RENEWABLE ENERGY

Jorge Vasconcelos

MIT Portugal

Lisbon, May 23, 2011

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ROADMAP(S) 2050

ENERGY 2020 STRATEGY THINK

ROADMAP11

http://ec.europ

a.eu

/clim

a/do

cumen

tatio

n/roadmap/docs/com_201

1_11

2_en

.pdf

POLICY GOALS

REGULATORY TOOLS

CHALLENGES

REGULATION HAS BEEN - PARTIALLY - SUCCESSFUL IN OPENING UP

AND INTEGRATING ENERGY MAKETS ACROSS BORDERS.

HOW DOES REGULATION ENSURE THAT 20-20-20 TARGETS WILL BE

ACHIEVED IN A COST-EFFECTIVE WAY ?

HOW DOES REGULATION LEAD TO LOW-CARBON 2050 ?

DO THE LEGAL AND REGULATORY FRAMEWORKS PROVIDE THE

NECESSARY GUIDELINES AND INCENTIVES FOR TECHNOLOGICAL

CHANGE TO HAPPEN

?

TECHNOLOGICAL CHANGES IMPACT ON :

• ENERGY MARKETS - WHOLESALE & RETAIL

• NETWORKS - PLANNING, OPERATION

• SYSTEM OPERATION

AND CHALLENGE “TRADITIONAL” ENERGY REGULATION

?

??

DO THE LEGAL AND REGULATORY FRAMEWORKS PROVIDE THE

NECESSARY GUIDELINES AND INCENTIVES FOR CONCEPTUAL AND

BEHAVIORAL CHANGE TO HAPPEN

?

HIGH PENETRATION OF GENERATION BASED ON RENEWABLE ENERGY

SOURCES (RES)

MARKET REFORM (energy vs. capacity, price vs. CO2 merit order, demand participation, etc.)

NETWORK EXPANSION (large-scale projects – e.g. off-shore wind, Desertec, etc.)

NETWORK ADAPTATION(large-scale decentralized generation, DR, storage, EV, etc.)

SYSTEM OPERATION(dispatching, reserve management, etc.)

NEW BUSINESS MODELS (ESCOs, Aggregators, etc.)

1. REGULATION CANNOT IGNORE PUBLIC POLICIES

2. ENERGY REGULATION NEEDS TO REINVENT ITSELF

3. A COHERENT REGULATORY POLICY IS NEEDED

4. NEW REGULATORY TOOLS ARE NEEDED

2020 BRINGS NEW CHALLENGES –

THIS IS A THREAT

TO THE SURVIVAL OF “TRADITIONAL” ENERGY REGULATION,

BUT IT IS ALSO AN OPPORTUNITY

TO BUILD A MORE COHERENT AND EFFICIENT ENERGY REGULATORY

FRAMEWORK.

ACHIEVING THE 20-20-20 TARGETS AND BEYOND