Graham Thomas …..Who am I ?
LESSONS IN MARKET DESIGN: THE RESULTS OF THE WORLD ENERGY COUNCIL PROJECT
KEY CONCLUSIONS
KEEP IT SIMPLE (80:20 ?) Complexity Problems to Solve More Complexity If Competition in Generation is appropriate
PPT Slide
WHO BENEFITS ? (10 year Gross Assumptions)
DON’T FALL INTO THE TRAP OF JUSTIFYING LARGE SPEND IN MARKET REFORM ON THE BASIS OF LARGE BENEFITS ELSEWHERE THE SAME OR GREATER BENEFITS MAY BE DELIVERED AT MUCH LOWER COST
FROM WHICH MARKETS DO WE LEARN LESSONS ? Questions: Who has benefited? (besides consultants, software developers, lawyers and traders ?) Have benefits been delivered by: The design of the market ? The structure of the Industry ? Natural Fuel Cost Advantages ? Could similar benefits have been delivered more simply ?
INTERNATIONAL MARKET CONCLUSIONS
CHALLENGE: WHAT LOGIC and WHAT CRITERIA to apply to a PROPOSED MARKET DESIGN ?
LIBERALISATION CRITERIA
ISSUES with MOST FINANCIAL IMPACT ?
Continued Regulation ?
IF The previous ISSUES have been solved satisfactorily THEN
WEC Working Group Objectives
COUNTRY PROFILE
Requirements for Competition ?
COMPETITION OPTIONS IN GENERATION
CAPACITY CONSTRUCTION Criteria 1: Commissioned capacity exceeds demand for foreseeable future
CAPACITY CONSTRUCTION
THE MAJOR CRITERIA is therefore
Competition in Generation
MARKET MODELS
Do you need ANY central price ?
WHO in the market CAN USE such frequent Price Variations ?
Market Price Setting
Government Policies
PROPOSITION: FOR 80% of COUNTRIES
BUT…..if Competitive market features are to be introduced…..
Do You Really Want a Spot Price? WHY ? Do you need ANY central price? WHY ?
WESTERN AUSTRALIA Reform…..? Readiness for Competition…..?
REFORM CRITERIA
WESTERN AUSTRALIA OBJECTIVES
WESTERN AUSTRALIA PROFILE
SUPERIOR COST BENEFICIAL SOLUTION
WHY WOULD YOU WANT TO SPEND MORE ???
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