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Press review

UFE/Press review of 28/07/2017

A study conducted by 50Hertz and EEX points out the risk of bidding zone fragmentation
The energy stock exchange European Energy Exchange, and the German TSO 50Hertz highlighted in a study published on June 29th, the important role of large and liquid zonal electricity markets for the success of the Clean Energy Package. The study shows that the configuration of bidding zones should be clearly performed and duly involving all affected stakeholders as such configuration has important welfare impacts onto regional and national markets. The study also insists on the creation of large zonal markets to enable RES integration. Last, both 50Hertz and EEX are opposed to the creation of Regional Operation Centres (ROCs), as foreseen by the European Commission.
Contexte, July 24th
The United Kingdom has launched a £246 million investment program for electric batteries
To “boost expertise in electric battery technology”, British Business, Energy and Industrial Strategy Secretary Greg Clark announced the launch of the £246 million investment funds, to ensure the UK builds on its strengths and leads the world in the design, development and manufacture of electric batteries. This is part of the “Faraday Challenge”, a 4-year investment round and key part of the government’s Industrial Strategy. An overarching Faraday Challenge Advisory Board will be established to ensure the coherence and impact of the challenge. The Board will be chaired by Professor Richard Parry-Jones, a senior engineering leader with substantial experience in the automotive industry and who recently chaired the UK Automotive Council for 6 years.
UK Government’s press release, July 24th and Contexte, July 24th.
The heterogeneity of network tariffs among Member States, an obstacle to a European harmonisation

According to a study published by DG Energy in June 2017, the multiplicity of European network tariffs could have a negative impact on competition among different European suppliers. However, this conclusion is to be nuanced, the authors highlighting the lack of data for a proper quantitative analysis. Furthermore, the study shows that competition distortions could be overcome by stimulating better cost-reflectiveness and transparency of network tariffs, and by the realisation of a cross-border level playing field for generators.
European Commission, June 2017 and Contexte, July 24th
A Eurelectric study debunks myths about demand response aggregation
In the midst of the current negotiations on the Clean Energy Package between the Parliament and the Council, Eurelectric published on 19 July a study about demand response aggregation highlighting the drawbacks if electricity suppliers are not compensated by aggregators. In the Commission’s proposal on Market Design published in November 2016, aggregators are not requested to compensate electricity suppliers and producers, but the European federation is warning about the problems that such an approach could bring. The study recalls that the core function of aggregators is to improve the matching of demand and supply in electricity market. To prevent distortions of the market and imbalances on the networks, the study recommends compensating the supplier for the electricity injected on the networks but not consumed, and to let Member States conceive a suitable legal regime in adequacy with their national situation.
Eurelectric study, July 19th and Context, July 24th and July 28th
The French sustainable development commission (CGDD) published a cost-benefit study on electric vehicles
In a study published on July 18th, the French sustainable development commission (CGDD) concluded that electric vehicles in urban areas would be financial viable by 2020 and only by 2030 for a mixed use. This cost-benefit study on electric vehiclesshowed that the result is very dependent on the distance hypothesis. The conclusion can indeed be quite different in case of a decrease in the annual travelled kilometres, even making it negative. Users’ behaviour and implementation costs will be crucial to the development of electric vehicles. Last, the study highlighted the importance of setting a good governance and an appropriate regulatory framework.
Enerpresse, July 20th
A dozen of local authorities answered a call from Enedis to experiment local flexibility services
In the framework of the French law on the Energy Transition, the French distributor system operator Enedis unveiled on July 11th several work documents, aiming to implement the experimentation of local flexibility services. Time-bound, those projects aim to optimise energy flows at the local level, by associating local authorities, consumers, suppliers and distributors. This management could enable “the reduction of grid investment or management costs”. Enedis mentioned that a dozen of local authorities already expressed their interest in participating in this project, especially for the integration of energy from renewable sources and storage solutions.
Enerpresse, July 25th and Enedis, July 11th
Auditioned by the two Chambers of the French Parliament, Nicolas Hulot, Minister for the Ecological and Inclusive Transition, mentioned the objective to reduce the share of nuclear by 50%
During his hearing before the Economic Committee of the French Senate held on July 18th, Minister Nicolas Hulot mentioned France’s target to reduce the share of nuclear energy to 50% of the electricity mix by 2025. He stated that this objective would mean closing 25 nuclear reactors by 2025, a “difficult” objective. A week later, during his hearing before the Sustainable Development Committee of the French Assembly on July 25th, Nicolat Hulot also expressed his intention to reopen the discussion on the nuclear reduction scenarios in the framework of the Energy Pluriannual Programme. The Minister expressed his commitment to work will all the stakeholders that have a role to play in the energy transition.
Contexte, July 19th and July 26th
RTE and the French environment and energy management Agency (ADEME) signed a cooperation agreement
On July 20th, the French transmission system operator RTE and the French environment and energy management Agency (ADEME) signed their first cooperation agreement, including a four-year work programme. By further sharing their expertise, this partnership aims to contribute to the success of both the energy transition and the public policies of sustainable development, according to the public service missions of the two partners. In this perspective, the two partners committed to conduct common studies and analyses and to create an ADEME-RTE label. Seven work areas were identified, including the impact of electric heating on power generation, the development of electric vehicles and self-generation.
Enerpresse, July 24th and RTE, July 20th

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