Joint IEA/NEA Workshop on Power Generation Investment in Liberalised Electricity Markets

1st day 

 Opening remark

Mr. Claude Mandil, Executive Director, IEA and Mr. Luis Echávarri, Director-General, NEA

 Chairman's   Introduction

 Session 1: Introduction


This session set out the size of the investment required and the general question of how power generation in electricity markets is to take place.

 Session 2: Investment and the Market Framework


This session considered investment in electricity markets in the context of current market designs and incentives for investment, the new modelling frameworks for investment.

 Session 3: Implications of Liberalised Markets for Generating   Technologies


This session drew on experience of investors in different technologies in different markets as how their investments or technologies have been affected by the liberalised markets. Presenters were asked to cite main investment risks and how these have been affected by liberalisation.


 2nd day 

 Session 4: Investment in Developing Economies


 Session 5: Implementation of Governments' Energy Policy


Certain governments are undertaking specific policies to enhance diversification/security of supply in electricity markets. How successful are these approaches and what impact do they have on the structure and operation of the electricity market?

Speakers profile

 Professor David Newbery

   - United Kingdom

  • Since 1988, Professor David Newbery is Director of the Department of Applied Economics at Cambridge.
    For his research he has interested himself in public policy, regulation, economic transformation of Eastern Europe, development economics, and economic theory. While working in the World Bank in the early 1980s he joined an energy assessment mission to Papua New Guinea, and worked on problems of energy pricing and taxation, notably of transport fuels. His recent work has concentrated on privatizing and regulating utilities, particularly electricity and gas. He has directed a sequence of four large research projects on the British energy markets under contracts with the Economic and Social Research Council from 1989 to 2003, and several projects studying tax reforms and the transition of Hungary to the market economy, financed by the ESRC, PHARE and ACE. He has advised Offer on use-of-system pricing and reforms of the pool, of Gas on the Network code and the regulation of TransCo, and now Ofgem (dealing with both electricity and gas). He was a member of the Competition Commission 1996-2002, and Chair of the Dutch electricity Market Surveillance Committee. He is a member of the Environmental Economics Academic Panel, Department of the Environment, 1992 (now DEFRA), and was a specialist advisor to House of Commons Inquiry into British Energy Policy and the Market for Coal, November 1992-January 1993.
  • Session I presentation: Power Generation Investment in Liberalised Electricity Markets

 Mr. Fatih Birol

   - IEA

  • Dr. Fatih Birol is the Chief Economist and Head of the Economic Analysis Division at the International Energy Agency (IEA). Dr. Birol joined the International Energy Agency in 1995. In his present post, Dr. Birol is responsible for producing the IEA's flagship publication World Energy Outlook. He teaches energy economics and modelling at universities in Austria and Germany.
  • Prior to the IEA, he worked at the Organization of the Petroleum Exporting Countries (OPEC) Secretariat in Vienna for five years.
  • Dr. Birol is the author of several articles in refereed journals on international energy analysis and policy.
  • He graduated with a BSc degree in power engineering from the Technical University of Istanbul and MSc and PhD in Energy Economics and Modelling from the Technical University of Vienna.
  • Session I presentation: World Energy Outlook 2020 and Global Electricity Investment Challenges

 Mr. Ralf Dickel

   - IEA

   Professional experience:

  • Since 2001: IEA, Paris: Head of Energy Diversification Division
    (Energy Market Reform and Policy Analysis of Energy Markets)
  • 1998-2001: The World Bank, Washington: Senior Gas Specialist, Oil and Gas Policy
  • 1980-1998: Ruhrgas, Essen: Various management positions, including:
  • 1996-1998: Gas Sales Department: Sales strategies under new competition
  • 1980-1996: Gas Purchase Department: Last position: Overall responsibility gas purchase from Norway
  • 1991: Secondment to the World Bank as Gas Specialist
  • 1977-1979: Veba Kraftwerke Ruhr, Gelsenkirchen: Administrator for bulk sales of electricity
  • Education:
  • Diploma in Mathematics, University Tuebingen
    Diploma in Economics, University Giessen
  • Session I presentation: Experience of Power Generation Investment in Liberalised Markets: In the Middle of the Stream

 Ms Héylette Geman

   - France

  • Hélyette Geman is Professor of Finance at the University Paris Dauphine and at ESSEC Graduate Business School. She is a graduate from the Ecole Normale Supérieure, holds a master's degree in theoretical physics and a Ph.D. in mathematics from the University Paris Pierre et Marie Curie and a Ph.D. in Finance from the University Panthéon Sorbonne. Dr Geman is also a member of honor of the French Society of Actuaries. Previously a Director at Caisse des Dépôts in charge of Research and Development, she has been for the last ten years a scientific adviser for major financial institutions and energy companies. Dr Geman received in 1993 the first prize of the Merrill Lynch awards for her work on exotic options and in 1995 the first AFIR (Actuarial Approach for Financial Risk) International prize for her pioneering research on catastrophe and extreme events derivatives. Professor Geman was President of the Bachelier Finance Society during the years 2000 and 2001 and organiser of the First World Bachelier Congress in 2000. She has published extensively in international journals such as the Journal of Finance, the Journal of Financial Economics, the Journal of Business, is editor of the Journal of Banking and Finance and European Finance Review, and Associate Editor of Mathematical Finance, the Journal of Risk, Geneva Papers on Insurance and the Review of Financial Services Research.
  • Session II presentation: Towards a European Market of Electricity:Spot and Derivatives Trading.

