2nd ESAP Plenary Meeting

Venue: IEA, Room 1

Dates: 7 July 2015

Organiser: Gas, Coal and Power Markets Division

Contact Email: gcp@iea.org

Background

BACKGROUND

In 2014 the IEA launched an Electricity Security Advisory Panel to focus on the challenge of ensuring reliable delivery of electricity through the transition to low-carbon sources for generating power. The second annual ESAP plenary meeting in July 2015 will consider the implications and opportunities of climate change policies in relation to electricity security, in light of preparations for the COP21 climate negotiations at the end of the year and a World Energy Outlook Special Report on Climate published mid-June.

The aim of this IEA plenary meeting was to seek insights from high-level representatives of governments, regulators, system operators, industry and academia on analysis and policies needed to ensure electricity security, in particular the following questions:

  • Across OECD countries today the largest source of high-carbon power generation is coal, and the largest source of low-carbon power generation is nuclear. Capacity in both fuel types is ageing. To what extent are the current phase-out and retrofit policy arrangements applied to this generation portfolio consistent with climate change objectives and a transition to a secure decarbonised electricity system?
  • Current climate and carbon policies are unlikely to provide adequate long-term visibility for either operations or investment through the transition. Additionally, there are large uncertainties about the development and availability of low-carbon technologies: a future low-carbon electricity technology mix in line with deep decarbonisation climate objectives will include large volumes of variable renewables, but visibility on the role of new technologies for demand response, smart grids and storage is more difficult. What can be done, using market design, to enable scale up and breakthrough while managing the risks for electricity security?

The IEA presented two contributions to the debate:

  • WEO Special Report on Climate (published 15 June)
  • ‌preliminary key messages of the IEA Report on Electricity Market Design for Decarbonisation (forthcoming 2016)



PROGRAMME

09:30 – 10:00 Registration and coffee

10:00 – 10:15 Welcoming remarks: Maria van der Hoeven, Executive Director, IEA

10:15 – 11:00 Keynote speech: WEO Special Report on Climate, Timur Gul, Senior Energy Analyst,  Global Energy Economics, IEA

Followed by questions and roundtable discussion

11:00 – 11:30 Keynote speech: Colette Honorable, Commissioner, FERC

11:30 – 11:45 Coffee break

SESSION 1 -  PHASE-OUT AND RETROFIT: CLIMATE CONSISTENT POLICIES FOR TODAY’S GENERATION PORTFOLIO

11:45 – 13:00 Moderator: Colette Honorable, Commissioner, FERC

Presenter:  Takuya Yamazaki, Director for Electricity Market Reform, METI, Japan's Electricity Market Reform and Beyond,

Panellists:
• Amaryllis Verhoeven, Deputy Head of Unit, DG Energy European Commission
• Pavel Rezabek, Chief Economist, CEZ
• Martin Schoenberg, Head of Policy, Institutional Investors Group on Climate Change
• Takuya Yamazaki, Director for Electricity Market Reform, METI
• Laszlo Varro, Head, Gas, Coal and Power Markets Division, IEA

Followed by roundtable discussion

13:00 – 14:00 Lunch

14:00 – 14:30 Keynote speech: Steve Berberich, President and CEO, California ISO


SESSION 2 - SCALE-UP AND BREAKTHROUGH: LONG-TERM STRATEGY THROUGH LOW-CARBON TRANSITION

14:30 – 16:00 Moderator: IRENA (tbc)

Presenters:
Stefan Ulreich, Political Affairs and Corporate Communications, E.ON, It's Innovation, Stupid!
Edouard Sauvage, Director of Strategy, ENGIE, Long-term Strategy through Low-Carbon Transition

Panellists:
• Hervé Mignon, Director Economics, Forecast & Transparency Division, RTE 
• Edouard Sauvage, Director of Strategy, ENGIE
• Paolo Frankl, Head, Renewable Energy Division, IEA

Followed by roundtable discussion

SESSION 3 IEA MARKET DESIGN BOOK: EMERGING CONCLUSIONS

16:20 – 16:50 Presenters: Laszlo Varro and Manuel Baritaud, Gas, Coal and Power Markets Division, IEA, Re-powering Electricity Markets

Followed by roundtable discussion

16:50 – 17:00 Concluding remarks: Keisuke Sadamori, Director, Energy Markets and Security, IEA