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Coherence between Institutions and Technology: The case of the European Electricity Market

Coherence between Institutions and Technology: The case of the European Electricity Market. Christof Duthaler June 12, 2009. Technology: UCTE Electricity Grid. Source: UCTE. Cross-border Electricity Flows. Source: UCTE. Institutions: National TSOs and PXs. Source: ETSO.

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Coherence between Institutions and Technology: The case of the European Electricity Market

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  1. Coherence between Institutions and Technology: The case of the European Electricity Market Christof Duthaler June 12, 2009

  2. Technology: UCTE Electricity Grid Source: UCTE

  3. Cross-border Electricity Flows Source: UCTE

  4. Institutions: National TSOs and PXs Source: ETSO

  5. Incoherence: So what? • A complex network and volatile market is operated by national institutions focussing on fictitious constraints at political/institutional borders. • Consequence: Exploding costs and insecure network operation • Inefficient dispatch of power plants • Frequent redispatch measures required (costs socialized). • Today: No transparency

  6. Challenge ahead: Wind power Source: EWEA

  7. Incoherence: So what? • The European “Copper Plate”: A wrong vision for the European electricity market. • Institutionally appealing (for PXs), but technologically (and economically) fatal.

  8. Aligning institutions with technology • First: Network requirements and economic benefit • Probably in the billions of Euros per year • Second: Institutional impact • Multi-layered governance & regulation • Case Study: European Air Traffic – Eurocontrol Source: PW

  9. Thank you!

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