Presentation is loading. Please wait.

Presentation is loading. Please wait.

Whither IPEX in risky times? Rome, 7 December 2007 Nigel Hawkins Responsabile Bidding, Enel Produzione.

Published byGraciela Gyles Modified over 10 years ago

Similar presentations

Presentation on theme: "Whither IPEX in risky times? Rome, 7 December 2007 Nigel Hawkins Responsabile Bidding, Enel Produzione."— Presentation transcript:

1 Whither IPEX in risky times? Rome, 7 December 2007 Nigel Hawkins Responsabile Bidding, Enel Produzione.

2 IPEX has worked well since it went live on 31 March 2004 Liquidity - high Spot Price – a reference for annual contracting Investment in new capacity

3 Market liquidity – MGP vs Contracts Markets up until 30 Nov TWh/annum

4 Investment in new capacity (*) Enel estimate(*) Full capacity of plant GreenfieldConversions MW 16,32012,160 Total period 2003-2011 Period 2003-2011 characterised by new greenfield capacity of around 16GW New entrants concentrated in the North zone in the initial phase; from 2006 significant presence also in the South 02000400060008000 02000400060008000 Greenfield Conversions

5 Risk – Europe susceptible to fuel price increase 59% 95% 80% 100% 98% 2025 Natural gas Oil 82,7% 98,8% Solid Fuels Source: European Energy & Transport – Trends to 2030 Relationship between net import by source and gross consumption Dependence on foreign fuel supplies Total

6 Risk - fuel prices Oil Gas Coal CO 2 *NBP (National Balancing Point): Hub in UK; TTF (Title Transfer Facility): Hub in Olanda **API2: CIF ARA (Amsterdam Rotterdam Anversa), API4: FOB Richards Bay

7 Faced with risk….. Faced with risk the natural choice of market participants is to contract forward – both fuel purchases and power sales. ….eliminating market risk, converting to physical risk.

8 Faced with risk….. Faced with risk the natural choice of market participants is to contract forward – both fuel purchases and power sales. ….eliminating market risk, converting to physical risk. Failure to deliver physically would lead to the need to buy back »in IPEX day ahead at the PUN, or else »at the penal imbalance price

9 Faced with risk….. Faced with risk the natural choice of market participants is to contract forward – both fuel purchases and power sales. ….eliminating market risk, converting to physical risk. Failure to deliver physically would lead to the need to buy back »in IPEX day ahead at the PUN, or else »at the penal imbalance price To avoid exposure to the PUN the producer requires liquidity in the forward markets for products within year – monthly, weekly, daily, hourly. What is the liquidity of such products?

10 Market liquidity – OTC Weekly energy transactions in 2007

11 Market liquidity – OTC Transactions in November 2007

12 What does the market need? Freedom of Choice Liquidity Reference Price System Security

13 What does the market need? Freedom of Choice Liquidity Reference Price System Security Development of liquidity of financial and physical products in all timescales

14

Download ppt "Whither IPEX in risky times? Rome, 7 December 2007 Nigel Hawkins Responsabile Bidding, Enel Produzione."

Similar presentations

GAS EXCHANGES IN SPAIN 5th IG Meeting of South Gas Regional Initiative 30th November, 2007.

GAS EXCHANGES IN SPAIN 5th IG Meeting of South Gas Regional Initiative 30th November, 2007.
Guy Caruso Administrator Energy Information Administration Washington, DC June 20, 2006 International Energy Outlook 2006 with Projections to 2030.

Guy Caruso Administrator Energy Information Administration Washington, DC June 20, 2006 International Energy Outlook 2006 with Projections to 2030.
The challenge in UK power generation Steve Riley, Executive Director, Europe London, 3 December 2010.

The challenge in UK power generation Steve Riley, Executive Director, Europe London, 3 December 2010.
Energy Risk Management Seminar New York April 5, 2001.

Energy Risk Management Seminar New York April 5, 2001.
Dokumentname > 23.11.2004 Folie 1 > Vortrag > Autor Potentials for Renewables in Europe Wolfram Krewitt DLR Institute of Technical Thermodynamics Systems.

