Power market - PKEE report

PKEE presents its report: „Capacity Market as means to avoid blackouts” September 8th, 2016 Publications We have the pleasure of presenting yet another report by the Polish Electricity Association (Polski Komitet Energii Elektrycznej - PKEE) 

This publication is a detailed response to our industry’s fundamental question: how do various electricity market models influence the growth potential of the power system in view of assuring security of supply? We stand firm by our opinion that discussion about Polish economy cannot be held without referring to the fundamental issues of energy supply security and continuity

Conclusions of our study indicate the need to urgently commence efforts aimed at improving the effectiveness of electricity market in Poland. Failure to do so will adversely impact broadly understood social welfare, primarily due to increase of the cost of supplying electricity to end-users.

At the same time PKEE appreciates the changes recently taking place in the electricity market – in particular introduction of strategic and operating reserves and announcement of introduction of capacity market. In the transition period before its introduction the key issue seems to be the continuation of reform of the wholesale electricity market and ancillary services. In our opinion the regulatory priority should be to reflect the real value of electricity in instances of supply deficit threat and faster development of the DSR (Demand Side Response).

We hope that the PKEE report will positively influence the quality of discussion about the capacity mechanisms end the electricity market model in Poland.