6_ERI_CSE_EFET presentation_15May2012
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Transcript 6_ERI_CSE_EFET presentation_15May2012
Electricity Regional Initiative
Central-South Europe Region
4th Stakeholder Group meeting
European Federation of Energy Traders
The Central South Region and
the European target model
How to ensure consistency
[email protected]
1
Context: the EU target model
New price
Zones ?
Flow based DA
Allocation ?
firm XB transmission rights
Forward transmission rights
Day-ahead
price coupling
unbundling and
regulated TPA
continuous XB
intraday markets
self dispatch
The Central South Region and the European target model
market driven
end-user prices
Paris, May 31st, 2010
Harmonised
balancing rules
H-1 gate
closure
market driven
investments
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Cross border aspects of the EU target model
Firm forward transmission rights allocated by TSOs
Day ahead implicit market coupling (price coupling)
Continuous intraday allocation thanks to one unique SOB,
interim model with OTC capability
Cross border procurement of balancing energy and
reserve capacity
Focus on the Italian electricity market in the CS Region
The Central South Region and the European target model
Paris, May 31st, 2010
3
Main features of the Italian Electricity Market
Forward
Market
• financial forward market
• forward PTRs
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“Mandatory” Power Exchange – GME i.e. bilateral deals to be submitted to GME
Market Coupling with Slovenia - explicit allocation of the XB capacity with other neighboring countries
National Market based on Market Splitting – Italian market divided in 6 bidding zones
Nodal bidding i.e. balancing circle=generation unit
Asymmetric price: Selling price= Zonal Prices VS Buy price=Unique National Price (PUN)
Settlement in m+2
Hourly products/No block bids
Intraday
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Mandatory Power Exchange - GME
Only national market; cross border ID
4 auctions (“MI”), two in day D-1 and two in day D
Nodal bidding
OTC not possible
Hourly products/No block bids
Balancing
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Balancing and Redispatch altogether
Market based solution
Price steps constraints
Nodal bidding i.e. each generation unit
“Pay as Bid”
Several sessions, starting already in the D-1
Day Ahead
The Central South Region and the European target model
Paris, May 31st, 2010
4
Building blocks for the CS Region integration
Forward Market
Current arrangements
PTRs available on all borders
Availability of instruments (CCC) to manage price risk of the
fee for Assignment of Rights of Use of Transmission Capacity
(CCT)
Forward
Market
Main measures needed
Integration with CASC started in 2011, but full integration on
rules needed (e.g. firmness and compensation)
The Central South Region and the European target model
Paris, May 31st, 2010
5
Building blocks for the CS Region integration
Day Ahead
Main measures needed
Day
Ahead
Ensure a consistent set of traded products and order format
are available to market participants
Ensure that the price zones are relevant both for supply and
demand
Introduce portfolio bidding (i.e. per bidding area)
Remove any mandatory requirements to participate in dayahead market
Coupling with remaining neighbouring countries, including
shift of gate closures
Standardize the payment period
The Central South Region and the European target model
Paris, May 31st, 2010
6
Building blocks for the CS Region integration
Intraday
Main measures needed
Intraday
Introduce continuous intraday trading with a continuous
OTC market for the national market and together with
neighboring countries
Progressively move to H-1 gate closure for nominations
(i.e. 1 hour neutralisation lead-time)
Introduce portfolio bidding (i.e. per bidding area)
Establish SOB platform for intraday orders with explicit
access: develop implicit allocation for intraday markets with
progressive pooling of XB liquidity
The Central South Region and the European target model
Paris, May 31st, 2010
7
Consultation for ID X-Border capacity allocation
EFET main remarks
Auctions possible only as interim solution, need for a roadmap to
fully implement the target model.
Need to enable bilateral trading using X-Border capacity (Current nomination
deadline for OTC is at d-2.)
All 24hrs must be covered by X-Border Intraday Auctions “XBIDs”
XBID1 to be held later in the afternoon i.e. > 4pm D-1
More XBID sessions, closer to hour of delivery
Need for UIOSI principle for allocated capacity
Fall back solution needed
Longer bidding window (>15mins)
A solution has to be found also for the Italian and Greek border
The Central South Region and the European target model
Paris, May 31st, 2010
8
Building blocks for the CS Region integration
Balancing
Main measures needed
Balancing
Purchase of electricity for balancing and redispatch after
the gate closure of Intraday market (target: H-1)
Remove price bidding limitations
Separate the procurement of electricity for balancing and
redispatch purposes
The Central South Region and the European target model
Paris, May 31st, 2010
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Other desirable features to be harmonised
TSO providing full transparency on its activities in the markets
Increased operational TSOs cooperation on capacity calculation,
system management in real time and before real time
Generation capacity owned only by market participants TSOs
should not be allowed to own generation/storage assets
Solving market distortions that could cause the need for Capacity
Remuneration Mechanisms
All market participants, also RES producers, shall be responsible
of balancing their own position
...
The Central South Region and the European target model
Paris, May 31st, 2010
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The Central South Region and the European target model
Paris, May 31st, 2010
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