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The Case for Innovative Change

During the first International Conference on the Integration of Renewable Energy Sources and Distributed Energy Resources held in December 2004, stakeholders and the research community suggested the creation of a Technology Platform for the Electricity Networks of the Future. The SmartGrids European Technology Platform for Electricity Networks of the Future began its work in 2005. Its aim was to formulate and promote a vision for the development of European electricity networks looking towards 2020 and beyond. More importantly however, it is aimed at increasing the efficiency and security of the European electricity transmission and distribution system while removing obstacles to the large-scale deployment and effective integration of distributed and renewable energy sources. In April 2006 the Advisory Council of the Technology Platform of Future Electricity Networks presented their vision for SmartGrids. Following that publication the council published its Strategic Research Agenda (SRA) to be a resource for European and National programmes.

After working for around 14-years in North America coming back to Europe certainly held some cultural surprises for me. Most notably is the European holiday.... In the US , one hardly dare take a long weekend vacation but here in Europe, folks are gone for weeks. It takes some getting used to.

However, after two summers here now I am getting used to it a bit and factor it in to my business plans. In fact, next summer, I think I will do likewise and take a longer summer break. I am thinking about renting a place in Italy for a month and, so long as I have access to the internet and a phone, I can still work! I guess that's called compromise?

UtiliPoint International, Inc. has issued an updated version of the ETRM market Size for North America report. Based on our own proven and proprietary top-down and bottom-up market sizing methodology the report suggests that the ETRM software market in North America has grown again over the last two-years since the previous version was released.

The new report may be purchased here

UtiliPoint also issued a report on the ETRM software market size in Europe in 2007 which will be updated once more in 2009. That report can be purchased here or as a part of the European ETRM Reports Package announced here

In today's more volatile, faster moving and more unpredictable commodity markets, sound risk management is even more important than it once was. Furthermore, I have made many arguments in past IssueAlert articles that structural change in commodity markets demand that risk managers review their risk management methods and approaches. I have argued that historical trends have broken down potentially impacting risk techniques that rely on historical data and also that certain quantitative risk analysis methods might be producing invalid results as input parameters such as volatility are exceeded for the method. I have argued that more emphasis be placed on stochastic techniques and stress testing.

Recently, I had the pleasure of discussing these and other issues with Dr. Chris Strickland of Lacima Group. Chris is an industry-recognized risk management expert and author or co-author of many respected books on the topic. He is also co-founder of Lacima Group, a company that delivers expertise in applying financial engineering techniques to the energy, commodities, and financial markets through its Lacima riskAnalytics software and services.

For the European Union (EU), offshore wind power is viewed as central to the group's commitment to generate 20 percent of its energy from renewables by 2020. Its potential highlights why. According to the European Wind Energy Association (EWEA), if barriers are removed, up to 40GW of offshore wind energy could be operating in the EU by 2020, supplying four percent of Europe's electricity. The figures look promising, but the crux of this technology's future lies in the phrase, “if barriers are removed.”

The challenges include the problems associated with connecting to the electricity grid, and here than has been much talk of the need for a well-developed maritime grid infrastructure. There are also the difficulties associated with its impact on the local environment, the competition for space with other marine users, and this feeds into the importance of effective and timely authorization procedures. In addition, there are issues related to financing, operation and maintenance costs, and a shortage of skilled personnel.

Brno, Czech Republic—August 20th, 2008—UtiliPoint® International, Inc. (UtiliPoint) has created two new offerings for those energy companies interested in Energy Trading and Risk Management in Europe. The two new products are the “UtiliPoint Europe ETRM Landscape Reports Package“ and the “UtiliPoint Europe ETRM Landscape Reports & Briefing Package.“

Both packages include four definitive UtiliPoint Europe reports on ETRM software including Benchmarking of European ETRM Software Markets, European Markets for ETRM Software – Market Sizing and Analysis, European ETRM Integration Survey Results; and, ETRM Software implementation projects – Snapshot survey results for a special price of $3500. The second version of the product also includes 4-hours of analyst time to help ensure that buyers understand the detail in the reports and that the information is actionable for a price of $4500.

The combination of these UtiliPoint Europe Research reports will enable buyers to understand the ETRM software landscape in Europe including:
• Who are the leading products and vendors;

At the time of writing this IssueAlert article, gas energy companies all over Europe are in the process of applying to their national regulators for interim gas price increases. Increases in the high teens are not unusual; with projected cost increases having an impact on consumers and power generators alike. Over the past year fuel prices have risen dramatically, as gas prices have risen by over 130 percent, oil by 85 percent and coal by almost 100 percent. In this regard, it is unavoidable that such increases will have a proportionate impact on electricity prices as well.

Recently Gazprom has warned that European consumers should expect stiff increases in natural gas prices as the soaring cost of oil feeds through into contracts for the sale of Russian gas into Europe. Gazprom predicts the cost of wholesale natural gas will rise by between 15 and 20 percent this year. Gazprom expects even greater increases could follow if the European Commission pushes through measures to break up Europe's gas grid.

Only a few years ago, biofuels were viewed by some in the European Union (EU) as perhaps the best way to improve security of supply, reduce greenhouse gas emissions, and offer new sources of income to people dependent on agriculture. It was the new kid on the block, lauded by politicians, and greeted with much positive media coverage. More recently, however, the practical difficulties and the hard economic realities of biofuels production and its use have become the focus. It begs the question: just what will biofuels offer to the EU's energy future?

This question was certainly being asked following the early July vote recommending reduced biofuels by members of the European Parliament environment committee. Last year EU leaders backed a goal of taking 10 percent of European transport fuel from renewable energy sources by 2020, with biofuels expected to be the main source. The new proposal is for between and eight and 10 percent of energy for transport to come from renewable sources by 2020, with an interim target of four percent by 2015.

If you or your company is interested in understanding the European Energy Trading and Risk Management Software landscape then this package of proprietary UtiliPoint Europe reports will provide you with much of the information that you require. Additionally, you will be provided with 4 hours of follow up consulting, analysis and advice from a UtiliPoint Europe analyst.
The package includes the following reports:

* Benchmarking of European ETRM Software Markets;
* European Markets for ETRM Software – Market Sizing and Analysis;
* European ETRM Integration Survey Results; and,
* ETRM Software implementation projects – Snapshot survey results.

As well as 4-hours of access to a UtiliPoint Analyst to help you understand the detail in the reports and ensure that the information is actionable.

The combination of these UtiliPoint Europe Research reports will enable you to understand the ETRM software landscape in Europe including:

* Who are the leading products and vendors;
* What the total size of the market for ETRM software in Europe is and how it is evolving;
* How European firms procure ETRM software;

The next in the UtiliPoint Europe Webinar Series is "Blogging in the Energy and Natural Resources – Are They Catching on and What Role do They Play?" This webinar will take place on August 28th 10:00 am to 11:00 am (U.S. Eastern Daylight Savings Time) 4:00 pm to 5:00 pm (Central European Time. To register, please visit http://www.pgsenergy.com/online/ugv204.html