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4th CSE ERI Stakeholders Group meeting

The 4th CSE ERI Stakeholders Group meeting held on May 15, 2012, focused on the regional work program leading to 2014 AEEG as part of European regulatory affairs. Key discussions revolved around the CACM NC preparation, stakeholder roles in development, and the significance of harmonizing auction and capacity calculation methods between regions. The meeting emphasized the importance of stakeholder involvement and local market experiences, with a roadmap established for implementing price coupling and balancing solutions. Active participation from TSOs and PXs will be crucial as the region navigates these integration challenges.

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4th CSE ERI Stakeholders Group meeting

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  1. 4th CSE ERI Stakeholders Group meeting Overview of the regional work programme towards 2014 AEEG – European regulatory affairs 15 maggio 2012

  2. At a cornerpoint The CACM NC preparation is marking an important step towards a common set of binding rules towards the implementation of the target model Nevertheless the voluntary approach is going to keep a fundamental role in the coming months/years Role of the stakeholders in identifying key development areas A region at the border of the main ongoing integration processes (NWE): what role, what inputs to the creation of the IEM? 2

  3. Long term timeframe The subject is already considered as “cross-regional” In line with the workprogramme: from 2011 a single set of auction rules almost harmonized between CSE and CWE regions Single auction office for the 2 regions Still significant differences exist in the 2 regions (products, firmness management) mainly deriving from the different ways in which capacity is calculated (top-down vs bottom-up approach). 3

  4. Long term timeframe /2 Harmonization of capacity calculation method is perceived of special importance to improve also auction rules harmonization; The CSE region has played an important role in PTR allocations, what about FTR? The WP foresees a decision towards FTR already in 2012 (roadmap towards implementation in 2014) (too early?) anyway important local experiences (Italian market already uses FTRs) could be helpful also at a cross-regional level. 4

  5. Long term timeframe /stakeholders’ views • CASC operation: any comment / suggestion? • FTR role in the region: when should discussion be started what involvement for the stakeholders? • Products definition and duration: any comment/suggestion? 5

  6. Day ahead timeframe • The workprogramme foresees a gradual adotpion of the PCR algorithm (once developed and validated) in the markets of the region • 2012 and 2013 to adapt local market arrengements hampering the integration with European coupling • Implementation of price coupling in the region by beginning of 2014 6

  7. Intraday timeframe • The workprogramme foresees the implementation of the first interim solution by April 2012 (little delay) • Development of a roadmap towards the target solution to be approved by regulators by Q4 2012 • Go Live of the target solution by the end of 2014 7

  8. Intraday timeframe /potential obstacles • TSOs invited to work – in coordination with PXs – on the roadmap towards the target model; • The implementation of the target solution is not so smooth also in more advanced regions (NWE) where different solutions are being tested in different borders • The cohexistence of continuous trading and auctions represents an additional constraint for our region, but a joint working group already established to study pilot solutions on selected borders 8

  9. Balancing • WP foresees first possible solutions to be adopted from 2013 on selected borders • The increasing amount of RE generation capacity in the region may represent a driver for exchange of balancing energy • It will be important to go hand in hand with the development of the future NC on balancing 9

  10. Capacity calculation • The current WP foresees a possible revision of the product definitions so to allow offering capacity with a higher level of firmness • Work on FB to be started in 2013 • What about the CWE and CEE experiences? • The regional dimension is extremely important also for the CACM NC, but what is the ideal regional scope for activities linked to FB calculation 10

  11. Prioritization • Could it be considered a feasible approach to define prioritization criteria on the different topics so to concentrate the efforts on selected issues? • What are the stakeholders’ views? 11

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