“I am afraid that growing share of renewable power will further dilute the wholesale prices for electricity.”
Alan Svoboda, Executive Director, CEZ, Czech Republic, is a featured speaker in the EMART Energy session on The Future of Emissions Trading. He will address the conference on “Emerging emission trading schemes - State of play.”
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?
Energy markets in Europe are at an important cross road. Either we see renewed focus on market-based solution for the energy sector with the need to restart the CO2 market to deliver relevant price signals and the need to harmonize renewable power with the rest of the market to avoid growing market distortion. Or we will see step-by-step market des-integration with national regulatory intrusions prevailing over the European standards.
2) What future do you see for the traded markets? What will be the main challenges?
I am afraid that growing share of renewable power will further dilute the wholesale prices for electricity and at the same time push the total energy cost for end-users up due to heavy subsidies.
The challenge will be also to maintain market liquidity after the implementation of all the recent regulatory packages (REMIT, EMIR, MIFID…). Smaller players will be unable to comply at an acceptable cost and will have to scale down their commercial activities.
Finally I see as a challenge to maintain market integration at least at current levels given the fact that more and more grid capacity must be taken out of the market to support growing physical power flows from renewable energy.
3) What excites you today about energy trading?
I am excited about the recently introduced market coupling among Czech Republic, Slovakia and Hungary and potential for further coupling with Germany and the whole Central- west region.
4) How would you describe the role of your company in the current industry?
Strong regional (CEE) asset-backed player. Pushing for further market liberalization and harmonization. Traditional full-scale generator with gas, coal, nuclear and renewable fleet.
5) In your view, what is the importance of the EMART Energy conference?
Great platform to exchange opinions on market development. Opportunity to meet the key decision makers from the corporate as well as public sectors.
6) Anything you would like to add?
I wish good luck to EMART Energy 2012!