15th Athens Forum of the Energy Community

Athens, 25-26/11/2009

European Federation of Energy Traders

Traders view on wholesale

market integration
progress made and
remaining challenges

Plamen Popov
(Plamen.Popov@statkraft.com)

Plamen Popov

Athens, 25-26 November 2009

Poyry Nordpool Consulting

Comments on the updated recommendations for a future
wholesale power market framework and design in SE Europe

Plamen Popov

Points of Reassurance

Points of Agreement/ Approbation

Points of Doubt/ Criticism

Athens, 25-26 November 2009

I. Points of Reassurance

Confidence in the competence of the consultants

Excellence of the Nordic power market model
Experience of Nordpool and Nordic companies and regulators

Plamen Popov

Athens, 25-26 November 2009

II. Points of Agreement/ Approbation

Vision of a truly competitive and liquid power market
realistic boundaries,
single market model in the region
respect to the need for OTC integration

Deregulated wholesale and retail prices, requiring a gradual phasing out of

government subsidies
Full opening of the market
Strict unbundling
Harmonisation
(standard contracts and standardized electronic deal-matching in the OTC segment)

Plamen Popov

Athens, 25-26 November 2009

III. Points of Doubt/ Criticism

Non-recognition of the need to encourage competition between
generators and suppliers at national and regional level through measures
separate from adoption of a common day-ahead market design
N.B.
This competition-related goal is connected to, but separate from, the process of improving
social welfare through more efficient use of interconnection capacity and more efficient
coordinated dispatch of generating plants. Both the encouragement of competition and a
process of improving social welfare may ultimately contribute to greater market liquidity and
depth, but the achievability of each will vary according to the national and regional
circumstances.

Plamen Popov

Athens, 25-26 November 2009

III. Points of Doubt/ Criticism

The concept of imposing a day-ahead market design - questionable
The concept that TSOs must issue transmission rights - missing
The desirability of appointing a public supplier for smaller customers questionable
The need for easing the entry of IPPs - overlooked

Plamen Popov

Athens, 25-26 November 2009

III. Points of Doubt/ Criticism

Greek power market as a part of a future regional one. Evaluation of Greek
market model - missing .
Barriers to market opening and Ways to overcome: missing analyses of some
present obstacles:
License for WS trading in almost every county, usually with local company;
Fees applied to x-border traded energy;
Generators' quota system for tariff customers;
Improper definition of ATCs;
2 SMP system (ex-ante and ex-post) in Greek market;
Different national regimes and targets in the context of international competition between
power prducers:

Renewable electricity: FIT vs Green certificates;

Emissions

Plamen Popov

Athens, 25-26 November 2009

Thanks for your attention

European Federation of Energy Traders

Amstelveenseweg 998
1081 JS Amsterdam
Tel: +31 (0)20 5207970
Email: secretariat@efet.org
www.efet.org

Plamen Popov

Athens, 25-26 November 2009