1 Intraday in the CWE region NWE and Bilateral initiatives Common RCC CSE - CWE 28 September 2010

2 Two horizons Near term End of 2010 Bilateral initiatives Belgian – Dutch border Elbas system French – German border Trading platform (ComXerv) linked to DBS capacity platform

3 Two horizons Longer term Launched in May 2010 Implementation: end of 2011 (?) NWE project CWE region + Scandinavian countries + UK

4 CWE Preconditions CWE regulators invite colleagues from Ofgem and Scandinavian regulators  common guidance to NW-EU project. CWE ID Orientation study and the underlying CWE- position comments to be used as a starting point TSOs to actively involve all PXs Discussions are to involve comments from market parties. Implementation ambition is 2011

5 CWE Preconditions No “EMCC-like” scenario for the enduring solution CWE NRAs asked Commitment bilateral projects’ partners: no compatibility problems Commitment of all parties to target model Commitment of all parties to implement a project open to extensions and new project participants

6 NWE Project

7 NWE project NWE to European Target Model Enduring solution close to real time Market based Take scarcity of XB transmission into account Building on CWE ID orientation study February 2010 Remarks by CWE NRAs

8 NWE project Dixit C. Pflanz, NWE project coordinator: Building on existing infrastructure NWE region in first instance Extendability to other regions Close contact with other regions through AHAG Compatible with Day Ahead Continuous trading model Quality and transparency of prices Liquidity of ID market Support ramping constraints

9 NWE project * Presentation by C. Pflanz 29/07/2010

10 NWE project NRAs of CWE region + Scandinavian + UK Cooperation between NRAs NWE meetings (29 July 2010 – 9 November 2010) NRA NWE meeting 11 October Set framework

11 NWE – centralized target solution * Taken from PX presentation on 26/07/2010 Shared Order Book 1 Matching Algorithm APX: NL market Clearing/ Notification Systems (APX) TSO operator(s) Capacity Matrix BPX: BE market Clearing/ Notification Systems (APX on behalf of BPX) NPS: Nordic, GE market TSO operator(s) Other market operator/OTC Clearing/ Notification Systems (NPS) Capacity Matrix Platform operator(s)

12 NWE– decentralized target solution * Taken from PX presentation on 26/07/2010 Shared Order Book 1 Matching Algorithm APX: NL market Clearing/ Notification Systems (APX) TSO operator(s) Capacity Matrix Slave BPX: BE market Clearing/ Notification Systems (APX on behalf of BPX) NPS: Nordic, GE market Regional Capacity Matrix Other market operator Clearing/ Notification Systems (NPS) Shared Order Book 2 Matching Algorithm Capacity Matrix Slave Regional Capacity Matrix Cross matching of orders Platform operator(s)

13 NWE project Belpex and APX-ENDEX view on CMM Necessity of a harmonized capacity platform is more questionable EPEXSpot view on CMM  Clear harmonised capacity platform (or CMM) is important APX-ENDEX and Belpex view on SOB Only the centralised approach can guarantee the best economical performance TSOs support this approach. EPEXSpot view on SOB mainly an IT design and performance question economic efficiency remain the same SOB function: sharing the liquidity of the PXs order books

14 Bilateral Projects Belgium - Netherlands

15 Belgian –Dutch border Foreseen end 2010 Documents under approval Elbas model as-is Trading on Elbas platform: BE and NL as new zones within Elbas. Extendability towards Scandinavian countries ~ Elbas Close monitoring of block orders use

16 Bilateral Belgian - Dutch Elia + TenneT operators: Real-time capacity monitoring Re-use of pro-rata allocation platform Elbas system: Hosted by NPS Separated from NPS Elbas market (as no capacity is made available yet), but the same instance is used = opportunity Well-known, appreciated, implemented and deployed, reliable and proven (uptime 99.98%) Local operations by APX/Belpex : Existing membership arrangements are retained Existing risk management, reporting and settlement systems are retained Well-known, appreciated, implemented and deployed, reliable and proven * Taken from PX presentation on 26/07/2010 Shared Order Book Matching Algorithm APX/NL market Clearing/ Notification Systems (APX) Capacity Matrix BPX/BE market Clearing/ Notification Systems (APX on behalf of BPX)

17 Bilateral Belgian - Dutch * Taken from PX presentation on 26/07/2010 Shared Order Book Matching Algorithm APX: NL market Clearing/ Notification Systems (APX) TSO operator(s) Capacity Matrix Master (Slave GE-NL, GE-DK) BPX: BE market Clearing/ Notification Systems (APX on behalf of BPX) NPS: Nordic, GE market Clearing/ Notification Systems (NPS) Open Capacity Matrix: GE-NL, GE-DK TSO operator(s) Direct AccessOther interim solutions (FR-DE?)

18 Bilateral Projects France - Germany