Identifying priorities for GRI NW and setting agenda for 2014-2017 Menno van Liere Programme Officer GRI NW 11th Stakeholder Group meeting GRI NW TITRE

NRAs within GRI NW have recently launched a project to identify priorities and set regional agenda for 2014 to 2017 GRI NW European Energy Work Plan 2011 – 2014 is starting point Work plan identifies three priorities: Pillar I Monitoring implementation of network codes Pillar II Pre-comitology meetings on a regional level Pillar III Pro active work (including pilot projects) Out of scope for project

GRI NW must (given work load on European level) identify where region can contribute the most to create regional market Agenda must set clear path (in terms of projects) for upcoming years Goal of project Envisioned approach Identify projects that: a) contribute to improve functioning of wholesale markets at regional level b) Stakeholders want to commit to How can functioning of wholesale markets at regional level be improved Which identified issues can best be addressed by GRI NW What projects should have priority for GRI NW in period 2014 – 2017

The aim is to present the final regional agenda during the next Madrid Forum (April 2014) Following consultation process, final agenda will be set Oct Nov Jan Feb Mar Apr Drafting of regional agenda NRA analysis Closing of consultation Invitation to stakeholders for input Launch of consultation Final publication 4

Problem identification: What are the relevant issues? NRAs within GRI NW have completed a questionnaire to get an initial list of issues that might qualify for further attention ACER Market monitoring report was starting point for questionnaire Problem identification: What are the relevant issues? Working directions: Where to start? Lack of market liquidity Lack of market transparency Congestion in cross-border flows Integration of renewables Source diversification Infrastructure development (PCIs) Market integrity and transparency Gas target model Early CAM implementation Network code “Trials”

NRAs within GRI NW have drafted an initial long list of relevant issues that could be addressed There is not really one single issue that was flagged by many NRAs Quality of gas Lack of liquidity on forward markets Lack of market transparency: infrastructure (availability, flows) Lack of market transparency: hub (price signals, price formation) Lack of liquidity on spot markets Physical & contractual congestion on CB-flows (NCs) Integration renewables in system (biogas, power-to-gas) Source diversification (in relating to LNG, pipelines) doesn’t need the attention of GRI NW

NRAs within GRI NW have also have drafted an initial long list with working directions that the region could pursue Working directions that should get top priority by GRI NW NC ‘trials’: tariffs GTM: Study into zone merging Working directions that should get priority by GRI NW NC ‘trials’: CMP, Balancing, Interoperability Infrastructure development (PCIs): infrastructure and storage GTM: renewables integration and pilot for implicit allocation Early CAM implementation: day ahead/within day capacity Early CAM implementation: forward capacity REMIT: best practice /common approach

Several interviews will be conducted shortly and other GRIs will be contacted to understand their work plan Any input, suggestions/ ideas within the next couple of weeks are welcomed! Requiring input from stakeholders Interaction with other GRIs to understand their workstream Based on all input collected: drafting of a regional agenda

Pre-comitology meetings should create early understanding of FGLs/NCs to ensure efficient comitology process Next meeting on 27 November (focus on tariffs, interoperability, rules for trading) An open dialogue between MS, TSOs, NRAs, EC… NRAs explain principles in the Framework Guidelines; TSOs explain design choices in the network codes European Commission – if applicable –explain ratio of guidelines (e.g. CMP) …leads to better understanding towards positions on FGLs/ NCs… … and should result in more efficiënt comitology process

NRAs within GRI NW have published the final position paper on the feasibility of implicit allocation in the gas market Several changes introduced in position paper following consultation responses Response C Response B Response A EoC document Final conclusion: implicit allocation can have added value, but assess feasibility once CAM and CMP are up and running Position paper Documents are published on the GRI NW part of the ACER website

Thank you for your attention! www.acer.europa.eu 11