Bausch / Schwenker Handbook Utility Management

1. Auflage 2009
ISBN: 978-3-540-79349-6
Verlag: Springer Berlin Heidelberg
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 808 Seiten

Along with the increasing deregulation of European utility markets the dynamics of and the competitive pressure in the utility industries have steadily increased over the last years. These changes in the regulatory framework towards an integrated market environment have resulted in new challenges for the management of power and gas companies and in a substantial need for strategic reorientation. In the context of these developments the Handbook Utility Management reflects current challenges in the utility industries and provides solutions from a managerial perspective. The inclusion of latest insights from top managers, renowned researchers, professionals in utility-related investment banking and consulting, and professionals in public and supranational organizations on all value chain activities within the industry makes the Handbook an indispensable asset for both professionals and researchers.

Autoren/Hrsg.

Bausch, Andreas

Schwenker, Burkhard

Inhaltsverzeichnis

1;Preface;5
2;Overview;7
3;Contents;10
4;List of Contributors;30
5;Part I: Introduction to Management;36
5.1;1 Managing in an International Environment;37
5.1.1;1.1 Introduction;38
5.1.2;1.2 Building a Global Talent Network;38
5.1.3;1.3 What Factors Contribute to an Optimal Climate for Coordinated Research and Development?;43
5.1.4;1.4 How Can External Areas of the Business – such as Partner Networks – Be Engaged to Support Globalization Efforts?;44
5.1.5;1.5 The Business Network Life Cycle;46
5.1.6;1.6 How Technology Can Support Business Network Transformation and Globalization;47
5.1.7;1.7 The Challenge for Management in the Era of Business Network Transformation;47
5.1.8;References;48
5.2;2 Superior Performance Through Value-based Management;49
5.2.1;Abstract;49
5.2.2;2.1 Introduction;50
5.2.3;2.2 Concepts of Value-based Management;51
5.2.4;2.3 Applications and Techniques of Value-based Management;56
5.2.5;2.4 Value Creation by Large German Firms;63
5.2.6;2.5 Value Creation by Large and Medium-sized German Utilities;66
5.2.7;References;69
5.3;3 Ways to Corporate Growth;71
5.3.1;Abstract;71
5.3.2;3.1 Growth Is a Strategic Necessity;72
5.3.3;3.2 Ways to Growth;75
5.3.4;3.3 Finding the Right Blend of External and Organic Growth;79
5.3.5;3.4 The Right Way to Organize Growth;83
5.3.6;References;87
5.4;4 Diversification and the Achievement of Scope Economies;88
5.4.1;Abstract;88
5.4.2;4.1 Introduction;89
5.4.3;4.2 Corporate Strategy and Diversification;89
5.4.4;4.3 Economies of Scope as an Imperative for Diversification;95
5.4.5;4.4 Diversification and the Achievement of Economies of Scope in the Utility Industry;99
5.4.6;4.5 Conclusion;101
5.4.7;References;102
5.5;5 Innovation and Technology Management;106
5.5.1;Abstract;106
5.5.2;5.1 Innovation – The Key to our Future;107
5.5.3;5.2 Innovation – an Essential Driver for Profitable Growth;109
5.5.4;5.3 Elements of Innovation Management;110
5.5.5;5.4 Innovation – a Cultural Issue;120
5.5.6;References;121
5.6;6 Entrepreneurial Orientation;122
5.6.1;Abstract;122
