Report
February 1, 2003
The Development of a Spot Market Exchange Infrastructure for Belgium
Prepared for The Amsterdam Power Exchange (APX)
The Amsterdam Power Exchange (APX) and Elia have asked us to analyse the conditions required for the successful introduction of a Belgian day-ahead market in electricity. We focus on:
- Determining whether the conditions exist in Belgium for the introduction of a successful day-ahead market.
- Determining the appropriate geographic boundaries of the day-ahead market: whether Belgium should integrate with France, the Netherlands or neither.
- Performing quantitative analyses relevant to the potential integration among markets.
To determine whether conditions exist for a successful day-ahead market in Belgium, we examine both the supply-side and demand-side. On the demand-side, the key issue is the progress of market opening, which will create customers who could potentially participate in the day-ahead market. On the supply-side, we focus on the concentrated ownership of generation capacity in Belgium and the current dearth of potential participants.
