ceps-logo

Analysis of possible measures for ensuring the sufficiency of ancillary services and regulation capacities in the Czech power system

The objective of this study, which Euroenergy carried out for the Czech transmission system operator in 2016, was a detailed analysis of input conditions, needs and possible measures for ensuring the sufficiency of ancillary services and regulation capacities in the Czech power system in terms of future electricity market.

An estimated future development of electricity market in connection with the changes of key European markets (mainly the German market) as well as generation adequacy – balance between supply and demand – of the Czech Republic were analyzed. In particular, main examined areas were:

  • Analysis of the current state of electricity market
  • State Aid Policy Directive
  • German energy policy (Energiewende)
  • Capacity mechanisms
  • Analysis of the energy policy of the European Union

A crucial part of the study was an update of ancillary services availability forecast in the Czech Republic, where Euroenergy drew on deep knowledge of the Czech generating capacities and electricity market.

Furthermore, an impact assessment of the external factors on the regulation capacities availability forecast, on its structure and on a possible form of provision of the ancillary services was carried out. Among the essential external factors that were examined in this analysis mainly belong:

  • Tightening environmental standards for combustion plants
  • State aid for renewable electricity and its development
  • Impact of the wholesale electricity price on the availability of ancillary services
  • Impact of the implementation of cross-border exchange of ancillary services on its availability in the Czech Republic

Based on the above stated analyses of given areas and external factors, a basic set of measures for ensuring the sufficiency of ancillary services in the Czech Republic was recommended.