Transcript Is there a Traditional Energy vs. Alternative Energy Paradigm?

Alternative and Sustainable
Energy
Intermittent Energy
Resources for Electricity
Markets
Federico S. Fische
30th USAEE/IAEE North America Conference - October 2011
The Old Model
• Vertically Integrated Monopoly
• Central Infrastructure Planning
• Government Price Policy
Alternative and Sustainable
Energy
Restructured Model
• Oligopolistic Franchises
• Infrastructure Planning “by Contract”
• Regulated Price
Alternative and Sustainable
Energy
Current Value Chain
Generation
Storage/Distribution
Alternative and Sustainable
Energy
Consumption
Value Chain
Characteristics
Alternative and Sustainable
Energy
• Regulatory framework
• Infrastructure development tailored to resources
and profitable market segments
• Self-serving price mechanism, at first
• Fight/Adapt to Regulated Price, later
• Consumer = Meter Count
Three Pillars of the
Perfect Market
• Regulation
• Infrastructure
• Certainty
Alternative and Sustainable
Energy
The Intermittent issue – Adapt or
else
• Capital Investment Needs
• Availability and Dispatch effectiveness
• Price Parity and certainty
Alternative and Sustainable
Energy
Demystify Capital
Uncertainties (2016)
Alternative and Sustainable
Energy
No all Renewables are
created equal
Alternative and Sustainable
Energy
• Renewable Energy Technology Characterization (TR-109496,
Dec 1997) shows that biomass, biofuels, modern hydro and
geothermal source have similar availability and dispatch
effectiveness (intermittency) than traditional resources, like
nuclear and fossil fuels.
The Real Challenge
Alternative and Sustainable
Energy
We should focus on how to adapt the
system to the nature of power resources
and changes in technology, doing the
opposite is a virtually impossible.
Framework for New
Market Design
Alternative and Sustainable
Energy
Technology
considertions
Financing and
Investment
Business
Culture
Sustainabile
design and
operation
Regulatory
Framework
Infrastructure
RE
Predominant
Market
Stakeholder
consensus
New Value Chain
Alternative and Sustainable
Energy
Looking Forward
Alternative and Sustainable
Energy
The success of renewable and efficient
energy requires a change in the energy
market culture, an understanding of the
new dynamics that renewables bring in
the market, the adoption of multi-level
solutions and strategies that are
responsive to our energy challenges and
the environmental impact of energy
generation in our ecosystem