Scenarios for electricity power sector development in the North-West of Russia

Focus of this thesisis made on development of electricity sector of Russian North-West. The objective was to determine the most likely scenarios for development of the most critical (western) part of Interregional Power System of North-West, from where the most part of Russian electricity exports to the countries of European Union take place. For this purpose all the involved sides were analyzed: generation, transmission system and electricity consumption in different regions of Russian North-West. The analysis was performed through investigation of existing generation andtransmission capacities and plans for their development to be performed by the generation and transmission companies operating in the region. Principles of Russian electricity sector restructuring and electricity market design are also discussed as well as factors that may influence on future electricity price in the region.

Business opportunities in power sector of Ukraine : focus small-scale hydro and wind power sectors

In the last few years, the Ukrainian investment market has constantly shown strong performance and significant growth. This is primarily due to the investment attractiveness of Ukraine. From the perspective of investments in energy sector, Ukraine can be described as a country providing significant number of opportunities to multiply invested funds. But there are numbers of risks which hamper large investments. The work objective was to discover opportunities in small-scale hydropower and wind power sectors of Ukraine and more importantly to prove economic expediency of such investments. Thesis covers major of issues, concerning entering the Ukrainian power market as a foreign investor. It provides basic information about the structure of power market, the state of renewables sector in Ukraine, development of power sector in the regions, functioning of Wholesale Electricity Market, formation of electricity prices, possibilities for implementing joint Implementation mechanism, while the most attention, nevertheless, is concentrated on the opportunities in small-scale hydro and wind power sectors. Theoretical part of the study disclosed that Crimea peninsula has perfect wind conditions and could be a prospective area for wind project development. Investment analysis revealed that project profits will be excellent if green tariff for renewable energy is adopted. By the moment uncertainties about green law adoption bring additional risk to the projects and complicate any investment decision.

POLITICAL RISK IN FOREIGN DIRECT INVESTMENT IN THE RUSSIAN ELECTRIC POWER SECTOR

Russia approved ambitious reform plan for the electricity sector in 2001 including privatisation of the country’s huge thermal generation assets. So far the sector had suffered from power shortages, aging infrastructure, substantial electricity losses, and weak productivity and profitability numbers. There was obvious need for foreign investments and technologies. The reform was rather successful; the generation assets were privatised in auctions in 2007-2008 and three European energy companies, E.On, Enel and Fortum, invested in and obtained together over 10% of the Russian production assets. The novelty of these foreign investments serves unique object for the study. The political risk is involved in the FDI due to the industry’s social and economic importance. The research’s objective was to identify and analyse the political risk that foreign investors face in the Russian electricity sector. The research had qualitative study method and the empirical data was collected by interviewing. The research’s theoretical framework was based on the existing political risk theories and it focused to understand the Russian government in relation to the country’s stability and define both macro-level and micro-level sources of political risk for the foreign direct investments in the sector. The research concludes that the centralised and obscure political decision-making, economic constriction, high level of governmental control in economy and corruption form the country’s internal macro-level risk sources for the foreign investors in the sector. Additionally the retribution due to the companies’ home country actions, possible violent confrontations at the Russian borders and the currency instability are externally originated risk sources. In the electricity industry there is risk of tightened governmental control and increased regulation and taxation. Similarly the company-level risk sources link to the unreformed heating sector, bargaining with the authorities, diplomatic stress between host and home countries and to companies and government’s divergent perspective for the profit-making. The research stresses the foreign companies’ ability to cope with the characteristics of Russian political environment. In addition to frequent political and market risk assessment, the companies need to focus on currency protection against rouble’s rate fluctuation and actively build good company-citizenship in the country. Good relationship is needed with the Russian political authorities. The political risk identification and the research’s conclusive framework also enable political risk study assessments for other industries in Russia

"Riesgo de oportunismo del Gobierno en el sector eléctrico colombiano". Aproximación al diseño institucional de la regulación eléctrica en Colombia

Análisis del riesgo de oportunismo del gobierno Colombiano planteado por el diseño institucional y normativo de la CREG, y favorecido por una notoria concentración de calidades en cabeza del Estado Colombiano como agente de mercado y regulador.

