Jarmo Partanen: Transfer Pricing Is Influenced by the Winds of Change

12.02.2019 | Electricity Distribution, Tietokoura

Winds of Change

Electricity production plays a significant role in a battle against global warming and climate change. Power generation by solar and wind continues to increase while the share of old fossil-based power production diminishes. This development combined with the spread of smart devices create new requirements as well as opportunities.

“In the future the electric system will be more heterogenous, because electricity will be used in a variety of ways and the amount of small production increases. These changes will bring new requirements for DSO’s”, describes Professor of Electrical Engineering Jarmo Partanen from Lappeenranta-Lahti University of technology. “The electricity pricing, in addition, will change: the share of base price will partially be replaced by the power component.”

Investments are another key factor with great impact on the transfer pricing. For instance, the demand for the security of supply requires huge investments in Finland. These investments effect on the transfer pricing and cannot be covered by cash flow leading to the use of borrowed capital.

Want to Get Rid of Excels?

Traditionally DSO’s have used Excel in strategic business planning. This will become more and more demanding and challenging in the future, when power component, reasonable return, and revenue has to be planned for several years to come. In addition, creating reports are vulnerable to human error and are time intensive. Many companies have called for solutions which could assists in strategic planning and possibly even replace the spreadsheets entirely. Tietokoura has answered to this plea.

“It is great to have an option for the Excel sheets. The Enerity™ Electricity Grid is an excellent tool to any DSO – despite of the company size”, states Partanen who has, also, participated in the development of Enerity™ Electricity Grid.  “In addition the future changes in the industry will not make the solutions obsolete, because it can be modified accordingly.”

 

Jarmo Partanen, Professor of Electrical Engineering, Lappeenranta-Lahti University of Technology.
Member of the smart grid working group

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