Denis MilyutinDeputy Director of the Department for regulation in electricity sector,
FTS of Russia
Regulation on long-term capacity market
St-PetersburgMay 17, 2011
10th ERRA ENERGY INVESTMENT AND REGULATION CONFERENCE
New model of capacity market
2
Law “On electric power”: Capacity is a special commodity
Rules of the wholesale power and capacity market are set by a Decree of the Government of the Russian Federation
2011
For 1 year period For 4 years ahead
Scope of capacity supply at free prices - the share determined by the Government
Price for capacity for generatorsaccording to the results of competitive capacity take-off (CCT)According to free agreements
Regulated tariff
=
>
Scope of capacity supply at free prices (CCT + NRC) - all except households (at regulated prices)
Capacity price for generators according to•the results of CCT•the non-regulated contracts (NRC)•capacity delivery contracts (CDC) prices•regulated prices
Transitional period Long-term model
Payment for the entire capacity Only taken-off capacity payment
201601.07.08
Market map
3
Zones without price-cap:Centre, the
Urals
Siberia price zone– 7 free capacity transfer zones
Europe price zone– 22 free capacity transfer zones
Non-price areas, geographically isolated systems
Types of Regulated Prices
4
1. For supply to - household sector- consumers in the areas with specific
pricing (until 2015)≤
35% of power and capacity generation scope
2. Forced/most expensive
3. NPP/HPP: security charge;investments charge;new plants
15 (10) %
CCT price
Demand
Not taken-off capacity
CDC, NPP and HPP
Most expensive
Decommissioning
When it is impossible:
Only for day-ahead market
Government commission
Ministry of Energy
Forced generator
Not satisfied with technical requirements
Liberalization and price regulation
5
2011
The structure of the physical scope of the capacity supplied by the generators
Transitional period Long-term model
power
capacity
5% 10% 15%25%
30%
50%60%
80%
From 1 Jan.2007
From 1 Jul.2007
From 1 Jan.2008
From 1 Jul.2008
From 1 Jan.2009
From 1 Jul. 2009
From 1 Jan.2010
From 1 Jul.2010
at free prices
at regulated prices Others in zones with price-cap
CDC
Forced/ most expensiveNew NPP/HPP
NPP/HPP charges
Households sector supply
Regulating authorities
6
FAS of Russia
SystemOperator
Ministry of Energy
•Normative support•Determination of reserve ratio ≈
demand for capacity•Decision on the correcting CCT
Thank You for Your attention!
FTS of Russia7, Kitaigorodsky proezd109074 MoscowRussiaTel. +7(495)710-61-97Fax +7(495)[email protected]
Top Related