Jarek Astramowicz10 March 2003.ppt

Polish Energy Market Jarek Astramowicz 10 March 2003 Polish Power Sector - Overview Generation total installed capacity - 34 200 MW peak demand – 23,000 MW, minimum demand - 15,000 MW annual demestic production – 155 TWh annual domestic consumption – 137 TWh net power exports – 7 TWh 96% of the total power output is generated by the coal fired plants and CHPs hard coal and lignite Transmission Polish Power Grid Company PSE SA - owns, operates and maintains the high voltage grid 220 kV, 400 kV and 750 kV Distribution 33 local distribution companies they own and operate the medium- and low-voltage transmission and distribution grids 110 kV and below Regulation Energy law of 10 April 1997 last amendments introduced on 1 January 2003 The President of Energy Regulatory Authority URE issuing licences approval and control of energy tariffs control of customer service quality standards Privatisation.Distribution company groupings Balancing Market effective introduction in September 2001 and its continuous functioning and improvement by its effective introduction Poland has removed the last remaining structural obstacle in creating a competitive wholesale electricity market current high volumes will get lower as the other market segments PX, OTC develop and when pricing mechanism gets adjusted Balancing Market prices from 1st September 2001 till 30th June 2002 Power Exchange over-invested in systems and structure high transaction costs faulty PX participation agreements all risks shifted onto participants attempts sophisticated products without first fully developing mastering the basics major failure - it has not created a reliable index OTC Market relatively high volumes available for trading large number of ?active” participants both current potential objective price index can be created most of the action will take place in the near future ?Long-term contracts” they cover only 60% of the market with 30% or more available for tra