Performance and efficiency in Colombia's power utilities: an assessment of the 1994 reform

El artículo describe las características centrales de la reforma regulatoria al sector eléctrico en 1994 y evalúa el desempeño y la eficiencia de las empresas públicas antes y después de la reforma. El análisis de desempeño evalúa los cambios en medias y medianas en ganancias, eficiencia, inversión y ventas de las empresas privatizadas en el sector. La eficiencia técnica es estimada mediante la técnica DEA en una muestra de 33 plantas térmicas de energía, que representan el 85% del parque térmico; y 12 empresas distribuidoras de energía. La muestra de plantas generadoras está compuesta por plantas que estaban activas antes de la reforma y plantas nuevas que entraron en operación después de la reforma. Los principales resultados muestran que la eficiencia mejoro después de la reforma y que la política regulatoria ha tenido un efecto positivo en la eficiencia de la generación térmica de energía. Por el contrario, las distribuidoras de energía menos eficientes empeoraron después de la reforma y no llevaron a cabo una reestructuración para alcanzar la eficiencia productiva respecto a las empresas que conforman la frontera de eficiencia en distribución de energía.

EDF and the Brazilian Power Sector

Electricité de France (EDF) is a leading player in the European energy market by being both the first electricity producer in Europe and the world’s leading nuclear plant operator. EDF is also the first electricity producer and supplier in France. However, Europe, EDF’s core market, is currently underperforming: the European sovereign debt crisis is lowering significantly the growth perspective of an energy market that has already reached its maturity. As a consequence, European energy companies are now looking at international markets and especially BRIC economies where economic growth potential remains high. Among them, Brazil is expected to keep its strong economic and electricity demand growth perspectives for the coming decades. Though Brazil has not been considered as a strategic priority for EDF after the Light reversal in 2006, the current economic situation has led the Group to reconsider its position toward the country. EDF’s current presence in Brazil is limited to its stake in UTE Norte Fluminense, a thermal plant, located in the state of Rio de Janeiro. This report investigates the possibility and the feasibility of EDF’s activities expansion in Brazil and what added value it could bring for the Brazilian power market. Considering that the status quo would not allow EDF to take full advantage of Brazil’s future growth, this work is identifying the various options that are currently opened to EDF: market exit, status quo, EDF alone, local partner. For that purpose, this study collects and analyses the latest energy market data as well as generation companies’ information which are necessary to give a relevant overview of the current brazilian power sector and to present EDF strategic options for the country.

The subsidiary role of direct foreign investment in industrialization: the Colombian manufacturing sector

Includes bibliography

Reforming the Market Design of EU Electricity Markets: Addressing the Challenges of a Low-Carbon Power Sector. CEPS Task Force Report, 27 July 2015

This CEPS Task Force Report focuses on whether there is a need to adapt the EU’s electricity market design and if so, the options for doing so. In a first step, it analyses the current market trends by distinguishing between their causes and their consequences. Then, the current blueprint of EU power market design – the target model – is briefly introduced, followed by a discussion of the shortcomings of the current approach and the challenges in finding suitable solutions. The final chapter offers an inventory of solutions differentiating between recommendations shared among Task Force members and non-consensual options.

The EU power sector needs long-term price signals. CEPS Special Report No. 135/April 2016

By 2030, half of the EU’s electricity demand will be covered by renewables and will need to be accompanied by flexible conventional back-up resources. Due to the high upfront costs inherent to renewables and the progressively lower running times associated with back-up capacity, the cost of capital will have a proportionately greater impact on total costs than today. This report examines how electricity markets can be designed to provide long-term price signals, thereby reducing the cost of capital for these technologies and allowing for a more efficient transition. It finds that current market arrangements are unable to provide long-term price signals. To address this issue, we argue that a system for long-term contracts with a regulated counterparty could be implemented. A centralised system where capacity or energy or a combination of both is contracted, could be introduced for conventional and renewable capacity, based on a regional adequacy assessment and with a competitive bidding system in place to ensure cost-effectiveness. Member states face a number of legislative barriers while implementing these types of systems, however, which could be reduced by merging legislation and setting EU framework rules for the design of these contractual agreements.

