SPOC meeting: Trans European Replacement Reserve Exchange Amine Abada (RTE) 07 th Nov 2013

Agenda 2 Context Project - Design Status of the project Working axes Plan of the Design Phase Preparation of the future phases

Context

TSOs = 80% of TSOs using RR 4 REN NGET TERNA RTE REE

The Design of TERRE solution will be compliant with the requirements of:  The FW guidelines on Electricity Balancing  The NC on Electricity Balancing Centralised and automatic management of XB capacity Offer based on “cheapest” internal bids Improved matching process… Context 5 The TERRE solution will enhance the experience of current Balit solution used between NG and RTE being extended to the SWE region by the beginning of 2014 The TERRE project will use as an input the previous work of REN, REE and RTE on enduring solution for the exchange of balancing energy between TSOs

Context 6 Total volume activated during this period = 205GWh Overview of Balit SO-SO exchanges Dec 2011 to August 2012

Project-Design

MoU and NDA which cover the design phase In signature process Status of the project 8 Working axes defined and shared between TSOs…

Definition of the standard TERRE products RR offer RR need Working axes 9 Definition of matching process and settlement procedure TSOs RR needs Netting «FCFS» or «Algorithmic optimization» Marginal price or Pay as bid Financial issues Definition of Financial settlement between the TSOs Study of the potential financial benefit 213

Timing and scheduling Working axes 10 ATC management Centralized ATC management Interaction between the Intra-day market and the TERRE process Governance issues Preparation of the NRAs approval process Preparation of the Implementation Phase 456

11 High level plan of the Design Phase 11 Implementation : May 2014  April 2015 Implementation : May 2014  April 2015 Deployment : From May 2015 Deployment : From May 2015 Extension: 2016 Extension: 2016 Future steps : Expected plan Compliant with FW EB timelines 11 October November December January Axes 2013 TERRE - Design 2014 February March April Governance ATC management Timing and scheduling Financial issues Matching process TERRE products End of the design phase May June

Preparation of the future phases 12 High level Business Process and the result of the TERRE solution design March 2014 Functional and Non-Functional specificationsApril 2014 Detailed project implementation planApril 2014 Drafting of NDA agreement of implementation phase (to be confirmed) May 2014 Drafting of Cooperation agreement of implementation phase May 2014 Drafting of PMO procuring process for implementation phase May 2014 Launching of regulatory approval June 2014