5.6.2;6.1 Introduction;123
5.6.3;6.2 The Concept of Entrepreneurial Orientation;123
5.6.4;6.3 The Dimensionality of Entrepreneurial Orientation;124
5.6.5;6.4 Entrepreneurial Orientation and Firm Performance;125
5.6.6;6.5 Contingency Theories;125
5.6.7;6.6 Environmental Variables;125
5.6.8;6.7 Organizational Variables;128
5.6.9;6.8 Combined Models of Venture Performance;129
5.6.10;6.9 Critique;130
5.6.11;6.10 Conclusions;131
5.6.12;References;132
5.7;7 New Paradigms in Organizational Design;137
5.7.1;Abstract;137
5.7.2;7.1 Introduction: Main Drivers Influencing the Organizational Framework of European Utilities;138
5.7.3;7.2 Keys to Reading the Current Organizational Framework of European Utilities;141
5.7.4;7.3 Challenges and Emerging Paradigms in Utilities Organizational Design;149
5.7.5;7.4 An Overview of US Utilities Organizational Trends;164
6;Part II: Fundamentals in Utility Management;166
6.1;8 An Industry Overview – Strategic Groups and Critical Success Factors;167
6.1.1;Abstract;167
6.1.2;8.1 Preface;168
6.1.3;8.2 An Industry Overview – Segmenting European Power Utilities;168
6.1.4;8.3 Critical Success Factors of Top-performing Utilities;173
6.1.5;8.4 Conclusion;175
6.2;9 The Utility Industry in 2020;177
6.2.1;Abstract;177
6.2.2;9.1 Introduction;178
6.2.3;9.2 Stakeholders in Utilities;182
6.2.4;9.3 Basic Drivers and Business Models;186
6.2.5;9.4 Evolutionary Scenario in the Utility Industry in 2020;190
6.2.6;9.5 Revolutionary Scenario in the Utility Industry in 2020;195
6.2.7;9.6 Conclusion;196
6.2.8;References;197
6.3;10 The Changing Structure of the Electric Utility Industry in Europe: Liberalisation, New Demands and Remaining Barriers;198
6.3.1;10.1 Introduction;199
6.3.2;10.2 The European Electricity Supply Industry in Pre-liberalisation Days;199
6.3.3;10.3 Restructuring of the European Electricity Supply Industry;200
6.3.4;10.4 Price Formation in a Liberalised Competitive Electricity Market;203
6.3.5;10.5 Performance of the Wholesale and Retail Markets;206
6.3.6;10.6 Remaining Barriers to Effective Competition;213
6.3.7;10.7 Conclusions;219
6.3.8;References;220
6.4;11 The Changing Structure of the Utility Industry from the Perspective of Regulation Authorities;222
6.4.1;Abstract;222
6.4.2;11.1 Introduction;223
6.4.3;11.2 Structural Changes in the Utility Landscape in Germany;225
6.4.4;11.3 Unbundling Integrated Utilities;228
6.4.5;11.4 Strategic Options for Utilities;231
6.4.6;11.5 Outlook;234
6.4.7;References;234
6.5;12 The Changing Structure of the Utility Industry from Its own Perspective;236
6.5.1;Abstract;236
6.5.2;12.1 The Importance of Regional Utilities – with EWE AG as an Example;237
6.5.3;12.2 EWE’s Strategies for Growth and Competition;240
6.5.4;12.3 EWE Group’s Strategy for Tomorrow’s Energy Supply;245
6.5.5;References;251
6.6;13 Mergers & Acquisitions from a Strategic Perspective;252
6.6.1;Abstract;252
6.6.2;13.1 Introduction;253
6.6.3;13.2 The Need for Acquisitive Growth in the Utilities Industry;253
6.6.4;13.3 M&A Patterns in the Utilities Industry;255
6.6.5;13.4 E.ON’s Development in the M&A Market;257
6.6.6;13.5 Success Factors and Organizational Line-up;260
6.6.7;13.6 Conclusion;261
6.6.8;References;262
6.7;14 What Next for European Power Utilities?;263
