IEEJ: PJM RTO Tradable Obligations System 2

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1 27 27 IEEJ:

2 IEEJ: PJM RTO Tradable Obligations System 2

3 IEEJ: P ES P* P ED P* 3

4 IEEJ: /1,000kWh EEX Powernext Omel Pool GME APX Nord Pool Denmark West /01 99/01 00/01 01/01 02/01 03/01 04/01 05/01 06/01 07/01 4

5 IEEJ: /1,000kWh PJM RTO PJM East PJM West ComEd DAY AEP DUQ DOM New England New York MISO /01 99/01 00/01 01/01 02/01 03/01 04/01 05/01 06/01 07/01 RTO ISO 5

6 IEEJ: PJM /1,000kWh 350 /1,000kWh % PJM Interconnection LLC,, Monthly Locational Marginal Pricing 3% 10% % 24.3% % 20.5% % 23.8% 3% 10% /25 7/26 7/27 7/28 7/29 7/30 7/31 6

7 IEEJ:

8 8 TSO 1 2% IEEJ:2007 7

9 IEEJ: PJM RTO 9

10 IEEJ: PJM PJM Interconnection LLC, Market Monitoring Unit, 2005 State of the Market Report PJM Locational Marginal Pricing PJM RTO 10

11 IEEJ: Cent Euro/ Wh 20 OMEL APX Demand Supply ,000 20,000 25,000 30,000 35,000 40,000 45,000 1,000kWh OMEL Market Results APX Aggregated Curves 15% 1/3 1/4 1/4 11

12 IEEJ: % 10% 8% 6% 4% 2% PJM ,500 3, % 2, % 2, % 1,500 1, % -14% -10% -6% -2% 2% 6% 10% 14% 18% OMEL % 25.2% 3.0% PJM Interconnection LLC,, Hourly Day-Ahead Demand Bid Data Hourly Load Data OMEL OMEL Market Results 6,000 5,000 4,000 3,000 2,000 1, % 4.98% 0.00% % 10.79% 0.00% % 11.61% 0.00% 0 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% Powernext RTE % 2 12

13 IEEJ: kw TSO 13 kw

14 Powernext IEEJ: Powernext 2005 /1,000kWh ,000kW /1,000kWh /6/18 04/7/18 04/8/18 04/9/18 04/10/18 04/11/18 04/12/18 Powernext Statistics

15 Powernext IEEJ: /1,000kW /9/ /12/ /3/ /6/ /9/30 Powernext Statistics

16 16 Powernext Powernext Statistics /1,000kW IEEJ:2007 7

17 IEEJ: $/MWh MWh FC peak = R spike FC base = FC peak + (VC peak -VC base ) D * peaker R spike 1 FC peak FC base VC peak VC base D * peaker 100% 17

18 IEEJ: P D base D peak FC base =(P base VC base h peak P peak VC base h base +h peak FC peak = P peak VC peak h peak P peak VC peak h peak h base P base VC base Q base Q peak Q base +Q peak Q i i=base peak base peak D i i=base peak base peak P i i=base peak base peak 18

19 IEEJ: ,000kW 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 PJM RTO ,697 53,737 19,414 6, ,268 51,962 19,543 6,049 33,309 59,031 19,825 6, % 20.0% 40.0% 60.0% 80.0% 100.0% PJM Interconnection LLC, 19

20 IEEJ: P D peak D base P peak P base Q base Q peak Q base +Q peak 20

21 IEEJ: VOLL TSO (NETA UK (PJM NY NE 21

22 IEEJ: P P peak P 0 base P 1 base D base D peak Q base Q peak Q 22

23 IEEJ: TSO Steven Stoft 2002 Oren Sioshansi 2003 Joskow Tirole 2004 TSO 23

24 IEEJ: Steven Stoft 2002 Joskow Tirole Newbery 2004 Neuhoff Vries

25 IEEJ: P D peak D base P peak P base P kw Q base Q peak Q base +Q peak P kw * Q base +Q peak 25

26 IEEJ:

27 IEEJ:

28 IEEJ: John Kwoka, Restructuring the U.S. Electric Power Sector: A Review of Recent Studies, Steven Stoft, Power System Economics, Part 2 Reliability, Price Spikes, and Investment Shmuel S. Oren, Ensuring Generation Adequacy in Competitive Electricity Markets, Shmel Oren and Ramteen Sioshansi, Joint Energy and Reserves Auction with Opportunity Cost Payment for Reserves, University of California, Berkeley, Paul Joskow and Jean Tirole, Reliability and Competitive Electricity Markets, CSEM WP 129, Fabien Roques, David M. Newbery, William J. Nuttall, Generation Adequacy and Investment Incentives in Britain: from the Pool to NETA, CMI Working Paper, Karsten Neuhoff and Laurens De Vries, Insufficient Incentives for Investment in Electricity Generation, CMI Working Paper 42,

29 PJM RTO PJM RTO IEEJ: PJM Interconnection LLC TWh PJM East 292TWh 40% 29

30 PJM RTO IEEJ: PJM RTO /1,000kWh 2005 /1,000kWh ,000 6,000 8,000 10,000 12,000 14,000 /1,000kWh 250 kw ,000 6,000 8,000 10,000 12,000 14,000 kw /1,000kWh ,000 6,000 8,000 10,000 12,000 14,000 kw PJM Interconnection LLC 0 4,000 6,000 8,000 10,000 12,000 14,000 kw 30

31 Tradable Obligations System IEEJ: EU Tradable Obligations System Tradable Obligations System (a) a) (b) b) c) 31

32 IEEJ: Tradable Obligations System P D peak P peak 0 P peak 1 Q renewable D base Q reserve Q base Q reserve Q peak Tradable Obligations System Q i i=base peak renewable base peak renewable report@tky.ieej.or.jp D i i=base peak base peak P i i=base peak base peak 32

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