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Session 24: Electricity Sector Restructuring Experiences and Strategies
Time: Friday, 27/May/2011: 2:00pm - 3:30pm
Session Chair: Dubravko Sabolic
Location: Istanbul


Brazilian Electricity Sector Restructuring: From Privatization to the New Governance Structure

Elbia Aparecida Silva Melo, Evelina Neves, Luiz Henrique Pazzini

CCEE, Brazil

The first market-oriented reform of the Brazilian Electricity Supply Industry, carried out in the nineties, failed to attract investment in the levels required to keep the economy growing and remained incomplete, because the trading arrangements set in place did not emit adequate investment signals and the market organisms themselves became paralyzed. In consequence, a new direction for reform was set up in March 2004. This reform of the reform, besides several structural purposes, is aimed at attracting private investment to the expansion of electricity generation supply, in view of growing demand and restrictions on the State capacity to invest. From an analysis of the governance structure here is a survey done about the market design and rules of the Brazilian Electricity Sector with the aim of presenting the whole process of change and major advances in governance since the major structural and institutional changes of the Brazilian Electric Sector from the 1990s to 2004, to duly analyze the possible effects of these changes on the strategic actions of the economic agents (generation, traders, consumers and distribution companies). This work also aims to identify eventual fragilities in the market rules and in the market design in this period and how they were mitigated by the last reform that took place in 2004 and introduced new structural changes to the Brazilian Electricity Institutional Model (BEIM).

Actual State, Future Trends and Desirable Directions of Electricity Sector Development in the Region of South-East Europe

Mladen Apostolovic, Milovan Studovic

Energy Financing Team, Serbia, Republic of

In terms of long-term and insufficiently effective socio-economic transition in countries of Energy Community of South-East Europe (EC SEE), characterized by significant decline of economic activities and lack of investment in new modern production technologies, the global financial and economic crisis at the end of 2008, imposed additional slowdown in the economic activity, redevelopment and operation of the energy sector and in particular of the electric power companies in most EC SEE countries. Qualitative view of the current status and possibility of redevelopment of the energy industry is accompanied by key economic and industrial quantitative indicators, followed by trends of the expected electricity demand, production, and its balance, derived on the basis of the pre-crisis known electricity intensity and GDP and/or VA growth rate, for two scenarios of introduction of new generation capacities.

Barriers and Approaches in the Development of Renewable Resources in Rural Albania

Orion Zavalani

Polytechnic University of Tirana, Albania

Rural areas continue to be home for the majority of the population in Albania. The access of country potentials in renewable resources in the form of biomass, hydro, wind, and solar continues to be low in rural areas. There are technical, social, cultural, institutional and economic barriers to the deployment of renewable energy systems and, thus, to their ability to contribute to the long term development of rural clean energy.

This paper aims to analyze barriers and suggests promising approaches for overcoming them toward a sustainable development within the context of rural Albania.

A Quantitative Analysis of the Electricity Market in Switzerland

Donnacha Daly, Jeroen Cornel, Gregoire Caro, Marcus Hildmann, Florian Herzog

swissQuant Group AG, Zürich, Switzerland

The electricity market in Switzerland began liberalisation in 2008, with the passing of the Federal Electricity Supply Act, and is still not fully liberalised. Owing to its relative immaturity, there is little in the way of centralised reporting of its stylised facts, a situation the current work attempts to rectify. As a guideline, a standard Hourly Price Forward Curve (HPFC) is developed. Since Switzerland does not yet boast a financial index for energy futures, the implementation of this model is not straightforward. This issue is addressed by a quantitative market analysis based on regionally specific stylised facts. The resulting model also yields insights on the influence of bottom-up factors driving Swiss spot prices, in particular with regards to the relatively high share of hydro-power in Switzerland. We conclude with a discussion of this ``Swiss-made'' HPFC and its implications for the evolution of the Swiss market.

The New Generation Investment and Electricity Market Development in Kosovo

Nysret Avdiu, Ali Hamiti

Energy Regulatory Office Kosovo, Kosovo

This paper analyses the tension between designing power sale agreements that reduce uncertainty for the private investors and running the power systems as more efficiently as possible in the electricity market of Kosovo. The dispositions of such agreements are preliminary in resolving this tension and, therefore, in orienting the development of electricity market’s restructuring towards a competitive direction. The paper reviews a contractual model, highlighting the tension between the two opposite directions: reducing uncertainty and risk in order to attract private investment, and operating the power system efficiently and building a competitive market in Kosovo. The competitive contracting can increase efficiency pressures and, at the same time, increase the investment risk. The influence of a long term power purchase agreements, as an investment tool for generation investments, have been analysed in the context of current and future development of Kosovo electricity market.

Implementation of the Feed-in Tariffs in the Macedonian Power System

Aleksandra Krkoleva1, Rubin Taleski1, Natasa Markovska2, Verica Taseska2, Gligor Kanevce2

1Ss Cyril and Methodius University, Faculty of EE & IT, Macedonia, Republic of; 2Macedonian Academy of Sciences and Arts, Research Centre for Energy, Informatics and Materials

In this paper, the current stage of RES use is examined, together with the national legislation on RES and the adopted supportive measures. The implementation of the adopted feed-in tariffs is discussed taking into account the proposed installed capacity limits, level and duration of support for the RES plants, system costs, market prices and the overall impact on the Macedonian power system. In the analyses, the possible mechanisms for financing the feed-in tariffs are also included. It has been shown that the prescribed feed-in tariff scheme has relatively low financial implications since the increase of the costs of supply is less than 5%.