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ERGEG Electricity Regional Initiative Update & Progress XVI Florence Forum Madrid, 4 June 2009 Jose Sierra Chair, RIG 1 Regional Initiatives 1. 2. 3. The Regional Initiatives Group (RIG) Coherence & Convergence: Conclusions Paper after Public Consultation (March 2009) Progress report based on topic by topic 1. Why RIG – Ensuring consistency between regions and the EU SEM and – Finding the role of the ERGEG RIs in the new context of the Third Package 2 Regional Initiatives: Future Role? – Are third energy package and Regional Initiatives (RIs) complementary? – Regional Initiatives are bottom up approach to achieving a single market – Third package contains top-down tools (e.g. Network codes) • RIs may have disadvantages – hard to co-ordinate and risk regional, not European, results – Criticism often made is that RIs may ’diverge‘ 3 Regional Initiatives - Essential? • RIs are important to enable us to make progress – Achieving a single market is extremely complex – We have a step by step approach where the RIs have a big role; – Enabling ideas to be tested before wide European application (low risk) • But for these benefits to be achieved the risks of the regional approach must be actively managed • RIG has been created by ERGEG to better manage convergence of regions through greater co-ordination and improved communication. 4 RIG: Work Plan • RIG will: – Ensure convergence of Regional Initiatives towards the SEM. – Facilitate cross region, and cross sectoral sharing of experience. – Publish a single annual progress report to be presented at the November RIs Conference – Publish a paper to provide clarity on the role of the RIs in the context of the third package – Cooperate with the EC regarding its study on RIs 5 Regional Initiatives 1. 2. 3. The Regional Initiatives Group (RIG) Coherence & Convergence: Conclusions Paper after Public Consultation (March 2009) Progress report based on topic by topic 6 Regional Initiatives C&C: Conclusions paper – ERGEG ERI process allows regions to make concrete progress on the move towards a single electricity market. Most commented on EU wide issues. – Regions are advancing at quite different speeds and these differences must be considered. – Stakeholders support the reports conclusions and recommendations for greater coordination (need of RIG) in order to achieve more regional & inter-regional convergence. – Stakeholders fully support the elaboration of crossregional action plans especially on long-term and dayahead timeframes. 7 Regional Initiatives 1. 2. 3. The Regional Initiatives Group (RIG) Coherence & Convergence: Conclusions Paper after Public Consultation (March 2009) Progress report based on topic by topic − Capacity Calculation (also in PCG) − Transparency − Congestion Management (also in PCG) − − − − Long-term allocation Day-Ahead Intraday Balancing 8 Progress report Capacity Calculation • Improvements in capacity calculation through better coordination among TSOs • Two coordination centers of network operations and enhanced information exchange (CWE) • Flow-based approach under implementation (CEE Auction Office & TSOs) 9 Progress report Transparency • Common interpretation of regulators regarding transparency requirements (in Regulation 1228/2003) • After a first transparency report by the Northern region, 4 other regions have produced transparency reports, similar in structure and criteria. • Since the XV Florence Forum: Transparency report by the CS region in February 2009. • Monitoring of the compliance with these requirements is ongoing in the Northern, CWE and SW regions 10 Progress report Long term allocation • Harmonisation of auction rules is progressing properly Further progress is still expected to improve firmness of capacities and the functioning of secondary capacity markets • CSE, CWE and CEE already have or will soon have a single set of auction rules operational at a regional level • Nearly all existing auction rules share same common features, UIOSI will be soon implemented on most EU interconnections (SW new allocation rules for FR-SP) • CSE: delays in the SAO project; cooperation from all TSOs in implementing RCC’s proposal is essential 11 Progress report Day-ahead • Strong momentum for market-coupling A number of projects identified throughout Europe • New target dates for Pentalateral market coupling due to critical capacity calculation issues aa ATC-based coupling in March 2010; flow based in December 2010 (CWE) • Price-Coupling between the Iberian Market & CW (SW region) • Agreement between IT-SL PXs on MC (CS region) • EMCC difficulties – lessons projects (N-CW regions) to be learnt for coming 12 Progress Report Intraday • Second-level priority for stakeholders (C&C report: conclusions paper) Target model still under discussion • Closed public consultation in SW • Ongoing public consultation in the CWE 13 Progress report Balancing • Starting projects could pave the way for further integration of balancing markets • Balit project (FR-UK) - interim phase. Reciprocal exchange of balancing offers through a TSO -TSO model is in place since March 2009 14 Thank you for your attention! www.energy-regulators.eu Mark your diary for the World Forum on Energy Regulation IV October 18-21, 2009 Athens, Greece www.worldforumiv.info 15