Key Industry Challenges Regulatory Perspective Michael G. Tutty Chairman Commission for Energy...
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Transcript of Key Industry Challenges Regulatory Perspective Michael G. Tutty Chairman Commission for Energy...
![Page 1: Key Industry Challenges Regulatory Perspective Michael G. Tutty Chairman Commission for Energy Regulation 13 October 2009 1.](https://reader036.fdocuments.net/reader036/viewer/2022082711/56649eba5503460f94bc211b/html5/thumbnails/1.jpg)
Key Industry Challenges Regulatory Perspective
Michael G. Tutty
Chairman
Commission for Energy Regulation13 October 2009
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Connections
• Gate 3 offers going to 3,900MW of Renewables
• Over 6,000MW of applications for conventional plant
• Decision will be made soon on criteria for determining what conventional plant should get connection offers
• East—West Interconnector moving ahead
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Smart Grid/Meters
• Pilot roll-out of Smart Meters now completed
• Testing of response during 2010
• Time of use tariffs published
• Look forward to results of pilot
• Need to be involved in work on developing smart grids with European parties
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• Exporting on a large scale would require a different approach to network development and the SEM
• Glad to hear that the Renewable Energy Development Group is to set up a sub-group to examine this
Exporting Renewables
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SEM Interconnector Development and Regional Integration
• Looking at rules for Interconnectors in the SEM in context of East –West IC coming on stream and compliance with EU rules on cross border flows
• Also focusing on evolving EU developments towards regionally integrated markets and how SEM relates to this
• SEM Short to Medium Term Interconnection Issues Paper – published 23 April 2009 (SEM-09-042)
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SEM Interconnector Development and Regional Integration contd/..
• Key Recommendations:– support development of shorter term products– implementation by SOs of timely and cost
effective solution for SO/SO Trades– Establish working groups - RAs / MO and SO to
outline potential SEM rule changes and policy developments in advance of increased interconnection, bring forth modifications as required
– Investigate change in 80MW Moyle export restriction
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SEM Interconnector Development and Regional Integration Contd/..
• SEM Regional Integration – paper on longerterm issues published 10 September 2009 (SEM-09-096)
• Engage with stakeholders and policymakers at European level to influence the development of regional integration
• Develop a coordinated approach to congestion management with Ofgem, and in particular the explicit auctioning of capacity on ICs
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SEM Interconnector Development and Regional Integration Contd/..
• Develop UIOLI and intraday trading options with SO / MO and industry
• Depending on responses to consultation, further develop options for the market coupling of the SEM with its neighbouring markets
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National Competitiveness Council
Statement on Energy
• Reducing Energy Costs is essential for competitiveness
-We can all agree with that
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National Competitiveness CouncilProposals
1. Prioritise reducing controllable domestic costs
- 5-year review of transmission and distribution already underway for 2011-2015 period
- Looking at what further efficiencies can be achieved
- A key issue will be the level of investment which should be targeted
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National Competitiveness CouncilProposals
2. Review SEM Rules
- Already being done but need to avoid too much change in new market
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National Competitiveness CouncilProposals
3. Reduce capacity payments further
- Already done for 2010 reflecting latest capital costs and decline in demand
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National Competitiveness CouncilProposals
4. Recover carbon windfall from generators
- CER has proposed this before now and Government have decided to pursue it
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5. Reduce dependence on imported fossil fuels in a way consistent with cost competitiveness
- no specific proposals recommended by NCC- heading towards a two-source system: gas and
wind- only possible alternatives at present are coal with
carbon capture and storage or nuclear or other renewables
National Competitiveness CouncilProposals
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Key Industry Challenges Regulatory Perspective
Michael G. Tutty
Chairman
Commission for Energy Regulation13 October 2009
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