• A wind of change is blowing through the power grid

      Meeus, Leonardo; Dobbeni, Daniel (2015)
      “Unlike many other sectors, power systems – and electricity grids in particular – were a model of stability and predictability; this is no more the case!” says Daniel Dobbeni, the chair of the Vlerick Energy Centre. “This industry was and still is also highly diverse,” adds Prof. Leonardo Meeus. “16 companies manage 70% of global electricity demand. 41 companies manage 100% of the electricity demand in Europe. The distinction between a transmission grid and a distribution grid for transporting electricity is 70,000 volts in Belgium, which is just defined by regulations. There are more than 2,300 distribution grid companies in Europe, the smallest of which has only one employee.” This energy sector is now facing all kinds of new challenges as well as opportunities. The liberalisation of the power market has not only undermined stability, but triggered an unstoppable acceleration process. Of all the new trends and uncertainties in the market, there are four that could genuinely cause a fundamental revolution in the sector.
    • Energy Storage. Our take on business model and regulation

      Broeckx, Saskia; Ramos, Ariana; Fernandez, Luisa; Meeus, Leonardo (2019)
      The electricity landscape is in a state of flux, not least due to the increasing integration of renewable energy sources and distributed generation. This has sparked growing interest in energy storage, arguably an important part of the renewable energy mix. How can energy storage be used and integrated into existing power systems, in both residential and industrial environments? This is the key question the STORY project aims to address. Funded by the European Union’s Horizon 2020 research and innovation programme, STORY is a five-year research project analysing new energy storage technologies and their benefits. It features six demonstration case studies and involves 18 partner institutions in seven European countries. One of these partner institutions is Vlerick Business School. In a context where several different actors can use storage assets, it is essential to identify business models and regulation that will make energy storage sustainable, which is exactly where our expertise lies. We have taken the lead on the business cases supporting the rollout of electricity storage at the distribution level of the grid; more specifically, on those business cases revolving around the challenges of storage deployment and the interaction between the business models and the enabling market and regulatory context.
    • Implicit auctioning on the Kontek Cable: third time lucky?

      Meeus, Leonardo (2010)
      Cross-border capacities in Europe are currently inefficiently used. Implicit auctioning is about eliminating these cross-border trade inefficiencies by internalizing the arbitrage into the auction procedures of the Power Exchanges that are organizing trade nationally. On the Kontek Cable, implicit auctioning has been implemented without price coordination between the involved Power Exchanges. This implementation, referred to as “volume or dome coupling” as opposed to “price coupling”, has been argued to be institutionally easier to implement. The Kontek Cable experimented with three different implicit auctioning implementations whose performance we analyze empirically in this paper. We find that the third implementation is significantly outperforming the previous two implementations, but in this third implementation stakeholders partly abandoned the volume coupling approach they initially believed to be a viable alternative to price coupling.