José Sierra, RIG Chair Rafael Gómez-Elvira (RIG Chair Team) XIX Florence Forum 14 December 2010 ERGEG Electricity Regional Initiatives Status Review

2XIX Florence Forum, 14 December 2010 PART 1: The ERGEG ERI Status review The RIs Status Review The RIs under the new context of the Third Package FGs & NCs: Pathways to take for regional projects Future interaction between RIs and the FG process PART 2: Progress at a glance from the perspective of the draft FGs on CACM Capacity Calculation Long-term Day-Ahead Intraday List of contents

3XIX Florence Forum, 14 December The ERGEG ERI Status Review The RIs Status Review Published on 10 November 2010 Contributions from ERI & GRI TFs Progress achieved in the regions since November 2009 Analysis per region and per topic First time - Case studies & policy advice from regions’ experiences

4XIX Florence Forum, 14 December 2010 The RIs under the new context of the Third Package RIs have an important role to play in: Encouraging progress on the ground Informing the development of the cross-border regulatory framework Encouraging early implementation of draft FGs & NCs where this is practicable RIs organised to facilitate necessary co-ordination of key actors. 1. The ERGEG ERI Status Review

5XIX Florence Forum, 14 December 2010 FGs & NCs: Pathways to take for regional projects After years of voluntary progress, the time to implement is coming with the existing platform. FGs & NCs - the more defined they are the more regional progress will happen. Feedback to ACER. The FGs on CACM are setting the framework to converge within and among regions. Regions have to move towards the target model (capacity calculation, LT, Day-Ahead, Intraday) 1. The ERGEG ERI Status Review

6XIX Florence Forum, 14 December The ERGEG ERI: Progress at a glance from the perspective of the draft FG CACM Capacity calculation A harmonised and more coordinated methodology for capacity calculation based on physical network reality CSE & NE already applies a common transmission network model (ATC) CWE and CEE regions: ongoing projects for flow- based capacity calculation  ERGEG encourages enhanced coordination at European level

7XIX Florence Forum, 14 December 2010 Long-term A common allocation platform with common allocation rules CSE region and northern borders of Switzerland: extension of CASC-CWE platform beginning of Rules harmonisation between the two regions on schedule. CEE region: implementation of CAO with common allocation rules beginning of FUI region: ongoing projects for coordinated regional allocation (platform) SW region: a pending election (interaction with MIBEL)  ERGEG welcomes progress made at cross-regional level 2. The ERGEG ERI: Progress at a glance from the perspective of the draft FG CACM

8XIX Florence Forum, 14 December 2010 Day-ahead One single Price Coupling all over Europe From ITVC to price coupling in CWE-NE Price coupling Italy-Slovenia (CSE) Price coupling MIBEL-CWE (SW) Price coupling Britned-CWE in IFA in 2012 (FUI) Price coupling NE-Estonia:  ERGEG encourages coordination of all the ongoing projects and a strong co-operation between PXs and TSOs to implement a pan-European price coupling 2. The ERGEG ERI: Progress at a glance from the perspective of the draft FG CACM

9XIX Florence Forum, 14 December 2010 Intraday Implicit continuous & auctions if sufficient liquidity Implementation of an open intraday continuous trading between France and Germany Ongoing NWE ID project between GB, CWE and Nordic regions SW: ongoing improvement of intraday model in regional interconnections FUI: ongoing SEM introduction of intraday trading NE-Baltic: continuous implicit allocation to Estonia  ERGEG encourages development of projects at regional level 2. The ERGEG ERI: Progress at a glance from the perspective of the draft FG CACM

10XIX Florence Forum, 14 December 2010 Thank you for your attention!