint declaration.

6th October 2009:
EU test of Swedish congestion management
Danish Energy Association has filed a complaint against Svenska Kraftnät (Swedish system operator) with the EU Commission over limitations in the capacity of the interconnectors between Sweden and Denmark. After negotiations with Svenska Kraftnät the Commission has published a proposal accepting the Danish views. The proposal is good news for Danish electricity consumers.
See the announcement from the EU Commission.

4th August, 2009:
Inefficient Competition in Energy Markets in Germany
In a comprehensive report the German Monopoly Commission points out that competition in the energy markets has serious shortcomings. This is particularly the case for the supply side and for the wholesale markets. The commission is advisor to the German government on competition and market issues.
The report recommends several improvements, including systematic market monitoring, complete market transparency to an independent market monitoring body and implicit auctions for congestion management of interconnections.
See the press release in German

Opdateret d. 19.1.2017