Impacts of capacity remunerative mechanisms on cross-border trade

The European ambitious targets to increase the share of renewable generation pose a challenge to the generation adequacy. Many European member states are concerned that energy-only markets alone might not be able to deliver sufficient capacity required to meet the future electricity demand and back up shortfalls of energy from renewable energy sources (RES) during periods of low wind and sun. Many EU members consider to re-design their energy-only markets and establish different forms of capacity remunerative mechanisms (CRMs) to maintain the security of supply. There is a certain concern that market design changes at the level of EU member countries might conflict with the European goal of a single market. As soon as many European markets are highly interconnected, uncoordinated CRMs might create negative crossborder effects and hinder the achievement of the Internal Electricity Market in Europe. The pros and cons of capacity markets are well examined at the national level. However, the cross-border effects of capacity markets within the European market aiming at higher integration have received less attention. This doctoral dissertation examines the cross-border effects of unilateral implementation of CRMs applying both theoretical and case study analyses. The results show that capacity remunerative mechanisms (CRMs) may cause negative cross-border effects, especially if they are implemented unilaterally.

Improve the production capacity: A case study of Eurofins Viljavuuspalvelu Oy

In any manufacturing system, there are many factors that are affecting and limiting the capacity of the entire system. This thesis addressed a study on how to improve the production capacity in a Finnish company (Viljavuuspalvelu Oy) through different methods like bottleneck analysis, Overall Equipment Effectiveness (OEE), and Just in Time production. Four analyzing methods have been studied in order to detect the bottleneck machine in Viljavuuspalvelu Oy. The results shows that the bottleneck machine in the industrial area that constraint the production is the grinding machine while the bottleneck machine in the laboratory section is the photometry machine. In addition, the Overall Equipment Effectiveness (OEE) of the entire system of the studied case was calculated and it has been found that the OEE of the Viljavuuspalvelu Oy is 35.75%. Moreover, two methods on how to increase the OEE were studied and it was shown that either the total output of the company should be 1254 samples/shift in order to have an OEE around 85% which is considered as a world class or the Ideal run rate should be 1.45 pieces/minute. In addition, some realistic methods are applied based on the finding in this thesis to increase the OEE factor in the company and in one realistic method the % OEE has increase to 62.59%. Finally, an explanation on how to implement the Just in Time production in Viljavuuspalvelu Oy has been studied.