Internationalization of the energy markets and the interdependancy between German and Danish energy policy
The project is representing an analysis of internationalisation of energy markets and the German and Danish electricity and heat markets. The aim of this analysis is to evaluate the interactions between Danish and the German energy systems.
Aim of the project: To analyse the political and economical dynamics behind the development at the German heat and power market; in order to estimate how this development will influenze the Danish 'Energy 21' strategy. The project will include: a) A description and analysis of the actual strategies of the German power sector in Skandinavia. Focus will be upon describing the ongoing activities in Scandinavia of the German power companies, and an analysis of the possibilities of a development, where German power companies buy parts of the Danish electricity system. b) An analysis of the internal dynamics of the German power companies: (This is done in order to understand how it can influence the Danish energy policy). The motivation of the German power companies in relation to buy parts of the Danish electricity system. c) An analysis of the relationship between the German power companies and the legislatative proces in Germany at the energy are. d) An analysis of the interrelationship between the German power system, and the development in EU. The main purpose here is to analyse how the German power companies are implementing the EU directives on 'liberalization'. Work program: The work will start in August 1998 and end in August 2000. The results will be published in 1999 and 2000, and can be used for Danish energy policy purpose
The main conclusions are: 1) The present liberalisation does not in any way represent any development towards a free market. A few very large actors are developing at the market. the development of the large mainly german E.ON and the mainly Swedish Vattenfall conglomerates is of special interest for Denmark, as they are the closest neighbours, and each have and electricity sale which is around 6 times the total Danish electricity consumption; 2) The surrounding energy conglomerates will have a strong motivation for trying to buy parts of the Danish system. This motivation is directed towards all levels of the Danish electricity and heat systems, but initially mainly the power production sector. But also the technical monopoly parts such as electricity transmission and distribution companies and heat and gas transmission and distributions companies are exposed to an increased 'bying' pressure from the surrounding energy conglomerates; 3) Economically a sale of the Danish energy infrastructure to external shareholders will result in higher energy prices in Denmark. Denmark's position as having for instance the lowest electricity prices for medium sized firms might be lost. The report shows, that the Danish consumer ownership-privatisation model has proven more price efficient than the UK and German shareholder-privatisation model. The consumer ownership-privatisation model seems able to avoid the monopoly profits in the technical monopoly parts of the energy systems (the water and gas pipes and electricity grid systems)
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Contact
Fibigerstræde 11
DK-9220 Aalborg Ø, Denmark
Hvelplund, Frede (lektor), 96358309, lund@i4.dk
Øvr. Partnere: Freie Universität Berlin. Forschungsstelle für Umweltpolitik (Germany)
