© vattenfall ab the swedish power market presented for invest in sweden agency and sun microsystems...
TRANSCRIPT
© Vattenfall AB
The Swedish Power Market
Presented for Invest in Sweden Agency and Sun Microsystems
Stockholm 20 March, 2009
Sandra Grauers Nilsson, Vattenfall Power Consultant
© Vattenfall AB 2
Content
• Energy and Electricity in Sweden
• The Nordic Power Market
• Consumer prices in Europe
• Supplier vs. Distributor in the Nordic Power Market
© Vattenfall AB 3
Content
• Energy and Electricity in Sweden
• The Nordic Power Market
• Consumer prices in Europe
• Supplier vs. Distributor in the Nordic Power Market
© Vattenfall AB 4
Total energy supply in Sweden 1973–2007
Source: Swedenergy
© Vattenfall AB 5
Electricity generation in Sweden by power type, TWh/year
Source: Swedenergy
© Vattenfall AB 6
Installed wind power generation capacity in MW 2002-2007
Source: Swedenergy
© Vattenfall AB 7
In 2006, 97% of the electricty production was CO2-free
Source: Swedish Energy Agency
© Vattenfall AB 8
Development of renewable electricity generation 2000–2007
Source: Swedenergy
© Vattenfall AB 9
Emissions of CO2 equivalents in the world, tonnes per capita
Source: Swedish Environmental Protection Agency
© Vattenfall AB 10
Ownership of electricity generation capacity
Source: Swedenergy
© Vattenfall AB 11
Changes in ownership of electricity generation 1996-2007
Source: Swedenergy
© Vattenfall AB 12
Content
• Energy and Electricity in Sweden
• The Nordic Power Market
• Consumer prices in Europe
• Supplier vs. Distributor in the Nordic Power Market
© Vattenfall AB 13
The Nordic Market - four countries
050
100150
Finland
050
100150
Sweden
050
100150
Norway
050
100150
Denmark
Wind powerGas turbinesCondensingCombined heat and powerNuclear powerHydro power
• 14 million customers, 73.000 MW, 390 TWh/year
• Full regulated TPA (third party access)
• National Grid companies, TSOs
• Some 350 power generating companies, 450 supplying companies and 550 regulated distribution companies
• The Nordic Power Exchange - Nord Pool• Spot Market
• Futures Markets
• (EUA, CER
• Green certificates)
Production capacity a normal year, TWhSource: Swedenergy
© Vattenfall AB 14
The Nordic Market
• Generation in Sweden, The Nordic region, Europe
• The 400/200 kV grid
EU 27 +Norway~ 3000 TWh
Otherrenewables
Net imports
Hydro
NuclearFossil fuelsThe NordicCountries ~ 380 TWh
Sweden ~ 150 TWh
Source: Swedenergy
Markets for electricity trade
Source: Swedenergy
© Vattenfall AB 16
The Nordic Power Exchange – traded volumes, TWh/year
Clearing - (OTC)
Futures
Elspot
Source: Swedish Energy Agency
Electricity consumption and price in the Nordic countries
SEK/MWh
340
350
360
370
380
390
400
dec-96 jun-98 dec-99 jun-01 dec-02 jun-04 dec-05 jun-07 dec-08
0
100
200
300
400
500
600
700
800
900
1000
Norden, TWh
Systempris, SEK/MWh
Source: Swedenergy
© Vattenfall AB 18
Nordic spot prices – hydro power reservoirs
TWh, EUR/MWh, EUR/ton
-30
-10
10
30
50
70
90
110
130
jan-00 jan-01 jan-02 jan-03 jan-04 jan-05 jan-06 jan-07
"Överskott" "Underskott" Systempris Nord Pool, €/MWh EUA, €/ton
Source: Swedenergy
The Nordic Power SystemProduction capability, normal year
CHPIndustrial
Hydro power (normal year)
CHPDistrictheating
Gas turbine
Wind power
0 40 80 120 160 200 240 280 320 360 400
Oil condensingpower
Incrementaloperating costs
Electricity consumption
Nuclear power
Coal condensingpower
Source: Swedenergy
The Nordic Power SystemProduction capability, dry year
00 50 100 150 200 250 300 350 400
2) Less supply
1) Less Hydro Power
3) Higher production costs
