ENTSO-E working to fulfill the 3 rd Package

Transcription

1 ENTSO-E working to fulfill the 3 rd Package Regulators Role in Developing Infrastructure, Florence February Geoffrey Feasey, ENTSO-E Corporate Affairs Manager

2 ENTSOE s role in implementing European Energy Policy Why ENTSO-E is required how work gets done- membership resources The work we do work programme Network codes Ten Year Network Development Plan Summing up Page 2

3 Transmission is key to delivering EU policy goals EU Energy policy goals Sustainability / GHG: More renewables, further from load More heating and mobility with electricity Competitiveness/market integration: More long-distance flows Security of supply More optimal resources sharing

4 Work Programme driven by Regulation 714/ Commission / ACER prioritisation Network code development priorities: General generation connection conditions with special focus on wind generation Design for market integration: - capacity calculation - intra-day market - day-ahead market - forward market Operations: - Operational security and reliability - Primary, secondary and tertiary control and reserves Ten-Year Network Development Plan Energy Infrastructure Regulation Commission and Council priority Parliamentary scrutiny Further key areas for TSO cooperation: R&D Plan for TSO needs Coordination of operations Long term strategy for system dev t Transparency of fundamental data Other market aspects Page 4

5 Regulation 714/2009 an important raison d être for ENTSO-E Article 4: European network of transmission system operators for electricity Completion and functioning of the internal market in electricity and cross-border trade Optimal management, coordinated operation and sound technical evolution of the European electricity transmission network Article 6: Establishment of network codes Article 7: Issues addressed by network codes Cross border network issues and market integration issues without prejudice to the Member States right to establish national network codes Article 8: Tasks of the ENTSO for Electricity Network codes Common network operation tools Non-binding Community-wide 10-year network development plan, including a European generation adequacy outlook, every two years Work programme, annual report, summer/winter outlooks, monitoring Irina Minciuna 29/11/2011 Page 5 of 17

6 ENTSO-E delivers a range of services but TSO resourcing critical to success NC System operation TYNDP 1- Research & Development Plan 2- Monitoring and Knowledge Sharing NC Market Page 6

7 ENTSOE Regional Groups The most appropriate framework for grid development in Europe Every RG gather countries sharing the same common concerns Overlaping, in order to insure overall consistency Maarit Uusitalo 30 September

8 AoA implies obligations on Members 1. 3 rd Package is important that our Members comply with unbundling 2. Expectation that all ENTSO-E Members will be compliant with network codes as adopted by ENTSO-E and passed for comitology. 3. Exclusions can apply to Members, for example 1. after receiving the opinion from the Commission for instance material delay in implementing the Third Package/International agreement on the Third Package 2. if deemed appropriate in case of material breach (e.g. non compliance with network codes) 4. For all ENTSO-E Members there is a clear obligation to obtain and maintain its certificate from its NRA and compliance with network codes, regional rules and others Page 8 of 21

9 ENTSO-E publications (1) Who is ENTSO-E ENTSO-E in figures ENTSO-E s official mandate ENTSO-E VISION Key deliverables in 2011 Investments in electricity infrastructure ENTSO-E s organizational structure ENTSO-E Governance Overall Load flows Day / Night Physical Energy Flows Grid information Generation Structure of ENTSO-E ENTSO-E office holders May 2011 Towards a European transmission system for 2020 and beyond. Stocktaking of the interim period preparing ENTSO-E for the entry into force of the 3rd] Building the infrastructure Europe needs in 2020 and 2050 Moving towards a target model: creating a transparent and efficient electricity market Maintaining an increasingly complex pan-european system reliable and secure June 2011 Page 9

10 ENTSO-E publications (2) Wide spectrum of retrospect figures on power systems of member TSOs -production, consumption, cross-border exchange and network components November 2011 ENTSO-E Grid Maps September 2011 Page 10

11 ENTSO-E publications (3) Scenario Outlook and Adequacy Forecast February 2011 Winter Review and Summer Outlook Report May 2011 System Adequacy Retrospect June 2011 Work Program 2012 September 2011 Summer Review and Winter Outlook Report November 2011 More publications available at Page 11

12 Why are network codes important? Become legally binding following approval by comitology Every TSO, generator and consumer will have to comply While they will not duplicate national regulation, national regulation has to be consistent Creating fit-for-purpose network codes is in everyone s interest.

