Alternative and Sustainable Energy Intermittent Energy Resources for Electricity Markets Federico S. Fische 30 th 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 GenerationStorage/DistributionConsumption

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 , 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 RE Predominant Market Infrastructure Regulatory Framework Financing and Investment Technology considertions Business Culture Sustainabile design and operation Stakeholder consensus

Alternative and Sustainable Energy New Value Chain

Alternative and Sustainable Energy Looking Forward The 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