Power Market Integration in South East Europe

Transcription

1 Power Market Integration in South East Europe Regional Energy Forum REF 2017 Tuzla, 24-25/05/2017 Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/2017

2 Legal framework for the energy market 3 rd Energy Package (electricity and gas) Transposed and adopted: Serbia Albania Montenegro Kosovo* Moldova Ukraine (13 April 2017) Still not adopted (deadline January 2015): Bosnia and Herzegovina draft in procedure FYR of Macedonia drafting delayed Georgia draft in procedure Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/2017 2

3 Legal framework for the energy market 3 rd Package Network Codes for Electricity Connection Codes Requirements for Generators Demand Connection Code HVDC Connections (RFG) (DCC) (HVDC) Market Codes Capacity Allocation & Congestion Management Forward Capacity Allocation Balancing Network Code (CACM) (FCA) (EB) Operational Codes Operational Security Operational Planning & Scheduling Load Frequency Control and Reserves System Operation Emergency and Restoration (OS) (OPS) (LFCR) (SO) (ER) Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/2017 3

4 Legal framework for the energy market Connection Codes RfG DCC HVDC Power-generating facilities: - Synchronous modules - Power park modules - Offshore modules Demand facilities or units - transmission-connected demand facilities - transmission-connected distribution facilities HVDC facilities - HVDC-connected systems - DC-connected power park modules - distribution systems, including closed distribution systems - demand units (used to provide demand response services to system operators) Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/2017 4

5 Legal framework for the energy market Market Codes CACM Capacity Allocation and Congestion Management FCA Forward Capacity Allocation EB Electricity Balancing - Establish cross-border EU electricity markets in the dayahead and intraday timeframes - Methods for calculation of interconnection capacity - Framework for cross-border trading in forward markets - Establish a framework for calculation and allocation of interconnection capacity - Sets down rules on the operation of balancing markets - Aiming at increasing the opportunities for cross-border trading and efficiency of balancing markets Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/2017 5

6 capacity Legal framework for the energy market FCA CACM BAL Target Model Balancing market Delivery of Balancing Intraday implicit Delivery of intraday Monthly (M+1) Daily rights implicitely allocated (daily rights + FTR or unused PTRs) Delivery of Long term and Day ahead allocated rights Yealry (Y+n) LT PTRs used Forward Market (Long term Physical/Financial rights) Day Ahead Market Intraday market Balancing Delivery time Allocation of forward rights on long-term basis through auctions as PTRs or FTR (tradable rights), Single allocation office for capacity allocation. Price coupling - auction mechanism managed by PXs with capacity module. Flow-based or NTC-based. Countinous mechnsims with complementary auctoins (PXs+capacity) Flow-based or NTCbased Exchnage of balancing products offered by MPs Real-time reserve activation, redispatch, countertrading... Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/2017 6

7 Legal framework for the energy market General Requirements CACM FCA CPs to designat NEMO(s) Mutual recognition of NEMOs (if not a monopoly) List of methodologies to be developed by NEMOs and TSOs Aim to have a SEE CCR referred to in CACM (Art. 20.4) Single allocation platform (for CPs - open for EU MSs participation) List of methodologies to be developed by NEMOs and TSOs (most in CACM) Harmonised Allocation Rules (Where necessary regional annex for SEE) Forward capacity rights (PTRs or FTRs) DAM implicit auctions Full firmness on allocated rights (with caps) ID implicit continous (Transitory paralell access to explicit auctions) Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/2017 7

8 Legal framework for the energy market Network Codes adoption procedure for EnC EC proposal PHLG PHLG Decision - PHLG decision to include transposition deadline - CPs to notify transposition to ECS legal bindingness in EU Opinion ECRB consulting 30 days majority of the votes cast one vote per CP Legal basis: Article 27 of MC Decision 2011/02/MC-EnC on implementation of 3 rd package Standard adaptations replacing: EC ECS ACER ECRB MS CP Specific adaptations for Market Codes reciprocity, harmonized methodologies, deadlines, stakeholders involvement in consultations Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/2017 8

