Congestion Management on the Italian border for the year 2005

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Congestion Management on the Italian border for the year 2005 European Electricity Regulatory Mini-Forum on congestion management Milan, 25th January 2005

NTC on the Northern Italian Border [MW] - year 2005 NTC values assessed by a Technical Task Force (TTF) and approved by a Steering Committee composed by all the TSOs involved Definition of ‘balanced’ and ‘unbalanced’ NTC values Definition of a procedure to be applied in case of security problems and/or changes of NTC values Possibility to review NTC values during the year according to TTF analisys and operation results (1) New S.Fiorano-Robbia line in operation

Congestion management on the Italian border - year 2005 NTC Capacity managed by GRTN: Congestions on the Italian electrical border are solved in the day ahead market: selling bids and bilateral transactions are referred to the Italian virtual zones NTC capacity assigned by neighbouring TSOs: Assignees can offer in the day ahead market or schedule bilateral transactions (North zone)

Congestion management on the Italian border - year 2005 Congestion problems on the Italian electrical border are solved in the Day Ahead Market through implicit auctions referred to each virtual zone for the capacity managed by GRTN : selling bids bilateral transactions €/MWh Pool transactions Virtual Zone Pvirt z X MWh Bilateral transactions Selling Bids Bids/Bilateral transactions through capacity assigned by CH TSOS Bids/Bilateral transactions through capacity assigned by RTE Implicit Auction Implicit Auction F VIRTUAL ZONE CH VIRTUAL ZONE NORTH ZONE (North-West border)

Congestion on the border Bilateral transactions Congestion management on the Italian border - year 2005 Pool transactions Virtual zone Pvirt North zone PN PPUN Qi TL Virtual Zone €/MWh Qi > TL Value of CCC rights PPUN Pvirt Value of CCCI rights PN X Pvirt MWh (PN – Pvirt) Congestion on the border (PPUN – PN) Congestion in Italy Bilateral transactions Selling Bids TL PPUN = Italian national price (Buy) PN = North zone price Pvirt = Virtual zone price

Balancing (real time market) Day (n-1) Day (n) 10:30 AM 2:30 PM 9 PM 0:0 12 PM Energy Energy Services Services Day ahead market (MGP) Adjustment Market (MA) Dispatching services market (MSD) Real time balancing session System Marginal Price System Marginal Price Pay as bid Pay as bid MSD highlights Only one set of offers (Buy/sell) used for both day ahead and real time sessions Qualified power units only GRTN as unique counterpart Reserve Voltage adjustament Intra-zone congestion management Balancing Unplanned adjustaments: Outages Real time countermeasures