Transcript www.energy-regulators.eu

The Regulatory Authority for
Electricity and Gas of Italy
Electricity Regional Initiative
Central- South Region
Progress with developing regional electricity markets
By: Carlo Crea, Secretary General
The Regulatory Authority for Electricity and Gas, Italy
Creating a Single European Energy Market, London 30th January 2007
Electricity Regional Initiative Central- South Region
The Regulatory Authority
for Electricity and Gas of Italy
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.
ERI – Central South Region
2
Electricity Regional Initiative Central- South Region
•
The Regulatory Authority
for Electricity and Gas of Italy
The Central-South electricity REM represents almost
1343 TWh of electricity consumption, around 50% of the
EU 25 electricity market.
1
•
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
ERI – Central South Region
3
Electricity Regional Initiative Central- South Region
The Regulatory Authority
for Electricity and Gas of Italy
 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
ERI – Central South Region
4
Electricity Regional Initiative Central- South Region
The Regulatory Authority
for Electricity and Gas of Italy
 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
ERI – Central South Region
5
Electricity Regional Initiative Central- South Region
The Regulatory Authority
for Electricity and Gas of Italy
 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.
ERI – Central South Region
6
Electricity Regional Initiative Central- South Region
The Regulatory Authority
for Electricity and Gas of Italy
 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.
ERI – Central South Region
7
Electricity Regional Initiative Central- South Region
•
The Regulatory Authority
for Electricity and Gas of Italy
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.
ERI – Central South Region
8
Electricity Regional Initiative Central- South Region
•
The Regulatory Authority
for Electricity and Gas of Italy
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
coordination phase
ERI – Central South Region
should
be
determined
after
market
9