 Mr. Jean-Paul Bouttes

    - France

  • Current position: Délégué Stratégie Industrielle, Branche Energies, Electricité de France ;Professeur chargé de cours, Département de Sciences Economiques, Ecole Polytechnique, Paris.
  • Previous employment: Directeur Adjoint de la Stratégie, Electricité de France (1997-2002);Chef du Département Méthode, Etudes Economiques Générales, Electricité de France (1992-1995) ; Conseiller Scientifique à l'INRIA (1986-1993) ;
  • Education: Ingénieur Ecole Polytechnique (1980) ; Ecole Nationale de la Statistique et de l'Administration Economique (1982).
  • Session II presentation: Generation Investment and Electricity Market Design (with Asaad Saab)
  • Additional presentation (web only): Marchés de gros et bourses de l’électricité en Europe et aux Etats-Unis :où en sommes-nous ?

 Mr. Assaad Saab

    - France

  • Assaad SAAB has worked in the Executive Office of Electricité de France since 1988 and has held his role as Head of Corporate Planning, Strategy Division. He joined EDF - Energy Branch in 2003 as deputy head of Industrial Strategy and he is a member of EDF Environment and Sustainable Development Agency.
  • He also holds membership of several Professional Associations on Energy Planning and Research including the International Association of Energy Economists, and Association on Energy and Industry Strategies, and is also a member of several international expert networks in Business Environment. He is a member of the Doctorate Commission of Corporate Planning at the Conservatoire National des Arts et Metiers. He has postgraduate and PhD degrees in physics from Paris University.
  • Dr A. SAAB is the coauthor of "La prospective stratégique d'entreprise" published by Dunod and the author of numerous reports, monographs and papers on environmental research and policy issues, long range and strategic planning issues related to electric utilities and energy systems.
  • Session II presentation: Generation Investment and Electricity Market Design (with Jean-Paul Bottes)

  Mr. Guillaume de Luze

    - Société Générale, France

  • Guillaume de Luze worked for ten years at the Barclays Bank Group before joining SG project finance team in 1997. With over 13 years of project finance experience, he was deeply involved and responsible for a variety of different project financing operations, including lead arranging and financial advisory mandates in Europe and in the Middle East.
  • Recent transactions realised as Team Leader include: Baymina BO in Turkey (Lead Arranging), Umm Al Nar in the UAE (Financial Advisor), Ras Laffan first IWPP in Qatar (Lead Arranger), Shuweihat S1 in the UAE (Financial Advisor), Suez Gulf & Port Said East in Egypt (Financial Advisor, Private Placement Agent and global co-ordinator).
  • Mr de Luze graduated from a French business school with a Master's degree in finance.
  • Session II presentation: Investment in power generation: A banker’s perspective

 Mr. Juhani Santaholma

    - Finland

  • Mr. Juhani Santaholma has been President of the Finnish Energy Industries Federation Finergy since 2000.
  • From 1986 to 1999, Mr. Santaholma worked for Perusvoima Oy (PEVO), the last five years as Managing Director. At the same time, from 1998 to 1999, Mr. Santaholma was Executive Vice President and Member of the Executive Committee at Fortum Oyj.
  • Mr. Juhani Santaholma holds several international chairmanships. In 2000, he was an expert member of the Confederation of Finnish Industry and Employers' Energy Committee; from 1999-2001 he chaired the Commission on Energy at the International Chamber of Commerce and was co-chair of the Commission on Environment & Energy in 2002; in 2003 he represented the Confederation of Finnish Industry and Employers at the BIAC (Business and Industry Advisory Committee to the OECD) Energy Committee.
  • Mr. Santaholma trained on the bench at the Judicial District Court of Espoo 1969 and holds a Master of Law from Helsinki University.
  • Session III presentation: Nuclear power investment (powerpoint support)

 Dr. Frank-Detlef Drake


  • Since October 2002 Dr. Drake is Vice President of Power Plants, where he is responsible for power plant strategy, dispatch, construction and R&D at RWE Rheinbraun (Cologne).
  • Before joining RWE, Dr. Drake worked for McKinsey & Company (Düsseldorf) where he started as a Management Consultant. His consulting focused on electric utilities, chemical and other process industries. There he became a member of the leadership group of McKinsey's German and European energy practice and then Project Manager. When he left the Group he had become a Partner (Principal).
  • Dr. Drake obtained his Master of Science Degree in mechanical engineering at the University of Wisconsin-Madison (USA) where he was a Fulbright-Scholar and his Doctorate (mechanical engineering) at the Institute for Thermodynamics of the University of Hannover.
  • Session III presentation: Investment in Coal- Fired Power Generation