13 The Network Code Development Process Request to draft a FWGL EC On a topic identified in art.8 (6) of Regulation EC 714/2009 Development of ACER Framework Guidelines ACER EC Development of the FWGL (6 month period) Request for ENTSO-E to draft a network code In consultation with ENTSO-E, stakeholders, with input from Ad-Hoc Expert Group According to FWGL submitted by ACER Period in which ENTSO-E can develop a NC (12 month period) Development of Network Codes ENTSO-E ACER Assessment of NC In consultation with stakeholders according to FWGL Recommendation of NC to EC EC Comitology Process (where appropriate) In consultation with all stakeholders resulting in legally binding NC

14 The network codes required to facilitate the IEM Markets System Development System Operations Capacity allocation & congestion management Balancing Generator connection DSO & industrial load connection Operational security Operational planning & scheduling Load frequency control & reserves

15 TYNDP - Main drivers Massive integration of renewable energy sources» in Northern Europe» in Southern Europe Important East-West and North-South energy flows in South-East and Central-South regions Baltic States integration Connection of new conventional power plants Power supply to some large European cities and regions

16 The TYNDP 2012 was is it? 8 documents About 50 pages each, complementing each other Scenario outlook & adequacy forecast report (SOAF) 6x Regional Investment Plans reports Detailed grid development issues, reg. level 10-year Network Development Plan report Synthesis at pan-european level

17 The 3rd Package defines the TYNDP Non binding Every 2 years EU-TYNDP Generation adequacy outlook 5 yr up to 15yr ( 2025!) modelling integrated networks Scenario development Assessment of resilience Based on reasonable needs of system users Identify investments gaps Review barriers to increase cross border capacities arising from approval procedures Regulators check consistency Build on nat. gen. adequacy outlooks and invest. plans Take into account Non binding Every 2 years Regional Investment Plans Binding Every year Nat. TYNDPs Existing and forecast supply demand Efficient measures to guarantee adequacy & SoS Indicate main transmission infrastructure to be built Based on reasonable assumptions about evolution of generation Supply consumption and exchanges

18 2012 TYNDP will show improved features Explicit definition of projects of pan-european significance Public procedure to identify the 3 rd party projects More scenarios : top down + bottom up scenarios + Nuclear phase-out sensitivity analysis Regional market & network studies based on the common set of data Project assessment based on a set of clear indicators More compact reports easy to understand

19 TYNDP Process builds on TSOs knowledge Market studies NTCs 2010 G/L dev. areas + technical needs in 2020 (+) Expected bulk flow patterns Transmission adequacy Network studies Proposed projects Grid transfer capability increases

20 Key data (pilot) TYNDP 2010 The TYNDP projects represent ~14% of existing lines Total projects km AC < 300 kv AC > 300 kv 2900 km km 83% 17% 22% 56% long term 78% upgrade new 23 to 28 billion for the first five years 44% mid term DC 9600 km Page 20

21 Summing up Challenges for grid development: EU energy policy goals, especially SoS and RES, require massive development of transmission grids, both between and within countries Permitting and public acceptance is the key issue; without radical changes policy objectives will not be met A huge financial effort requires new financing tools and regulatory stability...and for integrating markets: Implement the EU Target model for market design across Europe by 2014 The network codes and TYNDPs will form the basis for meeting the challenges but politics, regulation and the public (acceptance of infrastructure developments) all need to do their part. Page 21 3 February 2012

22 Any questions?? Thank you for your attention