S U S T E L N E T
Policy and Regulatory Roadmaps for the Integration of Distributed Generation and the Development of
Sustainable Electricity Networks
Martin ScheepersECN
The Netherlands
Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG
2 Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG
Development of regulatory road maps for the
transition to an electricity market and
network structure that creates a
level playing field between
centralised and decentralised generation.
Project Objective
3 Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG
Project Partners and Organisation
The SUSTELNET project is carried out by a consortium of 10European research institutes:
The SUSTELNET project:• is running in from beginning 2002 to mid 2004 • has a research budget of € 1.7 million• is supported by the European Commission under the 5th RTD
Framework Programme
EU Member States:• ECN, The Netherlands (co-ordinator)• University of Warwick, UK• Öko-Institut, Germany• FEEM, Italy• Tech-Wise, Denmark• IZES, Germany
New Associated States:• Enviros, Czech Republic• KAPE, Poland• MAKK, Hungary• EGU, Slovakia
Other contributing organisations:• Eindhoven University, The Netherlands• Eltra, Denmark
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Analytical Phase (EU MS)
Participatory Regulatory Process Phase
WP 1: Dynamics of electricity EU systems
WP 2:Review electricity policyand regulation
WP 3:Technical aspects ofDG integration
WP 5:Policy and regulatory road maps
WP 4:Criteria for electricity policyand regulation
Benchmark study electricity policyand regulation
EU steeringcommittee
EU steeringcommittee
Regulators Forum
Regulators Forum
Regulators Forum
Utility Forum
Utility Forum
Utility Forum
Analytical Phase (NAS)WP 2:Review electricity policyand regulation
WP 3:Technical aspects ofDG integration
Analytical Phase (EU MS)
Participatory Regulatory Process Phase
WP 1: Dynamics of electricity EU systems
WP 2:Review electricity policyand regulation
WP 3:Technical aspects ofDG integration
WP 5:Policy and regulatory road maps
WP 4:Criteria for electricity policyand regulation
Benchmark study electricity policyand regulation
EU steeringcommittee
EU steeringcommittee
Regulators Forum
Regulators Forum
Regulators Forum
Utility Forum
Utility Forum
Utility Forum
Analytical Phase (NAS)WP 2:Review electricity policyand regulation
WP 3:Technical aspects ofDG integration
Project Structure
5 Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG
The Policy Challenge
CHP EU electricity production (EU Energy Outlook 2020)
RES EU CO2 emissions (EU Energy Outlook 2020)
1995 2010 2020
0
500
1000
1500
2000
2500
3000
3500
4000
EU
ele
ctri
city
pro
du
ctio
n (
TW
h)
2000
2200
2400
2600
2800
3000
3200
3400
3600
EU
CO
2 em
issi
on
s (M
t)
ca.23%
ca.40%
RESRES
CHP
CHP
Kyoto target
GHG emissionsreduction from RESand CHP targets
6 Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG
Institutional Changes
Liberalisation of electricity markets results in:• Introduction of market competition in electricity
generation• Unbundling of generation, network operations
and supply• Network regulation
Current regulation often do not consider regulation of distribution networks to ensure effective participation of RES and DG in liberated electricity markets.
In liberalised electricity market RES and DG are often:• not or insufficiently rewarded for their benefits • dependent on non-market based support schemes
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DG Economics
Cost price Regulatedfeed-in tariff
Commodityprice
Support (e.g. green certificates)• environmental benefits• sustainability goals• technology support
Market basedpricing
Compensationfor electricity
system benefits
Today
Cost price Market basedpricing
Future(2010-2020)
Support reduces• only for externalities
Electricitysystem benefitsincreases due to
network innovates
Creating a level playing field• correct transfer of values between DG and network operators• guaranteed market access for DG
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Network Economics
Regulatedtariff
NetworkCosts
Today
CAPEX(capital
expenditures)
OPEX(operational expenditures)
Future(2010-2020)
Regulatedtariff
NetworkCosts
Lower network tariffs due to performance based regulation
DG electricitysystem benefits
9 Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG
Regulatory Road Maps towards a Sustainable Electricity System
2020
today
implementation
refinement
integrated DG networks
regulation
period
20202020
possible futures
10 Barcelona 12-15 May 2003 - Beta session 4b: Integration of RES+DG
Visit: www.sustelnet.net
Or contact: [email protected]@ecn.nl
For more information
Thank you for your attention