1 Market coupling Commission de Régulation de l’Electricité et du Gaz Fonctionnement Technique des Marchés September 2010 Common CSE – CWE RCC Meeting

2 Monitoring meeting 17 September  Agreement on the simultaneous launch of the  Interim Tight Volume Coupling (ITVC)  = CWE + EMCC  Phase 1: 9 November 2010  Phase 2: 14 December 2010 = NorNed cable  Subject to  Regulatory approval  Final testing

3 Monitoring meeting 17 September  Testing: project on track  Status and final report following  Public will be informed in addition at iTVC Seminar ( )  Commitment of all project parties made transparent in common press release

4 CWE market coupling – regulatory issues  UIOSI - Solved  Costs will be borne by the TSOs  Firmness - Solved  Curtailment will impact neither market participants nor market results of the PXs  The resulting netted cost of physical measures borne by demanding TSO  Congestion on the interconnector: 50/50 key

5 CWE market coupling – regulatory issues  Minimum capacities - Solved (subject to CREG Board’s approval)  Solution without minimum capacities  Close regional monitoring of the XB capacity level  AHAG study on the influence of the size of the zones in the CWE region

6 ITVC ? * Presentation by EMCC, 12 March 2010 SE SESAM FIN SESAM DK1A SESAM SEA SESAM NO3 SESAM NO4 SESAM NO2 SESAM NO1 SESAM DK1 SESAM DK2 SESAM GE EPEX BE BELPEX 950/ FR EPEX NL APX AUT EPEX EST SESAM Interim Phase Coupling (IPC) will combine EMCC‘s Nordic-German coupling and market coupling in the CWE region IPC will be an intermediate solution IPC will consider two regions with many market areas and interconnectors IPC will combine two regions with different market coupling schemes (i.e. tight volume coupling with EMCC and price coupling in the CWE region)

7 ITVC ? * Presentation by EMCC, 12 March 2010 Current scope of EMCC: DK1: Interconnector between DK West - Germany (NTC: 950/1,500 MW) Capacity holder: transpower stromübertragungs gmbh, Energinet.dk DK2: KONTEK between DK East - Germany (NTC: 550 MW) Capacity holder: Energinet.dk, Vattenfall AB, Vattenfall Europe Transmission Baltic Cable between Sweden and Germany (NTC: 600 MW) Capacity holder: E.ON Sverige, Statkraft

8 ITVC ?  Implicit MC  Price coupling in CWE region  Tight Volume Coupling on EMCC  Germany – Denmark  Interim solution  Price coupling as enduring solution

9 Fallback Solution  Shadow explicit auctions  Full decoupling of the PXs  Shadow auction system owned by CASC  Permanent data base where market parties can file bids  If by 13:40h no MC results → merit order on available bids

10 CWE capacity calculation  Proposed method for CWE capacity calculation  Existing ATC methods  Coordinated security check and if necessary capacity reduction