6.7.1;Abstract;263
6.7.2;14.1 Introduction;264
6.7.3;14.2 European Power Sector Key Drivers;266
6.7.4;14.3 Value Creation Transactions;272
6.7.5;14.4 How the Sector Might Look in 10 Years’ Time;273
6.8;15 Unbundling – Strategic and Organisational Challenges for Power and Supply Companies;274
6.8.1;Abstract;274
6.8.2;15.1 Introduction;275
6.8.3;15.2 Transmission and Operation of the System in a Liberalised Environment;275
6.8.4;15.3 Vertical Unbundling Alternatives – Independent System Operator and Transmission System Operator Models;277
6.8.5;15.4 International Experience;284
6.8.6;15.5 Upcoming Developments in the European Union – the Third Package;288
6.8.7;References;289
6.9;16 Convergence of Gas and Electricity Markets: Economic and Technological Drivers;290
6.9.1;Abstract;290
6.9.2;16.1 Introduction;291
6.9.3;16.2 Characterizing the Gas and Electricity Sectors;292
6.9.4;16.3 Categorizing Market Convergence;294
6.9.5;16.4 Drivers for Convergence of Gas and Electricity Markets;295
6.9.6;16.5 Conclusions;303
6.9.7;References;304
7;Part III: Power Generation;306
7.1;17 Investing in Power Generation;307
7.1.1;Abstract;307
7.1.2;17.1 Introduction;308
7.1.3;17.2 Investment in Risky Assets;310
7.1.4;17.3 Changing Paradigms?;314
7.1.5;17.4 Selected Examples;327
7.1.6;17.5 Conclusions;329
7.1.7;References;330
7.2;18 Perspectives on Capacity Investment in Germany and Europe – The Future of Power-Mix Optimization;337
7.2.1;Abstract;337
7.2.2;18.1 The Underlying Conditions Have Changed Dramatically;338
7.2.3;18.2 The Power Plant Age Structure Needs Investment Running into Billions;338
7.2.4;18.3 The Risks in Power Plant Investment Have Definitely Increased;340
7.2.5;18.4 Lack of Investment Means Higher Power Prices;343
7.2.6;18.5 Investment Program for Environmentally Sound Power Plant Capacities;343
7.2.7;18.6 Market Intervention by Energy Policy Slows Down Necessary Investment;344
7.2.8;18.7 Summary;346
7.2.9;References;347
7.3;19 Renewable Resources for Electric Power: Prospects and Challenges;348
7.3.1;Abstract;348
7.3.2;19.1 Driving Forces Behind the Rethink in Energy Policy;349
7.3.3;19.2 Renewables in the National and International Settings;350
7.3.4;19.3 Limited Potential of Geothermal Energy, Solar Power and Biomass;351
7.3.5;19.4 Wind Power is the Most Promising Growth Segment;352
7.3.6;19.5 The Offshore Mega-trend: Prospects and Challenges;354
7.3.7;19.6 Integration into a National Energy Supply Concept;355
7.3.8;19.7 Outlook: The Right Social Framework Is Crucial;357
7.3.9;References;358
7.4;20 Emission Allowances – a New Production Factor in the Power Sector;359
7.4.1;Abstract;359
7.4.2;20.1 Introduction;360
7.4.3;20.2 Characterisation of the New Input Factor Emission Allowances;360
7.4.4;20.3 Emission Trading;362
7.4.5;20.4 Effects of Emission Trading;365
7.4.6;20.5 Consistent Strategies Under an Emission Trading Scheme;367
7.4.7;20.6 Summary;369
7.4.8;References;369
8;Part IV: Energy Trading and Wholesale;371
8.1;21 Energy Trading, Emission Certificates and Risk Management;372
8.1.1;Abstract;372
8.1.2;21.1 Different Roles of Energy Utility Companies in the Energy Markets;373
8.1.3;21.2 Overview of Energy Markets and the Contracts Being Traded;374
