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Electricity Regional Initiative Central Eastern European Region Convergence & Coherence Sven Kaiser E-Control CEE Stakeholder Group Meeting 7th November 2007 Background Information - Convergence towards a single European market is a key objective for the ERGEG Electricity Regional Initiative - First assessment of ERI priority issues in the different regions in terms of: Congestion Management Guidelines, balancing market integration and transparency - In order to receive Stakeholders views ERGEG launched a Public Consultation on those issues - The following presentation contains a preliminary assessment of responses – it is however no ERGEG position paper ! ERI Central Eastern Europe CEE Stakeholder Group Meeting, 7th November 2007 2 Public Consultation - Timeframe for Public Consultation: 20th July – 14th October 2007 (extended for 1 month) - 16 Responses received (www.ergeg.org): - - 6 European Associations - 3 TSOs 1 Regional Association 1 National Association 1 Power Exchange 4 Industry companies ERGEG assessment is presently under evaluation ERI Central Eastern Europe CEE Stakeholder Group Meeting, 7th November 2007 3 Topics Addressed - Capacity calculation methods - Capacity allocation - Long and medium term - Day ahead Intra-day - Balancing - Transparency - Governance issues, regulatory and legal framework ERI Central Eastern Europe CEE Stakeholder Group Meeting, 7th November 2007 4 Capacity Calculation - ERGEG’s assessment - in most regions, approach towards flow based calculations - CEE – see separate agenda point - CWE – dedicated workstream for maximizing firm cross border capacities with common capacity calculation method Common grid models not used yet, but under development - - Responding Stakeholders - - Considering flow based calculation as a step forward, but difficult to implement, follow up and monitor Supporting development of common network model and at least regional TSO coordination Asking for improvements in TSO data exchange Requesting transparency in capacity calculation ERI Central Eastern Europe CEE Stakeholder Group Meeting, 7th November 2007 5 Long Term Capacity Allocation - - ERGEG’s assessment – mainly dealing with explicit auctions - Coexistence of explicit auctions across regions - Harmonization of auction rules - Definition and harmonization of products (firmness, timeframes …) Governance, e.g. in relation to Auction Office Responding Stakeholders - Recognizing mainly a need for long term allocations Supporting harmonized products and platforms – at least per region Requesting “one-stop-shop” solutions ERI Central Eastern Europe CEE Stakeholder Group Meeting, 7th November 2007 6 Day Ahead Capacity Allocations - ERGEG’s assessment – mainly dealing with implicit auctions - - Importance of market design issues (e.g. gate closure times) Various possibilities of Market Coupling (price vs. volume coupling) Governance of Auction Offices and Power Exchanges Responding Stakeholders - Supporting the development towards implicit auctions - See “competition” between Power Exchanges as a beneficial situation See the need for harmonization of vital issues in market design - ERI Central Eastern Europe CEE Stakeholder Group Meeting, 7th November 2007 7 Intraday - ERGEG’s assessment - - Intraday is on the agenda in most regions Certain development towards continuous trading No specific assessment regarding convergence possible at the beginning of the Public Consultation Responding Stakeholders - Not always considered as an issue of topmost priority Do not have a uniform view regarding “exclusive” vs. “nonexclusive” platforms ERI Central Eastern Europe CEE Stakeholder Group Meeting, 7th November 2007 8 Balancing - ERGEGs assessment - - Several bilateral initiatives existing Relationship to Intraday markets existing Responding Stakeholders - - See an enhanced need for harmonization of various aspects (e.g. of remuneration schemes) Technically challenging and should not delay work on other issues (e.g. day ahead Congestion Management) Point to the situation with congested interconnections ERI Central Eastern Europe CEE Stakeholder Group Meeting, 7th November 2007 9 Transparency - ERGEGs assessment - - Very important issue for creating a level playing field Addressed in similar ways in several regions Responding Stakeholders - - Agree with importance of transparency and ask for harmonization across the Regions Refer to positive attempts regarding common information platforms (ETSOVISTA) Ask partly for binding rules ERI Central Eastern Europe CEE Stakeholder Group Meeting, 7th November 2007 10 Other Issues - ERI process in general – support by Member States - Grid investments – use of congestion revenues - Retail issues as regulated end-user prices - Composition of regions - Distribution for auction revenues ERI Central Eastern Europe CEE Stakeholder Group Meeting, 7th November 2007 11