 Mr. Juan José Alba Rios

    - Spain

  • Dr. Alba joined Endesa in July 1997. He is currently Managing Director of the European trading unit of Endesa through a joint venture with Morgan Stanley. Previously, he was in charge of regulatory affairs at Endesa, where he has been involved in the design of the Spanish regulatory framework, as member of different working groups, dealing with issues such as the design of the wholesale energy market, capacity payment, ancillary services, international exchanges, stranded costs, etc. He has also been involved in the analysis of regulatory and competition issues in Chile and Peru.
  • Juan Alba is a member of the Supervisory Boards of Powernext and has been a member of the board of Gielda Energii S.A. (Polish Power Exchange). He is also a member of the board of directors of EFET, the European Federation of Energy Traders and has served in several Eurelectric working groups.
  • Dr. Alba has worked as a consultant and researcher since 1986 in different areas of electricity regulation (design, modelling and simulation of wholesale electricity markets, competitive bidding for new generation, ancillary services, capacity payment, etc.). He has also worked for several years on applications of information technology and artificial intelligence on electric power systems. He has authored more than fifteen technical papers in books, conferences and engineering journals. He has been a lecturer at the Universidad Comillas in Spain, and at the Swiss Federal Institute of Technology in Lausanne.
  • Juan J. Alba graduated in Electrical Engineering in 1986, and obtained a Ph.D. in Electrical Engineering in 1996, in both cases from Universidad Comillas in Madrid.
  • Session III presentation: Investment in gas- fired generation

 Mr. Reinhard Haas

   - Austria

  • Reinhard Haas is associate professor of Energy Economics at Vienna University of Technology in Austria. Since 2001 he is the vice-head of the Institute of Power systems and Energy Economics. His current research includes (i) Dissemination Strategies for Renewables; (ii) Sustainable Energy Systems; (iii) Liberalisation vs Regulation of Energy Markets.
  • He has been working in these fields for ten years and has published various papers in reviewed international journals. Recently he has coordinated the EU-Project ELGREEN in the 5th framework programme.
  • Session III presentation: Promoting renewable electricity investments effectively

 Mr. Arend Hermans

    - Netherlands

    Director for Energy Markets Ministry of Economic Affairs, The Netherlands

    Responsible for:

  • Regulatory reform of energy markets
  • Liberalisation
  • Discussions on privatisation
  • Design of a market for green energy

    Member of the Florence Forum on European Electricity Market, Madrid Forum on European Gas Market

    Session III presentation: Green markets

  Mr. Li Guanghua

    - China

  • From 1989-1996, Mr. Guanghua worked in Thermal Power Research Institute to study boiler combustion, especially CFBC.
  • Since 1996, he has been working for the State Power Corporation of China (SP) where he is in charge of the technical aspects of large Projects of SP as well as of technical research project management.
  • After the reformation last December, Mr. Li Guanghua started working for China Power Investment Corporation (CPI) in the Department of Planning & Development. He is in charge of developing projects and strategic plans of CPI.
  • Session IV presentation:Separation of power plants from the grids - A theme of the reform in the Chinese power industry

  Mr. Doug Cooke

    - IEA

  • Mr. Cooke has recently joined the IEA's Long Term Office as a senior advisor on electricity market reform issues.
  • Prior to joining the IEA, Mr Cooke served as a senior member of the Council of Australian Governments Energy Market Review Secretariat advising the Parer Committee on future directions for electricity market reform in Australia.
  • Previously, Mr. Cooke managed the section responsible for advising the Commonwealth Minister on electricity reform matters, and over the last four years has served as an electricity market specialist on IEA in-depth review teams examining the energy policies of the United States, Canada and New Zealand.
  • Mr. Cooke has also held senior positions advising the Commonwealth Minister on gas market reform issues, and as a Commonwealth Treasury official was a senior member of the Agency responsible for developing the Government's micro-economic reform programs to promote private investment in public infrastructure.
  • Session V presentation: Investment & reliability in the Australian national electricity market: A perspective

  Mr. Nick Hartley

    - United Kingdom

  • Nick Hartley joined OXERA in 1996 after a career in the UK Government Economic Service.
  • From 1984 to 1989 he was the Chief Economist at OFTEL, responsible for developing the early stages of the economic regulation of the telecommunications industry. He then went on to head teams of energy and environmental economists at the Department of the Environment and the Department of Trade and Industry.
  • At OXERA, he advises companies and governments on regulatory issues in general, drawing on the UK experience with the regulation of all the privatized utilities. In 2002 he was seconded from OXERA to head the team which prepared the UK Cabinet Office (Performance and Innovation Unit) report on energy policy. This report laid the foundations for the UK Government Energy White Paper published in February 2003.
  • Session V presentation: Assessing the risks of increased reliance on gas