The complements towards developing a new risk management framework and Its applicability to the Nigerian power sector

The availability of regular supply has been identified as one of the major stimulants for the growth and development of any nation and is thus important for the economic well-being of a nation. The problems of the Nigerian power sector stems from a lot of factors culminating in her slow developmental growth and inability to meet the power demands of her citizens regardless of the abundance of human and natural resources prevalent in the nation. The research therefore had the main aim of investigating the importance and contributions of risk management to the success of projects specific to the power sector. To achieve this aim it was pertinent to examine the efficacy of risk management process in practice and elucidate the various risks typically associated with projects (Construction, Contractual, Political, Financial, Design, Human resource and Environmental risk factors) in the power sector as well as determine the current situation of risk management practice in Nigeria. To address this factors inhibiting the proficiency of the overarching and prevailing issue which have only been subject to limited in-depth academic research, a rigorous mixed research method was adopted (quantitative and qualitative data analysis). A review of the Nigeria power sector was also carried out as a precursor to the data collection stage. Using purposive sampling technique, respondents were identified and a questionnaire survey was administered. The research hypotheses were tested using inferential statistics (Pearson correlation, Chi-square test, t-test and ANOVA technique) and the findings revealed the need for the development of a new risk management implementation Framework. The proposed Framework was tested within a company project, for interpreting the dynamism and essential benefits of risk management with the aim of improving the project performances (time), reducing the level of fragmentation (quality) and improving profitability (cost) within the Nigerian power sector in order to bridge a gap between theory and practice. It was concluded that Nigeria’s poor risk management practices have prevented it from experiencing strong growth and development. The study however, concludes that the successful implementation of the developed risk management framework may help it to attain this status by enabling it to become more prepared and flexible, to face challenges that previously led to project failures, and thus contributing to its prosperity. The research study provides an original contribution theoretically, methodologically and practically which adds to the project risk management body of knowledge and to the Nigerian power sector.

An Analysis of Colombian Power Market Price Behavior from an Industrial Organization Perspective

We analyze the behavior of spot prices in the Colombian wholesale power market, using a series of models derived from industrial organization theory -- We first create a Cournot-based model that simulates the strategic behavior of the market-leader power generators, which we use to estimate two industrial organization variables, the Index of Residual Demand and the Herfindahl-Hirschman Index (HHI) -- We use these variables to create VAR models that estimate spot prices and power market impulse-response relationships -- The results from these models show that hydroelectric generators can use their water storage capability strategically to affect off-peak prices primarily, while the thermal generators can manage their capacity strategically to affect on-peak prices -- In addition, shocks to the Index of Residual Capacity and to the HHI cause spot price fluctuations, which can be interpreted as the generators´ strategic response to these shocks

A Cost Analysis Of Carbon Dioxide Emission Reduction Strategies For New Plants In Michigan's Electric Power Sector

This thesis attempts to find the least-cost strategy to reduce CO2 emission by replacing coal by other energy sources for electricity generation in the context of the proposed EPA’s regulation on CO2 emissions from existing coal-fired power plants. An ARIMA model is built to forecast coal consumption for electricity generation and its CO2 emissions in Michigan from 2016 to 2020. CO2 emission reduction costs are calculated under three emission reduction scenarios- reduction to 17%, 30% and 50% below the 2005 emission level. The impacts of Production Tax Credit (PTC) and the intermittency of renewable energy are also discussed. The results indicate that in most cases natural gas will be the best alternative to coal for electricity generation to realize CO2 reduction goals; if the PTC for wind power will continue after 2015, a natural gas and wind combination approach could be the best strategy based on the least-cost criterion.

Modelo de competencias en TIC para el personal de una organización del sector eléctrico

La presente investigación pretendió incorporar el uso intensivo de TIC en los procedimientos establecidos y necesarios en los procesos de generación, distribución y control de la energía, lo que se expresa en un manual para el sistema de gestión humana de la organización analizada. La investigación partió de un levantamiento de un estado del arte, continuó con la realización de un análisis de actitudes y aptitudes de los colaboradores, basado en propuestas teóricas y mejores prácticas existentes del medio, y, por último, concluyó con un manual de gestión humana en el que se indican las competencias en los diferentes perfiles de la organización para el uso de TIC y su aplicación, con el propósito de alinearse con las perspectivas y objetivos de la organización analizada al tener como base la perdurabilidad y la competitividad de la misma.

Demand response management in power systems using a particle swarm optimization approach

Competitive electricity markets have arisen as a result of power-sector restructuration and power-system deregulation. The players participating in competitive electricity markets must define strategies and make decisions using all the available information and business opportunities.

Fossil fuel dependence and interfuel substitution in the electricity sector of Western European countries between 1990-2011

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Economics from the NOVA – School of Business and Economics