Renewable Electricity Trading, Business Insight

NEW YORK, April 24, 2012 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Renewable Electricity Trading, Business Insight

http://www.reportlinker.com/p0788509/Renewable-Electricity-Trading-Business-Insight.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Electric_power_energy

The report is targeted at companies active in the power generation and supply market and in related markets. It aims to provide insights and stimulate discussion on how best to take advantage of the growth and development of renewable power, by monetizing it via market-based mechanisms. The focus is primarily on wholesale trading, although adjacent elements of the value chain are also considered. Understand both the recent growth in renewable power generation and the medium-term trends emerging in today's political and economic environment. Recognize how regulators incentivize renewable power generation through market-based tradable instruments, and how this affects industry participants. Evaluate the instruments, market frameworks and intermediaries available for wholesale trading of renewable power and their relevance to your company. Identify how wholesale trading of renewable power is affecting your business now, and how it is likely to evolve and impact your company in future. Gain confidence that your company's investment strategy and business model are "future-proof" and in line with the emerging power market trends. There are three main levers available to governments to incentivize renewable power: cost, revenue, and financing terms. It is the first two of these that form the basis of tradable instruments that an act as proxies for renewable power as such: tax exemptions (in the form of environmental tax waivers) and renewable power quotas or obligations. Economic benefits associated with renewable power tend to be traded separately from the power itself, in the form of instruments such as Renewable Obligation Certificates, Renewable Energy Guarantees of Origin, and Climate Change Levy exemption certificates. As the market is not yet very liquid, specialist brokers have sprung up to facilitate this. Currently, trading in renewable instruments is a peripheral activity for utilities, little integrated with core business processes. Its impact is mostly felt through higher compliance costs and increased administrative complexity, reflecting the subscale nature of renewable power at present. This will change once renewables reach a "critical mass. "What are the economic and regulatory drivers behind the recent growth of renewable power trading, and how are they likely to evolve in the future? What are the organizational arrangements and market instruments through which industry participants engage in trading renewable power? How is renewable power trading impacting energy utilities today, and how is this likely to change if and when renewable power grows in scale? What are the main barriers preventing renewable power from being a more central part of the electricity value chain, including wholesale trading? When might the "critical mass" of renewable power production be reached in the world's leading markets, and are all the conditions in place for that?

Dr Mikhail Masokin

•Disclaimer

EXECUTIVE SUMMARY

•Introduction to report

•Market context

•Renewables within wholesale energy trading

•Impact on market participants

•Conditions for strong future growth

Introduction to report

•Summary

•Introduction

•Why renewables?

•Report objectives

•Scope of coverage

- Value chain coverage

- Geographic coverage

•Report structure

Market context

•Summary

•Introduction

•Renewable energy within the climate change agenda

- Man-made climate change

- Kyoto process

•Regulatory regimes for incentivizing renewable power

- Types of incentives

- Selection criteria

- Geographical variations

•Global growth of renewable generation

- EU, China and US driving global growth

- Wind remaining the dominant technology

- Renewable versus conventional electricity production

•Conclusion

Renewables within wholesale energy trading

•Summary

•Introduction

•Principal power trading regimes and mechanisms

- Types of power trading regimes

- Trading mechanisms in leading power markets

•Tradable renewable instruments

- Decoupling

- Types of renewable instruments

•Trading arrangements

- United States

- UK

•Conclusion

Impact on market participants

•Summary

•Introduction

•Current impact – mostly negative but moderate in scale

- Factors creating an impact

- Consequences for the market participants

- Nature and magnitude of impact

- Summary of impact

•What if renewable generation continues to grow strongly?

- Structural convergence

- Product convergence

- Impact on utilities' economic decisions

•Conclusion

Conditions for strong future growth

•Summary

•Introduction

•Time-frame for a critical mass

•Feasibility of continuing growth

- Are the economics favourable?

- Will the physical infrastructure be available?

- Will the political support remain in place?

•Conclusion

Appendix

•Bibliography/References

TABLES

•Table: Top 15 countries by nominal GDP (US$m), 2010

•Table: Global renewable generation capacity by geography (GW), 2006-10

•Table: Global renewable generation capacity by technology (GW), 2006-10

•Table: Global production of electricity from renewable sources (TWh), 2006-10

•Table: Renewable generation versus total electricity production (TWh), 2007-15

•Table: NEPOOL market participants, 2011

•Table: Sample Nord Pool trading volumes and prices (MWh, Euro), 19/09/2011

•Table: ROC auction prices in the UK versus buyout prices (£/ROC), 2011

•Table: Impact of renewables trading on market participants (qualitative), 2011

•Table: Impact of a 20% Renewable Portfolio Standard on California's CCGT plant (MWh, Tons, US$000), 2012

•Table: Example of renewables as 50% of total power traded by a utility (TWh, %), 2012

•Table: Real GDP YoY change in selected leading economies (%), 2000-20

•Table: Government debt as proportion of GDP in OECD countries (%), 2000-10

•Table: US and UK national debt projections ($ trillion, £ trillion), 2010-21

•Table: Changes in support to renewable generators in the UK (ROC/MWh), 2011-17

•Table: Annual household impact of the Renewable Obligation on UK consumers (£), 2011-16

•Table: Levelized generation cost by technology in the US ($/MWh), 2016 (e)

FIGURES

•Figure: Value-chain focus of the report, 2012

•Figure: Top 15 countries by nominal GDP (US$m), 2010

•Figure: Types of incentives in relation to project economics, 2011

•Figure: Global renewable generation capacity by geography (GW), 2006-10

•Figure: Global renewable generation capacity by technology (GW), 2006-10

•Figure: Global production of electricity from renewable sources (TWh), 2006-10

•Figure: Renewable generation versus total electricity production (%), 2007-15

•Figure: Electricity pool system in Thailand

•Figure: Electricity trading in a bilateral market (UK example), 2011

•Figure: Regional electricity markets in the US, 2011

•Figure: Main activities and market participants in the UK bilateral market, 2011

•Figure: Sample Nord Pool trading volumes and prices (MWh, Euro), 19/09/2011

•Figure: ROC auction prices in the UK versus buyout prices (£/ROC), 2011

•Figure: Screenshot of e-ROC participant's web interface, 2011

•Figure: Impact of renewables trading on market participants (qualitative), 2011

•Figure: Impact of a 20% Renewable Portfolio Standard on California's CCGT plant (% change), 2012

•Figure: Real GDP YoY change in US and EU15 (%), 1990-2020

•Figure: Bank of England's estimates of past and recent UK GDP YoY Growth (%), 2007-14

•Figure: Government debt as proportion of GDP in top 10 OECD countries (%), 2006-10

•Figure: US and UK national debt projections (Index, 2010=100), 2010-21

•Figure: Real GDP YoY change in selected emerging economies (%), 2000-20

•Figure: Annual household impact of the Renewable Obligation on UK consumers (£), 2011-16

•Figure: Levelized generation cost by technology in the US ($/MWh), 2016 (e)

Companies mentionned

Bank of England, BP Plc, Devoteam SA, Georgia-Pacific LLC, Hess Corporation, Hutchison 3G UK Limited, National Grid plc, Nord Pool Spot AS, Publicis Groupe SA, Schindler Holding Ltd., Sempra Energy, Uralsvyazinform OJSC

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Electric power energy Industry: Renewable Electricity Trading, Business Insight

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