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www.econopolis.be Vlerick MFM Meet the Industry ʻElectricityʼ 7 March 2012

Thomas Van Maele, Partner Corporate Finance, Econopolis (Market structure and regulation)

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Page 1: Thomas Van Maele, Partner Corporate Finance, Econopolis (Market structure and regulation)

www.econopolis.be

Vlerick MFMMeet the Industry ʻElectricityʼ

7 March 2012

Page 2: Thomas Van Maele, Partner Corporate Finance, Econopolis (Market structure and regulation)

Traditional electricity supply chain

2

Page 3: Thomas Van Maele, Partner Corporate Finance, Econopolis (Market structure and regulation)

Traditional electricity supply chain

3

TransmissionFuel Generation Distribution End Consumer

INTEGRATED UTILITY

Page 4: Thomas Van Maele, Partner Corporate Finance, Econopolis (Market structure and regulation)

Market Liberalisation

4

Transmission

Fuel

Generation Distribution

End Consumer

UTILITY

UTILITY

Supply (front- & back-office)

Trading platform

1. Unbundling

4. 20-20-20 targets3. Competition in production & supply2. Power trading

Page 5: Thomas Van Maele, Partner Corporate Finance, Econopolis (Market structure and regulation)

20-20-20 targets

5

Transmission

Fuel

Generation Distribution

End Consumer

Supply (front- & back-office)

Trading platform

- 20% of electricity to be generated from renewable sources

- 20% reduction in primary energy use by improving energy efficiency

- A reduction in EU greenhouse gas emissions of 20% below 1990 levels

Page 6: Thomas Van Maele, Partner Corporate Finance, Econopolis (Market structure and regulation)

Renewable targets lead to incentive policies

6Source: greenrhinoenergy.com

Different schemes per member state• Investment grants• Certificate schemes

• Feed-in schemes• Tax incentives

• etc.

Page 7: Thomas Van Maele, Partner Corporate Finance, Econopolis (Market structure and regulation)

More focus on energy efficiency is needed

7Source: OECD / IEA 2011

450 Scenario: A target of 450 parts per million (ppm) CO2 in the atmosphere is widely regarded as synonymous with keeping mean global temperature by 2100 to no more than 2°C above pre-industrial levels.

Page 8: Thomas Van Maele, Partner Corporate Finance, Econopolis (Market structure and regulation)

20-20-20 has changed the electricity landscape

8

Balancing service

(Renewable)Fuel

(Intermittent)Generation

Smart(er) grids

Producer - Consumer

Supply (front- & back-office)

Trading platform

Energyconsultancy

Page 9: Thomas Van Maele, Partner Corporate Finance, Econopolis (Market structure and regulation)

Smarter electricity supply chain

9

Page 10: Thomas Van Maele, Partner Corporate Finance, Econopolis (Market structure and regulation)

Whatʼs next?

10

Page 11: Thomas Van Maele, Partner Corporate Finance, Econopolis (Market structure and regulation)

iCloud vs eCloud

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Content production

iCloud

Content consumption

New role for Apple• Providing platform• Managing content storage

• Quality control• IT-Consultancy

• etc.

Internet

New role for internet operators• Connection security• Certainty of client access

• Maintenance of network• etc.

Page 12: Thomas Van Maele, Partner Corporate Finance, Econopolis (Market structure and regulation)

iCloud vs eCloud

12

Electricity production

EnergyStorage

ʻeCloudʼ

Electricity consumption

Smart Grid

New role for incumbents• Providing electricity platform• Electricity storage

• Power Quality control• Energy Consultancy

• etc.

New role for grid operators• Balancing offer & demand • Consumer protection

• O&M of grid

Page 13: Thomas Van Maele, Partner Corporate Finance, Econopolis (Market structure and regulation)

THANK YOU!

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Econopolis nvJoe Englishstraat 542140 Antwerpen

Tel. 03 / 3 666 555Fax 03 / 3 666 466

[email protected]

www.econopolis.bewww.econoshock.be