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David Harnesk (photo Emilio José Bernard)

David Harnesk

Postdoctoral Fellow

David Harnesk (photo Emilio José Bernard)

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

Author

  • Luis Mundaca
  • Carl Dalhammar
  • David Harnesk

Summary, in English

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.

Department/s

  • The International Institute for Industrial Environmental Economics
  • LUCSUS (Lund University Centre for Sustainability Studies)

Publishing year

2013-08

Language

English

Pages

25-97

Publication/Series

Energy Market Integration in East Asia : Renewable Energy and its Deployment into the Power System

Document type

Book chapter

Publisher

Economic Research Institute for ASEAN and East Asia and International Renewable Energy Agency

Topic

  • Energy Systems

Status

Published