Abstract
Today’s complex geopolitical scenario is putting the energy market under pressure and is reflected in the high volatility of energy prices. In this scenario, the adoption of long-term contracts is limited by the outlook of prices in medium to long-term horizons; in addition, there are other non-economic obstacles that disadvantage long-term contracts in the power market.
The EU should focus on structural measures and the provision of long-term price signals as a solution to mitigate spiraling prices.
Description
SCENARIO
The spiraling of gas prices during recent months is translating into an increase in the cost of electricity, which is directly related to the price of gas. In this scenario, long-term purchase contracts (e.g., PPA power purchase agreements) would allow final consumers to be protected against the high volatility of energy prices that would otherwise be difficult to manage.
THE CHALLENGE
To date, the adoption of such contracts is affected by the limited outlook of market prices over time horizons of more than 3-5 years, which makes it difficult for customers to decide whether to rely on PPAs (power purchase agreements) or not. In addition, for both counterparties, it is difficult to provide/receive adequate guarantees. Other obstacles, such as non-economic barriers, would disadvantage long-term contracts in the power market. Moreover, PPAs cannot guarantee an exact match between production of renewables and consumption by the client.
SOLUTION REQUIREMENTS
This Challenge aims to identify possible regulatory, market and financial solutions that would allow the development of long-term contracts, especially for electricity from renewable sources.
PROJECT DELIVERABLES
The project should include:
- an executive summary based on a presentation summarizing the key concepts of the proposed solution;
- a document, or a presentation, or a mix of both, explaining in detail the policy and regulatory context, the feasibility and the potential of the proposed solution.
SDGs
SDG 7: Affordable and Clean Energy.
Challenge rules
All proposers are invited to read carefully the Challenge and the Regulations of this challenge, attached below in the Attachments section, before submitting a solution.
By submitting a solution, proposers automatically accept the attached Regulations in addition to the Terms of Use of this platform.
Explain your proposal clearly in English, attach documents (Max 5 files, 35MB for each one. PDF, JPEG, ZIP formats supported) if needed.
ELIGIBILITY
Universities, research centers, researchers, PHDs.
CHALLENGE, AWARD, IP RIGHTS, DEADLINES
Proposals will be accepted until November 27, 2022 and the evaluation will start after this date.
Late submissions will not be considered.
Specific regulations attached at the bottom of this page.
Regulation
What happens next?
After the Challenge deadline, the Seeker will complete the review process and make a decision with regards to the Winning Solution(s). All Solvers that submit a proposal will be notified on the status of their submissions.
The seeker will evaluate the proposal using the following criteria:
- Overall scientific and technical feasibility of the proposed solution;
- Economic potential of concept;
- Business potential for the Seeker;
- Novelty and non-obviousness;
- Realism of the proposed solution;
- Maturity level of the proposal.
At the end of the assessment, you will receive feedback.
In case of success, an Enel contact person will get in touch with you to discuss the next steps.
ABOUT THE SEEKER
Enel is a multinational energy company and one of the world’s leading integrated electricity and gas operators. Enel works in 30 countries across 5 continents, generating energy with a net installed capacity of almost 92 GW, selling gas and distributing electricity across a network spanning approximately 2.2 million km.
With almost 75 million end users around the world, Enel has the biggest customer base among its European competitors, and it is one of Europe’s leading energy companies by installed capacity and reported EBITDA. The Enel Group is made up of approximately 67,000 people from around the world whose brilliant work is based on our values of Responsibility, Innovation, Trust and Proactivity.
Enel is dedicated to creating innovative solutions that meet society’s changing needs. Through its openinnovability.com crowdsourcing platform, the company connects people and ideas from across the world, encouraging anyone to propose sustainable innovation projects and solutions that help develop local communities.
Enel is also committed to helping to achieve six of the 17 UN Sustainable Development Goals (SDGs):
7 - Access to affordable and clean energy
9 - Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
11 - Make cities and human settlements inclusive, safe, resilient and sustainable
13 - The fight against climate change.