Dokumentname > Folie 1 > Vortrag > Autor Potentials for Renewables in Europe Wolfram Krewitt DLR Institute of Technical Thermodynamics Systems.
Hans Timmer and Richard Newfarmer World Bank December, 2006 Global Economic Prospects, 2007 Managing the Next of Globalization.

Hans Timmer and Richard Newfarmer World Bank December, 2006 Global Economic Prospects, 2007 Managing the Next of Globalization.
Carbon Dioxide Emissions Costs and Electricity Resource Planning New Mexico Public Regulation Commission Case No. 06-00448-UT March 28, 2007 Presented.

Carbon Dioxide Emissions Costs and Electricity Resource Planning New Mexico Public Regulation Commission Case No UT March 28, 2007 Presented.
ENTERPRISE AND INDUSTRY DIRECTORATE-GENERAL AD HOC GROUP: « COMPETITIVESS OF AND ACCESS TO COST EFFECTIVE ENERGY INPUTS TO ENERGY INTENSIVE INDUSTRIES.

ENTERPRISE AND INDUSTRY DIRECTORATE-GENERAL AD HOC GROUP: « COMPETITIVESS OF AND ACCESS TO COST EFFECTIVE ENERGY INPUTS TO ENERGY INTENSIVE INDUSTRIES.
European Federation of Energy Traders 1 Electricity Regional Initiative Central-South Europe Region 4th Stakeholder Group meeting The Central South Region.

European Federation of Energy Traders 1 Electricity Regional Initiative Central-South Europe Region 4th Stakeholder Group meeting The Central South Region.
ECMWF products and the European energy markets ECMWF, Reading, 16 th of June 2005 Stefan Meulemans Sempra Energy Europe Ltd. London.

ECMWF products and the European energy markets ECMWF, Reading, 16 th of June 2005 Stefan Meulemans Sempra Energy Europe Ltd. London.
Hedging & Price Management March 31, 2017

Hedging & Price Management March 31, 2017
The IPEX needs an IGEX in risky times Alberto Cavaliere Università di Pavia.

The IPEX needs an IGEX in risky times Alberto Cavaliere Università di Pavia.
Symposium on Private Financing for African Power Infrastructure US Treasury Department Washington, DC October 13, 2008.

Symposium on Private Financing for African Power Infrastructure US Treasury Department Washington, DC October 13, 2008.
Market Concentration in the European Energy Sector Dr Baris Karapinar, NCCR Trade WP5.

Market Concentration in the European Energy Sector Dr Baris Karapinar, NCCR Trade WP5.
The UK Gas Market Presentation to Durham Centre for Doctoral Training in Energy 17th February 2011 Niall Trimble Managing Director.

The UK Gas Market Presentation to Durham Centre for Doctoral Training in Energy 17th February 2011 Niall Trimble Managing Director.
EuroPEX Decentralized Market Coupling as the preferred cross-border method B. den Ouden, President of Europex APEx Annual Conference 2004 Leipzig, Germany,

EuroPEX Decentralized Market Coupling as the preferred cross-border method B. den Ouden, President of Europex APEx Annual Conference 2004 Leipzig, Germany,
U.S. Geothermal Power Production and Development Report Dan Jennejohn Research Associate, GEA May, 2011.

U.S. Geothermal Power Production and Development Report Dan Jennejohn Research Associate, GEA May, 2011.
The impact of risk in electricity markets on nuclear new build David Newbery Nuclear Industry Forum London 24 June 2008

The impact of risk in electricity markets on nuclear new build David Newbery Nuclear Industry Forum London 24 June 2008
Economic Outlook Peter Andrews Agent for Greater London, Bank of England Construction Industry Council 23 May 2012.

Economic Outlook Peter Andrews Agent for Greater London, Bank of England Construction Industry Council 23 May 2012.
Total Utility Management Services, LLC is committed to helping your organization make the best informed energy decisions with decades of cost-proven results.

Total Utility Management Services, LLC is committed to helping your organization make the best informed energy decisions with decades of cost-proven results.

Similar presentations

Ads by Google