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ERGEG Gas Regional Initiative Update & Progress XVI Madrid Forum Madrid, 29 May 2009 XVI Madrid Forum, 29 May 2009 Jose Sierra Chair, RIG 1 Regional Initiatives 1. 2. The Regional Initiatives Group (RIG) 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 XVI Madrid Forum, 29 May 2009 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‘ XVI Madrid Forum, 29 May 2009 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. XVI Madrid Forum, 29 May 2009 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 resented 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 XVI Madrid Forum, 29 May 2009 5 Regional Initiatives 1. 2. The Regional Initiatives Group (RIG) Progress report based on topic by topic 2. Progress report based on topic by topic − Investment − CAM − Transparency − Harmonisation − SoS XVI Madrid Forum, 29 May 2009 6 Progress report Investments • Market integration requires developing interconnection capacity. After a successful open season between Belgium & France, the experience shows that high-level coordination is required. • Open seasons for France/Spain interconnections to be launched by summer 2009, including capacity inside France (SW region) • Virtual investment test case (NW region) • Initial steps towards a Regional Investment Plan (supply disruption scenarios) and, in particular, identification & assessment of investments to enable reverse flows (SSE region) XVI Madrid Forum, 29 May 2009 7 Progress report Capacity allocation • Improving the use of existing interconnection points. Legal constrains at national level hamper regional harmonization. • Simplification of projects leading to 3 projects – Short term capacity, secondary capacity markets and bundled interruptible capacity (NW region) • TSO survey on contractual, legal, and/or regulatory barriers that hamper harmonization of nomination and renomination lead times (SSE region) North → South • Successful OSP between France & Spain. Also in the next 2009 OS with 4 balancing & 4 TSOs (SW region) XVI Madrid Forum, 29 May 2009 3 4 4 5 5 1 2 3 2 1 SPAIN 8 South → North Progress report Transparency • Implementation of EU standards and sometimes going beyond with concrete results • 1st phase of transparency project on transmission completed successfully with target above EU standards agreed by stakeholders. 2nd phase under discussion. 90% of TSOs now publish capacity and flows data, compared to 50% at the start of the project. (NW region) • Publication of new interconnection capacities building status; updated every 6 months. (SW region) • Regulators have analysed transparency results of GGPLNG monitoring. The exercise shows good level of transparency. (SW region) XVI Madrid Forum, 29 May 2009 9 Progress report harmonization and interoperability • Some progress but a long distance still to go • Modification of national legislation to harmonized capacity allocation mechanisms at the borders (SW region) • Progress towards entry/exit structures (NW region) • Baumgarten as regional hub; conclusion Interconnection Point Agreement (SSE Region) XVI Madrid Forum, 29 May 2009 of 10 Progress report Security of Supply • A new challenge for the GRI (in cooperation with the GWG) after the last gas crisis. RIG action plan: Experience in enhancing Gas SoS at regional and cross-regional level. • Ad hoc concern: “Lessons learnt” from the gas crisis, identifying short term measures to increase emergency preparedness (SSE region) XVI Madrid Forum, 29 May 2009 11 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 XVI Madrid Forum, 29 May 2009 12