Regulatory challenge of russian energy sector reform
This presentation is the property of its rightful owner.
Sponsored Links
1 / 16

Regulatory challenge of Russian energy sector reform PowerPoint PPT Presentation


  • 91 Views
  • Uploaded on
  • Presentation posted in: General

Regulatory challenge of Russian energy sector reform. Dominique Fache, General director for Russia and CIS ENEL. Enel: Global dimension ¹. 22 countries\ four continents Total capacity of 82 863 MW 259,7 TWh / year of electricity generated 1 583 000 km of power lines

Download Presentation

Regulatory challenge of Russian energy sector reform

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Regulatory challenge of russian energy sector reform

Regulatory challenge of Russian energy sector reform

Dominique Fache,

General director for Russia and CIS ENEL


Regulatory challenge of russian energy sector reform

Enel: Global dimension¹

  • 22 countries\ four continents

  • Total capacity of 82 863 MW

  • 259,7 TWh/year of electricity generated

  • 1 583 000 km of power lines

  • 32 650 km of gas pipelines

  • 52,4 million customers

  • 85 485 people

  • 1,6 million investors

  • 13,1 billion euros of EBITDA

¹Figures as of 30.09.2008

1


Russian energy sector structure

Russian energy sector structure

Capacity of RAO UES 67 GWCapacity OGK 77 GW Capacity TGK 54 GW

OGK1OGK2OGK3OGK4OGK5OGK6

2


Enel presence in russia

o

Enel: Presence in Russia

First Vertical Integration Built in Russian Energy Sector

Power generation

Upstreamgas

Supply

Integration allows hedging the risks on huge liberalised market, primarily hedging gas supply risks for ENEL OGK-5

  • 49.5% of RusEnergoSbyt

  • Largest independent retail power company in Russia

  • 35 TWh sold in 2008

  • 25 regional offices and 7 branches

  • Main supplier to Russian Railways (15 year long-term power supply contract).

20% of SeverEnergiya

(50% - Gazprom, 30% - ENI)

55.9% of

ENEL OGK5

  • Gas fields in the north of Western Siberia

  • Covering the demand of OGK-5’s gas-fired plants

Core asset of Enel’s vertical chain in Russia

3


Regulatory framework

  • Generation

  • Transmission /

  • Dispatching

  • Distribution

  • Retail

Regulatory framework

Tariffs are regulated on cost plus basis

Switching for RAB regulation in delay

4


Regulatory challenge of russian energy sector reform

FREE MARKET

REGULATIONS

It is very difficult to find a balance between the price welcomed by customers and the payment “motivating” producers for further investments.

5


Difficulties in taking consolidated decisions

Difficulties in taking consolidated decisions

FTS

ATS

GENERATORS

MRSKFSK

MARKET COUNCIL

ENERGY COMMISSION

CRISIS

COUNCIL OF ENERGY PRODUCERS

MINENERGO

SYSTEM OPERATOR

NETWORKS

SALES

FAS

6


The importance of the regulatory framework

The importance of the Regulatory framework

Values

  • Independence and autonomy of Regulator

  • Consistency over time

  • Transparency of market rules and procedures

  • Predictability of evolution

    Key Principles

  • Market forces drive profitability and returns

  • Regulated returns reflecting industry/country profile for mandated programs and natural monopolies

  • Fair return on investments (especially mandatory investments)

  • Legal reliability guaranteeing security of investments

Reliable regulatory framework = incentive for investors

7


Status of market reform

Households still regulated

Market liberalization

Gas prices

Status of market reform

8


Capacity market

Capacity market

Why should be capacity remuneration implemented?

supplyadequancy

Short-run Capacity market

opened 2H 2008

investment incentives

Long-run Capacity Market

Market Rules still in discussion

First auctions for 2011 delivery postponed from December 2009 (as early planned) to September 2010*

Price predictability

* should be held by September 2010

9


Capacity market1

Delivery period

Time necessary to carry out new investments

КОМ

~

Year

2010

2015

2015+N

new – Nyearsold – 1 year

4 years

  • By September 2010 auction with delivery in 2011 will be carried out

  • By November 2010 all transitional auctions with delivery 2012-2014

Capacity market

  • Short-run Capacity market opened 2H 2008

  • Long-run capacity market model (rules still in discussion)

10


Collection problems

  • Increasing debts vs generators

  • Accumulated debts is around 34 bln. RUR (July 2008 – September 2009)

  • Increasing non payments problem

  • Accumulated debts is around 90 bln. RUR (July 2008 – September 2009)

Collection problems

wholesale market

retail market

You can consume and not pay?

Financial Guaratees

Telemetering

11


Tariff vs intensity

Tariff VS Intensity

12


Regulatory challenge of russian energy sector reform

Smart technologies for the future

Electronic metering

for electricity and gas

Smart Grids

  • 30 mln of electronic meters ALREADY installed in Italy

  • Exploitation of remote management of gas meters

  • Development of a multi-metering infrastructure

  • Integration and management of renewables

  • Local energy dispatching

  • Self-fixing grids

13


Enel group key priorities in russia

Enel Group: Key Priorities in Russia

Power and Gas MarketOpening

Energy Market Cap

Long-run Capacity Market

Tariff Imbalances

Efficiency

Collection Problems

14


Regulatory challenge of russian energy sector reform

15


  • Login