EURELECTRIC Views on the Regional Integration process CSE Stakeholder Group Meeting EURELECTRIC Views on the Regional Integration process Marco Foresti, Advisor - Markets Unit Milan, 16 November

General Process  SG meeting necessary to check status of regional integration process + constructive exchange of views: more frequent meetings (or IG with stakeholders invited)  Numerous issues to be addressed but limited resources: what are the KEY priorities?  Need of clear and agreed planning  No need to “reinvent the wheel”: EU targets and efficient models are already in place  Closer cooperation of Regts and TSOs necessary + MS support + stakeholders involvement 2

Market Coupling  IT-SL market coupling project is a positive step forward despite delays  However, regional market coupling project still unclear: No clear planning No clear leadership nor MS support  Need of a clear roadmap with intermediate steps: How to ensure progressive integration with EU market coupling project(s) (i.e. PCR, CWE, etc.) What pre-conditions need to be put in place? E.g: Align gate closure, compatibility of IT algorithm? 3

Intraday  Cross-border intraday markets are a recognised key EU priority for all stakeholders  Significant progress at EU level in the past 18 months in defining target model +roadmap (PCG/AHAG)  Several ongoing projects in CWE are committed to develop consistently with agreed EU target and closely cooperate with EC + ERGEG (via ENTSO + EuroPEX)  Terna proposal of Explicit Auctions clearly not in line with the rest of EU! Interim solutions should be a step towards target model…why waste time and resources for an inefficient model which the market doesn’t need? 4

Other issues  Integration of Switzerland is fundamental for the region: More transparency from EC negotiations with CH government What can Regulators and TSOs cooperation achieve in the meantime? EC + Regulators + TSOs to define possible next steps and share them with market stakeholders  Adoption of CASC for LT explicit auction is a very positive step forward  Financial firmness needs to be ensured  Announced new (underground) line IT-FR: costs and timetable to be clarified + necessary MS+Regts support 5