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Electricity Regional Initiative Central- South Region

Electricity Regional Initiative Central- South Region. The Central-South electricity REM is led by the Italian Energy Regulator (AEEG) and aims to integrate Austria, France, Germany, Greece and Slovenia into one electricity regional market. Electricity Regional Initiative Central- South Region.

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Electricity Regional Initiative Central- South Region

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  1. Electricity Regional Initiative Central- South Region The Central-South electricity REM is led by the Italian Energy Regulator (AEEG) and aims to integrate Austria, France, Germany, Greece and Slovenia into one electricity regional market.

  2. Electricity Regional Initiative Central- South Region • The Central-South electricity REM represents almost 13431 TWh of electricity consumption, around 50% of the EU 25 electricity market. • The region’s integration is a key issue both for the EU internal market and for the recently established Energy Community of the South East Europe. 1 EUROSTAT, 2004 data

  3. Electricity Regional Initiative Central- South Region • Key priorities: • Harmonization of CBT congestion management methods • Inter TSO co-ordination (harmonisation of operational and security standard) • Transparency of information related to cross border exchanges • Integration of intra-day and balancing markets • Assessment of regulatory competences

  4. Electricity Regional Initiative Central- South Region • Key achievement so far-December 2006: • Harmonization of CBT congestion management methods • Three bilateral agreements on joint allocation of interconnections capacities has been signed between the following TSOs: TERNA - RTE (Italy-France) TERNA - APG (Italy-Austria) TERNA - HTSO (Italy – Greece) • Work in progress to sign similar agreements: TERNA - ELES (Italy-Slovenia) by mid 2007 TERNA - ETRANS (Italy-Switzerland) by 2008

  5. Electricity Regional Initiative Central- South Region • Key achievement so far-December 2006: • Harmonization of CBT congestion management methods All these agreements handle: • the allocation of the interconnection capacity by means of yearly, monthly and daily uniform price auctions of physical transmission rights with different durations and profiles; • the use of the interconnection capacity by means of harmonized nomination procedures.

  6. Electricity Regional Initiative Central- South Region • An issue in the region: Switzerland • The involvement of Switzerland as an observer without voting right in the RCC meetings, will be settled at the beginning of 2007; • In the meantime, ETRANS attended both the 1st SG meeting and the 2nd IG meeting.

  7. Electricity Regional Initiative Central- South Region • Target for 2008: • A flow based day-ahead market coupling is the target point for short term allocation in 2008: a common transmission model agreed by all TSOs is needed to achieve this objective. • As far as the long term allocation in 2008 is concerned (e.g. on annual or monthly basis), the choice between physical transmission rights (that reduces the capacity available for coupling) and financial transmission rights (providing a hedging instrument without affecting the transmission capacity) remains still unsolved.

  8. Electricity Regional Initiative Central- South Region • Main issues concerning the implementation of a market coupling model in the Central-South Region: • which country should be included in the coordination process: opportunity to identify a pilot project ? • which model should be used to represent interconnection among involved countries (DC, tree representation): is there any specific limit in the number of countries involved? • single market complexities: block offers, zonal sell price/single buy price; is it possible to give simplified representation of market architecture in the coordination phase? Which are relevant pros/cons? • all involved PXs should close before market coordination phase and market clearing should be determined after market coordination phase

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