The latest update of power market in Latvia

Transcription

1 The latest update of power market in Latvia Ainārs Meņģelsons Public Utilities Commission of Latvia Director of Energy Department 21st Baltic Electricity Market Forum, Vilnius, May 3, 2016

2 Content Some data of economics Latest on NP Latvia s price zone Cooperation, REMIT and Transparency Congestions and PTR auction results Lessons from full retail market opening Update on PCI Challenges/plans 2016

3 Some data of economics Gross Domestic Product (GDP) 2013 versus ,0 % 2014 versus ,4 % 2015 versus ,7 % Inflation December 2013 versus December ,4 % December 2014 versus December ,2 % December 2015 versus December ,3 % Electricity consumption 2013 versus ,8% 2014 versus ,1% 2015 versus % Gas consumption 2013 versus ,8% 2014 versus ,9% 2015 versus ,0%

4 Load of NordBalt and LitPol Link 90% 80% 70% 60% Load of NordBalt and LitPol Link cables in % of total available capacity 82% 80% 69% 65% 50% 40% 30% 26% 41% 20% 10% 0% 0% 11% 4% January February March SE4 > LT PL > LT LT > PL

5 Congestion on EE-LV border 90% 80% 75% Congestion time from EE to LV, % of total 82% 70% 60% 50% 40% 30% 24% 20% 10% 0% 11% Jan Feb Mar Apr Mai Jūn Jūl Aug Sep Okt Nov Dec

6 GWh EUR/MWh Nord Pool Elspot volumes and prices in Latvia NP bought amounts and weighted average prices, ,96 60,72 70,00 60, , ,92 31,10 40,00 30, , , Price 2014 Price 2015 Price 2016

7 GWh GWh Nord Pool Elbas volumes in Latvia NP Elbas bought volumes NP Elbas sold volumes Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 Buy 2015 Buy 2016 Buy 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 Sell 2015 Sell 2016 Sell

8 REMIT implementation CEREMP registration status: 25 MP registered April 7, 2016: data collection started (ACER) NRA s co-operation new challenges: Another Nemo EPEX Elspot (not in Baltic countries yet, but in Nordic) Common Nordic-Baltic Wholesale Market monitoring and common UMM monitoring

9 EUR/MWh PTR-Limited capacity auction on EE-LV border 2015, ,00 16,63 16,71 16,00 14,33 14,00 13,54 12,7 12,00 10,00 9,94 8,2 8,00 7,11 6,67 5,26 4,25 6,58 6,00 4,81 6,1 4,00 2,00 2,41 2,7 0,59 2,83 0,

10 EUR/MWh Prices and PTR-Limited auction results 170 Price difference EE-LV and PTR-Limited on EE-LV border auction results Yearly PTR 4,55EUR/MWh 1st Quarter 2,42EUR/MWh January 3,40EUR/MWh February 3,03EUR/MWh March 2,11EUR/MWh Sau Sau Sau Sau Sau Vas Vas Vas Vas Kov Kov Kov Kov EE->LV Yearly PTR Quarterly PTR Monthly PTR

11 Legislative changes/ actions Draft amendments to Electricity Market Law introducing obligations and tasks of an aggregator (demand side response), as well as setting out principle how the public trader and the system owner shall pay the state fee for the regulation of public utilities; Law on Energy Efficiency (entered into force on March 29, 2016)

12 New DSO tariffs In January NRA received an application from AS «Sadales tīkls» for approval of new DSO tariffs Tariffs foresee the following changes: For household customers fixed tariff component will be applied At the same time tariff variable component will decrease In average new DSO tariffs will increase for 12% Public hearings on new tariffs were held with the following customer groups: Pensioners; Industry stakeholders; Agriculture stakeholders

13 100% opening of market in Latvia, first results Introduced centric model one bill to household customer Universal service fixed price offer for one year Last resort supply provided by DSO based on competitive bid Easy switching of customers via DSO designed and successfully implemented service platform 15 traders active in a retail market 4 traders are active in household segment, 100 % market opening proceeded relatively quite: Lower wholesale prices Launching of informative campaign IT systems of DSO were prepared

14 Open electricity market for households Main concerns of household users in open market conditions: Exchange Spot price offers How Exchange Spot price is calculated Smart meters 1.25% of households have selected Exchange Spot price, the rest are using Fixed price contract Around smart meters are installed to household customers today

15 Projects of Common Interest (PCI) On 18 November 2015, the European Commission has adopted the second Union list of 195 PCIs, including 108 in electricity, 77 in gas, 7 in oil and 3 smart grids: new PCIs - «Baltic corridor» for increase capacity through the Baltic countries till 600MW: internal line Riga CHP2- Riga HPP (PUC received investment request on ) replacement of 330kV interconnection lines Tartu(EE) Valmiera (LV) and Tsirgulina (EE) Valmiera (LV) (Possible investment requests will be presented in 2017) Status on PCI implementation: Kurzeme Link 3rd stage (Venspils, Tume, Imanta) the board of AST accepted the results of tender on construction company, in 2016 will continue geological monitoring in Ķemeru national park and preparing of topographical plan, planned commissioning rd EE-LV interconnection (between Kilingi Nõmme (EE) and Riga TEC 2 (LV) Environmental impact assessment (EIA) will be performed also together with «Rail Baltica» project, public consultations has been finished, transmission line construction will begin at the end of 2016.

16 Challenges/plans 2016 April 7, 2016 starts data collection on trades outside OMP IT security policy to receive wholesale market data from ACER Online date reporting and processing system will be commissioned in May 2016 Yearly responsibilities - TSO 10 year s development plan, TSO Compliance with the requirements of certification and independence and DSO independence review Network Codes (NC) - plans for 2016: Supervision of designated NEMO Nord Pool; Waiting for all NRAs solution on Capacity Calculation Regions (ERF); MCO has been presented on April 14, 2016, evaluation in the CACM WS - All NRAs started to evaluate common grid model methodology, generation and load data provision methodology, the congestion income distribution methodology (will be presented by the TSOs in 2016) HAR will be presented after the FCA NC will be in force, coordination between the NRAs within the WG

17 THANK YOU! Ainārs Meņģelsons Public Utilities Commission of Latvia Director of Energy Department Sabiedrisko pakalpojumu regulēšanas komisija