The Upheaval of Carbon Price in Europe
Sponsored by: ABB
Date: 24 January
Time: 3PM London/10AM New York
Is the Impact of recent EU ETS reform on European energy markets a storm in a teacup or a paradigm shift?
The price for Carbon in Europe has rallied this year in response to the recent reforms of the European Emissions Trading Scheme (EU ETS). The price reached 25 €/t of CO2 at the beginning of September, a ten-year high and a fivefold increase from last year (when prices were 5 €/t of CO2). The increase was driven by the Market Stability Reserve (MSR) – a mechanism for reducing the oversupply of CO2 emission allowances that have accumulated since the financial crisis. With many forecasters predicting further price increases over the coming years, the forward wholesale electricity prices across Europe are responding in tandem.
The expected shortage of emission allowances is driving the switch of coal units for CCGTs, which increases demand for natural gas and puts pressure on European hub prices. In the last three months the Dutch Title Transfer Facility (TTF) prices surged by more than 30%, while the German wholesale electricity forwards (price) reached 54 €/MWh for 2019 delivery – a 20 Euro increase from last year.
The upheaval of carbon price will inevitably have consequences on the operation and investments in the electricity sector across Europe. It will also impact the electricity consumers, in particular, the energy intensive end-users.
In this webinar ABB’s Energy Portfolio Management team will explore how the recent revival of the EU ETS may impact the power markets in Europe. We will explore:
• Is the only way up for electricity prices?
• Is the emerging dash for gas a temporary relief to existing CCGT owners, or a long lasting shift in baseload generation?
• Who will pay for high carbon prices?
• High carbon prices have dissimilar effects on different market players - who are potential winners and losers?
Join ABB’s energy market experts for insights and interactive discussion of the topical issues in European energy markets. Whether you are:
• an electricity producer or trader;
• an investor in renewables or other emerging technologies;
• a large electricity consumer; or
• keen to learn more about the latest market trends.
You will come away with real-world, hard-hitting, actionable takeaways to help you make the right strategic and operational decisions for your business.
Energy Market Advisory Consultant
Bartosz Domagala is part of ABB’s Energy Portfolio Management (EPM) team. He specialises in the quantitative analysis of energy markets in Europe. He has several years of experience in the European energy market modelling. His energy advisory work in ABB includes carbon price forecasting, demand research studies, market modelling and price forecasting for European countries. This experience along with extensive financial analysis knowledge gained in the financial sector, working with PwC and Royal Bank of Scotland, provides him with a unique skill set of analysing the European energy markets. Bartosz holds an MSc degree in Computer Science and Econometrics from Cracow University of Economics (Poland).
Energy Market Advisory Consultant
Sandra Badon is currently working in ABB’s Energy Portfolio Management (EPM) team in Europe. She has extensive expertise in the European energy markets and on ABB market modelling software and an academic background in Sustainable Energy Studies. She provides regional energy market analysis for the European electricity, fuel and carbon markets. Sandra has been involved in various projects including generation investment studies, market modelling and price forecasting projects for the UK, Ireland, Poland, Northwest Europe and Turkey.
Key Learning Objectives
- Recent developments in carbon pricing in Europe
- Impact of different carbon price scenarios on European electricity markets
- Impact of high carbon prices on generators and consumers
Decision makers and professionals responsible for
- Strategic planning or analysis
- Energy / Electricity Market analysis
- Generation Portfolio Optimization
- Revenue Forecasting
- Generation Asset Evaluation
- Energy Price Forecasting
- Energy / Electricity Procurement
- Energy / Electricity Trading
- Regulatory Analysis