Nord Pool Power trading in 1991, in 2017 and in 2020 - Embracing Changes and Developing the European Power Markets Nordic Embassy, Berlin 12 October 2017 Pietro Rabassi Director Central European Markets, Nord Pool
Agenda What value does Nord Pool bring to the energy industry? What is the history and future of competitive power markets integration in Europe? What are the current trends and needs in power markets? In a nutshell 2
What value does Nord Pool bring to the energy industry? 3
A niche but very important role for society at large
We operate and service markets across Europe SWEDEN FINLAND NORWAY ESTONIA Where? DENMARK LITHUANIA LATVIA When? IRELAND UK BELGIUM NETHER- LANDS GERMANY LUXEMBOURG POLAND FRANCE AUSTRIA CROATIA BULGARIA
and we consult worldwide 6
What is the history and future of competitive power markets integration in Europe? 7
EU: One common integrated European power market
Real competition to the benefit of wholesale market participants and ultimately of end consumers 9
Nord Pool created the first international power markets (DA and ID) that became the EU Target model 1991 1993 1996 1998 1999 2000 2002 2008 2010 2010 2012 2013 2014 2014 2014 2015 2016 2017 10
DA auction integration is live across 19 EU countries, more to come 1996: Nord Pool is the world s first international power market 2006: Day-ahead market coupling of France, Belgium and the Netherlands 2007: MIBEL couples Spain and Portugal 2010: Coupling of Central Western Europe (CWE), incl. coupling with the Nordics, Poland and the Baltics 2014: Coupling of CWE, GB, the Nordics and Baltics and MIBEL. 4M market coupling integrates CEE from Hungary to Romania 2015: Italian Borders Market Coupling launched, multiregional coupling covering 19 countries Multi-regional coupling 4MMC 2018: Launch of The Cross-Border Intraday initiative, XBID, a joint initiative to create a integrated EuropeaProjectn intraday cross-border market
The continuous IDM integration (XBID) to go live in Q1 2018 and later (two phases) 1996: Nord Pool is the world s first international power market 2006: Day-ahead market coupling of France, Belgium and the Netherlands 2007: MIBEL couples Spain and Portugal 2010: Coupling of Central Western Europe (CWE), incl. coupling with the Nordics, Poland and the Baltics Phase 2 2014: Coupling of CWE, GB, the Nordics and Baltics and MIBEL. 4M market coupling integrates CEE from Hungary to Romania Phase 1 2015: Italian Borders Market Coupling launched, multiregional coupling covering 19 countries 2018: Launch of The Cross-Border Intraday initiative, XBID Project, a joint initiative to create a integrated European intraday cross-border market Phase 2
What are the current trends and needs in power markets? 13
RES (especially ires) have been increasing their share across Europe (EU-28) 14
and will in the next years 50% (~30% of wind and PV) in 2030 (EU targets) 15
A similar pattern applies to Germany one main driver 80% in 2050 40-45% in 2025 55-60% in 2035 Agora Energiewende (2016) 16
Although the trend will depend on the results of the gov t coalition negotiations 17
Although the trend will depend on the results of the gov t coalition negotiations 18
1: More trading closer to delivery
2. More API (algorithmic) trading
3: Cost cutting
In a nutshell 22
We want to be the preferred choice by Lowering barriers to trade physical power (for smaller customers, too) 1. Easy & simple access 2. Cost-efficient offering, including compliance services Developing innovative products and services in close cooperation with our customers
THANK YOU! TAKK! DANKE! DANK JE! MERCI! GRAZIE! Dziękuję! ce@nordpoolgroup.com
www.nordpoolgroup.com Pietro is the Director for Central European Markets and responsible for expanding Nord Pool s business across Europe and creating greater value for its customers. The Central European markets currently cover seven countries Austria, Belgium, France, Germany, Luxembourg, the Netherlands, Poland. Pietro has a professional background in international business, and the public and academic sectors, particularly relevant to the energy and power trading environment and to his role at Nord Pool. Pietro Rabassi Director Central European Markets P: M: ce@nordpoolgroup.com +49 3221 4219614 He has studied engineering at Politecnico di Milano in Italy and at Ecole Polytechnique in France and pursued postgraduate business and government studies at Harvard University in the USA. Pietro has lived in 7 countries so far. You may address him in Norwegian in the longer run, but for now it is easier to choose among English, German, French, Italian or Greek (you can try some Spanish and Russian, too). Joined Nord Pool: 2016 25