Mid-Term Generation Adequacy in Belgium

The Belgian energy landscape is going through a critical transition. As a consequence of the ever increasing share of renewables, conventional gas-fired power plants are becoming increasingly unprofitable. The announced closure of many CCGTs in combination with uncertainty about Doel 3 and Tihange 2 and the approaching nuclear phase-out endangers security of supply. Indeed, over the next years it becomes increasingly questionable whether sufficient generation capacity will be available to cover electricity demand. This Sia Partners’ study details the decline in generation capacity over the coming years and forecasts the impact on security of supply over the period 2014-2016 under the assumption that Doel 3 and Tihange 2 won’t start again.

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Highlights of Dutch Energy Market developments

Dear reader,
Our second digital (email service based) newsletter is released again, our summer edition 2014.
With the change of format of our newsletter, I will confine myself to the latest developments we see in the Dutch energy market and internal NL Sia developments.

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Energy utilities: a changing portfolio

A lot has already been written about the increasingly challenging and competitive environment in which EU utilities are currently operating. The latest activities undertaken by major EU energy players, and Dutch ones in specific, triggered Sia Partners to make an impact-analysis of this behavior on their portfolios. This article aims to provide an overview of how EU power majors adjusted their strategies, and how their portfolios have been transformed as a consequence of their strategic moves.

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Continuous improvement is always a viable choice

Implementation of the legislation REMIT, energy prices and margins spiraling downwards, consumers becoming prosumers, upcoming decision of Dutch Lower House on the “splitsingwet” for DELTA and Eneco, brand new delivered power plants already in the mothballs, consolidation of grid operators; these are just illustrations that it is never a dull moment in the energy business.

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Products and pricing in the consumer and small business market

The central role of product and pricing design in today’s energy environment

As described in the article New business models for energy suppliers published in our previous newsletter [1] , today’s power industry faces a number of critical challenges, and energy retailers have to adapt to a new landscape. Specific industry concerns include increasing wholesale fuel costs, growing overcapacity (>30%), decentralized generation and political uncertainty. In addition an apparent desire by consumers for more pricing and products options that will better fit their energy needs. These developments force the energy retailers to have more focus on their downstream business, where energy products and pricing designs play a central..

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Shape Your Future in Energy 2nd Edition – Winning articles

Dear Reader,

We are very proud to present you the winning articles of the contest ‘Shape your Future in Energy’.

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Pocket Digestion: An Opportunity for cost-effective green energy production

Flanders traditionally has a considerable excess of manure, being one of the bigger environmental issues in the region. On a small area, millions of animals are breeded threatening the nutrient balance of the soil. The utilization of this waste product for the production of green energy production seems to be a very promising opportunity to help Flanders reach the greenhouse gas reduction targets set by the European Union – 20% reduction by 2020 compared with the 1990 emission.

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Recent developments in the Dutch energy market

These past months, the energy sector in the Netherlands has been experiencing difficulties, and though the Dutch economic outlook is turning positive, large utilities are still in the middle of large cost-reduction operations: either bringing the number of employees down, and/or mothballing unprofitable power plants. Vattenfall and RWE both illustrate this.

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Power market coupling – “Europe’s most important IT system”

According to a recent Reuters communication, “Europe took a big step towards a single power market by unifying electricity trading across 15 countries and creating what has been called the continent’s most important IT system”. Indeed, the 4th of February 2014 can be considered as a landmark in the integration of the European power market as the coupling solution developed by European Power exchanges (PXs) & Transmission System Operators (TSOs) for the day-ahead market went into production. As Sia Partners is involved in this project and has been active in various market coupling initiatives since 2007 we want to inform you, as our relation, about this recent milestone.

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New business models for energy retailers

Innovations, new technologies, new entrants: As wireless changed the telecommunications industry, distributed generation and information technologies are poised to bring major disruptions to the utilities sector. Overcapacity and tariff pressures are putting conventional power generation under pressure, challenging the sector’s major players and questioning the viability of their current business models. These difficult market conditions explain the current transformation process of the energy market, towards a low-carbon and decentralized electricity generation. Energy retailers need to reinvent themselves, and start the transition towards new downstream business models, shifting from energy supplier to an information-driven energy service provider.

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Posted in Competition, Uncategorized, Utilities | Leave a comment