„Capacity market for the National Power System”
14 November 2014 (Friday), 11.00 hrs
Bankier.pl
Live broadcast on the portals: Bankier.pl, proinwestycje.pl, etastowarzyszenie.pl.
Experts are warning of the risk of blackout in 2016. It is said that starting from 2016 we may expect capacity shortages, as low wholesale power prices and no increase in power consumption directly translate into the lack of new investments. The Ministry of Economy is currently working to develop a systematic solution to the problem. It is last time to reform the power sector and begin the necessary investments into new generation capacities. Due to the fact that such activities are highly capital-intensive and entail high risk, legal instruments to stimulate them should be sought.
Measures are needed to reduce the investment risk, and systems should be developed to stimulate the implementation of investment projects. One of the solutions is to introduce market systems called capacity markets, whose purpose is to share the risk between power companies and power consumers.
Poland’s main problem is the lack of sufficient investment in new generation capacities, in view of aging power plants and increasing demand for electricity. Therefore, it is urgently needed to indicate a set of production technologies (so-called energy mix) that can ensure power supply to customers in the Polish conditions. A market of production capacities, stimulating investment projects and activating power consumers, should also be introduced. Such measures are not time-consuming. If there is political will, the energy mix and capacity market principles can be developed in a few months and implemented within one year.
The European Commission is also working on a framework for the capacity market. The increase in the number of renewable energy sources connected to the power grid, and the uncertain future of energy policy have resulted in problems with investing into conventional systems in many other countries which today are considering the implementation of the power market model. Experts suggest that the capacity market could be a solution to problems with planning large-scope investments in the power sector. Similar solutions have already been sought in Italy, UK, France and Germany. Everyone has the same goal: to ensure stable revenue and prevent power deficit.
As part of the liberalisation of the power sector, in the European Union a power market has been built which for some time served as the capacity market. However, after several years the power market got stabilized, with proves on the level of variable costs. This confirms the need for building and implementing a capacity market as soon as possible.
The following persons have been invited to take part in the debate:
- Monika Morawiecka, Director, Strategy Department, PGE
- Henryk Majchrzak, President of the Board, PSE SA
- Andrzej Czerwiński, Chairman of the Parliamentary Committee for Energy
- Prof. Krzysztof Żmijewski, Secretary General, Public Board for Sustainable Energy Development
Additional information on the debate is available from Ms Barbara Gacia,
e-mail: pr@proinwestycje.pl, tel. 609250800.