In a changing energy world, market design is facing new and difficult challenges. With power coming from decentralised and often intermittent sources, the need to balance energy resilience with exibility is adding a new tension to the central trilemma of reliability, affordability and sustainability. Senior executives and experts from 12 countries and four continents gathered for a PwC roundtable in Brussels to discuss one of the most topical issues facing the energy sector today.
A blackout that left South Australia without power shows the fine line between accident and design when it comes to creating well-functioning power markets. Major pressures are evident in different markets around the world. A new world of decentralised and often intermittent energy sources is putting strain on how well regulators, policy makers and companies are able to combine to create good energy market outcomes.
A PwC roundtable held in September 2017 in Brussels, Belgium heard directly from leading players involved in shaping market design in Australia, Europe and the Americas. Among them, Dr Florian Ermacora, Head of Internal Market Energy Unit in DG Energy, EU Commission, talked about the dilemmas and solutions in front of the EU as it tries to deliver decarbonisation at least cost. Mark Coughlin, Global Market Design Leader, PwC Australia joined other senior gures from Australia to discuss the causes of the blackout in South Australia and the regulatory response. From the US, John Quackenbush, President of JQ Resources, offered insight from his experience working for regulators and regulated entities and highlighted the challenges of cybersecurity and cloud computing as well as current issues facing the Federal Energy Regulatory Commission. Alain Janssens, Director Regulatory Oversight and Market Design at Engie, reviewed market design and regulation in leading markets around the world and stressed the need to learn from different regions, not least those in South America which are often overlooked.
There are lots of reasons why market failure is an increasingly real and present danger in today’s rapidly changing energy world. More than ever, there’s a need for market design that can address unexpected as well as the expected events. Much will depend on how well we can deliver a balance between energy resilience and energy flexibility and find an equilibrium in the central trilemma of reliability, affordability and sustainability. You can read more in the full discussion paper - Market Design in a world of energy transformation.
Global Leader, Energy, Utilities and Resources, Partner, PwC Germany
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