Hancock's blog

That Bill Hogan is a Professor of Energy Policy at Harvard University and Director of the enormously influential Harvard Electricity Policy Group is impressive. Locally, however, he has particular status as the guiding mind behind the design of New Zealand's wholesale electricity market.

One of Hogan's key recommendations in the establishment of the wholesale market was that Financial Transmission Rights ("FTRs") be created alongside it. This wasn't part of the original implementation but, 16 years later, the Electricity Authority has appointed an FTR manager with the responsibility of running our first FTR auction in May 2013.

Professor Hogan hasn't worked in New Zealand since the early 2000s but was interested and pleased to hear of this new development. He kindly agreed to talk to the podcast about FTRs and why they're so important.

To do this, we must first establish the purpose and design for the market to understand the role of FTRs within it. Last week, Bill explained how FTRs solve the problem that locational marginal pricing creates (that electricity prices change all over the country all the time). This week, he explains how they work and how central dispatch ensures there's always enough money to pay people with them.

That Bill Hogan is a Professor of Energy Policy at Harvard University and Director of the enormously influential Harvard Electricity Policy Group is impressive. Locally, however, he has particular status as the guiding mind behind the design of New Zealand's wholesale electricity market.

One of Hogan's key recommendations in the establishment of the wholesale market was that Financial Transmission Rights ("FTRs") be created alongside it. This wasn't part of the original implementation but, 16 years later, the Electricity Authority has appointed an FTR manager with the responsibility of running our first FTR auction in May 2013.

Professor Hogan hasn't worked in New Zealand since the early 2000s but was interested and pleased to hear of this new development. He kindly agreed to talk to the podcast about FTRs and why they're so important.

To do this, we must first establish the purpose and design for the market to understand the role of FTRs within it. Last week, Bill talked about what it took to get people to accept location marginal pricing. This week he explains the problem it creates: that electricity prices change all over the country all the time, and the solution to managing it: FTRs, and how they work.

That Bill Hogan is a Professor of Energy Policy at Harvard University and Director of the enormously influential Harvard Electricity Policy Group is impressive. Locally, however, he has particular status as the guiding mind behind the design of New Zealand's wholesale electricity market.

One of Hogan's key recommendations in the establishment of the wholesale market was that Financial Transmission Rights ("FTRs") be created alongside it. This wasn't part of the original implementation but, 16 years later, the Electricity Authority has appointed an FTR manager with the responsibility of running our first FTR auction in May 2013.

Professor Hogan hasn't worked in New Zealand since the early 2000s but was interested and pleased to hear of this new development. He kindly agreed to talk to the podcast about FTRs and why they're so important.

To do this, we must first establish the purpose and design for the market to understand the role of FTRs within it. Last week, Bill introduced the breakthrough in electricity market design - to settle on marginal prices based on dispatch. This week he talks about what it took to get people to accept this.

That Bill Hogan is a Professor of Energy Policy at Harvard University and Director of the enormously influential Harvard Electricity Policy Group is impressive. Locally, however, he has particular status as the guiding mind behind the design of New Zealand's wholesale electricity market.

One of Hogan's key recommendations in the establishment of the wholesale market was that Financial Transmission Rights ("FTRs") be created alongside it. This wasn't part of the original implementation but, 16 years later, the Electricity Authority has appointed an FTR manager with the responsibility of running our first FTR auction in May 2013.

Professor Hogan hasn't worked in New Zealand since the early 2000s but was interested and pleased to hear of this new development. He kindly agreed to talk to the podcast about FTRs and why they're so important.

To do this, we must first establish the purpose and design of the wholesale market to understand the role of FTRs within it. Last week, Bill articulated the unusual problems that the physics of electricity transmission create in achieving open access. This week he explains the only solution: marginal prices must be based on the results of a bid-based, security-constrained economic dispatch.

That Bill Hogan is a Professor of Energy Policy at Harvard University and Director of the enormously influential Harvard Electricity Policy Group is impressive. Locally, however, he has particular status as the guiding mind behind the design of New Zealand's wholesale electricity market.

One of Hogan's key recommendations in the establishment of the wholesale market was that Financial Transmission Rights ("FTRs") be created alongside it. This wasn't part of the original implementation but, 16 years later, the Electricity Authority has appointed an FTR manager with the responsibility of running our first FTR auction in May 2013.

Professor Hogan hasn't worked in New Zealand since the early 2000s but was interested and pleased to hear of this new development. He kindly agreed to talk to the podcast about FTRs and why they're so important.

