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ELECTRICAL INTERCONNECTIONS THE POINT OF VIEW OF A NON REGULATED ACTOR. François MESLIER Director, Senior Vice President Interconnection Mission, EDF. IFRI Energy Breakfast Roundtable – 6th of July, 2009. EDF strongly in favour of the European electricity market.
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ELECTRICAL INTERCONNECTIONSTHE POINT OF VIEWOF A NON REGULATED ACTOR François MESLIER Director, Senior Vice President Interconnection Mission, EDF IFRI Energy Breakfast Roundtable – 6th of July, 2009
EDF strongly in favour of the European electricity market • Security, liquidity, fluidity, economy, … • Change of scope for the relevant market • Market opportunities • ….. IFRI Energy Breakfast Roundtable - 6th of July, 2009
1. Lack of interconnection capacity • Better use of existing infrastructure • Market coupling (Belpex, and extensions) • Coordination between TSOs (Careso, and extensions) • ….. • And necessity of new hardware ! IFRI Energy Breakfast Roundtable - 6th of July, 2009
1. Lack of interconnection capacity Revenue of auctions in 2008 : 1,7 G€ ! IFRI Energy Breakfast Roundtable - 6th of July, 2009
1. Lack of interconnection capacity • Need to reinvest these revenues ! • 1,7 G€ / year 37 FR - SP (underground) 188 FR – SP (overhead) • 3rd directive disappointing from this point of view • The regulators (national, ACER ?) to stop this kind of cross subsidy IFRI Energy Breakfast Roundtable - 6th of July, 2009
2. And it should become worse in the future • Development of wind energy • Renewal of nuclear programs Does the UCTE Transmission Development Plan answer the needs, as they are today, as they will evolve in the future ? IFRI Energy Breakfast Roundtable - 6th of July, 2009
3. The costs of the new links will probably increase very strongly • FR – SP 80 – 180 M€ overhead 400 – 500 M€ underground • The European Economic Recovery Plan should subsidise up to 220 M€ • More and more Underground Subsideries welcomed ! IFRI Energy Breakfast Roundtable - 6th of July, 2009
4. Towards subsidies to help underground / under the sea developments • Gas and electricity • Security and peripheral countries and market integration • TEN revision will be a good opportunity IFRI Energy Breakfast Roundtable - 6th of July, 2009
5. The scene does not change rapidly enough • Yes to merchant lines (ex. : IMERA) • To speed up the process • Yes to open season procedures • To size correctly the interconnections • To share the risks between actors IFRI Energy Breakfast Roundtable - 6th of July, 2009
Let us stop talking about the European electricity market LET US MAKE IT : • Reinvest auction revenues (TSOs, Regulators) • TEN revision (subsidies for gas and electricity) • Merchant lines • Open season IFRI Energy Breakfast Roundtable - 6th of July, 2009
THANK YOU IFRI Energy Breakfast Roundtable - 6th of July, 2009