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The Integrated NORDIC Power Market and the Deployment of Renewable Energy Technologies: Key Lessons and Potential Implications for the Future ASEAN Integrated Power Market

Mundaca, Luis LU orcid ; Dalhammar, Carl LU and Harnesk, David LU (2013) p.25-97
Abstract
The report examines the integrated Nordic power market and its linkages to renewable energy technology (RET) deployment for power production. It has two purposes. First, it aims to improve the understanding of the expansion of the Nordic power market and integration and deployment of RET. Secondly, it takes lessons from the Nordic experience that could inform the development, deployment and integration of RET in the future ASEAN integrated power market. Whenever possible, historical or co -evolution aspects are addressed.

The study analysed three central building blocks underpinning the development of the Nordic market: i) the Nordic power system and its... (More)
The report examines the integrated Nordic power market and its linkages to renewable energy technology (RET) deployment for power production. It has two purposes. First, it aims to improve the understanding of the expansion of the Nordic power market and integration and deployment of RET. Secondly, it takes lessons from the Nordic experience that could inform the development, deployment and integration of RET in the future ASEAN integrated power market. Whenever possible, historical or co -evolution aspects are addressed.

The study analysed three central building blocks underpinning the development of the Nordic market: i) the Nordic power system and its links to th e European (EU) power markets ii) significant policy and regulatory characteristics that have driven both market power integration and RET deployment and iii) the complexities and technicalities of the Nordic power market exchange (the Nord Pool Spot). Different evaluation criteria are used to assess RET deployment in the integrated Nordic power market. These criteria include information asymmetry/transparency, market concentration, barriers to entry, transmission bottlenecks, balancing resource and pric e volatility/uncertainty. Information was collected from a critical literature review, expert interviews and a key stakeholder survey. Links with European policies and power markets are covered wherever existing knowledge allows. To formulate suitable re commendations, different studies addressing energy market integration in the ASEAN region were reviewed. Recommendations have emerged by contrasting lessons from the Nordic/European region with the situation in the ASEAN region.

Our findings strongly sugge st that a decisive mix of RET policy support mechanisms and ambitious RE targets are essential to developing RET power in the ASEAN region. The gradual integration and transformation of electricity markets can further strengthen RET incorporation into the ASEAN market. One key recommendation is to develop international structure(s) or organization(s) to design, support and enforce relevant policies and regulations. Since RET markets need time to develop and mature, aggressive RE policies in the ASEAN reg ion should be introduced as soon as possible. This will ensure that RET is in a very good (national/local) position to be integrated into the future ASEAN power system. For the deployment of RETs, power systems cannot be left to energy integration policy efforts alone. RET support policy mechanisms are indispensable. (Less)
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publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
host publication
Energy Market Integration in East Asia : Renewable Energy and its Deployment into the Power System - Renewable Energy and its Deployment into the Power System
pages
74 pages
publisher
Economic Research Institute for ASEAN and East Asia and International Renewable Energy Agency
language
English
LU publication?
yes
id
4c2e5c59-5e0f-420c-b54a-e7e3e8d22631
alternative location
http://www.eria.org/RPR_FY2012_No.26_chapter_2.pdf
date added to LUP
2017-02-28 17:05:28
date last changed
2023-04-18 17:51:15
@inbook{4c2e5c59-5e0f-420c-b54a-e7e3e8d22631,
  abstract     = {{The report examines the integrated Nordic power market and its linkages to renewable  energy  technology  (RET)  deployment  for  power  production.  It  has  two  purposes.     First,  it   aims  to  improve  the  understanding  of  the  expansion  of  the  Nordic  power  market  and   integration  and  deployment  of  RET.    Secondly,  it  takes  lessons  from  the  Nordic  experience   that could inform the development, deployment and integration of RET in the future ASEAN  integrated  power  market.     Whenever  possible,  historical  or  co -evolution  aspects  are   addressed. <br/><br/>The  study  analysed  three  central  building  blocks  underpinning  the  development  of  the   Nordic market: i) the Nordic power system and its links to th e European (EU) power markets  ii)  significant  policy  and  regulatory  characteristics  that  have  driven  both  market  power   integration  and    RET  deployment  and  iii)  the  complexities  and  technicalities  of  the  Nordic   power  market  exchange  (the  Nord  Pool  Spot).    Different  evaluation  criteria  are  used  to   assess  RET  deployment  in  the  integrated  Nordic  power  market.     These  criteria  include   information  asymmetry/transparency,  market  concentration,  barriers  to  entry,  transmission   bottlenecks,  balancing  resource  and  pric e volatility/uncertainty.    Information  was  collected   from a critical literature review, expert interviews and a key stakeholder survey.   Links with  European  policies  and  power  markets  are  covered  wherever  existing  knowledge  allows.  To   formulate suitable re commendations, different studies addressing energy market integration  in the ASEAN region were reviewed. Recommendations have emerged by contrasting lessons  from the Nordic/European region with the situation in the ASEAN region.<br/><br/>Our findings strongly sugge st that a decisive mix of RET policy support mechanisms and  ambitious  RE  targets  are  essential  to  developing  RET  power  in  the  ASEAN  region.    The  gradual  integration  and  transformation  of  electricity  markets  can  further  strengthen  RET   incorporation into the  ASEAN market.   One key recommendation is to develop international  structure(s)   or   organization(s)   to   design,   support   and   enforce   relevant   policies   and    regulations.   Since RET markets need time to develop and mature, aggressive RE policies in  the ASEAN reg ion should be introduced as soon as possible.   This will ensure that RET is in  a  very  good  (national/local)  position  to  be  integrated  into  the  future  ASEAN  power  system.   For  the  deployment  of  RETs,  power  systems  cannot  be  left  to  energy  integration  policy efforts alone. RET support policy mechanisms are indispensable.}},
  author       = {{Mundaca, Luis and Dalhammar, Carl and Harnesk, David}},
  booktitle    = {{Energy Market Integration in East Asia : Renewable Energy and its Deployment into the Power System}},
  language     = {{eng}},
  pages        = {{25--97}},
  publisher    = {{Economic Research Institute for ASEAN and East Asia and  International Renewable Energy Agency}},
  title        = {{The Integrated NORDIC Power Market and the Deployment of Renewable Energy Technologies: Key Lessons and Potential Implications for the Future ASEAN Integrated Power Market}},
  url          = {{http://www.eria.org/RPR_FY2012_No.26_chapter_2.pdf}},
  year         = {{2013}},
}