Alternative and Sustainable Energy

Intermittent Energy Resources for Electricity

MarketsFederico S. Fische

30th USAEE/IAEE North America Conference - October 2011

Alternative and Sustainable Energy

The Old Model

•Vertically Integrated Monopoly

•Central Infrastructure Planning

•Government Price Policy

Alternative and Sustainable Energy

Restructured Model

•Oligopolistic Franchises

• Infrastructure Planning “by Contract”

•Regulated Price

Alternative and Sustainable Energy

Current Value Chain

Alternative and Sustainable Energy

Value Chain Characteristics

•Regulatory framework• Infrastructure development tailored to

resources and profitable market segments•Self-serving price mechanism, at first•Fight/Adapt to Regulated Price, later•Consumer = Meter Count

Alternative and Sustainable Energy

Three Pillars of the Perfect Market

•Regulation

• Infrastructure

•Certainty

Alternative and Sustainable Energy

The Intermittent issue – Adapt or else

•Capital Investment Needs

•Availability and Dispatch effectiveness

•Price Parity and certainty

Alternative and Sustainable Energy

Demystify Capital Uncertainties (2016)

Alternative and Sustainable Energy

No all Renewables are created equal

•Renewable Energy Technology Characterization (TR-109496, Dec 1997) shows that biomass, biofuels, modern hydro and geothermal source have similar availability and dispatch effectiveness (intermittency) than traditional resources, like nuclear and fossil fuels.

Alternative and Sustainable Energy

The Real Challenge

We should focus on how to adapt the system to the nature of power resources

and changes in technology, doing the opposite is a virtually impossible.

Alternative and Sustainable Energy

Framework for New Market Design

Alternative and Sustainable Energy

New Value Chain

Alternative and Sustainable Energy

Looking ForwardThe success of renewable and efficient energy requires a change in the energy

market culture, an understanding of the new dynamics that renewables bring in the market, the adoption of multi-level

solutions and strategies that are responsive to our energy challenges and

the environmental impact of energy generation in our ecosystem