EFFICIENT REGIONAL/LOCAL ENERGY MARKETS PRACTICAL EXPERIENCES DEVELOPING BUSINESS MODELS Finland. 27 th November 2014 Finnish Energy Industries

Transcription

1 EFFICIENT REGIONAL/LOCAL ENERGY MARKETS PRACTICAL EXPERIENCES DEVELOPING BUSINESS MODELS Finland 27 th November 2014 Finnish Energy Industries

2 Net Supplies of Electricity 2013 in Finland (84.3 TWh) Hydro power 15,1 % Wind power 0,9 % Nuclear power 26,9 % Net imports 19,2 % Condense etc 9,7 % CHP, Industry 11,9 % CHP, district heating 16,3 % 2

3 Electricity retail market in Finland Over 80 different sized DSOs Approximately 70 suppliers (some of them only operate locally) No regulated end user prices for electricity supply Supplier centric market model, but both DSO and supplier are responsible for billing DSOs are responsible for metering: >96 % AMR, hourly values 2 nd lowest household electricity prices when expressed in purchasing power standards (PPS) and 12 th lowest when expressed in euro (Eurostat, 2013) Supplier switching is easy and free of charge for customers Switching rate about 10% 60% of customers remember getting an offer from a competitive supplier* 41% has compared prices in the internet* The main reason not to switch is that customers are satisfied with their current supplier* *National customer survey, August

4 New possibilities due to AMR Hourly metering & hourly balance settlement > new electricity supply products Electricity price follows actual whole sale price Hourly, daily, monthly or whichever interval Peak time pricing And of course also fixed price if the customer wants Basically any pricing method you can think of! New services: DSM & home automation synergy, reporting, suppliers buying extra energy from prosumers, market price Network tariff structure may become more cost reflective and fair based on highest hourly consumption measurement Better information on network status in emergency cases 4

5 Challenges & debate issues for local companies DSO minimal yield on large investments (dig lines in forests) Supplier changing competitive environment is integration to generation a good strategy? Both DSO & supplier (electricity) debate on single / dual bills regulator-driven project on Nordic retail market District heating (50 % of all space heating is DH!) decreasing heat density due to more energy efficient buildings & competition by heat pumps low electricity price, low income of energy efficient CHP 5

6 Please contact: Finnish Energy Industries

7 Reserve slides

8 PCT by the NRA lists suppliers who buy surplus electricity Supplier s margin per kwh 100 % RES Supplier ready to buy prosumer s surplus energy hour by hour 8

9 Experiences on billing based on actual consumption When implementing hourly metering, customers have been switched from billing based on estimation (balanced annually) to billing based on actual consumption Based on DSO experience, less than 1 % of customers wished to be switched back to billing based on estimations DSOs have noticed some changes in customer contacts when switching into the billing based on actual consumption Less calls, shorter calls, bills are easier to understand The questions have before been about not understanding the bill, now they are about how the customer could save energy. DSOs have noticed also changes in customer behaviour when they implemented billing based on actual consumption In our study, residential customers (incl. electrical heating) have decreased their energy consumption by 7-8 %. 9

10 Generally in EU: RES = wind & solar In Finland: RES = biomass, fuel for industrial and municipal CHP, also for cars