Agere Energy & Infrastructure Partners’ Post

Why are Europe’s power markets coupled? 💡    Market coupling mechanisms are the backbone of how cross-zonal capacity is allocated across the bidding zones in Europe.    This allocation is carried out through Single Day-Ahead Coupling (SDAC) and Single Intraday Coupling (SIDC) mechanisms.     But how do we benefit from these market coupling mechanisms? 💡    ✅ 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐝 𝐜𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐨𝐧    Market coupling promotes competition among electricity suppliers, driving them to operate more efficiently and offer competitive prices to local customers.    ✅ 𝐄𝐧𝐡𝐚𝐧𝐜𝐞𝐝 𝐠𝐫𝐢𝐝 𝐬𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲    During peak demand periods, market coupling ensures that power is sourced reliably from the most dependable producers, which enhances grid stability.    ✅ 𝐇𝐚𝐫𝐦𝐨𝐧𝐢𝐳𝐞𝐝 𝐫𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧    EU-wide regulation further reduces market barriers and discrepancies, leading to consistent and efficient cross-border trading. This consistency is essential for creating a unified European energy market.    ✅ 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐝 𝐚𝐠𝐢𝐥𝐢𝐭𝐲    Better cooperation and resource sharing across Europe strengthen the resilience of our markets in case of supply shortages and emergencies.    ✅ 𝐒𝐞𝐚𝐦𝐥𝐞𝐬𝐬 𝐢𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐫𝐞𝐧𝐞𝐰𝐚𝐛𝐥𝐞 𝐞𝐧𝐞𝐫𝐠𝐲    Market coupling is one of the many regulations that have been put in place to protect our power grids and promote the seamless integration of renewable energy sources into our energy mix.    With market coupling, Europe has one of the biggest internal power markets on the global scale 🌍    Understanding and leveraging these mechanisms is crucial to successfully navigating the complex EU power markets and capitalizing on the opportunities they offer 📈    We deliver. You excel.    #time2market #marketcoupling #powertrading 

Mark your calendars! 🗓️ The European Q2 PPA Price Index Report will be LIVE on July 18! Curious to know what's in the report? Here's a sneak peek: An in-depth view into the current state of the PPA market: See why solar and wind PPA prices decreased in Q2 2024 Real PPA pricing data: Gain access to country-specific pricing and data Deep market insights: Understand how potential bidding zone changes across Europe may impact market dynamics Actionable advice: Learn how Sustainability Roundtable advises their PPA clients in today’s dynamic market Whether you're a clean energy developer, buyer, advisor, investor, or just interested in staying informed, this report is packed with valuable insights and data that you won’t want to miss. Looking for actionable market data? Reach out to us at LevelTen! info@leveltenenergy.com #PPAPriceIndexReport #Europe #LevelTenEnergy #RenewableEnergy #PPAReport

Industrialized countries have a long history of standards and incentives to improve industrial efficiency, often pursuing it as a means to improve competitiveness. Policy making for industrial decarbonization, however, has advanced more cautiously, as governments seek to avoid having domestic decarbonization efforts hurt industries’ ability to compete in global markets – and unduly raise end-user prices. These considerations add to the complexity of designing industrial energy policies that can accommodate diverse new industries, across which few “one-size-fits-all” approaches would be effective. New industrial energy efficiency and decarbonizing policies show few advances, amidst broader concerns on supply chain security and competitiveness. (State of Energy Policy 2024 – IEA (International Energy Agency) – September 2024) #EnergyPolicy #IndustryPolicy #Renewables #Decarbonization  

Switzerland is set to implement quarterly energy disclosure starting in 2027, as announced in an amendment to the ordinance on the GO and Marking of Electricity. Effective from 1 January 2027, this change will enhance transparency in energy reporting, aligning electricity production more closely with consumption patterns. The quarterly disclosure is expected to drive higher demand for EU-EECS GOs, particularly during winter when energy consumption peaks. This transition represents a significant advancement in making renewable energy procurement more efficient and transparent. The ordinance is also likely to support the uptake of PPAs in the Swiss market as electricity suppliers will be required to keep a diverse portfolio of their renewable assets as well as PPAs to shield end-users from the strong volatility in the wholesale market. For a detailed analysis of the implications of this change, read the full article by Mary Polovtseva, Irina Peltegova and Léo R.: https://lnkd.in/d22QHCwP #energytransparency #PPAs #energyefficiency

SWITZERLAND WILL MOVE FROM ANNUAL TO QUARTERLY DISCLOSURE FROM 2027 ⚖ On 29 September 2023, the Federal Council approved the federal law on a secure electricity supply based on renewable energies, which successfully went through the parliamentary process. The law recently underwent some changes, such as the revision of Article 6 “Obligation to supply (electricity) and pricing in basic (electricity) supply”, which introduces quarterly disclosure. ✔ After the popular vote took place on 9 June 2024, where 68% of Swiss citizens voted in favour, the law will come into force on 1 January 2025. ⏰ As a result of the amendments, energy producers will receive the GOs associated with their output per quarter, while electricity suppliers will need to cancel GOs and disclose RES-E consumption at the end of every four months. In contrast, current disclosure deadline is 30th May X+1. 🤔 I dissect implications for the GO market on Veyt platform, commenting on the possibility of vintage swapping, demand fragmentation, disclosure restrictions etc. My colleague Irina Peltegova delves into the impact on the PPA market. I provided more comments to Montel Group in Enza Tedesco's reporting (https://lnkd.in/dMieTQvW). 👉 P.S. Veyt launched a new product - a unique PPA forecasting model helping companies to calculate the fair value of the contract components linked to a German onshore wind power asset, existing or prospected. Reach out to contact@veyt.com to learn more. #Switzerland #policy #energy #renewable #ESG