8.1.4;21.3 Trading From a Risk Management Perspective;380
8.1.5;21.4 Concluding Remarks;382
8.1.6;References;383
8.2;22 The Future of Liquefied Natural Gas Trade;384
8.2.1;Abstract;384
8.2.2;22.1 Introduction;385
8.2.3;22.2 Liquefied Natural Gas;387
8.2.4;22.3 Drivers of Current and Future Liquefied Natural Gas Market Development;390
8.2.5;22.4 The Rice World Gas Trade Model Reference Case – One Possible Future;396
8.2.6;22.5 Various Risks to Liquefied Natural Gas Market Development;401
8.2.7;22.6 Concluding Remarks;406
8.2.8;References;407
8.3;23 Cross-border Trading;408
8.3.1;Abstract;408
8.3.2;23.1 Introduction;409
8.3.3;23.2 The Nordic Power Exchange – The Nord Pool Group;409
8.3.4;23.3 The Common Nordic Power Market;410
8.3.5;23.4 Price Formation at Nord Pool Spot;412
8.3.6;23.5 Handling of Internal Grid Limitations;416
8.3.7;23.6 Cross-border Optimization Between Denmark West and Germany;418
8.3.8;23.7 Financial Products Related to Cross-border Trading;418
8.3.9;23.8 The Intraday Market – Elbas;422
8.3.10;References;422
8.4;24 The Future of Gas Supply in Europe;424
8.4.1;Abstract;424
8.4.2;24.1 Introduction;425
8.4.3;24.2 Supply Outlook to 2015;425
8.4.4;24.3 Security of Supply;430
8.4.5;24.4 Conclusions: a Constrained Future for Gas in Europe?;436
8.4.6;References;438
8.5;25 Strategic Use of Gas Storage Facilities;440
8.5.1;Abstract;440
8.5.2;25.1 Introduction and Fundamentals of Storage;441
8.5.3;25.2 Current Gas Market Development and Implications for Gas Storage;449
8.5.4;25.3 Strategic Use of Storage for a Gas Market Player;451
8.5.5;25.4 Conclusion;453
8.5.6;References;454
9;Part V: Transmission and Distribution;456
9.1;26 Regulation of Network Charges;457
9.1.1;Abstract;457
9.1.2;26.1 Introduction;458
9.1.3;26.2 Cost-based Regulation;459
9.1.4;26.3 Price-based Regulation;462
9.1.5;26.4 Further Developments in Network Pricing – a Menu of Sliding Scales;471
9.1.6;26.5 Concluding Remarks;475
9.1.7;References;477
9.2;27 Transmission Management and Pricing;479
9.2.1;Abstract;479
9.2.2;27.1 Introduction – the Tasks of Transmission System Operators;480
9.2.3;27.2 Value Drivers and External Influences;481
9.2.4;27.3 Management;485
9.2.5;27.4 Organisation of Transmission Operations;487
9.2.6;27.5 Transmission System Operator Revenues and Pricing;492
9.2.7;27.6 Management Information;495
9.2.8;27.7 Summary;497
9.2.9;References;497
9.3;28 The New Entry-exit Model in the EU and Its Consequences for Gas Supply Companies;499
9.3.1;Abstract;499
9.3.2;28.1 Introduction;500
9.3.3;28.2 Network Access in the Liberalized Gas Market;500
9.3.4;28.3 Network Access Models in the Gas Market;503
9.3.5;28.4 Decision for the Entry-exit Model;507
9.3.6;28.5 Consequences for Gas Supply Companies;509
9.3.7;28.6 Conclusion;512
9.3.8;References;513
9.4;29 Implementation of the EU Unbundling Guidelines in Germany – a Legal Perspective;514
9.4.1;Abstract;514
9.4.2;29.1 Community Law Bases;515
9.4.3;29.2 Current Community Law Development;517
9.4.4;29.3 Overview of the Systematic of the Unbundling Requirements in Germany;518
9.4.5;29.4 Unbundling Targets;523
9.4.6;References;525
9.5;30 The Energy Arteries of a Continent – Natural Gas Networks Secure Europe’s Energy Supply;527
