Regional Market Integration

Transcription

1 Regional Market Integration European TSO go ahead! VI World Forum on Energy Regulation May 2015, Istanbul Konstantin Staschus, Ph.D. Secretary-General ENTSO-E

2 Key Messages «In the free market context transmission has become the meeting point for the various players interacting on the wholesale market» (Ignacio Perez-Arriaga, Regulation of the Power Sector, 2013:251) TSOs and ENTSO-E are about Transmission AND System Operation, about Infrastructure AND Markets Regional integration: Each building block of the IEM started as Regional: Day Ahead, Intraday, Balancing. RSCIs prove TSO cooperation early on- and will deepen The TYNDP contains a set of Regional Investment plans On top of regions: Europe! Network Codes are the glue for the internal energy market : go for adoption and implementation now! Beyond the European Union: neighbours do matter, and are part of ENTSO-Es regional approach (NO, CH, ENC, MEDTSO )

3 The 2030 EU Council Targets and the Electricity Transmission System -40% CO2 emissions 27% Renewable Energy Sources Interconnection target +27% energy efficiency 15% by % by 2020 About 45% of RES generation in the electricity transmission system IMPORTANT regional differences & needs must be considered

4 The Energy Trilemma Delivering policies solving the energy Trilemma is one of the most difficult challenges governments and industry face today Climate Change Competitiveness Security of Supply

5 Energy Union is set up to solve the Trilemma The Energy Union is Europe's answer to solving the energy Trilemma, and to deliver the necessary transformation of the energy system The TSOs are instrumental to enable the energy transition

6 ENTSO-E and TSO Enabling the Energy Transition: T and S go together in TSO! Investment in infrastructure Functioning markets in line with system needs European market integration with an interim and complementary element: Regional Security Coordination Initiatives (RSCIs)

7 The European Target Model FCA GL Long Term CACM GL Day Ahead Intraday EB GL Balancing Common Grid Model Exchange Standard (CGMES) *) IEM Internal Electricity Market Source: PCG, 2009

8 Day-ahead market coupling - The largest multinational power market in the world One DA auction, involving 23 TSOs and 5 PXs 15 th of May 2014, 06h-07h Same price from the Barents Sea to the Iberian Peninsula Benefits: Lower power prices Lower emissions Improved utilization of generators and grid Improved system security 38,64 /MWh

9 Geographical Extension 11/2006: TLC 11/2011: CWE 02/2014: NWE 05/2014: MRC ATC-based Market Coupling Flow-Based Market Coupling Capacity Calculation (TSOs): ATC-based vs. Flow-Based vs. Auctions: (PXs): Implicit (=Market Coupling) vs. Explicit 02/2015: MRC + CSE 05/2015: MRC CWE Flow-Based Capacity Calculation

10 Italian Borders Market Coupling - Successfully launched on 24th February 2015

11 Cross Border Intraday - XBID Market Project European pilot project for implementation of the Single Intraday Coupling (based on the Intraday Target Model) Participating countries Only PX participating 15 TSOs und 5 PXs participating, open to new members Goal: implementation of a central IT platform linking the local trading platforms operated by PXs thereby enabling the pooling of liquidity of the coupled markets IT solution developer and service provider: Deutsche Börse AG 11

12 1 2 9 The Current 8 Cross Border Pilot Projects on Electricity Balancing CMOs for mfrr and afrr with real time flow based congestion management Cross-border market for FCR based on TSO- TSO model 3 E-GCC 4 TERRE: Trans-European Replacement Reserves Exchange 5 Development of the Nordic RPM 7 8 Design and evaluation of a harmonised reactive balancing market with XB optimisation of Frequency Restoration while keeping control areas, bid zones, and Regulatory oversight BritNed / TenneT / National Grid Balancing Services (project on hold) IGCC Imbalance Netting, afrr-assistance and Flow-Based Congestion Management. 4 TSOs involved TSO possible future involvement *Pilot 8 has been put on hold for the time being

13 Pilot Projects! Imbalance Netting FCR Automatic FRR Manual FRR Replacement Reserves

14 FCR - Frequency Containment Reserves (Pilot Projects & Non-Pilot Initiatives) Currently 5 Initiatives ENTSO-E Pilot 2 APG, Swissgrid, DE-TSOs, TenneT NL (& energinet.dk) TSO-TSO Model while keeping local market rules Non-Pilot Initiatives Common FCR-Markets of: Nordic Countries Czech Republic & Slovakia France & Belgium Great Britain & Northern Ireland

15 Thank you for your attention! Konstantin STASCHUS Secretary-General, ENTSO-E