Incrementaloperating costs
Söre/kWh
Source: Swedenergy
© Vattenfall AB 21
Runoff variations in relation to normal year runoff 1952−2007
Source: Swedenergy
© Vattenfall AB 22
Content
• Energy and Electricity in Sweden
• The Nordic Power Market
• Consumer prices in Europe
• Supplier vs. Distributor in the Nordic Power Market
23
Electricity prices in Europehouseholds 2 500-5 000 kWh/year, 2:nd half 2007
EUR/kWh
Source: Eurostat
0
0,05
0,1
0,15
0,2
0,25
0,3
eu
27
ea
12
Bu
lga
ria
La
tvia
Es
ton
ia
Lit
hu
an
ia
Gre
ec
e
Cro
ati
a
Ma
lta
Cze
ch
Re
pu
blic
Slo
ve
nia
Ro
ma
nia
Fin
lan
d
Fra
nc
e
Hu
ng
ary
Slo
va
kia
Po
lan
d
Sp
ain
Un
ite
d K
ing
do
m
No
rwa
y
Po
rtu
ga
l
Cy
pru
s
Lu
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mb
ou
rg
Sw
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Au
str
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Be
lgiu
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Ne
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nd
s
Ire
lan
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Ge
rma
ny
Ita
ly
De
nm
ark
Moms
Skatt
Energi+nät
Källa: 24
Electricity prices for the industry20-500 MWh/year, incl network and taxes, 2:nd half 2007
EUR/kWh
Eurostat
0
0,05
0,1
0,15
0,2
0,25
eu
27
ea
12
Es
ton
ia
Sw
ed
en
Bu
lga
ria
Fin
lan
d
La
tvia
Fra
nc
e
No
rwa
y
Cro
ati
a
Lit
hu
an
ia
Gre
ec
e
Po
rtu
ga
l
Lu
xe
mb
ou
rg
Ro
ma
nia
Cze
ch
Re
pu
blic
Po
lan
d
Ne
the
rla
nd
s
Slo
ve
nia
Sp
ain
Ma
lta
Au
str
ia
Un
ite
d K
ing
do
m
Be
lgiu
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Slo
va
kia
Hu
ng
ary
Ire
lan
d
Ge
rma
ny
Cy
pru
s
Ita
ly
De
nm
ark
© Vattenfall AB 25
Content
• Energy and Electricity in Sweden
• The Nordic Power Market
• Consumer prices in Europe
• Supplier vs. Distributor in the Nordic Power Market
© Vattenfall AB 26
Production and sales in competition
Transmission and distribution as a monopoly
Two Separate Legal Entities
Source: Swedenergy
© Vattenfall AB 27
Electricity network regulation should aim to achieve...
• Efficient operation of the national grid as well as the regional and local networks
• Reasonable tariffs vs. service provided
• Competition in sales of electricity by creating non-discriminatory conditions for all
Source: Swedenergy
© Vattenfall AB 28
Structure of Network Utilities in Sweden
• National Grid, Svenska kraftnät - 400-220 kV
• Regional networks - 10 operators - 40-130 kV
• Local networks - 180 operators < 40 kV, 5.3 million customers, average 29.000 cust./co.
Source: Swedenergy
© Vattenfall AB 29
The deregulated electricity market
Grid
Generator
Generator
Generator
Market Place
Supplier
Trader
Customer Customer Customer
CompetitionMonopoly
Regional net
Local net
Customer
TSO
Production Consumption
Customer
Supplier
Source: Swedenergy
© Vattenfall AB
Thank you!
© Vattenfall AB 31
Extra material
© Vattenfall AB 32
Storage levels in the regulating reservoirs
Source: Swedenergy
© Vattenfall AB 33
Energy consumption by user (Statistics Sweden)
2003 2004 2005
TWh TWh TWh %
I ndustry ......................... 154 158 156 39
Transport ...................... 95 99 101 25
Housing, services, etc. .. 154 147 145 36
TOTAL ........................... 403 404 402 100
Source: Swedenergy
© Vattenfall AB 34
The residential and service sector has abandoned oil for electricity and district heating..
Source: Swedish Energy Agency
© Vattenfall AB 35
..and the base for district heating has gone from fossil fuel to biomass
Source: Swedish Energy Agency
© Vattenfall AB 36
Simultaneously, industry has switched to biomass and electricity
Source: Swedish Energy Agency