9 Legal framework for the energy market Transparency Regulation (543/2013) Relevant Article of Name of the Short description of Data, for more detailed information, please consult the CEE or CSE Reports on Transparency, or the Transparency Regulation Group EMFIP Detailed Data Descriptions 543/ a, 6.2b Actual total load per BZ 2 6.1b, 6.2b D-1 total load forecast per BZ 3 6.1c, 6.2c W-1 total load forecast per BZ 4 6.1d, 6.2d M-1 total load forecast per BZ Load 5 6.1e, 6.2e Y-1 total load forecast per BZ 6 8.1, 8.2 Y-1 forecast margin 7 7.1a, 7.2, 7.3 Planned unavailability of consumption units 8 7.1b, 7.2, 7.3 Actual unavailability of consumption units (Changes in actual availability of consumption units) 9 9,1 Report on developments (expansion and dismantling projects) a, 10.2, 10.4 Planned unavailability in the transmission grid b, 10.3, 10.4 Changes in actual availability of interconnections and the transmission grid c, 10.3 Unavailability of offshore infrastructure , 11.2 Yearly forecasted cross-zonal capacity , 11.2 Monthly forecasted cross-zonal capacity , 11.2 Weekly forecasted cross-zonal capacity , 11.2 Yearly offered cross-zonal capacity , 11.2 Monthly offered cross-zonal capacity , 11.2 Weekly offered cross-zonal capacity 19 11,1 D-1 forecasted cross-zonal capacity (NTC) , 11.2 D-1 offered cross-zonal capacity (NTC allocation method) , 11.2 D-1 offered cross zonal capacity (FB allocation method) 22 11,1 Other offered transfer capacities (semester, quarter, weekend, etc.) , 11.2 Intraday offered cross-zonal capacity (NTC allocation) , 11.2 Intraday offered cross-zonal capacity (FB allocation ) 26 11,3 Restrictions on DC links - Ramping restrictions Transmission 27 11,3 Restrictions on DC links - Intraday Transfer limits 28 11,4 Yearly report about critical network elements limiting offered capacity a, 12.2a Explicit allocation - The capacity, requested by the market a, 12.2a Explicit allocation - the capacity allocated to the market a, 12.2a Explicit allocation - the price of the capacity a, 12.2a Explicit allocation - the auction revenue per border between BZs b, 12.2b Total Capacity Nominated from explicit allocation c, 12.2c Total Capacity Already Allocated d, 12.2d Day-Ahead Prices e, 12.2a Implicit allocations - net positions e, 12.2a Implicit allocations - congestion income f, 12.2e Total scheduled commercial exchanges g, 12.2f Physical Flows h, 12.2g Transfer capacities allocated between BZ in Member States and third countries 41 Configuration of Transmission capacity allocation a, 13.2 Congestion management - redispatching b, 13.2 Congestion management - Countertrading 44 13,3 Congestion management report (Costs of Congestion management) a, 14.2a Installed Generation Capacity aggregated b, 14.2 b Installed capacity by Production Unit c, 14.2c D-1 aggregated generation d, 14.2d D-1 generation forecasts for wind and solar a, 15.2, 15.3 Planned Unavailability of a generation unit b, 15.2, 15.3 Actual unavailability of generation unit Generation c, 15.2, 15.3 Planned unavailability of production unit d, 15.2, 15.3 Actual unavailability of production unit a, 16.2a Actual generation per unit b, 16.2b Aggregated generation per type c, 16.2c Actual wind and solar power generation d, 16.2d Pumped storage/reservoir stored energy (Aggregated filling rate of water reservoirs and hydro storage plants) a Rules on balancing b, 17.2a Amount of balancing reserves under contract c, 17.2b Prices of the reserved capacity (procured) of balancing reserves d, 17.2c Accepted aggregated offers (volumes) e, 17.2d Volumes of activated balancing reserves (Activated balancing energy) f, 17.2e Prices of activated balancing reserves (energy) Balancing g, 17.2f Imbalance prices h, 17.2g Total imbalance volume per Balancing time unit i, 17.2h Monthly financial balance (Financial expenses and income for balancing) j, 17.2i Aggregated volumes of offers for cross-border balancing activation j, 17.2i Prices for cross-control area for bids and offers j, 17.2i Volumes of cross-control area balancing energy activated none Market entry guidelines for traders and suppliers (full descriptions of the process steps and requirements which have to be 69 fulfilled by new market entrants, like for example here: Wholesale market 70 none Information on electricity trading at PEX 71 none Prices and volumes of OTC standard contracts 24 June 2015: PHLG Decision adopting Regulation 543/2013 Decision 2015/01/PHLG-EnC 25 December 2015: expiry of deadline for transposition and implementation Art 1(1) Decision 2015/01/PHLG-EnC CPs to inform ECS of progress (ECS to monitor and report) Art 1(1) Decision 2015/01/PHLG-EnC Level playing field - access to information provides ability to take efficient decision in the market ENTSO-E developed manuals and operates a central information transparency platform Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/2017 9

10 Western Balkans 6 (WB6) Initiative political support to the process of development of regional electricity market The Vienna Summit (2015) - WB6 initiative Participants decided to take steps to improve energy connectivity in the region: agreed to a short list of four investment projects in the area of energy decided to establish a regional energy market agreed on the priority list of energy soft measures invited the Energy Community Secretariat to take the lead The Paris Summit (2016) Sustainability Charter Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/

11 Policies: WB Summits continue with the commitment to improve connectivity in WB WB6 MoU on regional electricity market (27 April 2016 in Vienna) establishing a framework for future collaboration Signed by the Ministries responsible for energy, TSOs, NRAs and PXs Grant Contract for TA to connectivity in WB in relation to support of the establishing a regional energy market between the European Commission and the Energy Community Secretariat Monitoring and reporting by the Energy Community Secretariat Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/

12 The Soft Measures National removing obstacles at national level Regional strengthening regional cooperation and institutions Cross-cutting measures eliminating price regulation, granting eligibility to all customers, TSO and DSO unbundling, ensuring independence of NRA and applying for observer status in ACER, increase effectiveness of national administrative authorities, timely implementation of Trans-European Network Regulation Implementation of the soft measures within set deadlines to be a precondition for co-financing of the infrastructure projects ECS to facilitate, monitor the implementation and report on bi-monthly basis Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/

