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How Smart Power Generation Could you Up Millions in Direct Costs

This FREE webinar was recorded on:
Thursday, October 03, 2013
07:00 PM - 08:00 PM BST

This FREE webinar is available to watch now.


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How Smart Power Generation Could you Up Millions in Direct Costs

With climate change mitigation high on the political agenda, new regulations and market structures emerging, and subsidies prevalent in many markets, the field of power generation is undergoing perhaps the most significant shift in its 130-year history. Most agree that the amount of intermittent renewable power generation will increase, and that more flexibility will be needed in power systems to accommodate the intermittency. What is missing, however, is an understanding of the cost implications of these changes. 

In late 2012, Baringa Partners and Imperial College London set out to put a value on flexibility and the service it provides to a power system, specifically in the presence of a considerable amount of intermittent renewable generation, e.g., wind and solar. The results of this pioneering study clearly indicate that flexibility has tremendous value on a system level. Specifically, the study found that adding 4.8 GW of Smart Power Generation to the UK study could create annual savings of up to £550m by 2020, mainly by optimizing reserve allocation as well as the operations of existing, less flexible capacity.

Unfortunately, current market structures in Europe offer very little scope for monetizing the value of flexibility. This realization opens some interesting discussions on market structures. For instance, the idea of a capacity mechanism is gaining ground in many countries. In light of the study’s results, however, what’s most urgently lacking is flexibility not capacity, and thus a capacity mechanism will not necessarily ensure system stability in the most economic way. Consequently, other market arrangements should be studied. 

This webinar presents a unique opportunity to increase your understanding of the importance of flexibility and the value it can provide in the future power system, as well as the potential market arrangements to incentivize flexibility.

Issues that are addressed in this webinar:

  • Increased flexibility will be required to manage intermittency in future
  • Smart Power Generation (SPG) and other flexible technologies can play a role and deliver cost savings to UK consumers
  • Depending on wind assumption, replacement of around 5 GW of conventional CCGT generation with SPG can save the UK power system £380m-£550m annually in 2020, increasing to £580m-£1540m annually in 2030
  • However, the Government’s proposed capacity mechanism alone is unlikely to provide the right signals to deliver flexibility
  • Policy makers should focus on reforming the trading arrangements to ensure they can incentivize investments into flexible power and thus remain fit for purpose in a future with a high renewables penetration

This webinar is for you if you are a:

  • Head of Business Development
  • Head of Portfolio Planning
  • Head of Strategy
  • Head of Market Operations
  • Head of Public Affairs
  • Head of Trading
  • Head of Economics
  • Head of Market Intelligence

Watch the FREE webinar here.

Presenters:

Ilesh Patel
Partner
Baringa Partners

Ilesh has been instrumental in transforming power and gas markets in Europe, advising regulators and government on a wide range of issues. Currently, Ilesh is advising National Grid in the UK on Electricity Market Reform and the Dutch and Norwegian regulators on long term cross border hedging. Recently, Ilesh has led Redpoint’s work on electricity and gas interconnectors, offshore and onshore renewables development and market coupling and integration across the EU. Ilesh has a bachelor’s degree in Philosophy, Politics and Economics from the University of Oxford, St. John's College.


Melle Kruisdijk
Market Development Director, Europe
Wärtsilä Power Plants

Melle Kruisdijk is Director of Market Development at Wärtsilä Power Plants and responsible for leading the market development activities in Europe. Melle holds a Master’s degree in Mechanical Engineering from Delft University of Technology and a Master in Business Administration from the Berne University of Applied Science. He started his career at Woodward Governor in 1998. In 2000 he joined Alstom Power in Baden (Switzerland) where he started in the Service group. As of 2006 he took on the position of Business Sales Manager for new turn-key Combined Cycle Power Plants in Europe. Melle joined Wärtsilä in October 2011.


This FREE webinar is available to watch now.