To do this, we must first establish the purpose and design for the market to understand the role of FTRs within it. In last week's podcast Bill went back to the early 1990s in New Zealand and the "continuing seminar" around the development of competitive markets for electricity that set the whole process in motion. This week he explains the unusual problems that the physics of electricity transmission create in achieving open access. It's no bundle of straws.

That Bill Hogan is a Professor of Energy Policy at Harvard University and Director of the enormously influential Harvard Electricity Policy Group is impressive. Locally, however, he has particular status as the guiding mind behind the design of New Zealand's wholesale electricity market.

One of Hogan's key recommendations in the establishment of the wholesale market was that financial transmission rights ("FTRs") be created alongside it. This wasn't part of the original implementation but, 16 years later, the Electricity Authority has appointed an FTR manager with the responsibility of running our first FTR auction in May 2013.

Professor Hogan hasn't worked in New Zealand since the early 2000s but was interested and pleased to hear of this new development. He kindly agreed to talk to the podcast about FTRs and why they're so important.

To do this, we must first establish the purpose and design for the market to understand the role of FTRs within it. In this first interview Bill goes back to the early 1990s in New Zealand and the "continuing seminar" around the development of competitive markets for electricity that set the whole process in motion.

Some history

We're all about the Labour-Green's proposals for an alternative model for the electricity market here. The UK Labour Party came up with something quite similar in mid-2013 which has put the cat amongst their pigeons so for the next couple of months I'm taking to Graham Shuttleworth who is the office head for the economic consultancy NERA in London, and one of the original authors of the UK Pool Rules – on which our own electricity market was based.

Last week, Graham got his crystal ball out to guess at the future for the UK and recognised a few things in it. In this, the final episode of the series, he offers a few thoughts on why our industry has taken the path it has over the last 20 years and some cautionary comments about our possible futures.

As with other podcasts, the opinions expressed in the interview are Graham's and do not necessarily represent the views of NERA Economic Consulting or any other NERA consultant. If you quote the podcast, you should attribute the reference to him personally rather than the firm.

Groundhog Day

We're all about the Labour-Green's proposals for an alternative model for the electricity market here. The UK Labour Party came up with something quite similar in mid-2013 which has put the cat amongst their pigeons so for the next couple of months I'm talking to Graham Shuttleworth who is the office head for the economic consultancy NERA in London, and one of the original authors of the UK Pool Rules – on which our own electricity market was based.

Last week, Graham reminded us of the role that independent regulation was originally intended to play in the UK market and why people keep designing arrangements from scratch. This week he gets his crystal ball out and recognises a few things in it.

As with other podcasts, the opinions expressed in the interview are Graham's and do not necessarily represent the views of NERA Economic Consulting or any other NERA consultant. If you quote the podcast, you should attribute the reference to him personally rather than the firm.

This podcast was recorded in 2014

The electricity market cycle: key concepts in market design and changes in underlying economics

We're all about the Labour-Green's proposals for an alternative model for the electricity market here. The UK Labour Party came up with something quite similar in mid-2013 which has put the cat amongst their pigeons so for the next couple of months I'm taking to Graham Shuttleworth who is the office head for the economic consultancy NERA in London, and one of the original authors of the UK Pool Rules – on which our own electricity market was based.

Last week, Graham talked specifically about the contract the UK single buyer has just written to underwrite a new nuclear power station. This week he reminds us of the role that independent regulation was originally intended to play in the UK market and why people keep on designing arrangements from scratch.

As with other podcasts, the opinions expressed in the interview are Graham's and do not necessarily represent the views of NERA Economic Consulting or any other NERA consultant. If you quote the podcast, you should attribute the reference to him personally rather than the firm.

This podcast was recorded in 2014

.. at 70-80% above current market prices

We're all about the Labour-Green's proposals for an alternative model for the electricity market here. The UK Labour Party came up with something quite similar in mid-2013 which has put the cat amongst their pigeons so for the next couple of months I'm taking to Graham Shuttleworth who is the office head for the economic consultancy NERA in London, and one of the original authors of the UK Pool Rules – on which our own electricity market was based.

Last week, Graham looked at how the UK "market" works today and how incentives for the "right" sort of investment have snowballed. This week he talks specifically about the contract the UK's single buyer has just written to underwrite a new nuclear power station. These are big numbers!

As with other podcasts, the opinions expressed in the interview are Graham's and do not necessarily represent the views of NERA Economic Consulting or any other NERA consultant. If you quote the podcast, you should attribute the reference to him personally rather than the firm.

This podcast was recorded in 2014