9.5.1;Abstract;527
9.5.2;30.1 Introduction;528
9.5.3;30.2 Declining Domestic Production in the EU;528
9.5.4;30.3 The EU Expects Natural Gas Imports to Increase;529
9.5.5;30.4 The Nord Stream Project Is of Interest to Europe;531
9.5.6;30.5 Economic Benefits from New Natural Gas Networks;532
9.5.7;30.6 Pipeline Across the Baltic Sea – Europe’s Energy Artery;535
9.5.8;30.7 Investments Are Profitable;536
9.5.9;30.8 No Growth without Secure Energy Supplies;537
9.5.10;References;538
9.6;31 Dispatching in Unbundled Electricity Markets;540
9.6.1;Abstract;540
9.6.2;31.1 Operation of Restructured Power Systems;541
9.6.3;31.2 Coordinated Real-time Dispatch of Unbundled Electricity Markets;546
9.6.4;31.3 Several Major Operational Issues in Unbundled Electricity Markets;550
9.6.5;31.4 Conclusions;556
9.6.6;References;556
10;Part VI: Retail;562
10.1;32 The Retail Electricity Service Business in a Competitive Environment;563
10.1.1;Abstract;563
10.1.2;32.1 Enter Competition;564
10.1.3;32.2 Branding;564
10.1.4;32.3 Attitude and Image Research;567
10.1.5;32.4 Customer Preference and Behavior;568
10.1.6;32.5 Understanding Residential Customer Needs;569
10.1.7;32.6 Commercial and Industrial Needs-based Customer Segments;574
10.1.8;32.7 Conclusion;575
10.1.9;References;576
10.2;33 Customer Segmentation in the Utility Industry;577
10.2.1;Abstract;577
10.2.2;33.1 Introduction;578
10.2.3;33.2 Conceptual and Contextual Background;579
10.2.4;33.3 Segmentation and Strategy Formation within Essent;582
10.2.5;33.4 Conclusion and Outlook;591
10.2.6;References;591
10.3;34 Current Trends in Serving Industrial Customers;593
10.3.1;Abstract;593
10.3.2;34.1 Macro- and Micro-trends in Serving Industrial Customers;594
10.3.3;34.2 Cases and Trends in 'Best Practice';601
10.4;35 The Energy Retail Market from a Customer Perspective;609
10.4.1;Abstract;609
10.4.2;35.1 Industrial Energy Consumption – with the Nonferrous Metals Industry as an Example;610
10.4.3;35.2 Basic Energy Management Conditions for Energyintensive Industrial Companies in Germany;611
10.4.4;35.3 Adaptability of Energy-intensive Industrial Enterprises – with Norddeutsche Affinerie AG as an Example;616
10.4.5;35.4 Petition for German Energy Policy;620
10.4.6;References;621
11;Part VII: Regional Peculiarities in the Utility Markets;623
11.1;36 Options for and Regional Peculiarities of Investment Funding in Energy Markets;624
11.1.1;Abstract;624
11.1.2;36.1 Introduction;625
11.1.3;36.2 Main Characteristics of the Energy Markets;625
11.1.4;36.3 Barriers to Investment;627
11.1.5;36.4 Financing Considerations;636
11.1.6;36.5 Conclusion;645
11.2;37 A Comparison of Market Structure and Regulation Between US and European Utility Markets;646
11.2.1;Abstract;646
11.2.2;37.1 Introduction;647
11.2.3;37.2 Why Regulate? A Short Survey;650
11.2.4;37.3 Regulatory Approaches in the US;652
11.2.5;37.4 Regulation of the Electricity Industry in Europe;666
11.2.6;37.5 Conclusions;677
11.2.7;References;678
11.3;38 Investment Opportunities in South America;681
11.3.1;Abstract;681
11.3.2;38.1 Investment Wave in the Region: The Privatization Process of the 1990s;682
11.3.3;38.2 Future Investment Requirements;684
11.3.4;38.3 Latin America’s Macroeconomic Situation;686
