1 / 21

Structure of presentation

Structure of presentation. Emerging models and best practices Progress towards target mechanisms and further Challenges Capacity Calculation Long and medium term allocation Day-ahead allocation Intraday Balancing Transparency Prospects for the ERI process.

adler
Télécharger la présentation

Structure of presentation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Structure of presentation • Emerging models and best practices • Progress towards target mechanisms and further Challenges • Capacity Calculation • Long and medium term allocation • Day-ahead allocation • Intraday • Balancing • Transparency • Prospects for the ERI process

  2. Target models for Congestion management: • Capacity calculation: (coordinated and transparent) flow based approach where loop flows are important • Long and medium term capacity allocations: regional auction platform with market oriented harmonised auction rules, IT interface and products • Day ahead: implicit auctions (market coupling or splitting) • Intraday: emerging consensus towards implicit allocations and continuous trading in some regions • Integration of transparency requirements: regions working on coherent transparency reports • Integration of balancing markets: developing cross-border balancing (TSO to TSO or Actor to TSO model)

  3. Emerging models and best practices Progress towards target mechanisms and further Challenges Capacity Calculation Long and medium term allocation Day-ahead allocation Intraday Balancing Transparency Prospects for the ERI process Structure of presentation

  4. Capacity calculationFew progress achieved • Difficulties to progress towards the target mechanism in regions with highly meshed networks • (CE- CW) work on common transmission model using a detailed network representation. Flow-based results not yet conclusive. Models to be improved. • CS: common NTC methodology, working on increasing transparency. Full commitment from Switzerland pre requisite. • Improvement of capacity calculation method in regions with less meshed networks (SW-N-FUI-Baltic) • SW: working on common NTC methodology and transparency. • Northern: coordination NTC hourly calculations, flow based not needed

  5. Capacity calculationFurther challenges • Use of common transmission model dealing efficiently with loop flows • Tighter coordination between TSOs regarding exchange of information at regional and cross regional level • Improved transparency regarding the localisation of limiting constraints affecting the level of cross-border capacities • Incentive schemes for TSOs to optimize the level of cross-border capacities?

  6. Emerging models and best practices Progress towards target mechanisms and further Challenges Capacity Calculation Long and medium term allocation Day-ahead allocation Intraday Balancing Transparency Prospects for the ERI process Structure of presentation

  7. Long and medium term allocation Progress achieved • All regions offer hedging instruments against the volatility of price differentials • Northern region: financial forward market and CfDs; • CW-CEE-CS-SW (except Sp-Pt)-FUI: long term explicit capacity auctions. All are working on harmonising and improving auction rules. • Regional auctions platform with harmonized and improved rules ongoing/under discussion in 5 regions • CAO for CEE and CASC for CW already formally set up. CMS for France-UK. Commercial operation forthcoming. • Similar projects underway in CS and SW. • Auction rules improvements in 2008 • ERGEG’s Position on Firmness of programs • Growing consensus to implement UIOSI in 2009 (CS, CW, SW regions)

  8. Long and medium term allocation Further challenges • Auction rules harmonisation • Cross regional monitoring to ensure the compatibility of regional auction rules and platforms. • Potential obstacles to regional coordination and joint allocations: agreement on fundamental choices (legal framework, perimeter of activities, IT system, lack of cooperation from some TSOs), antitrust clearance. • Auctions rules improvements • Firmness of capacity rights: ERGEG is preparing a position on firmness of allocated capacity (i.e. before nomination stage). • Development of efficient secondary market (buy-backing of capacities by TSOs, friendly-used interface).

  9. Emerging models and best practices Progress towards target mechanisms and further Challenges Capacity Calculation Long and medium term allocation Day-ahead allocation Intraday Balancing Transparency Prospects for the ERI process Structure of presentation

  10. Day ahead allocations Progress towards implicit auctions • Projects are on going in CW (full implementation of market coupling) and Northern (EMCC) or under discussion in CS and SW (full implementation of implicit auctions). • Complex projects due to tight coordination requirements • Differences in market designs (type of market, type of bids…). • Competing resources on overlapping projects. • Number of parties involved (TSOs, PXs, regulators, ministries). • The monopoly position granted to PXs could raise some concerns. • Projects might get more complex in highly meshed areas regarding the capacity calculation.

  11. Day ahead allocationsChallenges: cross-regional action plan • Multi-regional issue from both technical and organisational perspectives • ERGEG proposes a study to highlight the quantitative benefits and qualitative difficulties to implement implicit auctions at all European borders. This could be an input for elaborating a cross regional action plan prioritising projects.

  12. Emerging models and best practices Progress towards target mechanisms and further Challenges Capacity Calculation Long and medium term allocation Day-ahead allocation Intraday Balancing Transparency Prospects for the ERI process Structure of presentation

  13. IntradayFew progress achieved • Wide consensus on a target yet to be found • Ongoing public consultations at regional level should help identifying a model. • Critical issues: • Market design differences • Split of liquidity if several competing trading platforms • Interaction with balancing market design • Open questions: • Participation of OTC trade? • Flow-based/ATC-based approach?

  14. Emerging models and best practices Progress towards target mechanisms and further Challenges Capacity Calculation Long and medium term allocation Day-ahead allocation Intraday Balancing Transparency Prospects for the ERI process Structure of presentation

  15. Balancing Progress ongoing in 3 regions • Current projects: • Northern: far reaching integration of balancing in the Nordic market but differences between the Nordel area and Germany and Poland might be overcome at regional level. • FUI: TSO to TSO model to be implemented in autumn 2009 (interim phase in spring 2009). • Baltic: New balancing model based on Nordel balancing model to be developed • In other regionsthis topic suffers from being assigned a low priority and from a lack of resources

  16. Emerging models and best practices Progress towards target mechanisms and further Challenges Capacity Calculation Long and medium term allocation Day-ahead allocation Intraday Balancing Transparency Prospects for the ERI process Structure of presentation

  17. Transparency Harmonisation of requirements • Almost all ERI regions already have or are on the point of producing their own regional transparency report. • Good level of coherence achieved. All reports have the same basis (Northern ERI Report, CM guidelines requirements, ERGEG GGP), but progressively improved or adapted at regional level. • Possibility to fine tune transparency requirements at ERGEG level. • The requirements not yet covered by CM Guidelines should be made legally binding.

  18. Emerging models and best practices Progress towards target mechanisms and further Challenges Capacity Calculation Long and medium term allocation Day-ahead allocation Intraday Balancing Transparency Prospects for the ERI process Structure of presentation

  19. Prospects for the ERI process • Growing consensus all over Europe towards target congestion management methods is undoubtedly the main achievement reached under the ERI framework • Ongoing projects need support from all parties involved in order to deliver results as from action plans and should pave the way for the future integrated European market. • Solutions to the main other obstacles to market integration (differences of market designs, lack of commitment due to overlapping projects, number of parties involved in the process, regulatory gap) will need to be found for the RIs to continue to provide progress at a steady pace.

  20. More information on the Regional Initiatives is available at www.energy-regulators.eu Become an “Online Subscriber” to automatically receive news from your selected regions Thank You

More Related