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Thought Pieces

Our thoughts in the media. You can always go to the K4K website to see what else we have been writing about.

Empezar a desmitificar los BESS: Oportunidades de Arbitraje

Nov 21, 2023

En el sector eléctrico se habla mucho de las baterías pero al menos que seas un experto es fácil perderse. En este artículo Kim Keats explica cómo empezar a plantear el negocio de las baterías centrándose en las oportunidades de arbitraje. Para esto combina un modelo de optimización de elaboración propia con precios históricos del mercado diario del OMIE.

Pool forecasts

 Dec 23, 2021 

With a marginal system for the daily electricity market, the combination of the lack of sufficient low-cost electricity sources (including renewables), and a thermal gap that which can only be covered by CCGTs using natural gas, makes the price of electricity in the Iberian daily market linked to the cost of generating with a CCGT...

Spain’s power measures ‘tilting toward’ utilities

 Nov 12, 2021 

Spain’s interventionist measures in recent months aimed at reducing the effect of record wholesale energy prices on consumers’ electricity bills have temporarily increased regulatory risk perception in the sector. But they looked to be leaning towards local major utilities in the end, consultancy EKON said. Steven Taylor, a Director at EKON stated that "It is going in the utilities direction and obviously part of that is related with the EU. It is tilting toward the utilities...

Hydro's impacts on electricity markets

 Sep 21, 2021 

Spain has a total reservoir capacity of 55,000 hm3, of which 40% of its capacity corresponds to hydroelectric dams, one of the highest proportions in Europe and the World.
Being one of the technologies with the greatest participation in the electrical mix of the country, hydro energy is characterized with having low prices, historically, and a guarantee of supply according to the regulation of the flow by the companies that control the operation of the numerous hydraulic dams...

The future of renewable energies will include hybridization

 Jul 7, 2021 

The combination of renewable technologies to generate electricity in the same space is not a novelty, it is a increasingly common practice. Firstly, to incorporate photovoltaics in dams, a mix with enormous potential. And, secondly, and the main focus of this article, the combination of wind and PV...

Spanish renewable auction insights

 Apr 12, 2021 

With winning bid prices lower than in previous auctions, even with a record low for PV of 14.89 EUR /MWh, one of the most widespread doubts by our audience was to know if some speculation could be behind the low prices…

Las subastas de renovables en España amplian la gama de opciones para los promotores que incluye ir a mercado con PPAS

 Dec 18, 2020 

¿Cómo valora EKON el nuevo marco de subastas en España? El nuevo esquema, descrito en el RD 960/2020 presenta un marco para las subastas más acorde con las tendencias internacionales Frente a los mecanismos de subastas anteriores, el RD 960 2020 es más transparente de cara a los productores evitando el cálculo de esos “suelos implícitos” que existían antes...

A green Certificates market as an alternative to renewable auctions

 Apr 8, 2020 

The green certificate market is an alternative to renewable auctions…

Notes on the PPA’s counterparty guarantees

 Dec 11, 2019 

Why does the EU Emission Trading Scheme (“ETS”) market work? It is not out of major polluters goodness of heart. If a major polluter forms part of the EU ETS and does not have sufficient EU Allowances (“EUA”) to cover their annual emissions, they will face penalties of 100EUR/tCO2e. This provides the “stick” to ensure compliance. But there is also a “carrot”: the major polluter can reduce its liability by reducing its own emissions and, if it can overachieve, it can sell any excess EUAs in a secondary market...

The "Iberian exception" does not save vulnerable consumers as much as you might think

 May 24, 2022 

On 14 May 2022, the Spanish government published an executive order which implements the “Iberian exception”, as agreed in principle with the European Commission, and which aims to limit the impact of the price of natural gas on power prices....

Gas or Nuclear, Who should support renewable energies?

 Dec 13, 2021 

The environmental impact and the benefits offered to the electricity system are two of the criteria when analysing which technology should be promoted more if renewables encounter barriers to their growth, such as the limitation of network capacity, for example, one of the greatest challenges in Europe." A few months ago, there was no doubt...

How to control the generation costs of combined cycled gas turbines (CCGTs) in Europe

 Nov 3, 2021 

Given the increase in costs, are there ways to control the generation costs of combined cycled gas turbines (CCGTs) in Europe? Yes. It just so happens that diesel (#2 fuel oil, gas oil) is typically 20% more expensive in energy terms than crude oil, while natural gas tends to be 40% cheaper, with the result that diesel is typically twice as expensive as natural gas. However, prices are reversed. The rise in natural gas prices in Europe has outpaced that of Brent, meaning the relationship has reversed and diesel was recently half the price of natural gas...

The dark side of the renewable auction in Spain

 Sep 21, 2021 

Auctions should maximize the value of the project more than trying to minimize the resulting winning bid price. This would mean that the auction would place a value proportional to the contributions that each technology offers to different areas of society...

Analysis on the proposed Capacity Market

 Apr 12, 2021 

European regulation tells us that capacity mechanisms must (1) be based on national and European level demand coverage assessments, (2) allocate capacity through a market mechanism and allow for cross-border participation, and (3) implement emission caps that limit the types of capacity that can participate in such capacity markets...

Las subastas de renovables en España amplian la gama de opciones para los promotores que incluye ir a mercado con PPAS

 Mar 1, 2021 

La Subasta se desarrolló bajo el tipo ‘pay as bid’, en la que los promotores pujaron por el precio que estaban dispuestos a cobrar por la energía que generasen sus plantas y ese es el precio que se les ha asignado durante, al menos, 12 años. No obstante, a parte de este mecanismo, los proyectos renovables se financian con PPA y accediendo al mercado. Estas dos opciones y su actualidad fueron analizadas por Kim Keats y Antonio Arco, de la consultora EKON SC, en nuestro último Panel Virtual...

COVID-19 will bring back the tariff deficit in the electrical system

 May 28, 2020 

COVID-19 has meant the application of social and economic measures never seen before in Spain, or in the rest of the World. The measures of confinement and hibernation of the economy, during the months of March, April and part of May, have led to important changes for the electricity sector. Electricity demand has fallen, accentuating the drop in pool prices that were already occurring before COVID-19...

Are renewable auctions required in Spain?

 Dec 26, 2019 

Today there is a great appetite in the market for developers and investors, both national and foreign, to develop and build wind and PV assets in Spain…

Renewable auctions may block renewable development

 Ago 22, 2019 

Portugal carried out an auction for 1.4 GW of renewable capacity and has achieved spectacularly low prices. We were recently surprised by the news that, here in Spain, the Ministry for Ecological Transition plans to apply the same model of electricity auction used in Portugal...

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