The Capacity Allocation Service Company for the Central West European Electricity market (CASC-CWE) has integrated the five electricity markets of Belgium, France, Germany, Luxembourg and The Netherlands into one.
Corne Meeuwis, CEO, CASC-CWE believes the results – increased liquidity and competition in the five markets, and resolution to the problem of scarce capacity – will speak for themselves in the next 6-12 months.
In an interview for MeettheBoss.com, he explains that the success of CASC-CWE has led to other countries seeking a similar solution: “The central east region is in the process of setting up an auction office like CASC [and] there is a discussion going on in the central south regions.”
Clearly the next question is why have three capacity allocation services? Meeuwis feels there is a “strong drive for one European energy market”, and this may result in a sector-changing shake out.
“Today there are multiple power exchanges dealing with the day ahead markets and focusing on intra-day activities. Perhaps in the future there will be simply one organization,” he says.
“There is a fundamental question underlying all of this: how should you regard these kind of activities. Are they commercial activities? Then there will be a shake-out. Or should you consider this as a regulated business, like Transmission Systems Operators are a regulated business.” He continues: “And if it’s decided to go in that direction, well you will see all these organizations have to move into one bigger organization.”
Either way, it looks like there are plenty of changes ahead for Europe’s energy utilities.
Watch the full interview: http://www.meettheboss.com/Broadcast-Player.aspx?Play=1&MediaID=122
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