11.3.5;38.4 Regulatory Framework;689
11.3.6;38.5 Generation and Energy Mix;690
11.3.7;38.6 The Distribution Business;695
11.3.8;38.7 Sustainability – an Unavoidable Choice;696
11.3.9;References;698
11.4;39 Final Stages in the Reform of RAO UES of Russia – Future Developments in the Russian Energy Market;699
11.4.1;Abstract;699
11.4.2;39.1 Introduction;700
11.4.3;39.2 Progress;700
11.4.4;39.3 Finance;703
11.4.5;39.4 Market Creation;705
11.4.6;39.5 Commissioning Energy;708
12;Part VIII: Special Issues in Utility Management;710
12.1;40 Creating Competitive Advantages Through Co-operations Between Municipal Utility Companies;711
12.1.1;Abstract;711
12.1.2;40.1 Introduction;712
12.1.3;40.2 Development of New Profit Potentials by Entering the Market of Electricity Generation, and Importation, Production and Trading of Gas;712
12.1.4;40.3 Co-operation in the Field of Supply Network Systems as an Answer to Cost Pressure and Unbundling;716
12.1.5;40.4 Nationwide Distribution to Standard Customers to Compensate for Customer Losses and Development of further Market Potential;719
12.1.6;40.5 Successful Change Management;721
12.1.7;40.6 Summary;722
12.2;41 Growth Options for Regional Utilities;723
12.2.1;Abstract;723
12.2.2;41.1 What Is Growth?;724
12.2.3;41.2 German Municipal and Regional Utility Sector Structure;725
12.2.4;41.3 Market Changes and Competition Despite Saturated Markets;727
12.2.5;41.4 Challenges and Options for Regional Utilities;730
12.2.6;41.5 Strategy of MVV Energy;732
12.2.7;41.6 Conclusion and Outlook;736
12.2.8;References;737
12.3;42 Climate Protection Requirements – the Economic Impact of Climate Change;738
12.3.1;Abstract;738
12.3.2;42.1 Climate Change – Why Do We Bother?;739
12.3.3;42.2 Economic Impacts of Climate Change;740
12.3.4;42.3 Climate Protection Requirements;743
12.3.5;42.4 Climate Protection: What Next?;746
12.3.6;42.5 Final Remarks;749
12.3.7;References;751
12.4;43 European Energy Policy on the Basis of the New Provisions in the Treaty of Lisbon;753
12.4.1;Abstract;753
12.4.2;43.1 Introduction;754
12.4.3;43.2 The Elements of Art. 194(1) TFEU;756
12.4.4;43.3 Legislative Procedures, Art. 194(2) TFEU;766
12.4.5;References;768
12.5;44 The Role of Energy Efficiency in Electric Power Systems: Lessons from Experiments in the US;772
12.5.1;Abstract;772
12.5.2;44.1 Introduction;773
12.5.3;44.2 Background;774
12.5.4;44.3 Demand-side Management – a Brief History;775
12.5.5;44.4 Energy Efficiency vs Energy Conservation;776
12.5.6;44.5 The Energy Efficiency Paradox;778
12.5.7;44.6 The Nature and Value of Energy-efficiency Techniques;778
12.5.8;44.7 Elasticity of Demand;779
12.5.9;44.8 The Relationship of Power Systems and Use Sectors;780
12.5.10;44.9 Demand-side Management in Practice;782
12.5.11;44.10 Effectiveness;783
12.5.12;44.11 Going Forward;784
12.5.13;44.12 Conclusion;786
12.5.14;References;786
12.6;45 Private Water and Economic Regulation in the United States;789
12.6.1;Abstract;789
12.6.2;45.1 Introduction;790
12.6.3;45.2 Market Structure of the US Water Industry;791
12.6.4;45.3 Privatization;794
12.6.5;45.4 Regulatory Structure;800
12.6.6;45.5 Regulation and Utility Ownership;804
12.6.7;45.6 Conclusion;808
12.6.8;References;809
13;Index;812