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Draft Cross-regional Roadmap for Day-Ahead Price Coupling

Draft Cross-regional Roadmap for Day-Ahead Price Coupling. NWE Day-ahead price coupling project meeting 15 June 2011. Agenda. Background Cross-regional roadmap for day-ahead price coupling Horizontal issues and open questions Next steps. Background.

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Draft Cross-regional Roadmap for Day-Ahead Price Coupling

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  1. Draft Cross-regional Roadmap for Day-Ahead Price Coupling NWE Day-ahead price coupling project meeting 15 June 2011

  2. Agenda • Background • Cross-regional roadmap for day-ahead price coupling • Horizontal issues and open questions • Next steps

  3. Background • Target model is a single European Price Coupling by 2014 • Draft cross-regional roadmap based on • regional work plans 2011-2014 and • AESAG work on roadmap • Some adaptations were necessary in order to include all regions into the roadmap • Additionally • Proposal on process for way forward with procedural steps • List of horizontal issues and open questions that need to be solved in time • First discussion of roadmap amongst ACER/NRAs at ERI coordination meeting June 10, 2011

  4. Cross regional roadmap for day-ahead

  5. Cross regional roadmap for day-ahead  NWE NRAs, TSOs and PXs start discussion on high level principles for governance arrangements and organisational issues for NWE MCHigh level governance arrangements made transparent to stakeholders other countries  ACER request ENTSO-E to validate PCR algorithm and to agree with Europex on one single algorithm by Q4  ENTSO-E validates algorithm (with potential modifications)  NRAs agree on a common, coordinated approval/review process for the algorithm NRAs start national review process (potentially consultation) in parallel  NRAs coordinated „endorse“ algorithm, e.g. letter of comfort NWETSOs and PX present their commonly agreed algorithm to NRAs for approval/review; NRAs approval/review on national basis  Once Commission’s Governance Guideline is adopted the agreed governance arrangements may need to be revised (date still unclear) TSOs and PXs regularly inform NRAs and stakeholders on implementation steps

  6. Cross regional roadmap for day-ahead • Basic principles to avoid stumbling in progress • Regions/countries ready to adopt NWE MC arrangements without delaying the process may join from the beginning • Commitment of enough resources crucial • If Governance Guideline is not adopted after NWE MC launch other regions/countries may join NWE MC • Existing/forthcoming bilateral market coupling initiatives • need to be compatible, and • should not delay implementation of the day-ahead target model • How to ensure that? • Minimum: Action plan available to NRA leading cross-regional day-ahead price coupling project • Common information level necessary to ensure smooth integration of additional borders

  7. Horizontal issues and open questions • Overlap with other parts of the target model? How to ensure smooth interaction of roadmaps (flow-based in particular)? • Harmonisation of price caps at PX markets? Currently, price boundaries differ between some PX • Various Power Exchanges in one market? Currently, sometimes more than one PX operates a day-ahead market area in a country • Harmonisation of Gate Closure Times (GCT)? Currently, GCT differ between some PX • Firmness? • of capacity given to the market coupling; • interdependence to Firmness of long-term rights (PTR / FTR)?

  8. Horizontal issues and open questions • Harmonisation of nomination schedules? Need for harmonisation of pre- and/or post market coupling timings, e.g. nomination of long-term rights? • DC-Cables in Market Coupling? • General: commercial w/o exemption vs. TSO owned • Ramping, losses, minimum flows, Firmness (?) • Compatible bids?Harmonisation of types of products (full harmonisation needed on basic products; local diversity possible) • Fall-back solutions? Harmonised approach for potential decoupling situations • Resources?Same staff from TSOs, PX, NRAs working on different projects/subjects

  9. Next steps • Finalization of cross-regional roadmaps (DA, ID, LT, CC) at ACER workshop on European Energy Work Plan on June 22, 2011 in Ljubljana • Regional work plans 2011-2014 to be finalized and send to European Commission End of June • Presentation of cross-regional roadmap at AESAG meeting on July 11, 2011 in Brussels • Further discussion / meetings / start of implementation …

  10. Thank you for your attention!

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