🗓️ Mark your calendars! The North American Q2 PPA Price Index Report will be LIVE on July 16. Curious to know what’s in the report? Here's a sneak peek: An in-depth view into the current state of the PPA market: See why solar and wind PPA prices increased in Q2 2024 Real PPA pricing data: Gain access to ISO-specific pricing and data Deep market insights: Understand how tariffs, AD/CVD investigations, and other regulations are re-shaping the US solar supply chain Actionable advice: Learn how Sustainability Roundtable advises their PPA clients in today’s dynamic market Whether you're a clean energy developer, buyer, advisor, investor, or just interested in staying informed, this report is packed with valuable insights and data that you won’t want to miss. Looking for actionable market data? Reach out to us at LevelTen at info@leveltenenergy.com! #PPAPriceIndexReport #NorthAmerica #LevelTenEnergy #RenewableEnergy #PPAReport

Here at the EMEX Net Zero and Energy Management Expo at the ExCel in London. There are about 2,000 delegates attending the show and I had the chance to catch up with Jan Rosenow - Principal and Director of European Programs at the Regulatory Assistance Project after his excellent presentation. I thought I would share a few of the key takeaways I have gathered so far: There is still consistent underestimation of the speed and impact of emerging innovation and technologies in driving change. In 2017 in the UK, for example, it was predicted that there would be a resurgence in the demand for coal in power generation. The last coal fired power station in the UK has just closed). Huge inefficiency in power generation is being used to defend the need for traditional fossil fuels to meet increasing demand. Over 40% of generation is being lost in inefficiency and waste and addressing this would disrupt the market Long term thermal storage solutions are finally emerging as practical district and grid level solutions offering good potential for new suppliers and operators to enter markets The poor Spark Gap difference between gas and electricity pricing in the UK is a practical barrier to demand for and adoption of new technologies, especially compared to faster moving European markets. The Labour government in the UK is committed to tackling this. If they are able to make the necessary changes the UK market will see significant growth If growth in demand for electrification continues as predicted, many countries are likely to hit the “gridlock” experienced by the Netherlands where it can take months to deliver new Medium / High Voltage grid connections. This could drive strong growth in grid-level storage and distributed energy generation solutions. Non-energy players in manufacturing and other industries that have invested in efficient power storage and generation, could use their capacity to enter and disrupt the generation market and displace traditional incumbent suppliers that fail to transition to less efficient solutions. #emex #excel #netzero #sustainable #energy #energypolicy

⭐ 2024 Bureau Veritas Global Energy Transition Report ⭐ Tripling Up in a VUCA World is now available: https://lnkd.in/gJU_pdg5 Key insights from the report include: #1 VUCA is here to stay: 40% identify supply chain uncertainties as the top short-term threat to the energy transition. #2 Accelerate to boost security: 84% agree that the energy transition will enhance energy security. #3 All eyes on government: 40% call for the simplification of permitting regulations. #4 Grids are now the number 1 barrier: 84% recognize the urgent need for investment in grids. For more detailed insights, please read the full report via the link above. #bureauveritas #energytransition #renewables #vucaworld

Key insights from our report include: #1 VUCA is here to stay: 40% identify supply chain uncertainties as the top short-term threat to the energy transition. #2 Accelerate to boost security: 84% agree that the energy transition will enhance energy security. #3 All eyes on government: 40% call for the simplification of permitting regulations. #4 Grids are now the number 1 barrier: 84% recognize the urgent need for investment in grids. For more detailed insights, please read the full report via the link above. #bureauveritas #energytransition #renewables #vucaworld

🚨 Energy Transition at Risk: Deployment Shortfalls Threaten 2030 Targets In both the EU and the US, the deployment pipelines for key technologies are falling short of meeting 2030 energy transition goals. While policy support and announced investments are promising, a lack of firm project commitments poses a significant bottleneck, compounded by concerns over project economics and long-term returns. 🔑 Challenges to Deployment: Less than half of the pipeline for low-carbon power projects has reached a Final Investment Decision (FID). Clean commodities production lags behind net-zero targets due to feedstock availability and pricing concerns. Broader market design and infrastructure limitations are slowing progress, despite continued reductions in the Levelized Cost of Energy (LCOE). Even with landmark policies like the US Inflation Reduction Act driving momentum, achieving the necessary scale for the energy transition requires urgent action to solidify project pipelines. How can the energy sector overcome these bottlenecks to stay on track for 2030 goals? Let’s discuss! 👇 #EnergyTransition #NetZero #Renewables #SustainableFuture #EnergyPolicy