"The main challenge to the traded markets in the EU over the next decade is likely to be to maintain the trust and goodwill of governments and regulators"
Mark C. Lewis, Managing Director, Commodities Research, Deutsche Bank AG, France. He will address the Power Trading session at EMART Energy on “The outlook for cost recovery by traditional generators”.
1) Could you give your vision on the European Energy Transition, the central theme of EMART Energy 2012? What development do you expect to have the largest impact?
The EU energy landscape is being transformed by the three pillars of EU energy policy, namely (i) the 2020 renewable-energy target, (ii) the greenhouse-gas emissions-reduction target, and (iii) the energy-efficiency target. The impact of these policies will be felt in the increasing take-up of renewable electricity generation, and by the reduction in the role of CO2-intensive forms of power generation in the mix such as coal and lignite. A complicating factor, though, is the impact of Germany’s decision to close down all of its nuclear-power plants by 2022, as this will put added costs on the ability of the EU to meet its renewable and CO2 targets.
2) What future do you see for the traded markets? What will be the main challenges?
The main challenge to the traded markets in the EU over the next decade is likely to be to maintain the trust and goodwill of governments and regulators as increasing amounts of renewable capacity on the EU power system continues to transform the nature of power systems (by increasing the need for real-time market balancing while reducing average short-term marginal generation costs), thereby likely increasing governments' concern with security of supply and hence the risk of interference with market mechanisms.
3) What excites you today about energy trading?
The energy market is one of the most dynamic and certainly most vital industries in
the world, and for these reasons it is at the centre of economic activity and of political debate. This makes it an incredibly stimulating and exciting market to be a part of.
4) How would you describe the role of your company in the current industry?
As a financial institution Deutsche Bank is both a very active direct participant in traded energy markets and a long-term partner providing advice to, and arranging finance for the world's major energy companies.
5) In your view, what is the importance of the EMART Energy conference?
The great thing about EMART is that it brings so many key players together for a focused and incisive debate on the key themes in EU energy markets.