13 Overall implementation of the Soft Measures Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/

14 Development of spot markets Slow progress in establishing day-ahead markets: in operation still only one progress SEEPEX in Serbia Montenegro company to be registered FYR of Macedonia - TSO developed an action plan and submitted to the Government for approval process delayed pending Albania APEX establishment Albania-Kosovo market integration Bosnia and Herzegovina Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/

15 Cross-border Balancing National reforms in all WB6 are a prerequisite for further development of cross-border balancing: National balancing markets are still not functional in: Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/ Albania (rules under development) Kosovo FYR of Macedonia Balancing mechanisms operational: Bosnia and Herzegovina Montenegro Serbia Cross-border cooperation: Montenegro and Serbia Bosnia and Herzegovina trilateral contract with Croatia and Slovenia

16 Regional Capacity Allocation Progress in this area, however: TSOs of Kosovo and Serbia are still not implementing Framework and Inter-TSO agreements Serbia has still not joined SEE CAO Regional Capacity Calculation and Coordinated Capacity Calculator based on the Regional Security Coordinators(s) is still pending: Operational - RSC SCC BA, ME, RS - members No progress in establishment RSC SEE, Thessaloniki AL, KS, MK MoU signatories Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/

17 Cross-cutting Measures Progress made in: Albanian TSO was certified and became ENTSO-E member Legally unbundled DSO became operational in FYR of Macedonia Kosovo phased-out regulation of the generation price, as well as the supply price for high voltage customers and system operator losses as of 1 April 2017 All WB6 countries are making certain progress in implementing the Trans- European network Regulation Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/

18 Albania National Individual progress is heterogeneous and hinges mainly on the WB6 Governments decisions expected to be made before Trieste Summit to adopt necessary amendments to the Power Sector Law and pass decision on the establishment of a day-ahead market, to change decision on public service obligation and to legally unbundle the distribution system operator Bosnia and Herzegovina to adopt the 3 rd Energy Package Law Kosovo - to implement Framework and Inter-TSO agreements with Serbia FYR of Macedonia to adopt the 3 rd Energy Package Law Serbia to implement Framework and Inter-TSO agreements with Kosovo to join SEE CAO Montenegro the only WB6 country without major open issues Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/

19 Regional WB6 initiative expended to neighbouring EU MSs and became a multistakeholder platform for electricity market integration in SE Europe Western Balkan 6 MoU on Regional Electricity Market Development and Establishing a Framework for future cooperation signed on 27 April 2016 in Vienna Initial signatories: WB6 (TSOs, NRAs, PXs and Ministries for energy), new signatories: 12 stakeholders from 6 EU MSs - Italy, Greece, Croatia, Hungary, Romania and Bulgaria MoU targets: DAM Market coupling with at least one neighbouring country (by July 2018) Cross-border balancing cooperation among WB6 countries (by December 2018) The Programme Steering Committees for Day-ahead Market Integration (DA MI PSC) and Crossborder Balancing (XB) are operational (meeting held in April in Vienna) Roadmap for implementing the regional day-ahead market coupling is under development and is planned to be adopted by the DA MI PSC before Trieste Summit Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/

20 Grant Contract The Grant Contract on Technical Assistance to connectivity in the Western Balkans, Component 2: Regional Energy Market - signed in June 2016 between European Union, represented by the European Commission, and the Energy Community, represented by the Energy Community Secretariat Beneficiaries are WB6 Ministries responsible for energy, TSOs, DSOs, producers of electricity, NRAs, state aid commissions, competition commissions, and the citizens of WB6 Technical assistance of up to EUR 1 million for creating a regional electricity market started to be implemented in line with the work programme developed by ECS in the close cooperation with WB6 countries and approved by the European Commission Active involvement of all beneficiaries is the key to the efficient implementation of technical assistance This project is supported by the European Union. The contents of this publication are the sole responsibility of the Energy Community Secretariat and can in no way be taken to reflect the views of the European Union. Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/

21 Work Program for TA The Energy Community Secretariat is defined as the main implementing organization tasked to develop a work programme and to oversee the implementation of the project The Work Programme was developed by ECS in close cooperation with the WB6 countries and approved by the European Commission The Work Programme identifies 10 priority projects at national and regional level, in those areas where an insufficient progress was identified and where TA is expected to be efficiently implemented Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/

22 Work Program for TA Spot market SEE WB6 MoU Implementation Project Institutional set-up for DA market (BA, MK, ME) Capacity Building of State Producers Cross-border balancing SEE WB6 MoU Implementation Project National balancing market (AL, KS, MK) Regional balancing market integration Regional capacity allocation CCC creation based on the RSC(s) Cross-cutting measures TSO unbundling (KS, ME, RS) DSO unbundling (AL, BA, ME) Price deregulation (KS, MK) Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/

23 Thank you for your attention! Energy Community Secretariat Power Energy Market Community Integration Secretariat in South East Europe Tuzla, 25/05/